Dear All,

This is in furtherance to the Tax Focus circulated in the appended mail pertaining to practical guidance from GST law perspective for FY 2020-21. Goods and Services Tax Network Team has issued an advisory dated 17 October 2021 in respect of availability of Input Tax Credit (‘ITC’) for FY 2020-21, wherein it has clarified on following key aspects:

• Invoice or debit notes (‘records’) pertaining to Financial Year 2020-21 reported in GSTR-1 after due date of GSTR-3B of September 2021 will not reflect as “ITC Available” in GSTR-2B of the recipients. Such records will reflect in “ITC Not Available” section of GSTR-2B and such ITC shall in turn not be auto-populated in GSTR-3B;
• Records pertaining to Financial Year 2020-21 reported in GSTR-1 after due date of GSTR-3B of September 2021 will also not reflect as “ITC as per GSTR-2A” in Table-8A of GSTR-9 of the recipients;

Taxpayers are advised to ensure that the records pertaining to Financial Year 2020-21 are reported on or before the due date of their GSTR-3B for the month September 2021, or for the quarter of July to September 2021 in case of quarterly GSTR-3B filers. Availment of ITC by the recipients contrary to the legal provisions in GST may entail action by the tax administrations in accordance with law.