{"id":27846,"date":"2024-11-20T00:33:54","date_gmt":"2024-11-19T19:03:54","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=27846"},"modified":"2025-10-07T23:14:57","modified_gmt":"2025-10-07T17:44:57","slug":"gstn-advisory-on-how-to-fix-gstr-2b-itc-issue","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/gstn-advisory-on-how-to-fix-gstr-2b-itc-issue\/","title":{"rendered":"GSTN Advisory on how to fix GSTR 2B ITC Issue"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d28b25e25fe\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d28b25e25fe\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/gstn-advisory-on-how-to-fix-gstr-2b-itc-issue\/#GSTR_2B_ITC_Issue_GSTN_Advisory_on_how_to_fix_it_for_FY_2023-24\" title=\"GSTR 2B ITC Issue : GSTN Advisory on how to fix it for FY 2023-24\">GSTR 2B ITC Issue : GSTN Advisory on how to fix it for FY 2023-24<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/gstn-advisory-on-how-to-fix-gstr-2b-itc-issue\/#Reasons_GSTR-2B_May_Not_Be_Generated\" title=\"Reasons GSTR-2B May Not Be Generated\">Reasons GSTR-2B May Not Be Generated<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/gstn-advisory-on-how-to-fix-gstr-2b-itc-issue\/#Steps_to_Address_Issue_of_GSTR-2B_not_generated\" title=\"Steps to Address Issue of GSTR-2B not generated\">Steps to Address Issue of GSTR-2B not generated<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/gstn-advisory-on-how-to-fix-gstr-2b-itc-issue\/#What_actions_are_required_for_taxpayers\" title=\"What actions are required for taxpayers?\u00a0\">What actions are required for taxpayers?\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/gstn-advisory-on-how-to-fix-gstr-2b-itc-issue\/#Impact_of_Non-generation_of_GSTR-2B\" title=\"Impact of Non-generation of GSTR-2B: \">Impact of Non-generation of GSTR-2B: <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/gstn-advisory-on-how-to-fix-gstr-2b-itc-issue\/#Guide_for_BASIC_GST_ENTRIES\" title=\"Guide for BASIC GST ENTRIES:\">Guide for BASIC GST ENTRIES:<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/gstn-advisory-on-how-to-fix-gstr-2b-itc-issue\/#Basic_GST_Journal_Entries_%E2%80%93_Quick_Reference\" title=\"Basic GST Journal Entries \u2013 Quick Reference\">Basic GST Journal Entries \u2013 Quick Reference<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/gstn-advisory-on-how-to-fix-gstr-2b-itc-issue\/#_Purchases_Sales\" title=\"\u00a0Purchases &amp; Sales\">\u00a0Purchases &amp; Sales<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/carajput.com\/blog\/gstn-advisory-on-how-to-fix-gstr-2b-itc-issue\/#_Tax_Adjustments_ITC\" title=\"\u00a0Tax Adjustments &amp; ITC\">\u00a0Tax Adjustments &amp; ITC<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/carajput.com\/blog\/gstn-advisory-on-how-to-fix-gstr-2b-itc-issue\/#Reverse_Charge_Mechanism_RCM\" title=\"Reverse Charge Mechanism (RCM)\">Reverse Charge Mechanism (RCM)<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/carajput.com\/blog\/gstn-advisory-on-how-to-fix-gstr-2b-itc-issue\/#Final_Deadline_Reminder_claim_Input_Tax_credit\" title=\"Final Deadline Reminder claim Input Tax credit\">Final Deadline Reminder claim Input Tax credit<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/carajput.com\/blog\/gstn-advisory-on-how-to-fix-gstr-2b-itc-issue\/#Purpose_Scope_of_Rule_86A_%E2%80%93_Blocking_of_ITC_under_GST\" title=\"Purpose &amp; Scope of Rule 86A \u2013 Blocking of ITC under GST\">Purpose &amp; Scope of Rule 86A \u2013 Blocking of ITC under GST<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/carajput.com\/blog\/gstn-advisory-on-how-to-fix-gstr-2b-itc-issue\/#Authority_Monetary_Limits\" title=\"Authority &amp; Monetary Limits\">Authority &amp; Monetary Limits<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/carajput.com\/blog\/gstn-advisory-on-how-to-fix-gstr-2b-itc-issue\/#Grounds_for_Blocking_ITC\" title=\"Grounds for Blocking ITC : \">Grounds for Blocking ITC : <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/carajput.com\/blog\/gstn-advisory-on-how-to-fix-gstr-2b-itc-issue\/#Requirement_of_%E2%80%9CReason_to_Believe%E2%80%9D\" title=\"Requirement of \u201cReason to Believe\u201d\">Requirement of \u201cReason to Believe\u201d<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/carajput.com\/blog\/gstn-advisory-on-how-to-fix-gstr-2b-itc-issue\/#Procedural_Safeguards_Principles_of_Natural_Justice\" title=\"Procedural Safeguards &amp; Principles of Natural Justice\">Procedural Safeguards &amp; Principles of Natural Justice<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/carajput.com\/blog\/gstn-advisory-on-how-to-fix-gstr-2b-itc-issue\/#Extent_Scope_of_Blocking\" title=\"Extent &amp; Scope of Blocking\">Extent &amp; Scope of Blocking<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/carajput.com\/blog\/gstn-advisory-on-how-to-fix-gstr-2b-itc-issue\/#Jurisdictional_Procedural_Errors\" title=\"Jurisdictional &amp; Procedural Errors : \">Jurisdictional &amp; Procedural Errors : <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/carajput.com\/blog\/gstn-advisory-on-how-to-fix-gstr-2b-itc-issue\/#Judicial_Trends_2024%E2%80%932025\" title=\"Judicial Trends (2024\u20132025)\">Judicial Trends (2024\u20132025)<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-27848\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/11\/photo_2024-11-20_00-34-15.jpg\" alt=\"GSTR 2B ITC Issue \" width=\"1080\" height=\"962\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/11\/photo_2024-11-20_00-34-15.jpg 1080w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/11\/photo_2024-11-20_00-34-15-300x267.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/11\/photo_2024-11-20_00-34-15-1024x912.jpg 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/11\/photo_2024-11-20_00-34-15-768x684.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/11\/photo_2024-11-20_00-34-15-800x713.jpg 800w\" sizes=\"(max-width: 1080px) 100vw, 1080px\" \/><\/h2>\n<h2><span class=\"ez-toc-section\" id=\"GSTR_2B_ITC_Issue_GSTN_Advisory_on_how_to_fix_it_for_FY_2023-24\"><\/span><a href=\"https:\/\/carajput.com\/blog\/gstn-advisory-on-how-to-fix-gstr-2b-itc-issue\/\"><span style=\"color: #000080;\"><strong>GSTR 2B ITC Issue : GSTN Advisory on how to fix it for FY 2023-24<\/strong><\/span><\/a><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Recent Goods and Services Tax Network advisory and the concept explained by Rajput Jain and Associates Experts chartered Accountants in the context of GSTR-2B and ITC issues. Here are the scenarios outlined in the Goods and Services Tax Network advisory dated November 16, 2024, explaining why GSTR-2B (Input Tax Credit Statement) might not have been generated for certain taxpayers for October 2024:<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Reasons_GSTR-2B_May_Not_Be_Generated\"><\/span><a href=\"https:\/\/carajput.com\/blog\/gstn-advisory-on-how-to-fix-gstr-2b-itc-issue\/\"><span style=\"color: #000080;\"><strong>Reasons GSTR-2B May Not Be Generated<\/strong><\/span><\/a><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li>Taxpayer Registration Cancelled: If the Goods and Services Tax registration of the taxpayer was cancelled as of the first day of the following month (i.e., November 1, 2024), their GSTR-2B for October will not be generated.<\/li>\n<li>Suspension of GSTIN: When a taxpayer\u2019s Goods and Services Tax Identification Number is suspended, GSTR-2B for the relevant period will not be generated by the system.<\/li>\n<li>Invalid GST Returns Filing: If GSTR-1 or GSTR-5 (filed by the supplier) contains errors or is not filed for October 2024, corresponding ITC will not reflect in the buyer&#8217;s GSTR-2B.<\/li>\n<li>Incorrect Invoice Data: Suppliers failing to upload accurate invoice details in GSTR-1 or IFF (Invoice Furnishing Facility) can prevent the data from populating in GSTR-2B.