Reversals under Rule 37A Reflected in September’s GSTR-2B: ITC to be Reversed Due to Non-Filing of GSTR-3B by Vendors for FY 2023-24

By: Admin
October 16, 2024
Categories: GST Portal Updates | Important News
4 Min Read

The Goods and Services Tax Network (GSTN) has updated September’s GSTR-2B to reflect reversals required under Rule 37A. This update shows the Input Tax Credit (ITC) that must be reversed due to the non-filing of GSTR-3B by vendors for the Financial Year 2023-24.

Key Details:

The next step involves following up with vendors to ensure they file their pending GSTR-3B.

If vendors fail to file their GSTR-3B for FY 2023-24 by the time you file your GSTR-3B for October, the ITC shown in GSTR-2B must be temporarily reversed. This reversal must be disclosed in Table 4B(2).

The reversed ITC can be reclaimed once the suppliers file their GSTR-3B for the relevant period.

Rule 37A Provisions:

Input tax credit is reversed if the supplier fails to file GSTR-3B for a tax period by September 30th following the end of the financial year.

If not reversed by the registered person by November 30th, the amount will be payable along with interest under Section 50.

Once the supplier files their return, the registered person may re-avail the ITC in subsequent tax periods.

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