How to reply of GST notice for Excess Input Credit in GSTR 3B?

What to do when received notice for Excess Input Credit in GSTR 3B?

Now GST department issue notices vide Form ASMT-10 for taken excess input credit in GSTR 3B in compare to GSTR 2 under Section 61 of GST Rules.

Notice having issues as follows:

Notice for intimating discrepancies in the return after scrutiny
This is to inform that during scrutiny of the return for the tax period referred to above, discrepancies noticed have been mentioned in the attached annexure.

You are hereby directed to explain the reasons for the aforesaid discrepancies by the date mentioned in the table below:

If no explanation is received by the said date, it will be presumed that you have nothing to say in the matter and proceedings in accordance with law may be initiate against you without making any further reference to you in this Regard.

Sr. No.
Section under which notice is issued
Date on which reply has to be submitted
Date of personal hearing
Time of personal hearing
Venue personal hearing is held

Also department issued a summary of GST Input Credit taken and GST Input credit appear in GSTR 2A which looks like below image:

Now the problem is what to do in this case. 1st of all, you need to reconcile your GSTR 3B with your books and then need to reconcile Input Credit taken in GSTR 3B and appear in GSTR 2A.

The scenerio will be GSTR 3B Vs Books Vs GSTR 2A. If you use Tally then preparing such details is very easy and in next post we will post about how to reconcile GSTR 2A and Input credit appear in books through Excel.

2nd you need to draft a reply as follows:


Office of Assistant Commissioner,
GST Department, Ward 206, Zone 11,
Delhi, India.

Sub:     Reply to Show Cause Notice No………………………….dated 26 September 2019 (‘the SCN’) for mismatch in GSTR 2A vis-à-vis Input Tax Credit (‘ITC’) claimed in GSTR 3B

Ref:      Reference No. ZA0711190031333/ ABCD India Pvt Ltd (‘ABCD’ or ‘We’ or ‘the Company’), GSTIN - …………………………

Dear Sir,

With reference to captioned subject, the Company is in receipt of the SCN wherein we are being directed to explain the reasons for the aforesaid differences pertaining to the period April 2019 to June 2019 (‘the Relevant Period’):

Difference (C=A-B)
Integrated GST
Central GST
State GST

The SCN is attached herewith as Annexure 1.

In this regard, we wish to submit the following in our response to the SCN issued by your goodself:

1.     ABCD has claimed ITC in GSTR-3B basis the tax invoices issued to the Company for the inward supplies received from the Suppliers (pertaining to the relevant period). Further, the Company has satisfied all the conditions prescribed for claiming ITC as per the GST legislation. Invoice wise detail of ITC claimed in GSTR-3B filed for the relevant period has been attached herewith as Annexure 2, which clearly establishes that the credit has been claimed based on the genuine tax invoices issued by the suppliers.

In case your good-self required any tax invoices for review, please let us know and we would be happy to submit the same.

2.     As per the Section 16(4) of the Central GST Act, 2017, a taxpayer shall be entitled to avail the ITC in respect of any invoice for the supply of goods or services or both before the due date of furnishing of return for the month of September following the end of the financial year to which such invoice related or furnishing the relevant annual return, whichever is earlier. Accordingly, the invoices pertaining to FY 2019-20 can be claimed upto due date of September 2020 or furnishing of relevant annual return, whichever is earlier. Hence, we are following up with the respective suppliers (whose ITC is not appearing in GSTR 2A) so that our suppliers can appropriately disclose the supplies made to us and accordingly, we shall able to reconcile the differences.

3.  The data appearing in GSTR 2A on GST common portal for the Relevant Period is changes frequently due to various reasons and as highlighted in point 2, ITC on tax invoices for the Relevant Period can be claimed upto the due date of September 2020 or furnishing of relevant annual return, whichever is earlier. Hence, it will be unjust to take the basis of GSTR 2A for calculation of difference vis-à-vis GSTR 3B as on date.

Therefore, in the view of above, we request you to consider our responder favourably and close the matter.

In case any other documents/ information is required by your goodself, we shall be pleased to provide you the same.

Thank You

Yours Sincerely,
For ABCD India Private Limited

Authorised Signatory