Action for difference in ITC

between
GSTR-3B and GSTR-2A
July-2017 to Dec-2021
Decoding CBIC Circulars
Circular No. 183/15/2022-GST dated 27-12-2022
Circular No. 193/05/2023-GST dated 17-07-2023
Presentation by:
B.Venkateswaran IRS.,
Asst Commissioner CGST (Retired)
9442012335/8500885294
Email: beevenkateswaran@gmail,com
Disclaimer
The views expressed are strictly of the author.

The contents of this presentation are solely for informational purpose

and not interpretation of legal provisions of GST Act or Rules made
there under.

It does not constitute professional advice or recommendation of the

presenter.
Background
 Section 16 of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as “CGST
Act”) provides for eligibility and conditions for availing Input Tax Credit (ITC). The conditions
are as under

− The Taxpayer( TP) is in possession of a tax invoice or debit note issued by a supplier
registered under this Act, or such other tax paying documents as may be prescribed;

− The TP has received the goods or services or both.

− The tax charged in respect of such supply has been actually paid to the Government,
either in cash or through utilization of input tax credit admissible in respect of the said
supply; and

− The TP has furnished the return under section 39:

Background
During the initial period of implementation of GST in many cases, the suppliers have failed to
furnish the correct details of outward supplies in their FORM GSTR-1 due to which there are
certain deficiencies or discrepancies in FORM GSTR-2A of their recipients. However, the
concerned recipients have availed input tax credit on the said supplies in their returns in
FORM GSTR-3B.
The discrepancies between the amount of ITC availed by the registered persons in their
returns in FORM GSTR-3B and the amount as available in their FORM GSTR-2A are being
noticed by the tax officers during scrutiny/ audit/ investigation etc and such discrepancies
are considered as ineligible ITC availed.

It is also fact that FORM GSTR-2A could not be made available to the taxpayers on the
common portal during the initial stages of implementation of GST and the restrictions
regarding availment of ITC by the registered persons upto certain specified limit beyond ITC
available as per FORM GSTR-2A were provided under rule 36(4) of Central Goods and
Services Tax Rules, 2017 only with effect from 9th October 2019.
Background
In view of this, in the 48th GST Council meeting held on 17th
December 2022, it was recommended that procedure for
verification of ITC differences between GSTR-3B and GSTR-2A for FY
2017-18 and 2018-19 to be prescribed to reduce the need for
litigations and give much-needed clarity to taxpayers and officers.

Accordingly, the CBIC vide Circular No. 183/15/2022-GST dated

27/12/2022. has issued clarification to deal with difference in Input
Tax Credit in GSTR-3B and GSTR-2A for FY 2017-18 and 2018-19
Clarification to deal with difference in
Input Tax Credit – GSTR-3B and GSTR-2A
for FY 2017-18 and 2018-19

Circular No. 183/15/2022-GST dated 27-12-2022

Situation covered
GSTR-1 not The supplier has failed to file GSTR-1 for a tax period but has filed the
filed return in GSTR-3B for said tax period.

Supply not
the supplier has filed GSTR-1 as well as return in GSTR-3B for a tax period
reported in but has failed to report a particular supply in GSTR-1.
GSTR-1

Supply Supplies were made to a registered person and invoice is issued as per
Rule 46 of CGST Rules containing GSTIN of the recipient, but supplier has
reported as wrongly reported the said supply as B2C supply, instead of B2B supply, in
B2C his GSTR-1

Supply under Supplier has filed GSTR-1 as well as return in GSTR-3B for a tax period, but
incorrect GSTN he has declared the supply with wrong GSTIN of the recipient in GSTR-1.
Verification by Proper Officer
The proper officer first seek the
details from the registered
person regarding all the invoices
on which ITC has been availed in
GSTR 3B but not reflected in
GSTR 2A.
Ascertain fulfillment of the
following conditions of Section
16 of CGST Act.
i) Taxpayer is in possession of a tax invoice or
debit note issued by the supplier or such
other tax paying documents;
ii) Taxpayer has received the goods or
services or both;
iii) Taxpayer has made payment for the value
of supply, along with tax to the supplier.
Verify any reversal of input tax
credit is required to be made in
accordance with section 17 or
section 18 of CGST Act (Credit
notes /amendments made
subsequent to supply)
Whether the said input tax credit has been
availed within the time period specified under
sub-section (4) of section 16 of CGST Act.
Certificate for condition of Section
16(2)(c)
CA or CMA Certificate

• In case, the difference between the ITC claimed in GSTR-3B and GSTR 2A of the registered person in
respect of a supplier exceeds Rs 5 lakh,
• the registered person has to produce a certificate for the concerned supplier from the Chartered
Accountant (CA) or the Cost Accountant (CMA), certifying that supplies in respect of the said
invoices of supplier have actually been made by the supplier to the said registered person and the
tax on such supplies has been paid by the said supplier in his return in GSTR 3B.
• Certificate issued by CA or CMA should contain UDIN.

