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TMI BlogClarification to deal with difference in Input Tax Credit (ITC) availed in FORM GSTR-3B as compared to that detailed in FORM GSTR-2A for the period 01.04.2019 to 31.12.2021.X X X X Extracts X X X X X X X X Extracts X X X X ..... e which clarification was issued for dealing with the difference in Input Tax Credit (ITC) availed in FORM GSTR-3B as compared to that detailed in FORM GSTR-2A for FY 2017-18 and 2018-19, subject to certain terms and conditions. 2. Even though the availability of ITC was subjected to restrictions and conditions specified in Section 16 of West Bengal Goods and Services Tax Act, 2017 (hereinafter referred to as WBGST Act ) from 1st July, 2017 itself, restrictions regarding availment of ITC by the registered persons up to certain specified limit beyond the ITC available as per FORM GSTR-2A were provided under rule 36(4) of West Bengal Goods and Services Tax Rules, 2017 (hereinafter referred to as WBGST Rules ) only with effect from 9th Oc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urns in FORM GSTR-3B and the amount as available in their FORM GSTR-2A. It may, however, be noted that such availment of input tax credit was subject to the provisions of clause (c) of sub-section (2) of section 16 of the WBGST Act which provides that ITC cannot be availed unless tax on the said supply has been paid by the supplier. In this context, it is mentioned that rule 36(4) of WBGST Rules was a facilitative measure and availment of ITC in accordance with rule 36(4) was subject to fulfilment of conditions of section 16 of WBGST Act including those of clause (c) of sub-section (2) thereof regarding payment of tax by the supplier on the said supply. 3.2. Though the matter of dealing with difference in Input Tax Credit (ITC) availed i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Circular No. 15/2022 dated 29.12.2022 shall be applicable for verification of the condition of clause (c) of sub-section (2) of Section 16 of WBGST Act for the said period, subject to the condition that availment of input tax credit by the registered person in respect of invoices or debit notes, the details of which have not been furnished by the suppliers under sub-section (1) of section 37, in FORM GSTR-1 or using IFF shall not exceed 20 per cent. of the eligible credit available in respect of invoices or debit notes the details of which have been furnished by the suppliers under sub-section (1) of section 37 in FORM GSTR-1 or using IFF. This is clarified through an illustration below: Illustration: Consider a case where the tot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... person in respect of invoices or debit notes, the details of which have not been furnished by the suppliers under sub-section (1) of section 37, in FORM GSTR-1 or using the IFF shall not exceed 10 per cent. of the eligible credit available in respect of invoices or debit notes the details of which have been furnished by the suppliers under sub-section (1) of section 37 in FORM GSTR-1 or using the IFF. (iv) Further, for the period from 01.01.2021 to 31.12.2021, when rule 36(4) of WBGST Rules allowed additional credit to the tune of 5% in excess of that reported by the suppliers in their FORM GSTR-1 or IFF, the guidelines provided by Trade Circular No. 15/2022 dated 29.12.2022 shall be applicable, for verification of the condition of clau ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shall be applicable cumulatively for the period April to June, 2021 and ITC shall be adjusted on cumulative basis for the said months in the return for the tax period of June 2021. The same may be taken into consideration while determining the amount of ITC eligibility for the said tax periods. 7. It may also be noted that these guidelines are clarificatory in nature and may be applied as per the actual facts and circumstances of each case and shall not be used in the interpretation of the provisions of law. 8. These instructions will apply only to the ongoing proceedings in scrutiny/ audit/ investigation, etc. for the period 01.04.2019 to 31.12.2021 and not to the completed proceedings. However, these instructions will apply in thos ..... X X X X Extracts X X X X X X X X Extracts X X X X
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