ITC comparison showing short fall in ITC claim
This query is : Resolved
Srimannarayana
(Querist)
02 February 2025
While filling GSTR3B filed with selecting Nill rereturn due to this we have not claimed ITC in 2023 ITC comparison statement showing short fall. We have not utilise the same. Please suggest what to do
12 August 2025
If you've filed GSTR-3B as Nil return for a certain period in FY 2022-23 or 2023-24, and now the ITC comparison statement (e.g., in GSTR-9 or during audit) is showing a shortfall in ITC claim, here's how you can handle it:
🔍 Situation:
ITC was eligible and available in GSTR-2B.
But you filed GSTR-3B as Nil for that period (no ITC was claimed).
ITC still not utilized or reflected in your books.
ITC comparison (e.g., by GST department or during reconciliation) is showing this as a shortfall.
✅ What You Can Do Now:
1. Check Eligibility to Claim ITC Now
Under Section 16(4) of CGST Act, ITC must be claimed on or before:
30th November of the next financial year, or
Filing of annual return (GSTR-9) — whichever is earlier.
⚠️ So, if ITC pertains to FY 2022-23, you can no longer claim it in GSTR-3B now (deadline was 30 Nov 2023).
If ITC pertains to FY 2023-24, and if you haven’t filed GSTR-9 yet, you may still claim in current GSTR-3B (before 30 Nov 2024).
2. If ITC Cannot Be Claimed – Reversal and Disclosure
If ITC is no longer claimable, it should be reversed and disclosed appropriately in:
Books of accounts (debit ITC asset, credit expenses or P&L).
Annual return (GSTR-9) – show difference in Table 6/7 and Table 8D (ITC not availed).
3. If Claim Is Still Valid – Claim in Current 3B
If you're within the deadline (e.g., for FY 2023-24):
Claim the ITC in next available GSTR-3B.
Maintain proper documentation and reconciliation.
Disclose it in Table 4A of GSTR-3B.
Report appropriately in GSTR-9 later.
✍️ Recommendation:
Do a monthly ITC reconciliation (GSTR-2B vs Books vs 3B).
Ensure accurate reporting, even if no sales – don't file Nil returns if purchases are booked.
If an audit is pending, disclose and explain this properly with remarks.
🔍 Situation:
ITC was eligible and available in GSTR-2B.
But you filed GSTR-3B as Nil for that period (no ITC was claimed).
ITC still not utilized or reflected in your books.
ITC comparison (e.g., by GST department or during reconciliation) is showing this as a shortfall.
✅ What You Can Do Now:
1. Check Eligibility to Claim ITC Now
Under Section 16(4) of CGST Act, ITC must be claimed on or before:
30th November of the next financial year, or
Filing of annual return (GSTR-9) — whichever is earlier.
⚠️ So, if ITC pertains to FY 2022-23, you can no longer claim it in GSTR-3B now (deadline was 30 Nov 2023).
If ITC pertains to FY 2023-24, and if you haven’t filed GSTR-9 yet, you may still claim in current GSTR-3B (before 30 Nov 2024).
2. If ITC Cannot Be Claimed – Reversal and Disclosure
If ITC is no longer claimable, it should be reversed and disclosed appropriately in:
Books of accounts (debit ITC asset, credit expenses or P&L).
Annual return (GSTR-9) – show difference in Table 6/7 and Table 8D (ITC not availed).
3. If Claim Is Still Valid – Claim in Current 3B
If you're within the deadline (e.g., for FY 2023-24):
Claim the ITC in next available GSTR-3B.
Maintain proper documentation and reconciliation.
Disclose it in Table 4A of GSTR-3B.
Report appropriately in GSTR-9 later.
✍️ Recommendation:
Do a monthly ITC reconciliation (GSTR-2B vs Books vs 3B).
Ensure accurate reporting, even if no sales – don't file Nil returns if purchases are booked.
If an audit is pending, disclose and explain this properly with remarks.
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