ITC Decrease

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This discussion addresses a common issue where the Input Tax Credit (ITC) recorded in company books differs from the ITC available on the GSTR portal. This often occurs when a supplier issues a debit note for short receipts of goods, leading to a reduction in ITC. The advice provided clarifies that once you've reduced ITC based on the debit note, your compliance for that period is met. When the supplier files their credit note, your ITC in GSTR-2B will decrease, and you'll need to reflect this reduction in your GSTR-3B for that specific month.

Nisha Kathuria

Nisha Kathuria (Querist)
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02 March 2023 Dear Sir

We have Send Dr. Note to Supplier for Goods Shorts from Supplier reduce the ITC in books but Supplier has yet not Reflect in his GSTR-1 Now ITC as per books and ITC available as GSTR portal are Difference so please suggest what to do in case.

CA Altamush Zafar

CA Altamush Zafar (Expert)
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02 March 2023 Once you reduce ITC due to short receipt of goods your compliance is over. When the supplier will file credit note your ITC in GSTR-2B will get decreased and decreased ITC will be shown in that month's GSTR-3B. You will have to raise that amount in that month since you have already reversed the ITC amount before

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