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The Department of Finance notes, however, that the recording of data by providers and the ability to view it do not affect the ability of taxpayers to claim the input tax credit (ITC).
"It is specified that the provision of the details in the GSTR-1 form by the corresponding supplier and the possibility of viewing the same information in the GSTR-2A by the recipient is of the nature of the facilitation for the taxpayer and do not affect the recipient's ability. the taxpayer to avail the ITC on the basis of self-badessment in accordance with the provisions of Article 16 of the Act, "the ministry said in a statement Thursday.
According to the statement, the concern that ITC can only be used on the basis of a reconciliation between Form GSTR-2A and Form GSTR-3B for September 2018 is "unfounded", because the exercise can also be performed afterwards. Tax experts said the government should allow the rectification of the return form at least once after the deadline, knowing that hundreds of millions of rupees are at stake.
"Although the press release indicates that a reconciliation between GSTR 2A (supplier's invoices) and GSTR 3B is not necessary, the law clearly states that input credit will only be allowed if the suppliers paid the tax and filed their returns, "said Pratik Jain, PwC's national head of indirect taxes.
Subsection 16 (4) of the Central GST Act states that a registered person may not claim an ITC in respect of an invoice or debit note for the supply of goods or services, or both, as a result of the filing deadline under section 39. for the month of September following the end of the fiscal year in which such invoice or debit note refers, or the delivery of the annual report, whichever comes first.
The industrial organizations CII, Assocham and ICAI have voted for an extension of the deadline of October 20th.
"Companies will always have to be cautious about the credit used for the previous fiscal year, because ineligible credits will have to be reversed with interest in the future because there is no change in the subsection 16 (4), "said MS Mani, a partner at Deloitte India.
Bipin Sapra, a partner at EY, said that the Ministry of Finance's clarifications still require the sector to take credit before the deadline for filing the September declaration, by 20 October, on the basis of bills available. "Even though the reconciliation can be substantially authorized, it appears that the vendors will not be able to modify the 3B returns. Therefore, the due date of the rectification should also be modified accordingly, "he said.
Sachin Menon, KPMG Indirect Tax Manager for India, said, "The government's publication seems to imply that the recipient of a taxable supply must claim all credits in inputs, even in anticipation of downloading. invoices by suppliers after the deposit. September 18th returns. Being the first year of the GST, even the reconciliation of missing bills … is time consuming and the industry is waiting for the government to be indulgent. "
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