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Excess ITC at the time of GSR 9

Gowtham (Student) (1174 Points)

29 November 2022

Can you answer this hypothetical scenario

I have been filing GST returns throught out the Financial year. Now it's time to file GSTR 9

There have been differences between ITC claimed in GSTR 3B and what was GSTR 2B.

Sometimes, it has the ITC in 2B was > 3B

In other months, the ITC in 3B was > 2B.

But at the end of the year, ITC in 2B is greater than 3B.

Without considering 5% provisional credit u/Rule 36(4), how do we go about this?

Should I necessarily pay out of hand for the months in which i had claimed ITC in excess of what was in 2B at the time of filing GSTR 9?

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9 Replies

kl Bhavana (Student CA Final ) (417 Points)
Replied 29 November 2022

Hi Gowtham,

As per section 16 of CGST Act, 2017 if all the conditions are satisfied then you can avail ITC in GSTR 3B. First try to analyse why 3B is more than 2B, is it because you have availed ITC without appearing in GSTR 2B ? if yes then you need to reverse those ITC because ITC can be availed only if reflects in GSTR 2B(in case more than 5%).

While preparing GSTR 9, If whatever ITC taken in 3B is available in GSTR 2A of Table 8 of GSTR 9 then you need not reverse the ITC.

Hope this clarifies.

Thanks
Bhavana K L
bhavana @ lbkca.in
Chartered Accountant
L B K & Associates

1 Like

setu shah (GST CONSULTING AND AUDIT) (261 Points)
Replied 29 November 2022

FIRST YOU CHEAK WATHER ITS YOUR ITC REFLACTED IN 2-B,

IF... YOURS NOW TIME IS LAPS FOR AVAIL ITC.

IF.....NOT YOURS ITC, PUNCH IN INELEDGEBLE COLLUM AND FILED RETURN.

1 Like

Gowtham (Student) (1174 Points)
Replied 29 November 2022

@ Bhavana Hi Mam,

Thanks a lot for the succinct explanation. So as long as my ITC gets reflected in the GSTR-2A (which in turns get reflected in Table 8 of GSTR 9), I need not worry. So the task is to reconcile the ITC-s in GSTR 2A and GSTR 3B. right?

Gowtham (Student) (1174 Points)
Replied 29 November 2022

@ Setu Thank you sir!!

Originally posted by : setu shah
	FIRST YOU CHEAK WATHER ITS YOUR ITC REFLACTED IN 2-B, IF... YOURS NOW TIME IS LAPS FOR AVAIL ITC. IF.....NOT YOURS ITC, PUNCH IN INELEDGEBLE COLLUM AND FILED RETURN.

kl Bhavana (Student CA Final ) (417 Points)
Replied 29 November 2022

Yes Gowtham, perform invoice level reconcilation of GSTR 3B with 2A.

1 Like

Gowtham (Student) (1174 Points)
Replied 30 November 2022

@ Bhavana.. Perfect.. Got it.. Thanks a lot. One small request... I guess GST is ur specialisation. If there's any whatsapp/telegroup you organise, to discuss and diseminate knowledge concerning GST, can you share the link of the group here/mail me at maildgowtham @ gmail.com. Would be happy to pitch-in and give my best and learn too.. Would plead you to organise one, if you haven't.. Koti..Koti Pranams :)

Originally posted by : kl Bhavana
	Yes Gowtham, perform invoice level reconcilation of GSTR 3B with 2A.

APURBA CHATTERJEE (QUALIFIED CHARTERED ACCOUNTANT) (608 Points)
Replied 30 November 2022

Please make an reconciliation between GSTR 2B and GSTR 3B at invoice level for the FY 2021-22.

Gowtham (Student) (1174 Points)
Replied 30 November 2022

corporate genie (18 Points)
Replied 09 September 2023

In this scenario, when filing GSTR-9, you should reconcile the differences between GSTR-3B and GSTR-2B for each month of the financial year. Start by identifying the months where ITC in 2B was greater than 3B and vice versa. Then, adjust your ITC figures in GSTR-9 accordingly to reflect the accurate and reconciled values for each month. Keep detailed records of the adjustments made.

Corporate Genie, a GST registration and return filing service, can assist you in this reconciliation process. They have expertise in handling GST compliance and can ensure that your GSTR-9 is accurately filed, reflecting the reconciled ITC figures. This can help you avoid potential discrepancies and ensure compliance with GST regulations.