Provisional ITC @10.00% as per Rule 36(4)

Save Share

This query is : Resolved

Quick Summary

This discussion addresses the common issue where Input Tax Credit (ITC) shown in GSTR-2A is higher than what's recorded in your company's books. It explains that this can happen due to various reasons, such as blocked credits or a time lag in receiving invoices. The advice is to reconcile your accounts with GSTR-2A and claim eligible credit based on your books, noting that the 110% rule for GSTR-3B applies only when GSTR-2A is less than your book balance.

RITESH B. PANCHAL

RITESH B. PANCHAL (Querist)

19 February 2020 Dear Sir/Madam,

What to do if ITC as per GSTR-2A is greater than ITC as per books ?? Please advice.

CA Anita Bhadra

CA Anita Bhadra (Expert)

19 February 2020 Reconcile your Books of Accounts with GSTR 2A . GSTR 2A may reflect greater balance in case you have received a supply for which credit is blocked u/s 17(5). ITC will be reflecting in GSTR 2A while it may not be in your books of accounts

RITESH B. PANCHAL

RITESH B. PANCHAL (Querist)

19 February 2020 There's time gap in receiving purchase bill from vendor. It will be book in next month.
What to do ?

CA Anita Bhadra

CA Anita Bhadra (Expert)

19 February 2020 Avail ITC in next month
Excess balance in 2A will have no adverse effect

RITESH B. PANCHAL

RITESH B. PANCHAL (Querist)

19 February 2020 In this case, can fully ITC instead of 110% be claimed in GSTR-3B ??

CA Anita Bhadra

CA Anita Bhadra (Expert)

19 February 2020 110 % Rule is applicable when 2A is less than books of Accounts.
Avail eligible credit as per your Books of accounts