• Dated 07th January, 2022
Tax Alert

Availment of credit on the basis of ITC reflected in GSTR-2B from January 2022 onwards

CGST Rule 36(4) is amended to remove 5% additional ITC over and above ITC appearing in GSTR-2B.  From 1st January 2022, taxpayer can avail ITC only if it is reported by supplier in GSTR-1/ IFF and it appears in their GSTR-2B.

Form GSTR-2A is a form of a dynamic statement, wherein details of inward supplies vis-à-vis input tax credit is updated on a continuous basis.

On the other hand, Form GSTR-2B is a form of a static statement. The details in GSTR-2B is updated on a constant basis i.e. by 13th of the Month.

In accordance with Rule 36(4) read with Section 16 of CGST Act 2017, an  input tax credit can be claimed by the taxpayer only when the  input tax credit is reflected in GSTR-2A/ GSTR-2B of the recipient.

CBIC vide Notification No. 40/2021 – Central Tax, dated on 29th December, 2021, have amended provision the above provision ,  as per which the input  tax credit reflected in GSTR-2B shall only be eligible to be claimed in GSTR-3B from January 2022 onwards.

Prior to 01.01.2022, one was allowed to take credit based on purchased booked in their books of accounts. From January 2022, taxpayer is required to reconcile input tax credit with GSTR-2B for availing credit in GSTR-3B.

Input tax credit reconciliation with GSTR-2B is required to be undertaken instead of GSTR-2A from January 2022 onwards.