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Fy2017-18-missing gst paid entries in gstr2a - how to avail input tax credit

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P ARAVINDHAN

2 Points Posted on 10 May 2019

Sir/Madam,

Background : Some Vendors have reported supplies to Bank Branches as B to C instead of B to B, in their GSTR1s during FY2017-18. This mistake has happened mainly due to non-provision of Bank GSTIN by Bank Branches to their Vendors in time. These Vendors have remitted GST on supplies to the Bank Branches as well as submitted GSTR1s also. Banks wants these GST payment entries to appear in GSTR2A but vendors are unable to amend the supplies from "B to C" to "B to B" in FY2017-18, due to technical restrictions.

Query: Vendor is unable to amend B to C supply as B to B supply. Whether ITC can be availed by the Bank, if the Vendor provides a Certificate that in the case of these supplies to Bank Branches, the Vendor has remitted GST to Government and also reported these supplies as "B to C" in their GSTR1. The Vendor may also attach his GSTR1.

Or is there any other way out ?

Replies (1)

Padmanathan Kv

2127 Points Posted on 10 May 2019

As per Rule 36 of CGST Rules 2017 read with section 31 of CGST Act 2017, it may not be possible for the bank to take ITC based on a certificate issued by the vendor. Now As per Rule 46, GSTIN of receipient is mandatory. since invoice issed by the vendor is B2C invoice not containing GSTIN of bank, it maynot be a valid invoice to take ITC.

Solution in my opinion- Let the bank take ITC with litigation risk in future and when challenged they can produce the certificate from vendor, etc.