Self certificate by Supplier

• In cases, the difference between the ITC in GSTR-3B and in GSTR 2A of in respect of a supplier is
upto Rs 5 lakh, the claimant has to produce a certificate from the concerned supplier to the effect
that said supplies have actually been made by him to the said registered person and the tax on said
supplies has been paid by the said supplier in his return in GSTR 3B.
 Invoice not uploaded in
GSTR-2A on which ITC
involved is more than Rs.
5 Lakhs for a supplier

Yes No

Self Certificate by the

CA/CMA Certificate
Supplier
Section 16(4)
conditions to be
fulfilled for all case
 For the period FY 2017-18,
as per proviso to section
16(4) of CGST Act, if
supplier had not furnished
details of the said supply
in his GSTR-1 till the due
date of furnishing GSTR 1
for the month of March
2019 ITC will not be
allowed on such invoices.
Applicability of the clarification
 The clarifications given hereunder are case specific and are applicable to
the bonafide errors committed in reporting during FY 2017-18 and 2018-
19.
 These instructions apply only to the ongoing proceedings in
scrutiny/audit/ investigation, etc. for FY 2017-18 and 2018-19 and not
to the completed proceedings.
 These instructions apply in those cases for FY 2017-18 and 2018-19
where any adjudication or appeal proceedings are still pending.

 These guidelines are clarificatory in nature and 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.
Clarification to deal with
difference in
Input Tax Credit –
GSTR-3B and GSTR-2A
for FY 2019-20 to Dec-
2021

Circular No. 193/05/2023-GST

dated 17-07-2023
Background
The Hon’ble Karnataka High Court in M/s. Wipro Limited India v. the Assistant Commissioner of
Central Taxes and Ors. [Writ Petition No. 16175 of 2022 (T-Res) dated January 6, 2023] has
allowed the assessee to rectify the errors committed at the time of filing of Forms and submitting
GST Returns and pronounced that . Circular No. 183/15/2022-GST dated December 27, 2022, is
squarely applicable for FY 2019-20 also.
The GST Council at its 50 the meeting held on 11/07/203 has recommended for the issuance of a
circular to provide for a procedure for verification of ITC in cases involving difference in ITC
claimed in the GSTR-3B vis a vis the ITC available in the GSTR-2A during the period from 1st
April 2019 to 31 December 2021.

Under this circumstances the CBIC has issued Circular No: Circular No. 193/05/2023-GST dated
17/07/2023, 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.
Clarifications and
guidelines
 The guidelines provided by Circular
No. 183/15/2022-GST dated 27th
December 2022 shall be applicable,
in toto, for the period from
01.04.2019 to 08.10.2019.

 The submission of Certificate as per

Circular No. 183/15/2022-GST is
applicable only to the extend of the
credit allowed to certain specified as
provided under rule 36(4) of Central
Goods and Services Tax Rules, 2017
time to time w.e.f 09/10/2019 to
31/12/2021.
Limit allowed as per Rule 36(4) of GST
Rules, 2017 as amended
9 Oct. – 31 Dec. 2019 1 Jan. – 31 Dec. 2021
20% ITC available as per FORM GSTR-2A 5% ITC available as per FORM GSTR-2A

10% ITC available as per FORM GSTR-2A

1 Jan. – 31 Dec. 2020

Illustration as per Circular
193/05/2023-GST dated 17-07-2023

 Consider a case where the total amount of ITC available as per FORM
GSTR-2A of the registered person was Rs. 3,00,000, whereas the amount
of ITC availed in FORM GSTR 3B by the said registered person during the
corresponding tax period was Rs. 5,00,000. However, as per rule 36(4) of
CGST Rules as applicable during the said period, the said registered
person was not allowed to avail ITC in excess of an amount of Rs
3,00,000*1.2 = Rs.3,60,000.

 In the above case, the ITC of Rs 1,40,000 which has been availed in
excess of Rs. 3,60,000 shall not be admissible as per rule 36(4) of CGST
Rules as applicable during the said period even if the requisite certificate
as prescribed in Circular No. 183/15/2022-GST dated 27.12.2022 is
submitted by the registered person. Therefore, ITC availed in FORM
GSTR-3B in excess of that available in FORM GSTR-2A up to an amount
of Rs 60,000 only (i.e. 3,60,000-3,00,000) can be allowed subject to
production of the requisite certificates as per Circular No. 183/15/2022-
GST dated 27.12.2022.
 Effective date matched to GSTR-3B
Return period
Restriction % Effective from Notification No Applicable
Rerun period
20% 09/10/2019 49/2019 CT Dt 09-10-2019 Oct-2019
10% 01/01/2020 75/2019 CT Dt 26-12-2019 Dec-2019

5% 01/01/2021 94/2020 CT Dt 22-12-2020 Dec-2020

100% as per 01/01/2022 40/2021 CT Dt 29-12-2021 Dec-2022

GSTR-2A/2B
Please note:

ITC as per GSTR-3B

• The ITC availed as per the Financial records maintained by the Taxpayer.
• The ITC availed as per the provision of Section 16.
• The ITC is not restricted as per the provisions of Section 16(4) and 17(5).

