QUESTION

We have claimed excess IGST in 3B as compared to available in 2A. IGST of some parties is not showing on the portal due to their mistake. Department has issued notice for payment of excess claim by DRC 03. Are we required to pay tax of diference? Or can we reverse in 3B now and claim it when reflected in 2A after correction by suppliers. Please advise and provide any circular on same.

ANSWER

FY 17-18
If ITC is less reflecting in 2A then there is no need to reverse the same if it claimed in GSTR-3B upto September 2018 but you are suggested to maintain backup of valid documents to prove that you have received the goods and you are eligible for credit u/s 16 of CGST Act during Audit or further proceedings.
However if the same is claimed after September, 18 till March, 19 then as per Section 16 amended proviso ITC can be claimed subject to the condition that it will be eligible only if it is reflecting in 2A.

FY 18-19
There is no need to reverse the ITC claimed in GSTR-3B even if the same is not reflecting in GSTR-2A due to suppliers mistake, but you are suggested to maintain backup of valid documents to prove that you have received the goods and you are eligible for credit u/s 16 of CGST Act during Audit or further proceedings.

If you have received the notice for payment of excess claim from Department and you have valid proofs that you are actually eligible for ITC claimed by you against which demand has been raised (subject to conditions for FY 17-18 as per proviso to section 16), then go for litigation.