ITC mismatch

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This query is : Resolved

Quick Summary

If you've received a notice for an Input Tax Credit (ITC) mismatch between your GSTR-2A and GSTR-3B over three years, even with all invoices and payment statements, the department may insist on reversal with interest. While the Madras High Court has ruled favourably in similar cases, current rules (like Rule 36) often mean the Assessing Officer won't allow ITC until it appears in GSTR-2A. Your primary recourse is to contest the issue through the appellate authority, as courts are more likely to consider principles of natural justice.

bikash rai

bikash rai (Querist)

03 March 2021 Dear Sir, I have got notice relating to ITC mismatch between 2A VS GSTR3B for 3 years. I have all invoice and also payment statements. But Dept insist that ITC have to be reversed with interest because not reflected GSTR2A . Dept said If u do not agree to pay then take Appeal option . I have taken all ITC as per Law . What to do ??
PLEASE SIR REPLY AS SOON AS POSSIBLE

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

03 March 2021 Contest the issue in appeal.

bikash rai

bikash rai (Querist)

03 March 2021 Thank Sir,

But in this situation, where to go assesee Appellate auth or HC for getting relief.. ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

03 March 2021 Go to appellate authority.

bikash rai

bikash rai (Querist)

03 March 2021 Thank You Sir for your Reply

Ganeshbabu K

Ganeshbabu K (Expert)

03 March 2021 Even though in M/s. Sri Ranganathar Valves Private Limited case madras highcourt given favour judgement in a situation simular to you i dont think it is of any help to us ,

Assessing officer won’t allow the input tax credit to the taxpayer till the time ITC is available in GSTR 2A as is mentioned in rule 36.

Because of above rule practically you won’t be allowed ITC of GST paid even though you have proper invoice

Hope we will get a supreme court order soon favouring principle of natural justice

Appeal is just to postpone and delay proceeding i feel, Only courts see principle of natural justice.

bikash rai

bikash rai (Querist)

03 March 2021 Thank you Sir for Helping

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