ITC eligibility of 2019-20

According to Section 16(2) of the CGST Act, 2017, matching the invoice with the invoice shown in Form GSTR-2A is one of the requirements to be eligible for the input tax credit (ITC). By Notification No. 49/2019-central tax, such a concept has been inserted as rule 36(4), w.e.f. October 2020. But, there was no section reference. Generally, a rule can not be inserted without a section reference. Hence, the subrule had been questioned. Later, via circular 183/15/2022-GST, CBIC clarified that in case of mismatch between ITC availed in return and Form GSTR-2A for FY 2017-18 to FY 2019-20, "ITC in a year upto to Rs.5 lakh from a particular vendor, then vendor declaration from such supplier" or "in case of ITC of a supplier for the said financial year exceeds Rs 5 lakh, the proper officer shall ask the registered person to produce a certificate for the concerned supplier from the Chartered Accountant (CA) or the Cost Accountant (CMA), certifying that supplies in respect of the said invoices of supplier have actually been made by the supplier to the said registered person and the tax on such supplies has been paid by the said supplier in his return in FORM GSTR 3B.

You may refer to Circular 183 for your better understanding and reply to the department officer by attaching the supplier declaration or CA certificate.

Dear Raj Ji,

ITC will be available to purchase of the goods. You can avail the ITC under Circular No. 183 on the basis of certificate provided by the supplier CA or certificate on letter head of the supplier.