The 50th Meeting of the GST Council was held on July 11, 2023 in New Delhi, under the chairpersonship of the Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman.
The council has proposed a mechanism to handle discrepancies in Input Tax Credit (ITC) between FORM GSTR-2B and FORM GSTR-3B. Under this mechanism, taxpayers will receive system-based notifications regarding excessive ITC claimed in FORM GSTR-3B compared to what is available in FORM GSTR-2B, subject to a specific threshold. Additionally, a procedure of auto-compliance will be introduced, requiring taxpayers to provide explanations or take corrective measures for such discrepancies. To facilitate this mechanism, rule 88D and FORM DRC-01C will be inserted into the CGST Rules, 2017, and an amendment will be made to rule 59(6) of the same rules. This initiative aims to minimize ITC mismatches and prevent misuse of the ITC facility within the GST framework.
The Press Release can be accessed at: https://www.pib.gov.in/PressReleasePage.aspx?PRID=1938812