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3B filed on time but GSTR1 filed after annual cutoff

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Prakhar

BUSINESSMAN

138 Points Posted on 11 February 2021

One of my suppliers has been filing GSTR3B monthly on time regularly but filed his GSTR1 from March 2019-20 in November 2020 .I have also availed ITC for the same .

Now when I am trying to file annual return (GSTR9) for 2019-20 ,i am not able to avail ITC as supplier filed GSTR1 after annual cut off .Do I have to reverse the ITC along with fine ? What other options do I have as supplier is saying he has paid the tax in GSTR3B .

Replies (3)

Quick Summary

A business is facing issues claiming Input Tax Credit (ITC) on their annual return (GSTR-9) because a supplier filed their GSTR-1 for the 2019-20 financial year in November 2020, after the annual cutoff. Despite the supplier paying tax in their GSTR-3B, the auto-filled ITC in GSTR-9 doesn't include the relevant invoice. The core question is whether the ITC needs to be reversed, potentially with penalties, or if there are alternative solutions.

CA Altamush Zafar

GST Consultant

10402 Points Posted on 11 February 2021

Take ITC.

Also take certificate from your supplier that he had paid GST on time and that in case of any proceedings by department of ITC and interest will be recovered from him.

Prakhar

BUSINESSMAN

138 Points Posted on 11 February 2021

Sir I have taken ITC but in Annual return ,the autofilled ITC value in column 8 is different from what I have claimed (it is not taking into account the said invoice from supplier for which I have taken ITC) ,do I have to reverse the ITC ?

CA Altamush Zafar

GST Consultant

10402 Points Posted on 11 February 2021

In my opinion No

since there is no legislation till date (till proposed budget is passed) that such ITC is to be reversed. The tax payer is entitled to such ITC. In my opinion Rule 36(4) can delay taking of ITC but it cannot deny ITC if all the conditions of section 16 are fulfilled.