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July 17, 2021

Availment of ITC credit for the month of june-2021

by CA Shivam Jaiswal in GST, Special Invitation Author

Availment of ITC credit  for the month of june-2021

Rule 36(4) restricts the availment of input tax credit beyond 5% of the ITC reflected in Form GSTR 2A/2B. However, as per Notification No. 13/2021-CT dated 1st May 2021 as amended by Notification No: 27/2021 dated 01/06/2021the said restriction will not apply in individual months of April & May 2021, but will apply cumulatively for the period April & May, 2021 and the return in FORM GSTR-3B for the month of June, 2021 is to be furnished with the cumulative adjustment of input tax credit for those months.

For the month of April-21 and May-2021 and June-2021 the GSTR-2B was generated on 29/05/2021 and 29/06/2021 and 14/07/2021 respectively and is available for download from GSTN portal.

Illustration for the availment of ITC for June-2021 as per the said legal provisions.

ReturnGSTR-2BAs Per 3B/Books Situation IAs Per 3B/Books Situation IIAs Per 3B/Books Situation IIIRule 36 (4)
Apr-211001259095Not Applicable
May-211001258090Not Applicable
Already availed200250170185 
Jun-21100125105110Not Applicable
Total300375275295Cumulative application
Cumulative GSTR-2B300300300300
Cumulative GSTR-3B 375275295
Cumulative Difference75-25-5
Cumulative DifferenceDiff more than 5%Diff more than 5%Diff. Less 5%
Eligible amount Maximum (  2B or Book X1.05) 300288.75309.75
As per Book375275295
Already availed250170185
Balance as per Book125105110
Maximum Amount to be availed in June 3B50118.75124.75
Actual amount to be availed whichever is less Book or 1.05%50105110

Please Note:

GSTN system the ITC for the Month of June 2021 as per the system generated GSTR3B, if amount is entered more than Maximum amount is entered alert in red font will appear. In the above maximum the eligibility, the GSTN System bas eligibility of ITC as per Section 16 and 17(5) has not been considered. 

Don’t follow the System generated ITC, it is only a facilitation measure.

Taxable person has to ensure that his availment of ITC reported in GSTR-3B is as per legal provisions of GST Act/Rules governing availment of ITC.

For those who wish to avail as per the legal provisions after due verification, the calculation is as under:

Sl. NoDetailsAs per Books of AmountAs per GSTN System & RemarksAs per GSTN System & Remarks
1Eligible amount as per details uploaded in GSTR-2A/2B during 2020-21 but not availed in 2021-22 (QTR-1) –A2500  (System will populate the return filed during the Q1 only)
2Eligible amount as per details uploaded in GSTR-2A/2B during in 2021-22 (QTR-1) (B)10001200  System will populate the return filed during the Q1 only and does not verify the eligibility)
3Total eligible for 2021-22-Q1 (C)12501200 
4ITC availed during April 21 and May 21 as per GSTR-3B (D)800800 
5Balance to be availed. in June-21 –(E=C-D)450400 

In the above situation, as you are availing credit only as per the legal provisions, you can ignore the alert, if any is indicated. 

Author: B.Venakteswaran, IRS., Asst. Commissioner CGST Retired

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