The Central Government on the recommendations of the GST Council inserted a new Rule 37A through Notification No. 26/2022 - Central Tax dated 26.12.2022 which required filing of GSTR 3B for payment of taxes by the supplier from which goods or services are availed. There are many instances where supplier furnished the GSTR -1 or IFF (Invoice furnishing facility) but not filed GSTR 3B and other side recipient availed the input tax credit on the basis of GSTR 2A/2B, which results in revenue loss for the Government.
Now with the help of Rule 37A, Government will recover the such amount from the recipient through reversal of such input tax credit. We are producing the new Rule 37A below -
Rule 37A - “Reversal of input tax credit in the case of non payment of tax by the supplier and re availment thereof ."
Where input tax credit has been availed by a registered person in the return in FORM GSTR 3B for a tax period in respect of such invoice or debit note, the details of which have been furnished by the supplier in the statement of outward supplies in FORM GSTR 1 or using the invoice furnishing facility, but the return in FORM GSTR 3B for the tax period corresponding to the said statement of outward supplies has not been furnished by such supplier till the 30th day of September following the end of financial year in which the input tax credit in respect of such invoice or debit note has been availed, the said amount of input tax credit shall be reversed by the said registered person, while furni shi ng a return in FORM GSTR 3B on or before the 30th day of November following the end of such financial year:
Provided that where the said amount of input tax credit is not reversed by the registered person in areturn in FORM GSTR 3 B on or before the 30 th day of November following the end of such financial year during which such input tax credit has been availed, such amount shall be payable by the said person along with interest thereon under section 50.
Provided further that where the said supplier subsequently furnishes the return in FORM GSTR 3 B for the said tax period, the said registered person may re avail the amount of such credit in the return in FORM GSTR 3 B for a tax period thereafter.
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