ITC as per GSTR-2A/2B

• ITC pertains to the GSTN of the Taxpayer. ( Need to delete if it is not your GSTN)
• The ITC available as per the provision of Section 16.
• The ITC is not restricted as per the provisions of Section 16(4) and 17(5).
2017-18

RETURN YEAR ITC

As per Circular No: 183/15/2022-GST dated 27th December

2022

GSTR-3B 2017-18 ₹ 1,00,000.00

GSTR-2A 2017-18 ₹ 75,000.00

NOT REFLECTED IN GSTR-2A ₹ 25,000.00

CERTIFCATE REQUIRED ₹ 25,000.00

2018-19

RETURN YEAR ITC

As per Circular No: 183/15/2022-GST dated 27th December 2022

GSTR-3B 2018-19 ₹ 1,00,000.00
GSTR-2A 2018-19 ₹ 75,000.00
NOT REFLECTED IN GSTR-2A ₹ 25,000.00
CERTIFCATE REQUIRED ₹ 25,000.00
2019-20 Upto GSTR-3B for Aug-2019

RETURN YEAR ITC

As per Circular No: 183/15/2022-GST dated 27th December 2022
2019-20
(Up to
GSTR-3B 08-10-2019) ₹ 1,00,000.00
GSTR-2A --do-- ₹ 75,000.00

NOT REFLECTED IN GSTR-2A ₹ 25,000.00

CERTIFCATE REQUIRED TO
AUGG-2019 RETURN ₹ 25,000.00
Please note: Since the notification is effective from 09-10-2019, for Sep-2019 GSTR-3B the
restriction is applicable as the due date for GSTR-3B is 20/10/2019.
 GSTR-3B from Sep-2019 ( w.e.f 09-10-2019) to Nov-2019

RETURN YEAR ITC

As per Circular No: 193/05/2023-GST dated the 17th July 2023
GSTR-3B 2019-20 ₹ 1,00,000.00
(09-10-2019)
to
31-12-2019)
GSTR-2A -- do-- ₹ 75,000.00
CREDIT PERMITED 20% ₹ 15,000.00

CERTIFCATE REQUIRED FROM OCT-2019 TO ₹ 15,000.00

DEC-2019
ITC not allowed even certificate is produced ₹ 10,000.00

Please note: Since the notification is effective from 01-01-2020, for Sep-2019 GSTR-3B the
restriction is applicable as the due date for GSTR-3B is 20/10/2019.
 GSTR-3B from Dec-2019 to Mar-2020

RETURN YEAR ITC

As per Circular No: 193/05/2023-GST dated the 17th July 2023
GSTR-3B 2019-20 ₹ 1,00,000.00
GSTR-2A 2019-20 ₹ 75,000.00
PROVISIONAL CREDIT PERMITED 10% ₹ 7,500.00

CERTIFCATE REQUIRED FROM -DEC-2019 TO MAR-2020-10% ₹ 7,500.00

ITC NOT ALLOWED EVEN CERTIFCATE IS
PRODUCED ₹ 17,500.00

Please note:
Since the notification is effective from 01-01-2020, for Dec-2019 GSTR-3B the restriction is
applicable as the due date for GSTR-3B is 20/01/2020.
 GSTR-3B from Apr-2020 to Nov-2020

RETURN YEAR ITC

As per Circular No: 193/05/2023-GST dated the 17th July 2023
GSTR-3B 2020-21 ₹ 1,00,000.00
GSTR-2A 2020-21 ₹ 75,000.00
PROVISIONAL CREDIT PERMITED-10% ₹ 7,500.00

CERTIFCATE REQUIRED
FROM -APR-2020-Nov-20-10% ₹ 7,500.00
ITC NOT ALLOWED EVEN CERTIFCATE IS
PRODUCED ₹ 17,500.00
 GSTR-3B from Dec-2020 to Mar-2021

RETURN YEAR ITC

As per Circular No: 193/05/2023-GST dated the 17th July 2023
GSTR-3B 2020-21 ₹ 1,00,000.00
(From
01-01-2020 to 31/12/2021)
GSTR-2A As above ₹ 75,000.00
PROVISIONAL CREDIT PERMITED-5% ₹ 3,750.00

