Taxpayers registered under GST have a crucial deadline approaching. They have until November 30, 2024, to ensure their suppliers upload invoices for the financial year 2023-24 on the GST portal. If this is not done, buyers will be unable to claim the associated input tax credit (ITC). Once the suppliers upload their invoices and file GSTR-1, the buyer’s GSTR-2B automatically shows the corresponding ITC. However, several taxpayers reported problems such as missing details of input tax credit or no generation of GSTR-2B at all. In this regard, GSTN issued an advisory to aid taxpayers in understanding and sorting out the issues.

Details on This Advisory: Why GSTR-2B Gets Missing

The advisory dated November 16, 2024, laid out specific scenarios in which GSTR-2B would not be generated:

1. QRMP Scheme : Taxpayers who enrol in the Quarterly Return Filing and Monthly Payment scheme will not get GSTR-2B for the first two months of the quarter. For example, for the quarter of October to December 2024, GSTR-2B will only be generated for the month of December 2024 and not for the months of October or November.

2. Non-filing of Previous GSTR-3B : GST taxpayers who don’t file their GSTR-3B for the prior period will not have the facility of downloading GSTR-2B. For instance, if GSTR-3B for September 2024 is pending, the taxpayer cannot download GSTR-2B for October 2024. On submission of the pending GSTR-3B, a taxpayer can recompute GSTR-2B by clicking “Compute GSTR-2B” on the IMS dashboard.

Challenges in Claiming Input Tax Credit

Buyers relying on the input tax credit to offset their tax liabilities may face challenges if suppliers do not upload the invoices and file GSTR-1. Since January 2022, ITC can only be claimed based on invoices appearing in GSTR-2B. In such cases, buyers must pay their output tax liability in cash, which could lead to working capital issues.

For instance, a buyer who purchases goods worth Rs 10 crore at an 18% GST rate would pay Rs 1.8 crore as GST to the supplier. If the buyer sells these goods at Rs 12 crore, the output tax liability would be Rs 2.16 crore. Ideally, the buyer would adjust Rs 1.8 crore of input tax credit, resulting in a net liability of Rs 36 lakh. However, if GSTR-2B does not disclose the ITC due to supplier non-compliance, the buyer would need to pay Rs 2.16 crore in full and resolve the issue later. This delay can cause significant financial strain.

Steps to Resolve ITC Discrepancies

GSTN’s advisory provides a step-by-step solution to address these issues:

1. Request Invoice Uploads: Buyers should ensure suppliers upload their invoices in GSTR-1 before **November 30, 2024.

2. Recompute GSTR-2B: In case of discrepancies, taxpayers can recompute their GSTR-2B through the IMS portal by:

• Accessing the IMS dashboard and taking action on any record to enable re-computation.

• Clicking the “Compute GSTR-2B” button.

• Viewing updated values in GSTR-2B, which will automatically populate in GSTR-3B.

This advisory aims to reduce confusion and streamline the process for claiming input tax credit, ensuring smoother compliance with GST regulations. Taxpayers are urged to act promptly to avoid financial setbacks and ITC denial.