To avail ITC on supplies declared by supplier in his GSTR-1 Registered Person is required to discharge his tax liability through GSTR-3B

To avail ITC on supplies declared by supplier in his GSTR-1 Registered Person is required to discharge his tax liability through GSTR-3B GSTR-1 is used to declare outbound supplies, while GSTR-3B is used to discharge the registered person's tax liability. On supplies disclosed by the provider in his GSTR-1 and for which tax has been paid, the recipient is eligible to claim input tax credit. The Finance Act of 2021 added an explanation to Section 75(12) of the CGST Act to clarify that tax on self-declared supply by a registered person in GSTR-1 that has not been paid through GSTR-3B will be deemed his self-assessed (and accepted) responsibility and can be reclaimed. This amendment is intended to improve payment discipline in the system and make it easier for recipients of supplies to receive ITC in a timely way. This alleviates receivers' concerns that they will be unable to claim ITC if the supplier fails to pay the applicable tax. The said amendment is clarifying in nature, and appropriate guidance would be supplied to field formations for its reasonable implementation.