Lok Sabha Question No. 3164 (UNSTARRED), answered on 2023-03-20
Subject: Simplification of GST Input Tax Credit
Ministry: FINANCE
Asked by: Jadon Chandra Sen, Vinayak Bhaurao Raut, Sanjay Haribhau Jadhav

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

## LOK SABHA UNSTARRED QUESTION No. 3164

TO BE ANSWERED ON MONDAY, MARCH 20, 2023/PHALGUNA 29, 1944 (SAKA)

## SIMPLIFICATION OF GST INPUT TAX CREDIT

3164. Dr. Chandra Sen Jadon:

Shri Vinayak Raut:

Shri Sanjay Jadhav:

Will the Minister of FINANCE be pleased to state:-

- (a) whether the Government proposes to simplify and streamline GST input tax credit paid on purchases in the GST law;
- (b) if so, the details the modalities thereof and if not, the reasons therefor;
- (c) whether many merchant establishments were unable to give details of their sales in the years 2017-18 and 2018-19 due to ignorance of GST law, lack of information and technical glitches in the portal and if so, the details thereof and the reaction of the Government thereto;
- (d)  whether  the  Government  has  taken  any  immediate  steps  for  the  convenience  of  the  said establishments  and  dealers  who  claimed  Input  Tax  Credit  (ITC)  on  the  basis  of  their  own accounts and bills and if so, the details thereof;
- (e) whether sustained pressure is being allegedly created on the taxpayers by giving online ITC mismatch information and if so, the details thereof and the reaction of the Government thereto; and
- (f) the reasons for not giving ITC on the basis of the ledger accounts and bills and the steps taken by the Government to rectify aforesaid petty omissions and errors?

## ANSWER

## THE MINISTER OF STATE FOR FINANCE

## (SHRI PANKAJ CHAUDHARY)

- (a) & (b) Government has, as per recommendations of GST Council, taken a number of measures to simplify and streamline availment of input tax credit by the registered persons under GST.

These measures, inter alia , include:

(i) auto drafted Input Tax Credit statement in FORM GSTR-2B is made available to the registered persons,

(ii)  details  of  input  tax  credit  and  outward  supplies  are  auto-populated  in  the  return  in FORM GSTR-3B on the basis of FORM GSTR-2B and FORM GSTR-1,

(iii) to facilitate timely availment of input tax credit by recipients and to nudge suppliers to  report  details  of  supplies  in  timely  manner,  the  CGST  Act  has  been  amended  to provide  for  sequential  filing  of  details  of  outward  supplies  in  FORM  GSTR-1  and  to provide for furnishing of details of outward supplies of a tax period under sub-section (1) of section 37 in FORM GSTR-1 as a condition for furnishing the return under section 39 for the said tax period in FORM GSTR-3B.

(c)  &  (d)  It  has  been  reported  that  during  the  initial  period  of  implementation  of  GST  in  the financial years 2017-18 and 2018-19,  in  many  cases,  the  suppliers    failed  to  furnish  correct details  of  outward supplies  in  their  FORM  GSTR-1,  which    led  to  certain  deficiencies  or discrepancies  in FORM  GSTR-2A  of  their  recipients.  Where the concerned recipients availed input tax credit on the said supplies, discrepancies arose between the amount of ITC availed by such persons in their returns in FORM GSTR-3B and the amount as available in their FORM GSTR-2A.

To facilitate the taxpayers in availment of due input tax credit in such cases, for FY 2017-18 and 2018-19, a detailed mechanism has been prescribed vide Circular no. 183/15/2022-GST dated 27.12.2022, based on the recommendations of the GST Council.

(e) & (f) As per provisions of the CGST Act, 2017, a registered person can avail input tax credit not  simply  on  the  basis  of  ledger  accounts  or  bills  but  also  subject  to  the  conditions  and restrictions as specified in section 16 and section 17 of CGST Act, 2017, read with Rules made thereunder, inter  alia ,  including  the  furnishing  of  details  of  the  invoice  or  debit  note  by  the concerned supplier in the statement of outward supplies and communication of such details to the recipient. To facilitate registered persons in availment of correct input tax credit and to help them ascertain discrepancies, if any, between input tax credit available as per FORM GSTR 2B and that availed in FORM GSTR 3B, a comparison report is made available on the common portal.

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