CERTIFCATE REQUIRED ₹ 3,750.00

FROM –DEC-2020 to -MAR-2021
ITC NOT ALLOWED EVEN CERTIFCATE IS ₹ 21,250.00
PRODUCED
Please note:
Since the notification is effective from 01-01-2021, for Dec-2020 GSTR-3B the restriction is
applicable as the due date for GSTR-3B is 20/01/2021.
 GSTR-3B from Apr-2021 to Nov-2021
RETURN YEAR ITC
As per Circular No: 193/05/2023-GST dated the 17th July 2023
GSTR-3B 2021-22 ₹ 1,00,000.00
GSTR-2A 2021-22 ₹ 75,000.00
PROVISIONAL CREDIT PERMITED-5%
APR-2021 TO Nov-2021 ₹ 3,750.00

CERTIFCATE REQUIRED
FROM -APR-2021-NOV-2021 ₹ 3,750.00
ITC NOT ALLOWED EVEN
CERTIFCATE IS PRODUCED ₹ 21,250.00
Please note:
Since the notification is effective from 01-01-2022, for Dec-2021 GSTR-3B the restriction is
applicable as the due date for GSTR-3B is 20/01/2022.
Thank u

• B Venkateswaran IRS,
• Asst., Commissioner Central GST(Retired)
• Coimbatore
• Tamil Nadu
• beevenkateswaran@gmail.com
• 9442012335 (WhatsApp only please)
Annexures for reference
 Circular No. 183/15/2022-GST dated 27-12-2022
 Circular No: 193/05/2023-GST dated the 17th July 2023
 Model certificate to be obtained from Supplier (Designed by the Author)
 Circular No. 183/15/2022-GST

F. No. CBIC-20001/2/2022 - GST

Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
GST Policy Wing
*****

New Delhi, Dated the 27th December, 2022

To,

The Principal Chief Commissioners/ Chief Commissioners/ Principal Commissioners/

Commissioners of Central Tax (All)/
The Principal Directors General/ Directors General (All)

Madam/Sir,

Subject: Clarification to deal with 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 – reg.

Section 16 of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as
“CGST Act”) provides for eligibility and conditions for availing Input Tax Credit (ITC).
During the initial period of implementation of GST, during the financial years 2017-18 and
2018-19, in many cases, the suppliers have failed to furnish the correct details of outward
supplies in their FORM GSTR-1, which has led to certain deficiencies or discrepancies in
FORM GSTR-2A of their recipients. However, the concerned recipients may have availed
input tax credit on the said supplies in their returns in FORM GSTR-3B. The discrepancies
between the amount of ITC availed by the registered persons in their returns in FORM GSTR-
3B and the amount as available in their FORM GSTR-2A are being noticed by the tax officers
during proceedings such as scrutiny/ audit/ investigation etc. due to such credit not flowing to
FORM GSTR-2A of the said registered persons. Such discrepancies are considered by the tax
officers as representing ineligible ITC availed by the registered persons, and are being flagged
seeking explanation from the registered persons for such discrepancies and/or for reversal of
such ineligible ITC.

2. It is mentioned that FORM GSTR-2A could not be made available to the taxpayers on
the common portal during the initial stages of implementation of GST. Further, restrictions
regarding availment of ITC by the registered persons upto certain specified limit beyond the

Page 1 of 5
ITC available as per FORM GSTR-2A were provided under rule 36(4) of Central Goods and
Services Tax Rules, 2017 (hereinafter referred to as “CGST Rules”) only with effect from 9th
October 2019. However, the availability of ITC was subjected to restrictions and conditions
specified in Section 16 of CGST Act from 1st July, 2017 itself. In view of this, various
representations have been received from the trade as well as the tax authorities, seeking
clarification regarding the manner of dealing with such discrepancies between the amount of
ITC availed by the registered persons in their FORM GSTR-3B and the amount as available in
their FORM GSTR-2A during FY 2017-18 and FY 2018-19.

3. In order to ensure uniformity in the implementation of the provisions of the law across
the field formations, the Board, in exercise of its powers conferred under section 168(1) of the
CGST Act, hereby clarifies as follows:

S. No. Scenario Clarification

a. Where the supplier has failed to file
FORM GSTR-1 for a tax period but
has filed the return in FORM
GSTR-3B for said tax period, due
to which the supplies made in the
said tax period do not get reflected
in FORM GSTR-2A of the
recipients.
In such cases, the difference in ITC claimed by
the registered person in his return in FORM
GSTR-3B and that available in FORM GSTR-2A
may be handled by following the procedure
provided in para 4 below.

b. Where the supplier has filed FORM
GSTR-1 as well as return in FORM
GSTR-3B for a tax period, but has
failed to report a particular supply
in FORM GSTR-1, due to which
the said supply does not get
reflected in FORM GSTR-2A of
the recipient.
In such cases, the difference in ITC claimed by
the registered person in his return in FORM
GSTR-3B and that available in FORM GSTR-2A
may be handled by following the procedure
provided in para 4 below.

c. Where supplies were made to a
registered person and invoice is
issued as per Rule 46 of CGST
Rules containing GSTIN of the
recipient, but supplier has wrongly
reported the said supply as B2C
In such cases, the difference in ITC claimed by
the registered person in his return in FORM
GSTR-3B and that available in FORM GSTR-2A
may be handled by following the procedure
provided in para 4 below.

