Regarding ITC of GSTR2B

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This discussion addresses the correct treatment of Input Tax Credit (ITC) for raw materials purchased in December 2021 but received in January 2022. The user experienced a mismatch between their GSTR2B for December and their actual ITC claim, as ITC is typically claimed upon receipt of goods. The advice provided suggests that ITC for goods in transit on closing dates should be claimed in the period of receipt (January 2022) rather than the period of purchase, as possession of goods is a key condition for claiming ITC.

Mahendra Patel

Mahendra Patel (Querist)
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19 January 2022 Dear Sir,

My Company purchase Raw material from Chennai on 31.12.2021 , bill date is 31.12.2021 and when customer file GSTR1 the bill also in GSTR1 and showing in my GSTR2B for the month of Dec-2021.

But the above material we received on 3rd Jan-2022 and booked in our books in Jan-2022 because we taken ITC on receipt of goods.

now question is here my Dec-2021 ITC mismatched with Dec-2021 GSTR2B and also Jan-2022 mismatched .

So pls guide correct treatment for in transit material on closing dates.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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19 January 2022 Possession of goods is one of the important condition for claiming ITC. In this case since the possession of goods is with you on the date of filing of GST return ITC can be claimed in December return.