As per provisions incorporated in original GST Act, ITC self-assessed in return was taken to electronic credit ledger on a provisional basis and said provisional credit was converted into final credit once matching is carried out with valid return i.e., a return in which supplier has made full payment of taxes. In result, provisional ITC becomes final if invoice is furnished in GSTR-1, tax is fully paid in GSTR-3B by the supplier. Now as per the amended Act, in light of restrictions that GSTR-1 cannot be filed if Form GSTR-1 for preceding tax period is not filed, and GSTR-3B cannot be filed if GSTR1 for same tax period is not filed, ITC will be communicated in Form GSTR-2B only in respect of those invoices which are furnished in GSTR-1 and tax in respect whereof is fully paid in GSTR-3B. The only difference is that in pre-amended period, matching has to be carried out and results thereof were to be communicated through statutorily prescribed forms. Whereas in amended regime, entitlement to ITC is based on Form GSTR-2B which communicates the matched results.
Source Adv (CA) Kashish Gupta
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