GST Advisory No. 613 Dated. 14 November 2023: As per Rule 37A ITC to be Reversed by 30 November of Subsequent FY When Supplier Fails to Furnish GSTR-3B Within Stipulated Time
In a recent development on the GST portal, the Goods and Services Tax Network (GSTN) issued an Advisory 613 on November 14, 2023, shedding light on the reversal of Input Tax Credit (ITC) as per CGST Rule 37A. This advisory aims to guide taxpayers about the deadline and process of reversing ITC availed on invoices or debit notes when the supplier fails to furnish the return in FORM GSTR-3B within the stipulated timeline.
Understanding Rule 37A
Rule 37A of the CGST Rules, 2017 mandates taxpayers to reverse ITC availed on invoices or debit notes when details are provided by the supplier in their GSTR-1/IFF, but the return in FORM GSTR-3B for the relevant period is not submitted by the supplier until the 30th day of September following the end of the financial year in which the ITC was claimed.
Reversal Timeline and Obligation
Taxpayers are required to reverse the aforementioned ITC while filing their return in FORM GSTR-3B on or before the 30th day of November following the end of the financial year.
Communication to Taxpayers
To facilitate compliance, the GSTN has computed the amount of ITC to be reversed for the financial year 2022-23 and communicated this information to the relevant recipients. Email notifications have been dispatched to the registered email IDs of the taxpayers, providing them with a clear understanding of the ITC reversal obligation.
Actionable Steps for Taxpayers
In light of this advisory, taxpayers are strongly advised to take note of the communicated ITC amount and ensure its timely reversal in Table 4(B)(2) of GSTR-3B before the deadline of November 30, 2023. This step is crucial to avoid penalties and maintain seamless compliance with the provisions of Rule 37A.
Conclusion
In summary, GST Advisory 613 serves as a crucial guide for taxpayers navigating the intricacies of ITC reversal under CGST Rule 37A. By emphasizing the timeline, obligation, and communication channels, the advisory aims to streamline the compliance process and foster a transparent and accountable GST ecosystem. Taxpayers are encouraged to proactively address their ITC reversal obligations, ensuring a smooth filing process and minimizing the risk of non-compliance.
To Access the Advisory in GST portal CLICK HERE
To Access the GST Advisory 612 Dated. 10 November 2023 CLICK HERE
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