Taxpayers shall reconcile the Input Tax Credit (ITC) availed in their form GSTR 3Bs for the period starting from February 2020 to August 2020 with the details reflecting in their GSTR 2A, till the due date of furnishing GSTR 1 for the month of September 2020.
Earlier, keeping in view the situation of the COVID 19 pandemic, the government had issued vide notification No. 30/2020 CT on 3rd April 2020. It prescribed relaxation under sub-rule (4) of Rule 36 of the CGST Act. Accordingly, all the taxpayers advised to ascertain the details of invoices uploaded by their suppliers for the periods from February 2020 to August 2020 cumulatively, till the due date of furnishing FORM GSTR-1 for the month of September 2020 as reflected in GSTR-2A. The taxpayers, while filing GSTR-3B for the month of September 2020, have to cumulatively adjust ITC as per the above rule.
As per the notification released on 9th October 2020, ITC (without invoices on GSTR-2A) in GSTR-3B can be availed only to the extent of 10% of eligible ITC as per GSTR-2A. Hence, the total amount of ITC availed for the month of September 2020 should not exceed 110% of the cumulative value of the eligible credit in respect of details uploaded by the supplier for the months February, March, April, May, June, July, August 2020.
Further, provided that if any excess ITC availed during this period, shall be required to be reversed in Table 4(B)(2) of the FORM GSTR-3B, for the month of September 2020. Failure in such would be treated as availment of ineligible ITC during the month of September 2020.