- About us
- Site map
- Contact Us
- Contact Us
The CBIC vide Notification No. 30/2020 – C.T. dated 03 April 2020 had prescribed that the condition u/r. 36(4) shall apply cumulatively for the tax period February to August, 2020 and that the return in GSTR-3B for the tax period September 2020 shall be furnished with the cumulative adjustment of ITC for the said months.
In respect thereto, the CBIC vide Circular No. 142/12/2020 – GST dated 09 October 2020 has advised the taxpayers to ascertain the details of invoices uploaded by their suppliers for the periods of February, to August 2020, till the due date of furnishing of the statement in GSTR-1 for the month of September 2020 as reflected in GSTR-2As.
It has been clarified that shall reconcile the ITC availed in their GSTR-3Bs for the period February to August 2020 with the details of invoices uploaded by their suppliers of the said months, till the due date of furnishing GSTR-1 for the month of September 2020. The cumulative amount of ITC availed for the said months in GSTR-3B should not exceed 110% of the cumulative value of the eligible credit available in respect of invoices or debit notes the details of which have been uploaded by the suppliers till the due date of furnishing of the statements in GSTR-1 for the month of September 2020.
It has further been clarified that the excess ITC availed arising out of reconciliation during the said period, if any, shall be required to be reversed in GSTR-3B, for the month of September 2020 and failure to do so would be treated as availement of ineligible ITC during the month of September 2020.
Lastly, the CBIC has illustrated the manner of cumulative reconciliation for the said months in terms of proviso to Rule 36(4) of the CGST Rules.
The information provided in this update is intended for informational purposes only and does not constitute legal opinion or advice. Readers are requested to seek formal legal advice prior to acting upon any of the information provided herein. This update is not intended to address the circumstances of any particular individual or corporate body. There can be no assurance that the judicial/ quasi judicial authorities may not take a position contrary to the views mentioned hereinrra quis.
Sign up for the Newsletter