Page 2 of 5
 S. No. Scenario Clarification

supply, instead of B2B supply, in

his FORM GSTR-1, due to which
the said supply does not get
reflected in FORM GSTR-2A of
the said registered person.

d. Where the supplier has filed FORM
GSTR-1 as well as return in FORM
GSTR-3B for a tax period, but he
has declared the supply with wrong
GSTIN of the recipient in FORM
GSTR-1.
In such cases, the difference in ITC claimed by
the registered person in his return in FORM
GSTR-3B and that available in FORM GSTR-2A
may be handled by following the procedure
provided in para 4 below.
In addition, the proper officer of the actual
recipient shall intimate the concerned
jurisdictional tax authority of the registered
person, whose GSTIN has been mentioned
wrongly, that ITC on those transactions is
required to be disallowed, if claimed by such
recipients in their FORM GSTR-3B. However,
allowance of ITC to the actual recipient shall not
depend on the completion of the action by the tax
authority of such registered person, whose
GSTIN has been mentioned wrongly, and such
action will be pursued as an independent action.

4. The proper officer shall first seek the details from the registered person regarding all
the invoices on which ITC has been availed by the registered person in his FORM GSTR 3B
but which are not reflecting in his FORM GSTR 2A. He shall then ascertain fulfillment of the
following conditions of Section 16 of CGST Act in respect of the input tax credit availed on
such invoices by the said registered person:

i) that he is in possession of a tax invoice or debit note issued by the supplier or such
other tax paying documents;

ii) that he has received the goods or services or both;

iii) that he has made payment for the amount towards the value of supply, along with
tax payable thereon, to the supplier.

Page 3 of 5
 Besides, the proper officer shall also check whether any reversal of input tax credit is
required to be made in accordance with section 17 or section 18 of CGST Act and also whether
the said input tax credit has been availed within the time period specified under sub-section (4)
of section 16 of CGST Act.

4.1 In order to verify the condition of clause (c) of sub-section (2) of Section 16 of CGST
Act that tax on the said supply has been paid by the supplier, the following action may be taken
by the proper officer:

4.1.1 In case, where difference between the ITC claimed in FORM GSTR-3B and that
available in FORM GSTR 2A of the registered person in respect of a supplier for the said
financial year exceeds Rs 5 lakh, the proper officer shall ask the registered person to produce
a certificate for the concerned supplier from the Chartered Accountant (CA) or the Cost
Accountant (CMA), certifying that supplies in respect of the said invoices of supplier have
actually been made by the supplier to the said registered person and the tax on such supplies
has been paid by the said supplier in his return in FORM GSTR 3B. Certificate issued by CA
or CMA shall contain UDIN. UDIN of the certificate issued by CAs can be verified from ICAI
website https://udin.icai.org/search-udin and that issued by CMAs can be verified from ICMAI
website https://eicmai.in/udin/VerifyUDIN.aspx .

4.1.2 In cases, where difference between the ITC claimed in FORM GSTR-3B and that
available in FORM GSTR 2A of the registered person in respect of a supplier for the said
financial year is upto Rs 5 lakh, the proper officer shall ask the claimant to produce a certificate
from the concerned supplier to the effect that said supplies have actually been made by him to
the said registered person and the tax on said supplies has been paid by the said supplier in his
return in FORM GSTR 3B.

4.2 However, it may be noted that for the period FY 2017-18, as per proviso to section
16(4) of CGST Act, the aforesaid relaxations shall not be applicable to the claim of ITC made
in the FORM GSTR-3B return filed after the due date of furnishing return for the month of
September, 2018 till the due date of furnishing return for March, 2019, if supplier had not
furnished details of the said supply in his FORM GSTR-1 till the due date of furnishing
FORM GSTR 1 for the month of March, 2019.

5. It may also be noted that the clarifications given hereunder are case specific and are
applicable to the bonafide errors committed in reporting during FY 2017-18 and 2018-
19. Further, these guidelines are clarificatory in nature and may be applied as per the actual

Page 4 of 5
facts and circumstances of each case and shall not be used in the interpretation of the provisions
of law.