<\/li>\n<li>Late Filing by Supplier: If suppliers file GSTR-1\/IFF after the cut-off date (typically the 11th of the following month), the invoices will not be included in GSTR-2B for that period.<\/li>\n<li>Inter-state or Cross-supply Issues: Discrepancies in reported interstate transactions or mismatches in place of supply details can cause ITC issues.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Steps_to_Address_Issue_of_GSTR-2B_not_generated\"><\/span><a href=\"https:\/\/carajput.com\/blog\/gstn-advisory-on-how-to-fix-gstr-2b-itc-issue\/\"><span style=\"color: #000080;\"><strong>Steps to Address Issue of <\/strong><\/span><span style=\"color: #000080;\"><strong>GSTR-2B not generated<\/strong><\/span><\/a><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li>Verify Supplier Compliance: Ensure suppliers have filed GSTR-1 for the respective period and provided correct invoice details.<\/li>\n<li>Recheck Filing Dates: Cross-check if GSTR-1\/IFF submissions were made before the cut-off date. If late, ITC for those invoices will only reflect in the next period&#8217;s GSTR-2B.<\/li>\n<li>Review Goods and Services Tax Registration Status: Confirm Taxpayer taxpayer&#8217;s goods and Services Tax Identification Number is active and valid to avoid suspension-related non-generation.<\/li>\n<li>Check Vendor Reconciliation: Compare vendor invoices with the data reflected in your GSTR-2A\/2B and address mismatches directly with suppliers.<\/li>\n<li>Seek Clarifications from GST Helpdesk: Contact Goods and Services Tax Helpdesk for technical issues, providing evidence of non-generation or missing invoices.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"What_actions_are_required_for_taxpayers\"><\/span><a href=\"https:\/\/carajput.com\/blog\/gstn-advisory-on-how-to-fix-gstr-2b-itc-issue\/\"><span style=\"color: #000080;\"><strong>What actions are required for taxpayers?\u00a0<\/strong><\/span><\/a><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ol>\n<li>Quarterly Taxpayers Filers (QRMP Scheme):\n<ul>\n<li>Taxpayers under the Quarterly Return Monthly Payment (QRMP) scheme will not receive GSTR-2B for the first two months of a quarter.<\/li>\n<li>For instance:\n<ul>\n<li>In the October-December 2024 quarter, GSTR-2B will only be generated for Dec 2024, not for Oct or Nov 2024.<\/li>\n<\/ul>\n<\/li>\n<li>Input Tax Credit (ITC) for October and November will reflect in the December 2024 GSTR-2B.<\/li>\n<li>Be aware that GSTR-2B reflects Input Tax Credit only quarterly. Plan tax payments accordingly to avoid mismatches.<\/li>\n<\/ul>\n<\/li>\n<li>For Regular Filers:\n<ul>\n<li>Ensure suppliers upload invoices on time and file GSTR-1 for each month.<\/li>\n<li>Regularly reconcile purchase invoices with GSTR-2A\/GSTR-2B.<\/li>\n<\/ul>\n<\/li>\n<li>Non-filing of GSTR-3B:\n<ul>\n<li>Taxpayers who fail to file their previous period GSTR-3B will not have their GSTR-2B generated.<\/li>\n<li>Action Required: File the pending GSTR-3B to enable the generation of GSTR-2B.<\/li>\n<\/ul>\n<\/li>\n<li>Rectify Pending Compliance:\n<ul>\n<li>File previous GSTR-3B promptly to enable the generation of current GSTR-2B.<\/li>\n<li>Coordinate with suppliers to resolve discrepancies.<\/li>\n<\/ul>\n<\/li>\n<\/ol>\n<h2><span class=\"ez-toc-section\" id=\"Impact_of_Non-generation_of_GSTR-2B\"><\/span><a href=\"https:\/\/carajput.com\/blog\/gstn-advisory-on-how-to-fix-gstr-2b-itc-issue\/\"><span style=\"color: #000080;\">Impact of Non-generation of GSTR-2B: <\/span><\/a><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Buyers cannot claim Input Tax Credit for Financial Year 2023-24 if the supplier fails to upload invoices by November 30, 2024. Businesses may need to pay GST in cash due to denied Input Tax Credit, impacting liquidity.<\/p>\n<h2 data-start=\"242\" data-end=\"316\"><span class=\"ez-toc-section\" id=\"Guide_for_BASIC_GST_ENTRIES\"><\/span><span style=\"color: #000080;\"><strong data-start=\"251\" data-end=\"287\">Guide<\/strong> for <strong data-start=\"292\" data-end=\"313\">BASIC GST ENTRIES<\/strong>:<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-30114\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/11\/1757815208975.jpg\" alt=\"GST entries\" width=\"1078\" height=\"1366\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/11\/1757815208975.jpg 1078w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/11\/1757815208975-237x300.jpg 237w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/11\/1757815208975-808x1024.jpg 808w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/11\/1757815208975-768x973.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/11\/1757815208975-800x1014.jpg 800w\" sizes=\"(max-width: 1078px) 100vw, 1078px\" \/><\/p>\n<h3 data-start=\"323\" data-end=\"375\"><span class=\"ez-toc-section\" id=\"Basic_GST_Journal_Entries_%E2%80%93_Quick_Reference\"><\/span><span style=\"color: #000080;\"><strong data-start=\"328\" data-end=\"375\">Basic GST Journal Entries \u2013 Quick Reference<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h3 data-start=\"377\" data-end=\"404\"><span class=\"ez-toc-section\" id=\"_Purchases_Sales\"><\/span>\u00a0Purchases &amp; Sales<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p data-start=\"406\" data-end=\"458\"><strong data-start=\"406\" data-end=\"456\">GSTPurchase (Local Purchase with CGST &amp; SGST)<\/strong><\/p>\n<div class=\"contain-inline-size rounded-2xl relative bg-token-sidebar-surface-primary\">\n<div class=\"sticky top-9\">\n<div class=\"absolute end-0 bottom-0 flex h-9 items-center pe-2\">\n<div class=\"bg-token-bg-elevated-secondary text-token-text-secondary flex items-center gap-4 rounded-sm px-2 font-sans text-xs\"><code class=\"whitespace-pre!\">Purchase <span class=\"hljs-selector-tag\">A<\/span>\/c          Dr<\/code><\/div>\n<\/div>\n<\/div>\n<div class=\"overflow-y-auto p-4\" dir=\"ltr\"><code class=\"whitespace-pre!\"><span class=\"hljs-selector-tag\">Input<\/span> CGST <span class=\"hljs-selector-tag\">A<\/span>\/c        Dr<br \/>\n<\/code><\/div>\n<div class=\"overflow-y-auto p-4\" dir=\"ltr\"><code class=\"whitespace-pre!\"><span class=\"hljs-selector-tag\">Input<\/span> SGST <span class=\"hljs-selector-tag\">A<\/span>\/c        Dr<br \/>\n<\/code><\/div>\n<div class=\"overflow-y-auto p-4\" dir=\"ltr\"><code class=\"whitespace-pre!\">      <span class=\"hljs-selector-tag\">To<\/span> Creditor <span class=\"hljs-selector-tag\">A<\/span>\/c<br \/>\n<\/code><\/div>\n<\/div>\n<p data-start=\"564\" data-end=\"616\"><em data-start=\"564\" data-end=\"614\">(Being goods purchased locally with CGST &amp; SGST)<\/em><\/p>\n<p data-start=\"618\" data-end=\"663\"><strong data-start=\"618\" data-end=\"661\">GSTSales (Local Sale with CGST &amp; SGST)<\/strong><\/p>\n<div class=\"contain-inline-size rounded-2xl relative bg-token-sidebar-surface-primary\">\n<div class=\"sticky top-9\">\n<div class=\"absolute end-0 bottom-0 flex h-9 items-center pe-2\">\n<div class=\"bg-token-bg-elevated-secondary text-token-text-secondary flex items-center gap-4 rounded-sm px-2 font-sans text-xs\"><code class=\"whitespace-pre!\">Debtor <span class=\"hljs-selector-tag\">A<\/span>\/c            Dr<\/code><\/div>\n<\/div>\n<\/div>\n<div class=\"overflow-y-auto p-4\" dir=\"ltr\"><code class=\"whitespace-pre!\">      <span class=\"hljs-selector-tag\">To<\/span> Sales <span class=\"hljs-selector-tag\">A<\/span>\/c<br \/>\n<\/code><\/div>\n<div class=\"overflow-y-auto p-4\" dir=\"ltr\"><code class=\"whitespace-pre!\">      <span class=\"hljs-selector-tag\">To<\/span> Output CGST <span class=\"hljs-selector-tag\">A<\/span>\/c<br \/>\n<\/code><\/div>\n<div class=\"overflow-y-auto p-4\" dir=\"ltr\"><code class=\"whitespace-pre!\">      <span class=\"hljs-selector-tag\">To<\/span> Output SGST <span class=\"hljs-selector-tag\">A<\/span>\/c<br \/>\n<\/code><\/div>\n<\/div>\n<p data-start=\"766\" data-end=\"815\"><em data-start=\"766\" data-end=\"813\">(Being goods sold locally with GST collected)<\/em><\/p>\n<p data-start=\"817\" data-end=\"869\"><strong data-start=\"817\" data-end=\"867\">IGSTPurchase (Inter-State Purchase with IGST)<\/strong><\/p>\n<div class=\"contain-inline-size rounded-2xl relative bg-token-sidebar-surface-primary\">\n<div class=\"sticky top-9\">\n<div class=\"absolute end-0 bottom-0 flex h-9 items-center pe-2\">\n<div class=\"bg-token-bg-elevated-secondary text-token-text-secondary flex items-center gap-4 rounded-sm px-2 font-sans text-xs\"><code class=\"whitespace-pre!\">Purchase <span class=\"hljs-selector-tag\">A<\/span>\/c          Dr<\/code><\/div>\n<\/div>\n<\/div>\n<div class=\"overflow-y-auto p-4\" dir=\"ltr\"><code class=\"whitespace-pre!\"><span class=\"hljs-selector-tag\">Input<\/span> IGST <span class=\"hljs-selector-tag\">A<\/span>\/c        Dr<br \/>\n<\/code><\/div>\n<div class=\"overflow-y-auto p-4\" dir=\"ltr\"><code class=\"whitespace-pre!\">      <span class=\"hljs-selector-tag\">To<\/span> Creditor <span class=\"hljs-selector-tag\">A<\/span>\/c<br \/>\n<\/code><\/div>\n<\/div>\n<p data-start=\"950\" data-end=\"1006\"><em data-start=\"950\" data-end=\"1004\">(Being goods purchased from another state with IGST)<\/em><\/p>\n<p data-start=\"1008\" data-end=\"1053\"><strong data-start=\"1008\" data-end=\"1051\">IGSTSales (Inter-State Sale with IGST)<\/strong><\/p>\n<div class=\"contain-inline-size rounded-2xl relative bg-token-sidebar-surface-primary\">\n<div class=\"sticky top-9\">\n<div class=\"absolute end-0 bottom-0 flex h-9 items-center pe-2\">\n<div class=\"bg-token-bg-elevated-secondary text-token-text-secondary flex items-center gap-4 rounded-sm px-2 font-sans text-xs\"><code class=\"whitespace-pre!\">Debtor <span class=\"hljs-selector-tag\">A<\/span>\/c            Dr<\/code><\/div>\n<\/div>\n<\/div>\n<div class=\"overflow-y-auto p-4\" dir=\"ltr\"><code class=\"whitespace-pre!\">      <span class=\"hljs-selector-tag\">To<\/span> Sales <span class=\"hljs-selector-tag\">A<\/span>\/c<br \/>\n<\/code><\/div>\n<div class=\"overflow-y-auto p-4\" dir=\"ltr\"><code class=\"whitespace-pre!\">      <span class=\"hljs-selector-tag\">To<\/span> Output IGST <span class=\"hljs-selector-tag\">A<\/span>\/c<br \/>\n<\/code><\/div>\n<\/div>\n<p data-start=\"1131\" data-end=\"1191\"><em data-start=\"1131\" data-end=\"1189\">(Being goods sold outside the state with IGST collected)<\/em><\/p>\n<h3 data-start=\"1198\" data-end=\"1229\"><span class=\"ez-toc-section\" id=\"_Tax_Adjustments_ITC\"><\/span>\u00a0Tax Adjustments &amp; ITC<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p data-start=\"1231\" data-end=\"1281\"><strong data-start=\"1231\" data-end=\"1279\">ITC Claim (Adjusting ITC against Output Tax)<\/strong><\/p>\n<div class=\"contain-inline-size rounded-2xl relative bg-token-sidebar-surface-primary\">\n<div class=\"sticky top-9\">\n<div class=\"absolute end-0 bottom-0 flex h-9 items-center pe-2\">\n<div class=\"bg-token-bg-elevated-secondary text-token-text-secondary flex items-center gap-4 rounded-sm px-2 font-sans text-xs\"><code class=\"whitespace-pre!\">Output CGST <span class=\"hljs-selector-tag\">A<\/span>\/c       Dr<\/code><\/div>\n<\/div>\n<\/div>\n<div class=\"overflow-y-auto p-4\" dir=\"ltr\"><code class=\"whitespace-pre!\">Output SGST <span class=\"hljs-selector-tag\">A<\/span>\/c       Dr<br \/>\n<\/code><\/div>\n<div class=\"overflow-y-auto p-4\" dir=\"ltr\"><code class=\"whitespace-pre!\">      <span class=\"hljs-selector-tag\">To<\/span> <span class=\"hljs-selector-tag\">Input<\/span> CGST <span class=\"hljs-selector-tag\">A<\/span>\/c<br \/>\n<\/code><\/div>\n<div class=\"overflow-y-auto p-4\" dir=\"ltr\"><code class=\"whitespace-pre!\">      <span class=\"hljs-selector-tag\">To<\/span> <span class=\"hljs-selector-tag\">Input<\/span> SGST <span class=\"hljs-selector-tag\">A<\/span>\/c<br \/>\n<\/code><\/div>\n<\/div>\n<p data-start=\"1388\" data-end=\"1441\"><em data-start=\"1388\" data-end=\"1439\">(Being ITC adjusted against output GST liability)<\/em><\/p>\n<p data-start=\"1443\" data-end=\"1482\"><strong data-start=\"1443\" data-end=\"1480\">ITC Adjusted (Payable Adjustment)<\/strong><\/p>\n<div class=\"contain-inline-size rounded-2xl relative bg-token-sidebar-surface-primary\">\n<div class=\"sticky top-9\">\n<div class=\"absolute end-0 bottom-0 flex h-9 items-center pe-2\">\n<div class=\"bg-token-bg-elevated-secondary text-token-text-secondary flex items-center gap-4 rounded-sm px-2 font-sans text-xs\"><code class=\"whitespace-pre!\">CGST Payable <span class=\"hljs-selector-tag\">A<\/span>\/c      Dr<\/code><\/div>\n<\/div>\n<\/div>\n<div class=\"overflow-y-auto p-4\" dir=\"ltr\"><code class=\"whitespace-pre!\">SGST Payable <span class=\"hljs-selector-tag\">A<\/span>\/c <\/code><code class=\"whitespace-pre!\">     Dr<br \/>\n<\/code><\/div>\n<div class=\"overflow-y-auto p-4\" dir=\"ltr\"><code class=\"whitespace-pre!\">      <span class=\"hljs-selector-tag\">To<\/span> <span class=\"hljs-selector-tag\">Input<\/span> CGST <span class=\"hljs-selector-tag\">A<\/span>\/c<br \/>\n<\/code><\/div>\n<div class=\"overflow-y-auto p-4\" dir=\"ltr\"><code class=\"whitespace-pre!\">      <span class=\"hljs-selector-tag\">To<\/span> <span class=\"hljs-selector-tag\">Input<\/span> SGST <span class=\"hljs-selector-tag\">A<\/span>\/c<br \/>\n<\/code><\/div>\n<\/div>\n<p data-start=\"1589\" data-end=\"1639\"><em data-start=\"1589\" data-end=\"1637\">(Being net payable adjusted with input credit)<\/em><\/p>\n<p data-start=\"1641\" data-end=\"1690\"><strong data-start=\"1641\" data-end=\"1688\">CGSTSGST (Final Settlement of Tax Payable)<\/strong><\/p>\n<div class=\"contain-inline-size rounded-2xl relative bg-token-sidebar-surface-primary\">\n<div class=\"sticky top-9\">\n<div class=\"absolute end-0 bottom-0 flex h-9 items-center pe-2\">\n<div class=\"bg-token-bg-elevated-secondary text-token-text-secondary flex items-center gap-4 rounded-sm px-2 font-sans text-xs\"><code class=\"whitespace-pre!\">Output CGST <span class=\"hljs-selector-tag\">A<\/span>\/c       Dr<\/code><\/div>\n<\/div>\n<\/div>\n<div class=\"overflow-y-auto p-4\" dir=\"ltr\"><code class=\"whitespace-pre!\">Output SGST <span class=\"hljs-selector-tag\">A<\/span>\/c       Dr<br \/>\n<\/code><\/div>\n<div class=\"overflow-y-auto p-4\" dir=\"ltr\"><code class=\"whitespace-pre!\">      <span class=\"hljs-selector-tag\">To<\/span> CGST Payable <span class=\"hljs-selector-tag\">A<\/span>\/c<br \/>\n<\/code><\/div>\n<div class=\"overflow-y-auto p-4\" dir=\"ltr\"><code class=\"whitespace-pre!\">      <span class=\"hljs-selector-tag\">To<\/span> SGST Payable <span class=\"hljs-selector-tag\">A<\/span>\/c<br \/>\n<\/code><\/div>\n<\/div>\n<p data-start=\"1801\" data-end=\"1858\"><em data-start=\"1801\" data-end=\"1856\">(Being GST liability transferred to payable accounts)<\/em><\/p>\n<h3 data-start=\"1865\" data-end=\"1905\"><span class=\"ez-toc-section\" id=\"Reverse_Charge_Mechanism_RCM\"><\/span>Reverse Charge Mechanism (RCM)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p data-start=\"1907\" data-end=\"1947\"><strong data-start=\"1907\" data-end=\"1945\">ReverseCharge (Expense under RCM)<\/strong><\/p>\n<div class=\"contain-inline-size rounded-2xl relative bg-token-sidebar-surface-primary\">\n<div class=\"sticky top-9\">\n<div class=\"absolute end-0 bottom-0 flex h-9 items-center pe-2\">\n<div class=\"bg-token-bg-elevated-secondary text-token-text-secondary flex items-center gap-4 rounded-sm px-2 font-sans text-xs\"><code class=\"whitespace-pre!\">Expense <span class=\"hljs-selector-tag\">A<\/span>\/c           Dr<\/code><\/div>\n<\/div>\n<\/div>\n<div class=\"overflow-y-auto p-4\" dir=\"ltr\"><code class=\"whitespace-pre!