Quick Summary
Taxpayers are now seeing reversals required under Rule 37A reflected in their September GSTR-2B, showing the Input Tax Credit (ITC) that must be reversed due to the non-filing of GSTR-3B by suppliers for FY 2023-24. The next step is to ensure vendors file their pending GSTR-3B returns, as failing to do so may lead to temporary ITC reversals. Key Steps for Taxpayers Review GSTR-2B for September: ITC amounts subject to reversal due to vendor non-compliance with GSTR-3B filing are displayed.
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FAQ :
ITC reversals are appearing in September's GSTR-2B because suppliers have not filed their GSTR-3B returns for the financial year 2023-24.
Rule 37A mandates that if a supplier fails to file their GSTR-3B by September 30 following the financial year's end, the ITC must be reversed in the November GSTR-3B filing. Interest may apply if not reversed.
Taxpayers should review their September GSTR-2B for any ITC subject to reversal and promptly follow up with their vendors to file their pending GSTR-3B returns for FY 2023-24.
If vendors fail to file their GSTR-3B by the time you file your October GSTR-3B, you must temporarily reverse the ITC shown in your GSTR-2B and report it in Table 4B(2) of your GSTR-3B.
Yes, once your suppliers file their pending GSTR-3B returns, the ITC that was temporarily reversed can be reclaimed.
The reversal amount under Rule 37A excludes RCM invoices, debit notes, their amendments, credit notes, and amendments to credit notes for the period the supplier failed to file GSTR-3B.
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