6. These instructions will apply only to the ongoing proceedings in scrutiny/audit/

investigation, etc. for FY 2017-18 and 2018-19 and not to the completed proceedings.
However, these instructions will apply in those cases for FY 2017-18 and 2018-19 where any
adjudication or appeal proceedings are still pending.

7. Difficulty, if any, in the implementation of the above instructions may please be brought
to the notice of the Board. Hindi version would follow.

Sanjay Mangal
Principal Commissioner (GST)

Page 5 of 5
 Circular No. 193/05/2023-GST

File No. CBIC-20001/5/2023-GST

Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
GST Policy Wing
*****
New Delhi, Dated the 17th July, 2023
To,

The Principal Chief Commissioners/Chief Commissioners/Principal Commissioners/

Commissioners of Central Tax (All)
The Principal Directors General/ Directors General (All)

Madam/Sir,

Subject: Clarification 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.

Attention is invited to Circular No. 183/15/2022-GST dated 27th December, 2022, vide
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 Central Goods and Services Tax Act, 2017 (hereinafter referred
to as “CGST 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 Central Goods and Services Tax Rules, 2017 (hereinafter
referred to as “CGST Rules”) only with effect from 9th October 2019. W.e.f. 09.10.2019, the
said rule allowed availment of Input tax credit by a 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 the invoice furnishing facility (IFF), to the extent
not exceeding 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
of CGST Act in FORM GSTR-1 or using the IFF. The said limit was brought down to 10%
w.e.f. 01.01.2020 and further reduced to 5% w.e.f. 01.01.2021. The said rule was intended to
allow availment of due credit in cases where the suppliers may have delayed in furnishing the
details of outward supplies. Further, w.e.f. 01.01.2022, consequent to insertion of clause (aa)
to sub-section (2) of section 16 of the CGST Act, ITC can be availed only up to the extent
communicated in FORM GSTR-2B.

3.1 As discussed above, rule 36(4) of CGST Rules allowed additional credit to the tune of
20%, 10% and 5%, as the case may be, during the period from 09.10.2019 to 31.12.2019,

Page 1 of 4
01.01.2020 to 31.12.2020 and 01.01.2021 to 31.12.2021 respectively, subject to certain terms
and conditions, in respect of invoices/supplies that were not reported by the concerned
suppliers in their FORM GSTR-1 or IFF, leading to discrepancies between the amount of ITC
availed by the registered persons in their returns 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
CGST 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 CGST 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 CGST 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 in
FORM GSTR-3B as compared to that detailed in FORM GSTR-2A has been clarified for FY
2017-18 and 2018-19 vide Circular No. 183/15/2022-GST dated 27th December, 2022, various
representations have been received seeking clarification regarding the manner of dealing with
such discrepancies between the amount of ITC availed by the registered persons in their
FORM GSTR-3B and the amount as available in their FORM GSTR-2A during the period
from 01.04.2019 to 31.12.2021.

4. In order to ensure uniformity in the implementation of the provisions of the law across
the field formations, the Board, in exercise of its powers conferred under section 168(1) of the
CGST Act, hereby clarifies as follows:

(i) Since rule 36(4) came into effect from 09.10.2019 only, the guidelines provided by
Circular No. 183/15/2022-GST dated 27th December, 2022 shall be applicable, in toto, for the
period from 01.04.2019 to 08.10.2019.

(ii) In respect of period from 09.10.2019 to 31.12.2019, rule 36(4) of CGST Rules
permitted availment of Input tax credit by a 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 to the extent not exceeding 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.
Accordingly, the guidelines provided by Circular No. 183/15/2022-GST dated 27th December,
2022 shall be applicable for verification of the condition of clause (c) of sub-section (2) of
Section 16 of CGST 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 total amount of ITC available as per FORM GSTR-2A of
the registered person was Rs. 3,00,000, whereas, the amount of ITC availed in FORM GSTR-

Page 2 of 4
3B by the said registered person during the corresponding tax period was Rs. 5,00,000.
However, as per rule 36(4) of CGST Rules as applicable during the said period, the said
registered person was not allowed to avail ITC in excess of an amount of Rs 3,00,000*1.2 =
Rs.3,60,000.

In the above case, the ITC of Rs 1,40,000 which has been availed in excess of Rs. 3,60,000
shall not be admissible as per rule 36(4) of CGST Rules as applicable during the said period
even if the requisite certificate as prescribed in Circular No. 183/15/2022-GST dated
27.12.2022 is submitted by the registered person. Therefore, ITC availed in FORM GSTR-3B
in excess of that available in FORM GSTR-2A up to an amount of Rs 60,000 only (i.e.
3,60,000-3,00,000) can be allowed subject to production of the requisite certificates as per
Circular No. 183/15/2022-GST dated 27.12.2022.

