CBIC press release about the linkage between GSTR-2A & GSTR-3B

On October 18th, 2018, the Central Board of Indirect Taxes and Customs (CBIC) issued a press release announcing the implementation of the linkage between GSTR-2A and GSTR-3B forms. The aim of this linkage was to ensure that taxpayers accurately report their input tax credit (ITC) claims in their GSTR-3B returns, based on the invoices uploaded by their suppliers in their GSTR-1 returns.

The press release stated that the system would automatically calculate the ITC available to taxpayers based on the invoices uploaded by their suppliers, which would be reflected in their GSTR-2A form. Taxpayers would be required to reconcile their GSTR-2A form with their own purchase records and take action on any discrepancies.

If the ITC claimed in the GSTR-3B form exceeded the ITC available in the GSTR-2A form, taxpayers would be required to provide a valid reason for the difference. In cases where taxpayers were unable to rectify discrepancies, they would be required to reduce their ITC claim in the subsequent month’s return.

The CBIC also stated that the implementation of this linkage would help curb the practice of claiming excessive ITC based on fraudulent invoices, and promote greater compliance among taxpayers.

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