ITC reversed in GSTR 3B col 4B(2) due to non payment to supplier within 180 days. Later when payment was made to supplier, ITC reclaimed. But there is no separate column in GSTR 3B to show this type of reclaimed credit. This reclaimed credit is shown in GSTR 3B col. 4A(5) along with all other ITCs. Due to this, every month there is a mismatch between ITC available in GSTR 2B and ITC availed in GSTR 3B which leads to department query. How to get rid of it?
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Reclaim of credit in GSTR 3B
Replies (2)
Quick Summary
Good Evening Kallol,
Rule 36(4) i.e. rule to avail match ITC only, is applicable to inytial/first time claim of ITC and not to reclaimed ITC.
ITC which has been reversed due to first proviso to Section 16 can be reclaimed once the payment to vendor has been made. the said ITC should be reported under 4(A)(5) of Form GSTR3B i.e. reporting with all other ITC.
In case you get any notice from department, you are required to furnish the reconciliation statement of ITC in which you have to provide reconciliation between Total ITC availed during tax period, out of which how much ITC is reclaimed and how much ITC is availed as per Rule 36(4). And you may also have to furnish the proof of payment if department ask for.
Rule 36(4) i.e. rule to avail match ITC only, is applicable to inytial/first time claim of ITC and not to reclaimed ITC.
ITC which has been reversed due to first proviso to Section 16 can be reclaimed once the payment to vendor has been made. the said ITC should be reported under 4(A)(5) of Form GSTR3B i.e. reporting with all other ITC.
In case you get any notice from department, you are required to furnish the reconciliation statement of ITC in which you have to provide reconciliation between Total ITC availed during tax period, out of which how much ITC is reclaimed and how much ITC is availed as per Rule 36(4). And you may also have to furnish the proof of payment if department ask for.
Thanks Sagar for prompt & clear reply.
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