(iii) Similarly, for the period from 01.01.2020 to 31.12.2020, when rule 36(4) of CGST
Rules allowed additional credit to the tune of 10% in excess of the that reported by the suppliers
in their FORM GSTR-1 or IFF, the guidelines provided by Circular No. 183/15/2022-GST
dated 27th December, 2022 shall be applicable, for verification of the condition of clause (c)
of sub-section (2) of Section 16 of CGST 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 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 CGST 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 Circular No. 183/15/2022-GST dated 27th
December, 2022 shall be applicable, for verification of the condition of clause (c) of sub-
section (2) of Section 16 of CGST 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 the IFF shall not exceed 5 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.

5. It is further clarified that consequent to insertion of clause (aa) to sub-section (2) of

section 16 of the CGST Act and amendment of rule 36(4) of CGST Rules w.e.f. 01.01.2022,
no ITC shall be allowed for the period 01.01.2022 onwards in respect of a supply unless the
same is reported by his suppliers in their FORM GSTR-1 or using IFF and is communicated
to the said registered person in FORM GSTR-2B.

6. Further, it may be noted that proviso to rule 36(4) of CGST Rules was inserted vide
Notification No. 30/2020-CT dated 03.04.2020 to provide that the condition of rule 36(4) shall
be applicable cumulatively for the period February to August, 2020 and ITC shall be adjusted
on cumulative basis for the said months in the return for the tax period of September 2020.
Similarly, second proviso to rule 36(4) of CGST Rules was substituted vide Notification No.
27/2021-CT dated 01.06.2021 to provide that the condition of rule 36(4) shall be applicable
Page 3 of 4
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 those cases during the period
01.04.2019 to 31.12.2021 where any adjudication or appeal proceedings are still pending.

9. Difficulty, if any, in the implementation of the above instructions may please be brought
to the notice of the Board. Hindi version would follow.

Sanjay Mangal

Principal Commissioner (GST)

Page 4 of 4
 // In the letter head of the Supplier//

Certificate wrt as per Circular No. 183/15/2022-GST dated 27-12-2022 issued

by Central Board of Indirect Taxes and Customs, New Delhi

TO WHOM SO EVER IT CONCEN

We, M/s……………………….holders of GSTN …………………..having principal

place of business at………………………………and allotted to……………as
Jurisdictional/Administrative Office for GST purpose, here by certify

⎯ That we have supplied goods/services vide our invoices as detailed

in the annexure attached to this certificate to M/s………………….
holders of GSTN …………………..having principal place of business
at………………………………

⎯ That in respect of the invoices as mentioned in the Annexure to this

certificate, we have not filed FORM GSTR-1 for the tax period.
However, we declare that in respect of the invoices, we have made
supplies to the said registered person and the tax on such supplies
has been paid by us in our return in FORM GSTR 3B for the tax period.
(OR)

⎯ That in respect of the invoices as mentioned in the Annexure to this

certificate we have filed FORM GSTR-1 as well as return in FORM GSTR-
3B for the said tax period but could not report the said supply in FORM
GSTR-1. However, we declare that in respect of the invoices we have
made supplies to the said registered person and the tax on such
supplies has been paid by us in our return in FORM GSTR 3B for the tax
period. (OR)

⎯ that in respect of the invoices as mentioned in the Annexure to this

certificate, we have issued invoices as per Rule 46 of CGST Rules,2017
containing GSTIN of the recipient, but we have wrongly reported the
said supply as B2C supply, instead of B2B supply, in our FORM GSTR-1
for the said tax period. However, we declare that in respect of the
invoices we have made supplies to the said registered person and
the tax on such supplies has been paid by us in our return in FORM
GSTR 3B for the tax period. (OR)
 ⎯ that in respect of the invoices as mentioned in the Annexure to this
certificate, we have filed FORM GSTR-1 as well as return in FORM
GSTR-3B for a tax period, but we have declared the supply with
wrong GSTIN of the recipient in FORM GSTR-1. However, we declare
that in respect of the invoices we have made supplies to the said
registered person and the tax on such supplies has been paid by us
in our return in FORM GSTR 3B for the tax period.

This certificate is issued to the aforesaid registered person only for 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 with reference to
our supplies in respect of the detailed in the annexure, as per Circular No.
183/15/2022-GST dated 27-12-2022 issued by Central Board of Indirect Taxes
and Customs.

We do hereby declare that what is stated above is true to the best of our
information and belief.

