ITC Reversal on Account of Rule 37(A)

GSTN has released a new advisory. Pl read the details below:

  1. Pursuant to Rule 37A of the CGST Rules, 2017, taxpayers must reverse the Input Tax Credit (ITC) claimed on invoices or debit notes for which their suppliers have provided details in their GSTR-1/IFF but have not filed the FORM GSTR-3B for the relevant period by the 30th of September following the financial year in which the ITC was claimed.
  2. Taxpayers are obligated to reverse the specified ITC amount while submitting their FORM GSTR-3B return on or before the 30th of November following the end of the financial year.
  3. To assist taxpayers, the system has calculated the ITC amount to be reversed under Rule 37A of CGST Rules for the financial year 2022-23 and has notified the concerned recipients. This information has been sent to the taxpayer’s registered email address.
  4. Taxpayers are advised to review this communication and ensure that any ITC they have claimed is reversed in accordance with Rule 37A of CGST Rules before November 30, 2023, in Table 4(B)(2) of GSTR-3B when filing the applicable GSTR-3B return.

Thank you for being an integral part of the GST community. We’re here to assist you every step of the way.

Best regards,

The advisory can be accessed on the GSTN portal at https://www.gst.gov.in/newsandupdates/read/613

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