ITC Reversal on Account of Rule 37(A)

1. Vide Rule 37A of CGST Rules, 2017 the taxpayers have to reverse the Input Tax Credit (ITC) availed on such invoice or debit note, the details of which have been furnished by their supplier in their GSTR-1/IFF but the return in FORM GSTR-3B for the said period has not been furnished by their 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 had been availed.

2. The said amount of ITC is required to be reversed by such taxpayers, while furnishing a return in FORM GSTR-3B on or before the 30th day of November following the end of such financial year, as part of this legal obligation.

3. To facilitate the taxpayers, such amount of ITC required to be reversed on account of Rule 37A of CGST Rules for the financial year 2022-23 has been computed from system and has been communicated to the concerned recipient. The email communication to this effect has been sent on the registered email id of the taxpayer.

4. The taxpayers are advised to take note of it and to ensure that such ITC, if availed by them, is reversed as per rule 37A of CGST Rules before 30th of November, 2023 in Table 4(B)(2) of GSTR-3B while filing the concerned GSTR-3B.

Thanking you,

Team GSTN

*GST update 14/11/23*

*GSTN has issued Advisory* regarding the *ITC Reversal on Account of Rule 37(A) of CGST Rules*.

```Rule 37A : Taxpayers have to reverse ITC availed on such invoice or debit note, the details of which have been furnished by their supplier in their GSTR-1/IFF but the return in FORM GSTR-3B for the said period has not been furnished by supplier till 30th Sept of next year.```

*_Reversal is to be done in Table 4(B)(2) of GSTR-3B on or before 30th Nov of next year._*

*Dangerous* :  Such amount of ITC required to be reversed on account of Rule 37A for the FY 22-23 has been computed from system & has been communicated to the concerned recipient via email.