How Availment of ITC will be different in New GST Regime

Last Updated On: March 7, 2020, 1:40 p.m.

How Availment of ITC will be different in the New GST Regime


One of the pre-conditions to avail ITC under Section 16(2) of CGST Act, 2017 is that the GST charged by a supplier is deposited by them to the Government  

Now the above requires :

Reporting of invoice information in GSTR -1.  (Available in GSTR 2A to recipient)

Matching of data as per GSTR-1 with GSTR-3B (Not in control of recipient)

Timely filing of the Matched GSTR-3B by supplier. (Not in control of recipient)

Also, the recipient can claim ITC on a self-declaration basis subject to a maximum limit of 110% of matched invoices. This itself is questionable as 2 out of 3 things mentioned above are not in control of the recipient.


The current GST system has failed to maintain any direct relationship GST paid on sales by supplier Vs Availment of GST ITC on purchase data of recipient

 As per the current GST system even if the data appears in GSTR 2A it won't guarantee a Confirmed ITC to Recipient. 

 There is no direct linkage of taxes paid in GSTR 3B with data populated in GSTR 2A. 

 GST may have been collected basis GSTR 1 but GSTR 3B may not have been filed or filed but not matching as per data reported in GSTR -1.

 Only one data source is available to the recipient in the form of 2A which again is not a confirmed one as 3B may have different data.


All the above problems will be handled in the New GST regime as follows:

 Sales data will be continuously uploaded in ANX-1 by the supplier

 Sales data in ANX-1 will get automatically populated in ANX-2 for the recipient and consequently in RET-1 of supplier

 Hence, no mismatch of Sales data as per ANX-1 vs RET-1

 Recipient shall have a facility to take action individually/in Bulk on the data populated in ANX-2

 Once RET-1 is filed by Supplier, the data populated in ANX-1 is considered as tax paid

What you need to do is to have a ​​​frequent reconciliation with vendors and should have a continuous follow-up with your vendors in case they miss uploading any invoice date.


The above are a few important aspects. We can help you in all the above aspects with the help of our GST experts who have closely worked with Top MNCs and Big4s in developing their systems and training their Indirect tax teams across India.

LegalSuvidha GST experts are passionate to support all large and medium enterprises across India. Connect at 8130645164 to get in touch with our expert for a 15 minutes free consultation. 


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