The guidelines regarding cross checking of Input Tax Credit (ITC) - GST - States - Internal Circular No. 16A of 2017

Office of the Commissioner of State Tax 8th floor, Vikrikar Bhavan, Mazgaon Mumbai - 400010 INTERNAL CIRCULAR No. ACST (GST) 3/ITC/Crosschecks/79/2017/B-426(A) Mumbai dated 07.8.2017 Internal Circular No. 16A of 2017 Subject:- The guidelines regarding cross checking of Input Tax Credit (ITC) During the service cell meeting dated 15 th July 2017, some of the dealers and sales tax practitioners had brought to my nonce that m cases of Issue based case where there is mismatch of J2XJ1, the officers Insist for the ledger confirmations for the mis-match of small amounts which causes the great hardship to the trade and most of the time these mis-matches are on technical ground. Hence trade has demanded that in case of small amounts of mis-match ledger confirmations may not be insisted. As per Internal Circular 11A of 2017, in para 4.6 it is clarified that Notwithstanding anything contained in this circular, ledger confirmations shall not be asked if claim of ITC is ₹ 5000/- or below per supplier per year . This is applicable for cases under comprehensive assessment. As per above referred circulars, In the comprehensive assessment if top 10 suppliers/50% ITC is matched then rest of the ITC is allowed fully but the said criteria is not made applicable to TBA cases. Considering the aforesaid hardship to the trade, it is now decided that the mis-matches of ₹ 1000/- or below per supplier per year may be allowed without the ledger confirmations. It is further clarified that such claims shall be allowed provided the officer is not having any adverse information on record about such supplier. All the departmental officers are directed to follow the above instructions scrupulously. (Rajiv Jalota) Commissioner of State Tax Maharashtra State, Mumbai. No. ACST(GST) 3/1TC/Crosschecks/79/2017/B-426(A) Mumbai dated 07.8.2017 Internal Circular No. 16 A of 2017