Signature of the Authorised Person with seal

Place:
Date:

(Strike out whichever portion is not required)

ANNEXURE

Invoice details for the supplies made to M/s…………………. holders of GSTN

…………………..having principal place of business
at………………………………

Sl.No Invoice Taxable IGST CGST SGST Cess

No and value
Date
1
2
3
4
5
 Signature of the Authorised Person with seal
Place:
Date:
To

-----------------------------
-----------------------------
-----------------------------
-----------------------------
Dear Sir

Sub: GST- M/s………………………………………………( GST.NO……………………..)-

request for Certificate required as per CBIC Circular No: Circular No. 183/15/2022-
GST dated 27-12-2022 for non-reflection of your invoices in GSTR-2A during the
period 2017-18,2018-19 and 2019-20-Reg.

-----------------------------------

We have availed input tax credit as per the provisions of GST Act, 2017
based on your invoices detailed in annexure to this letter.

2. On verification of ITC availed based on your invoices detailed in the

annexure attached it is noticed that the same were not available in GSTR-2A
provided by GSTN portal based on the invoices uploaded by you in GSTR-1 for the
relevant period, though the transactions were genuine and our availment of input
credit as per the provisions of GST Law the non-availability of your invoices in the
GSTN System and GSTR-2A is due to following reasons Viz.,

⎯ The Registered persons have filed GSTR-3B but have not filed GSTR-1 for
the tax period.
⎯ The Registered persons have filed FORM GSTR-1 as well as return in FORM
GSTR-3B for the said tax period but the transaction was wrongly reported
the said supply as B2C supply, instead of B2B supply.
3. Now the officers of the Central/Stater GST department the Officers have
informed that they require certificate as per the CBIC Circular No. 183/15/2022-
GST dated 27-12-2022.

4. In view the above, as the invoice details enclosed in the annexure is not
available, we request you to us to provide the certificate in the enclosed format.

5. Please signed copy of the certificate immediately as the same must be

submitted to the Central Department. If you need any clarification on this, please
email to us through email id………………………

Encl:

1. Annexure-I-Draft Certificate format

2. Annexure-II- Details of invoices your sales invoices which are not reflected
in GSTR-2A.

Regards

For M/s…………………………..
 // In the letter head of the Supplier//

Annexure-I

Certificate wrt as per Circular No. 183/15/2022-GST dated 27-12-2022 issued by

Central Board of Indirect Taxes and Customs, New Delhi

TO WHOM SO EVER IT CONCEN

We, ---------------------- (Supplier Name) having principal place of business at ---

------------------------holders of GSTN No:…………………and allotted
to……………as Jurisdictional/Administrative Office for GST purpose, here by
certify,

⎯ That we have supplied goods/services vide our invoices as detailed in

the annexure attached to this certificate to ----------------------------
(Purchaser and address) having GSTN No:……………………………….(
That in respect of the invoices as mentioned in the Annexure to this
certificate, we have not filed FORM GSTR-1 for the tax period. However,
we declare that in respect of the invoices, we have made supplies to
the said registered person and the tax on such supplies has been paid
by us in our return in FORM GSTR 3B for the tax period. (OR)

⎯ That in respect of the invoices as mentioned in the Annexure to this

certificate we have filed FORM GSTR-1 as well as return in FORM GSTR-3B
for the said tax period but could not report the said supply in FORM GSTR-
1. However, we declare that in respect of the invoices we have made
supplies to the said registered person and the tax on such supplies has
been paid by us in our return in FORM GSTR 3B for the tax period. (OR)

⎯ that in respect of the invoices as mentioned in the Annexure to this

certificate, we have issued invoices as per Rule 46 of CGST Rules,2017
 containing GSTIN of the recipient, but we have wrongly reported the
said supply as B2C supply, instead of B2B supply, in our FORM GSTR-1 for
the said tax period. However, we declare that in respect of the invoices
we have made supplies to the said registered person and the tax on
such supplies has been paid by us in our return in FORM GSTR 3B for the
tax period. (OR)

⎯ that in respect of the invoices as mentioned in the Annexure to this

certificate, we have filed FORM GSTR-1 as well as return in FORM GSTR-
3B for a tax period, but we have declared the supply with wrong GSTIN
of the recipient in FORM GSTR-1. However, we declare that in respect
of the invoices we have made supplies to the said registered person and
the tax on such supplies has been paid by us in our return in FORM GSTR
3B for the tax period.

This certificate is issued to the aforesaid registered person only for 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 with reference to our supplies in respect
of the detailed in the annexure, as per Circular No. 183/15/2022-GST dated 27-
12-2022 issued by Central Board of Indirect Taxes and Customs.

We do hereby declare that what is stated above is true to the best of our
information and belief.

Signature of the Authorised Person with seal

Place:

Date:

(Strike out whichever portion is not required)

 ANNEXURE-II

Invoice details for the supplies made to ------------------------------ holders of GSTN

--------------------------having principal place of business at -------------------------------

Sl.No Invoice No Taxable IGST CGST SGST Cess

and Date value
1
2
3
4
5
6
7
8
9
10
Total

Signature of the Authorised Person with seal

Place:

Date: