AADHAR Authentication process under GST Registration

5 comments Saturday, August 22, 2020
  1. Aadhaar Authenticatiobn process has been introduced, for the persons applying for GST registration as Normal Taxpayer/ Composition/ Casual Taxable Person/ Input Service Distributor (ISD)/ SEZ Developer/ SEZ Unit etc, in Form GST REG 01 (refer Notification No 62/2020-CT dt 20.08.2020 ).


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Legality of withholding refunds of exporters as per circular No. 131/1/2020-GST

3 comments Saturday, May 23, 2020
Exports under GST are considered as zero rated i.e. no tax is payable on export of goods or services. A person making zero rated supply is eligible under GST to claim for refund of unutilized input tax credit. The refund can be claimed by an exporter in two ways as stated in section 16 of IGST act, 2017:
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Retrospective amendment in section 140 of CGST Act-An overview

3 comments Wednesday, May 20, 2020
Whenever a new tax regime replaces an old tax regime there are numerous changes which a taxpayer faces and there are  lot of legal challenges in the transition from old regime to new regime. For the smooth transition of the new tax regime it is quite common to introduce the transitional provisions under the new tax law.
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5 comments Saturday, May 16, 2020

Refunds are the important part of any tax legislation. Refund is a drawback of the excess taxes paid to the Government subject to the conditions laid down in any law. Article 265 of our constitution provides a base behind legislation of refund provisions under any tax law, which provides that no tax shall be levied or collected except with the authority of law.
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Power to extend due date of TRAN-1 AND TRAN-2 in certain cases enhanced to 31.03.2020 and 30.04.2020

6 comments Thursday, January 2, 2020
The Central Government has enhanced the date upto which the submission of  Tran-1 and Tran-2 may be allowed to be filed to 31.03.2020 and 30.04.2020 respectively. Earlier this date was 31.12.2019 for Tran-1 and 31.01.2020 for Tran-2 form. This has been done by amendment in CGST Rules, vide Notification No. 2/2020 Central Tax.  
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Certain amendments in CGST Act, 2017 made vide Finance Act, 2019 notified wef 01.01.2020.


Central Government has implemented certain provisions of Finance Act, 2019 wef 01.01.2020. It is pertinent to mention here that clauses  92 to 112 and section 114 of the finance Act, 2019 which related to amendment in the CGST Act, 2017 are to come into force on such date as the Central Government may, by notification in the Official Gazette, appoint. Section 103 of the Finance Act, 2019 has already been notified wef 01.09.2019 which related to the amendment in section 54 providing of Sub-section 8A which allowed the Government to disburse the refund of State tax in the manner as may be prescribed.
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Blocking of input tax credit-New Rule 86A introduced under GST.

7 comments Friday, December 27, 2019
Rule 86A in the CGST Rules vide notification No 75/2019 has been introduced w.e.f. 26.12.2019 to empower the revenue to impose additional condition/restriction on use of amount of input tax credit available in the electronic credit ledger. This rule has given drastic powers to the Department to restrict the credit of any person in certain cases where there is reason to believe that ITC is availed fraudulently or is ineligible.  
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ITC not reflected in GSTR-2A to be allowed only to the extent of 20%-Due date of Tran-1 and Tran-2 extended in some cases

11 comments Thursday, October 10, 2019
The CGST Rules have been amended vide notification no 49/2019 CGST dated 09.10.2019. Two of the most important amendments are highlighted herebelow:   
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Compulsory Payment of tax before filing of GSTR-3B-Inconsistent working of GST portal

3 comments Saturday, May 11, 2019
Section 146 of the CGST Act, 2017 provides that the Government may notify the common elecronic portal for facilitating the registration, payment of taxes, furnishing of  returns and carrying out other purposes under the said Act. In exercise of the powers u/s 146  common e-portal (gst.gov.in) and eway bill portal have been notified and are in operation. It is pertinent to mention here that the said e-portals are for facilitating the law laid down under the GST laws and such e-portals cannot override the provisions of law.

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Proper officer can't invoke the bank guarantee till assessee exhausted statutory remedy

3 comments Wednesday, November 28, 2018
Where Competent Authority had detained goods of assessee under transport and demanded tax as well as penalty and assessee furnished bank guarantee for tax and penalty imposed and had goods released, Competent Authority was restrained from invoking bank guarantee till assessee exhausted statutory remedy
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No Detention of goods on the issue of misclassification or undervaluation under GST

34 comments Sunday, June 10, 2018
The Kerala High Court in a very important judgement namely Sameer Mat Industries vs the State of Kerala  has held that Issue of misclassification and under valuation of goods has to be gone into by respective Assessing Officers and not by detaining officer
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GSTN has enabled online filing of letter of Undertaking for exports

7 comments Saturday, February 24, 2018

GSTN enabled online filing of LuT. Instructions for filing LUT online on GST Portal are given below:-

1.     Go to User Services and Select the Tab “Furnishing Letter of Undertaking”

2.     Select the Financial Year for which you want to furnish the LUT

3.     If you have already furnished LUT Offline, for previous period, please attach the same here and continue to file your application

4.     If you're filing LUT, please read and select all the three checkboxes for accepting the conditions prescribed in Letter of Undertaking

5.     Enter the details of two independent witnesses

6.     Primary Authorized signatory or other Authorized signatory can sign the Application Form

7.     Once signed and filed, Form cannot be edited.

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Eway bills officially suspended as notification issued.

5 comments Saturday, February 3, 2018

Government of India has recisended the notification No 74/2017 of CGST which made eway bill compulsory under rule 138 to 138D of CGST Rules. For this purpose notification No 11/2018 CGST has been issued.

The implications of this notification is that eway bill is no more compulsory as Rules 138 to 138D have been made inoperative as they were before the issuance of notification No 74/2017 CGST.





New Delhi: 02.02.2018

Notification No. 11/2018 – Central Tax
G.S.R. 141(E) - In exercise of the powers conferred by section 164 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, hereby rescinds, except as respects things done or omitted to be done before such rescission, the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 74/2017 –Central Tax dated the 29th December, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1601(E), dated the 29th December,

[F. No. 349/58/2017-GST(Pt.)]

Dr. SREEPARVATHY S.L., Under Secy.

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Compulsory generation of e-way bill deferred-GOI tweets

1 comments Thursday, February 1, 2018
The official handle of GST of Government of India has tweeted that the trial phase of generation of eway bill both for intra-state and inter-state will continue and the date from which it will be made compulsory will be notified shortly.

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No e-way bill required till 01.04.2018 for intra-state supplies of goods in Punjab

3 comments Tuesday, January 30, 2018
Punjab Government has notified under Rule 138(14)(d) of Punjab GST Rules, 2017 that e-way bill will not be required to be generated for a period of two months from 1st Feburary, 2018 for intra-state supply of goods provided such goods do not cross the State boundry during the transit. However, a person may voluntarily generate e-way bill for intra-state supplies.
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GST Rate on old and used motor vehicles reduced-latest notifications

2 comments Monday, January 29, 2018
Government has issued the Notification No. 8/2018 Central Tax Rate read with state Tax Notification, whereby it has reduced the Rate of GST on old and used vehicle as follows:

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E-way bill under GST - an overview

3 comments Sunday, January 28, 2018
E-Way Bill is knocking  at the door as the date of its implementation has been notified 01.02.2018. This article focuses certain main points in the eway bill mechanism.

What is e-way bill: Section 68 of the CGST Act, 2017 empowers Government to require any person in charge of a conveyance carrying any consignment of goods of value exceeding the prescribed amount to carry with him prescribed documents. In pursuance of provisions of section 68, Rules 138 to 138D have been legislated prescribing Eway Bill in form GST EWB 01 along with other documents which a person incharge of conveyance carrying goods of value exceeding Rs. 50000/-, is required to carry during the movement of goods.

Who is required to generate Eway bill and when it is required: Eway bill is required to be generated by the following persons:

1. every registered person who causes the movement of goods of consignment value exceeding Rs. 50000/-  

(i) in relation to a supply; or

(ii) for reasons other than supply; or 

(iii) due to inward supply from an unregistered person,

It is pertinent to mention here that Eway Bill has to be generated before the movement of goods start and is required only by a registered person, and not by an unregistered person, however, unregistered person may voluntarily generate eway bill. Eway bill may be generated voluntarily even where the consignment value does not exceed Rs. 50000/-. 

2. where goods are sent by a principal located in one State to a job worker located in any other State, the e-way bill shall be generated by the principal irrespective of the value of the consignment.It is to be noted that limit of Rs. 50000/- in case of intra-state movement of goods for job work purposes will continue to apply.

3. where handicraft goods are transported from one State to another by a person who has been exempted from the requirement of obtaining registration under clauses (i) and (ii) of section 24, the e-way bill shall be generated by the said person irrespective of the value of the consignment.

Consignment value of Rs. 50000/- as stated above has to be determined in accordance with Section 15 of CGST Act, which deals with valuation of supply and the consignment value of Rs. 50000/- shall be counted by including not only the value of goods but also the GST and Cess if any charged on it.

Generation of E-way bill: Eway bill has two parts,Part-A and Part-B. Part-A includes details of invoice/challan/credit note and the details of receipient and transporter, whereas Part-B only has information with regard to vehicle no. when you have prepared invoice relating to your business transaction, but don’t have the transportation details. You can enter invoice details in Part-A of eway bill and keep it ready for transportation, once the transportation is ready.

It is worth mentioning here that mere filing Part-A is not valid for movement of goods on road, except for the movement of goods from the place of the supplier or the receipient as the case may be to the place of transporter where the distance between the two is less than 10 KMs.

Who is to file Part-A: Part-A has to be filed mandatorily by the registered person who causes the movement of goods whether as consignor or as consignee or as recipient, whether the goods are transported in his own conveyance or by railways or by air or by vessel.

Part-A can also be filed by the transporter and it is mandatory for the transporter to file Part-A, if the supplier or receipient fails to do so and the consignment value exceed Rs. 50000/-

For example if A transporter is carrying 5 different consignments of five different suppliers and receipients in one vehicle the value of each consignment is say Rs. 20000/-, in such case the total value of consignments carried in the vehicle comes to Rs. 100000/- In such case although it was not mandatory for supplier of receipient of each consignment  to generate eway bill but in such case it is mandatory for the transporter to generate eway bill by filing both Part-A and Part-B.

Part-A can also be filed by an unregistered person voluntarily, however, it has been stated in Explanation 2 of Rule 138(3) that if goods are supplied by an unregistered person to a registered recipient and recipient is known at the time of commencement of movement of goods, then the movement shall be said to be caused by such registered receipient.

In other words meaning thereby if supply is by an unregistered person to a registered person, then it is mandatory for the registered receipient to generate eway bill, ofcource if the consignment value exceed Rs. 50000/-.

Where the goods to be transported are supplied through an e-commerce operator (for example: amazon, flipkart etc), Part-A may also be furnished by such e-commerce operator.

Who is to file Part-B:  As stated above also, Part B only contains information with regard to vehicle number.

 In case movement is caused by own conveyance or a hired conveyance, it is the person causing the movement has to file Part-B

In case of movement by rail or by air or vessel Part -B has to be mandatorily filed by the registered person and along with it the serial number and date of Railway Receipt or the Air consignment note or Bill of Lading are also required to mentioned in the Part-A.

If the goods are handed over to a transporter for transportation by Road Part-B will be filed by the transporter.

The unique feature of Eway bill is that Part B of eway bill can be updated in the following circumstances:

1.   where the goods are transferred from one conveyance to another, in such case Part-B will be mandatorily updated with new vehicle number before such transfer and further movement of goods.

For example: If the vehicle breaks down when the goods are being carried with EWB, then the transporter can cause to repair the vehicle and continue the journey. If he is going to change the vehicle, then he has to enter the new vehicle details for that EWB on the web-site using ‘Update vehicle number’ option and continue the journey with new vehicle.

Part-B can be updated as many times as it Is required but should be done within validity period. It has also been further provided in 2nd proviso to Rule 138(9) that the unique number generated by filing Part-A shall be valid for 72 hours for updation of Part-B.

2.   There may be instances that transporter assign the consignment to other transporter after booking from the supplier or recipient. In such situation Rule 138(5A) provides that the transporter may assign the e-way bill number to another registered or enrolled transporter for updating the information in Part-B. It is worth noting here that whenever Part-A is filed by the registered person and he has to mention the transporter’s GSTIN or enrollment id in Part-A, if the goods are handed over to transporter.

However, once the details of the conveyance are updated by the transporter in part-B then supplier or recipient who had furnished Part-A will not be allowed to assign the eway bill number to another transporter.

Validity of E-way Bill: E-way Bill’s validity has been prescribed under Rule 138 in terms of distance involved in the movement of goods. It as follows:

Validity Period
Upto 100 km
1 day
For every 100 km. or part thereof thereafter
One additional day:

It should be noted here that the period of validity shall be counted from the time at which the e-way bill has been generated and each day shall be counted as twenty four hours.

Rule 138(10) further provides that where, under circumstances of an exceptional nature, the goods cannot be transported within the validity period of the e-way bill, the transporter may generate another e-way bill after updating the details in Part B of FORM GST EWB-01.

Cancellation of E-way Bill: Rule 138(9) provides for cancellation of eway bill within 24 hours of generation of the e-way bill, which can be done in the following circumstances:

-Where goods are  not transported at all or

-are not transported as per the details furnished in the e-way bill. 

However,  an e-way bill cannot be cancelled if it has been verified in transit in accordance with the provisions of rule 138B.

Consolidated E-way bill: Where multiple consignments are intended to be transported in one conveyance, the transporter may indicate the serial number of e-way bills generated in respect of each such consignment electronically on the common portal and a consolidated e-way bill in FORM GST EWB-02 maybe generated by him on the said common portal prior to the movement of goods.

Acceptence and rejection of e-way bills: The eway bills generated shall be made available to a registered supplier if generated by recipient or transporter and vice versa to the registered recipient if generated by supplier or transporter. The same has to be accepted or rejected by the supplier or recipient as the case may be, however if nothing is done within seventy two hours then it shall be deemed that he has accepted the said details.

When no e-way bill is required:Rule 138(14) provides with a non-abstante clause the circumstances where no eway bill is required, these are as follows:

(a) where the goods being transported are specified in Annexure;

(b) where the goods are being transported by a non-motorised conveyance;

(c) where the goods are being transported from the port, airport, air cargo complex and land customs station to an inland container depot or a container freight station for clearance by Customs;

(d) in respect of movement of goods within such areas as are notified under clause (d) of sub-rule (14) of rule 138 of the Goods and Services Tax Rules of the concerned State;

(e) where the goods, other than de-oiled cake, being transported are specified in the Schedule appended to notification No. 2/2017- Central tax (Rate) dated the 28th June, as amended from time to time;(the schedule is for tax free or nil rated goods)

(f) where the goods being transported are alcoholic liquor for human consumption, petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas or aviation turbine fuel; and

(g) where the goods being transported are treated as no supply under Schedule III of the Act.

Documents and devices to be carried with a conveyance: Rule 138A prescribes following documents which a person incharge of a conveyance must carry:

(a) the invoice or bill of supply or delivery challan, as the case may be; and

(b) a copy of the e-way bill or the e-way bill number, either physically or mapped to a Radio Frequency Identification Device embedded on to the conveyance in such manner as may be notified by the Commissioner.(there is no such notification till the date when this article is written).

(c) Rule 138A(2) also provides facility of generation of Invoice reference number by uploading on the e-way bill portal the tax invoice in form GST INV-1, which will be valid for thirty days from the date of uploading and in which case no physical invoice is required to be carried along with the conveyance.

Verification of documents and conveyance: Rule 138B and Rule 138C empowers the proper officer (who is duly authorized to do so either by Commissioner or an officer empowered in this regard)to intercept any conveyance to verify the e-way bill or number thereof.

Physical verification of conveyance can be done only by the proper officer who is duly athorised to do so, however physical verification of conveyance can also be done by any officer other than proper officer after obtaining necessary approval, if there is receipt of specific information on evasion of tax.

Rule 138C also mandates the proper officer to record online summary inspection report of every inspection of goods in transit in Part-A of form GST EWB 03 and a final report within three days in Part-B of the said form.

Once a physical verification of a conveyance is done in a state or in any other State then further physical verification can be done unless a specific information with regard to evasion of tax is made available subsequently.

Certain important FAQs

Question: How to enter multiple modes of transportation, i.e., road, rail, ship, air for the same e-way bill?

Answer: One e-way bill can go through multiple modes of transportation before reaching the destination. As per the mode of transportation, the EWB can be updated with new mode of transportation by using ‘Update Vehicle Number’.
Let us assume the goods are moving from Cochin to Chandigarh through road, ship, air and road again. First, the taxpayer generates the EWB by entering first stage of movement (by road) from his place to ship yard and enters the vehicle number. Next, he will submit the goods to ship yard and update the mode of transportation as Ship and transport document number on the e-way bill system. Next, after reaching Mumbai, the taxpayer or concerned transporter updates movement as road from ship to airport with vehicle number. Next the taxpayer or transporter updates, using ‘update vehicle number’ option, the Airway Bill number. Again after reaching Delhi, he updates movement through road with vehicle number. This way, the e-way bill will be updated with multiple mode of transportation.

Question: How to handle the goods which moves through multiple transshipment places?

Answer: Some of the consignments move from one place to another place till they reach their destinations. Under this circumstance, each time the consignment moves from one place to another, the transporter needs to enter the vehicle details using ‘Update Vehicle Number’ option, when he starts moving the goods from that place or the transporter can also generate ‘Consolidated EWB’ with the EWB of that consignment with other EWBs and move to the next place. This has to be done till the consignment reaches destination. But it should be within the validity period of EWB.

Question: How to generate e-way bill for multiple invoices belonging to same consignor and consignee?

Answer: If multiple invoices are issued by the supplier to recipient, that is, for movement of goods of more than one invoice of same consignor and consignee, multiple EWBs have to be generated. That is, for each invoice, one EWB has to be generated, irrespective of same or different consignors or consignees are involved. Multiple invoices cannot be clubbed to generate one EWB. However after generating all these EWBs, one Consolidated EWB can be prepared for transportation purpose, if they are going in one vehicle.

Question:  How to enter invoice having different states for “Bill to” and “Ship to” places and what will be the tax rates?

Answer: If the addresses involved in 'Bill to' and 'Ship to' in a invoice/bill belongs to one legal name/taxpayer as per GSTIN within the state, then one e-way bill has to be generated. That is, if the 'Bill to' is principal place of business and 'Ship to' is additional place of business of the GSTIN or vice versa in a invoice/bill, then one e-way bill is sufficient for the movement of goods.
If the addresses involved in 'Bill to' and 'Ship to' in a invoice/bill belongs to different legal names/taxpayers, then two e-way bills have to be generated. One e-way bill for first invoice, second e-way bill is from 'Bill to' party to 'Ship to' party based on the invoice/bill of the 'Bill to' party. This is required to complete the cycle of transactions and taxes will change for inter-state transactions.

For example, A has issued invoice to B as 'Bill to' with C as 'Ship to'. Legally, both B and C are different taxpayers. Now, A will generate one e-way bill and B will issue invoice and generate one more e-way bill. As goods are moving from A to C directly, the transporter will produce both the invoices and e-way bills to show the shortcut movement of goods.

Question: How to generate e-way bill, if the goods of one invoice is being moved in multiple vehicles simultaneously?

Answer: Where the goods are being transported in a semi knocked down or completely knocked down condition the EWB shall be generated for each of such vehicles based on the delivery challans issued for that portion of the consignment and;

(a) the supplier shall issue the complete invoice before dispatch of the first consignment;

(b) the supplier shall issue a delivery challan for each of the subsequent consignments, giving reference of the invoice;

(c) each consignment shall be accompanied by copies of the corresponding delivery challan along with a duly certified copy of the invoice; and

(d) the original copy of the invoice shall be sent along with the last consignment
Please note that multiple EWBs have to generate under this circumstance. That is, the EWB has to be generated for each consignment based on the delivery challan details along with the corresponding vehicle number.

“semi knocked-down” is used to describe a product that is exported in a set of parts that have been partly put together, and which are then all put together for sale to customers:

For example: Buses will be imported in semi knocked-down form.

"completely knocked-down" is  used to describe a product that s sold or transported in a set of parts, which must be put together before the product can be used by the customer:

For example: Motorcycles can be transported in completely knocked-down kits,  hich reduced transport costs because less space was needed to transport them.

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Recommendations made by the GST Council in the 23rd meeting at Guwahati on 10th November, 2017

3 comments Friday, November 10, 2017
The GST Council, in its 23rd meeting held at Guwahati on 10th November 2017, has recommended the followingfacilitative measuresfortaxpayers:
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Exporters must file GSTR-1E for every month to speed up their refund claims

7 comments Thursday, November 2, 2017
The Government of India vide notification 51/2017 of Central tax has amended Rule 96 and Rule 96A of the CGST Rules, 2017 to give relief to exporters in a step to speed up the refund process.
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No space for transitional credit in GST return form 3b

7 comments Thursday, August 3, 2017

Companies have hundreds of crores of rupees in input tax credit but they may still need to pay the goods and services tax ( GST) for July and August in full, potentially disrupting working capital flows.

That’s because the relevant GSTR 3B form doesn’t provide any column for carry-forward of credit from the earlier regime of central excise duty, service tax and value added tax. Companies will thus be unable to adjust the tax paid against their liability. Experts said this does not seem to be the government’s intention and it must clarify this quickly as industry is counting on this adjustment and would now need funds to pay GST in full.
Companies such as those in auto sector have hundreds of crores of rupees in such credit.

“This will cause substantial cash flow problems for the taxpayers unless the assessees are allowed to utilise transitional credit on a provisional basis,”

The GST Council, the apex decision-making body for the new tax regime, had approved a liberal transition framework to ensure smooth sailing when making the switch.

Any entity can claim credit of service tax or VAT paid in the previous regime against GST liability. If it does not have proof of payment of tax, it can take advantage of the deemed benefit norm. The key benefit of GST is that there is no cascading of tax through seamless availability of input tax credit.

Companies have to file form GSTR 3B, a summarised return, for July by August 20. That for August has to be filed by September 20.

The format of this return includes a summary of details of outward supplies, inward supplies liable to reverse charges and input tax credit eligible on various procurements made during the month. But the form does not provide space for carry-forward of credit from the earlier regime. This essentially implies that the GST liability for the months of July and August will have to be settled in cash.

There is a mechanism for claiming credit from the previous regime but that has not been integrated with the GST filing process.

This transitional credit will be available only after filing of GSTR TRAN-1 on the GSTN common portal.

Even if a taxpayer files TRAN-1 prior to August 20 (that is, prior to filing GSTR 3B for July), the credits would not be allowed to be migrated in GST as there is no specific table for disclosing opening credit in GSTR 3B. TRAN-1 and TRAN-2 are the forms for transition of input tax credit while GSTR 3B is the form in which actual GST payable is filed. To be sure, input tax credit can be availed of after September in all instances.

Tax experts are seeking a clarification or a change in the form.

“It cannot be the intention of the government to deny the benefit of input credit,  “It could lead to huge cashflow issues for industry, running into thousands of crores. A clarification or amendment in Form(GSTR) 3B is needed urgently.”

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