\">      <span class=\"hljs-selector-tag\">To<\/span> Creditor <span class=\"hljs-selector-tag\">A<\/span>\/c<br \/>\n<\/code><\/div>\n<\/div>\n<p data-start=\"2003\" data-end=\"2050\"><em data-start=\"2003\" data-end=\"2048\">(Being expense booked under reverse charge)<\/em><\/p>\n<p data-start=\"2052\" data-end=\"2102\"><strong data-start=\"2052\" data-end=\"2100\">RCM GST (Recording GST liability under RCM)<\/strong><\/p>\n<div class=\"contain-inline-size rounded-2xl relative bg-token-sidebar-surface-primary\">\n<div class=\"sticky top-9\">\n<div class=\"absolute end-0 bottom-0 flex h-9 items-center pe-2\">\n<div class=\"bg-token-bg-elevated-secondary text-token-text-secondary flex items-center gap-4 rounded-sm px-2 font-sans text-xs\"><code class=\"whitespace-pre!\"><span class=\"hljs-selector-tag\">Input<\/span> IGST <span class=\"hljs-selector-tag\">A<\/span>\/c        Dr<\/code><\/div>\n<\/div>\n<\/div>\n<div class=\"overflow-y-auto p-4\" dir=\"ltr\"><code class=\"whitespace-pre!\">      <span class=\"hljs-selector-tag\">To<\/span> Output IGST <span class=\"hljs-selector-tag\">A<\/span>\/c<br \/>\n<\/code><\/div>\n<\/div>\n<p data-start=\"2161\" data-end=\"2219\"><em data-start=\"2161\" data-end=\"2217\">(Being GST liability paid under RCM, eligible for ITC)<\/em><\/p>\n<p data-start=\"2226\" data-end=\"2389\">\u00a0This way, the Input Accounts (ITC) and Output Accounts (Tax collected) get properly adjusted, and the final payable is settled with the GST Department.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Final_Deadline_Reminder_claim_Input_Tax_credit\"><\/span><a href=\"https:\/\/carajput.com\/blog\/gstn-advisory-on-how-to-fix-gstr-2b-itc-issue\/\"><span style=\"color: #000080;\"><strong>Final Deadline Reminder claim Input Tax credit<\/strong><\/span><\/a><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li>Suppliers must upload all invoices for FY 2023-24 by November 30, 2024, to ensure buyers can claim Input Tax credit. Missing this deadline results in permanent denial of Input Tax Credit for affected invoices.<\/li>\n<li>Taxpayers and suppliers are advised to coordinate immediately to ensure all invoices are uploaded and filed by the November 30, 2024 deadline to prevent loss of Input Tax Credit for FY 2023-24<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Purpose_Scope_of_Rule_86A_%E2%80%93_Blocking_of_ITC_under_GST\"><\/span><span style=\"color: #000080;\"><strong>Purpose &amp; Scope of Rule 86A \u2013 Blocking of ITC under GST<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Purpose of Rule 86A : Rule 86A of the CGST Rules empowers the Commissioner or authorised officer (not below the rank of Assistant Commissioner) to block Input Tax Credit (ITC) in the Electronic Credit Ledger if there exists a <em>reasonable belief<\/em> that the credit has been fraudulently availed or is ineligible.\u00a0 The intent is to prevent misuse of ITC while ensuring genuine taxpayers are protected through procedural safeguards.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Authority_Monetary_Limits\"><\/span><span style=\"color: #000080;\"><strong>Authority &amp; Monetary Limits<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table style=\"height: 326px;\" width=\"945\">\n<thead>\n<tr>\n<td><strong>ITC Amount Involved<\/strong><\/td>\n<td><strong>Competent Authority<\/strong><\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Up to INR 1 crore<\/td>\n<td>Assistant\/Deputy Commissioner<\/td>\n<\/tr>\n<tr>\n<td>INR 1 crore \u2013 INR 5 crore<\/td>\n<td>Joint\/Additional Commissioner<\/td>\n<\/tr>\n<tr>\n<td>Above INR 5 crore<\/td>\n<td>Commissioner\/Principal Commissioner<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Blocking must be authorised only by the proper officer, based on the prescribed monetary thresholds.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Grounds_for_Blocking_ITC\"><\/span><span style=\"color: #000080;\"><strong>Grounds for Blocking ITC : <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Credit may be restricted when The supplier is non-existent or fictitious. Goods\/services not received as per the invoice. Tax not paid to the Government. Invoice issued without valid documentation. &amp; ITC is claimed on ineligible supplies (e.g., exempt, non-business, or blocked under Section 17(5)).