GSTR-2B : Hon’ble Finance Minister, Nirmala Sitaraman Ji, in budget 2021-22, proposed changes vide Finance Bill, 202, that amends the Central Goods & Service Tax Act, 2017 to incorporate a fresh condition for availing of ITC. The New Condition to avail ITC is as under :
“It was been proposed to insert the new clause ‘(aa)’, after clause (a), in Section 16(2) of the CGST Act, that provides an additional condition to claim ITC based on GSTR-2A and newly introduced GSTR-2B, i.e., ITC on invoice or debit note can be availed only when details of such invoice/debit note have been furnished by the supplier in his outward supplies (GSTR-1) and such details have been communicated to the recipient of such invoice or debit note.”
Hence From January 2022 onwards, Input tax credit (ITC) will be available only up to what is reflected in GSTR-2B, To simplify and for a better understanding of the provisions, here is the flow chart of what to add (+) and what to less (-) from GSTR-2B to arrive at “ITC to be claimed” in GSTR-3B.
Add : Download GSTR-2B form
(Generally it is available in the afternoon of 14th of every month)
Less : Remove ineligible ITC from GSTR-2B form
Such a motor car, food, health insurance, gift, capital expense relating to immovable property etc. Kindly refer Section 17(5) of CGST Act, 2017 for the list of Blocked/Ineligible ITC
Less : Remove ITC claimed in earlier period from GSTR-2B
Example invoice dated 10-12-2021 ITC taken in GSTR-3B of Dec-21, however supplier disclosed same ITC recently and appearing in GSTR-2B of Jan-22.
Less : Remove goods received in next month from GSTR-2B form
Example invoice date 30-01-2022 and also appearing in GSTR-2B of Jan-22 , however goods are received from company 5th Feb 2022 , this ITC is to be claimed in GSTR-3B of Feb 2022
Less : Remove ITC not relating to your business from GSTR-2B form
Example A solds goods to B, but in GSTR-1 shown GSTIN of D , Here D needs to be remove ITC from is GSTR-2B
Add : import ITC to be Taken based on bill of entries from GSTR-2B form
Example in Jan 2022, 3 bill of entries are filled by company, However in GSTR-2B of Jan only 1 bill of entries is reflecting, company can claim ITC of remaining 2 bill of entries too in Jan 2022, even though it is not reflecting in GSTR-2B
Add : pending ITC from GSTR-2B form
Example invoice date 10-11-20 21 supplier filled his GST-R1 & GSTR-3B within due date, However buyer has not taken ITC in Nov / Dec yet, same can be now taken in Jan 2022 Hope the above Summary will help you to compute exact ITC that can be availed in Form GSTR 3B from January 2022. Also, Please note, there is no relevance of 5% limit mentioned in Rule 36(4) of the Central Goods and Services Tax Rules, 2017 (“CGST Rules”)
Notes :
a) It is important that utmost efforts are to be taken to ensure that ITC balance as per books and GST returns is matching. b) It is recommended that reconciliation of ITC as per books and GSTR-2B should be done monthly basis, to keep track of ITC mismatch c) It is only for information
