Restriction on GST ITC
We are asking query with example to understand the point.
Total GST Credit as per GSTR 2A - Rs.100/-
GST Credit as per GTSR 2 - Purchase register - Rs.110
In the above case the assessee is eligible for Rs.100 + 20% on 100 = 20 = Rs.120 As per GSTR 2 credit taken is 110.- Hence the asseses is eligible for Rs.110.
We have to work out the exact matching of GSTR 2A and GSTR 2 - Supplier wise and 20% is to be considered for matched amount.
Please also advise whether the assessee can consider the credit reflected in GSTR 2A in previous month and a accounted in the current month.
Take credit of GSTR-2A
Less : Unmatched credit between "GSTR-2A" & "GSTR-2"
Less : Ineligible credit
Less: RCM & ISD (If any)
Now you will get eligible credit for calculation of 20% credit
Credit taken in "GSTR-3B = Matched credit with ":GSTR-2A" + 20% credit calculated as above
But unmatched credit between GSTR 2 and GSTR 2 A includes credit taken by assessee for the invoice raised by the supplier in previous months ( GSTR 2 A) and credit taken in the current month ( GSTR 2) based on actual receipt of material and raising iof goods receipt note ( GRN) and the assessee is eligible for this credit. Whether we can add the above in Eligible credit as per GSTR 2A