<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Requirement_of_%E2%80%9CReason_to_Believe%E2%80%9D\"><\/span><span style=\"color: #000080;\"><strong>Requirement of \u201cReason to Believe\u201d<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Officers must record specific, document-based reasons not assumptions or third-party reports. Mere suspicion or <em>borrowed satisfaction<\/em> from another officer\u2019s opinion is invalid. And Absence of clear reasoning renders the blocking order ultra vires and liable to be quashed.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Procedural_Safeguards_Principles_of_Natural_Justice\"><\/span><span style=\"color: #000080;\"><strong>Procedural Safeguards &amp; Principles of Natural Justice<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Blocking ITC often leads to severe financial hardship; therefore A pre-decisional hearing and written justification are essential. Courts have held that orders passed without prior notice or reasoning violate natural justice. &amp; Such orders are routinely set aside by High Courts.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Extent_Scope_of_Blocking\"><\/span><span style=\"color: #000080;\"><strong>Extent &amp; Scope of Blocking<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Blocking must be proportionate to the alleged fraudulent amount. Creation of negative ITC balances or blocking unrelated credits exceeds jurisdiction. &amp; Courts have repeatedly held that officers cannot freeze the entire ledger arbitrarily.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Jurisdictional_Procedural_Errors\"><\/span><span style=\"color: #000080;\"><strong>Jurisdictional &amp; Procedural Errors : <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Orders are void ab initio if Issued by an unauthorised officer, The officer fails to independently apply his mind. And Monetary limits or procedural conditions are not followed.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Judicial_Trends_2024%E2%80%932025\"><\/span><span style=\"color: #000080;\"><strong>Judicial Trends (2024\u20132025)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Supreme Court (2025): Affirmed that ITC cannot be blocked beyond the available balance in the ledger.<\/li>\n<li>Telangana HC (2024): Struck down blocking done <em>without notice or opportunity to be heard<\/em>.<\/li>\n<li>Bombay &amp; Delhi HCs (2024\u201325): Held that the one-year limit in Rule 86A(3) is mandatory; restrictions lapse automatically after expiry.<\/li>\n<\/ul>\n<p>Courts consistently uphold a strict interpretation of Rule 86A, emphasizing Taxpayer protection, Proportionality, and Accountability of the authorities. Rule 86A is a preventive tool, not a punitive weapon \u00a0\u00a0it must be exercised with evidence, restraint, and fairness.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>GSTR 2B ITC Issue : GSTN Advisory on how to fix it for FY 2023-24 Recent Goods and Services Tax Network advisory and the concept explained by Rajput Jain and Associates Experts chartered Accountants in the context of GSTR-2B and ITC issues. Here are the scenarios outlined in the Goods and Services Tax Network advisory &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10009],"tags":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/27846"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=27846"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/27846\/revisions"}],"predecessor-version":[{"id":30157,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/27846\/revisions\/30157"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=27846"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=27846"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=27846"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}