Comparison between old ITC claim as per GSTR 2A and new method of 120% Claim and which is better

Dear

In old method one can claim full ITC in 3B & have a chance to ask supplier please upload this so that ITC cannot be denied at the time of Audit or later at the time of scrutiny etc.

But in new method caping is not practical approach.
Take a example
If total credit is Rs. 100/- & Quaternary return filers for the business is more than 30 % than u can only claim 84% [70 plus 20 % of 70] credit. That means you lost credit of Rs. 16/- for that month & this 16/- can be claimed after 2 month.
Working capital is blocked for the period. iIf entity is entitled for refund than refund is also blocked for 2 month also.

In my personal view this is not a practical approach & govt have to rethink.

I agreed to Mr Vinod Kumar Ahuja view...

Well reply Mr Vinod...

Keep it up... 👏👏👏👍👍👍



@ Mr Ramaraju G.,

It's not beneficial to taxpayers. Bcoz, They loss their ITC as per books with GSTR 2A...

Bcoz, It's not 100% + 20%...

**As per GSTR 2A + 20% or books value whichever lower...

For example :

If Your ITC as per books Rs 10000 but, In GSTR 2A it's 8000. You can claim ITC 9600 (8000*20%=1600+8000 = 9600).

In case if Your ITC as per books Rs 10000 But in GSTR 2A 9000 then You can claim ITC Rs 10000

Bcoz, as per above (**) lower ITC calculation can be avail. If GSTR 2A is 9000 then (9000*20%=1800+9000=10800) ITC as per calculation Rs 10800. we don't be claim 10800. just claim lower of both Rs 10k as per books...

Thanks for your views guys but what I wanted to say we can't avail credit as per our books that is GSTR 3B But we can avail only credit available in GSTR 2A As per present law. So if supplier did not upload invoices still we can claim @ 20% of uploaded invoices which is beneficial as compared to old law.

Yeah... As per Your view it's beneficial if You will be pay balance ITC except GSTR 2A for FY 17-18 and FY 18-19...

Raja Please explain elloberately

Originally posted by : Ramaraju G
	Raja Please explain elloberately

Say  Your books ITC 10k. But, In gstr-2a only 8k.

As per old rule no availability of +20% of 2a. After/On the end of the year You must pay/reverse 2k if You availed 10k...

As per new rule u can avail 8k+20% (9600) ITC. After/On end of the year you can pay/reverse 200 balance payable...

 

r u undrstnd dis?

Yeah understood that means new method is beneficial than old one right??

Mmmmm mmm right...!

But, Not good / right if considering quarterly filers...😥😥😥.

@ ramaraju

New method is right in the view of whole year . but when it comes to monthly filers, it is like a punishment without making any mistake.

the quarterly filer will surely gonna file at his turn. but till that the monthly filer couldn't take credit for three months which he is eligible actually.

on the whole new rule is sweet at the end

also maintaining proper reconciliation is a must where clerical error must be ruled out. reconciliation staff should be expert enough and should work as an eagle eye.

also the reconciliation works should be specialized skill so that any change in staff or accountant should be able to further proceed with old workings

Thank you sowjanya gaaru for your valuable explanation