Section 43A – Procedure For Furnishing Returns & Availing Input Tax Credit


    The GST filing system has undergone multiple changes since its implementation. This change is meant to implement a new and efficient return filing structure under the CGST Rules, as recommended by the GST Council at its 27th meeting.

    Section 43A has been added to the Central Goods and Services Tax Act 2019. This article will explain the steps for filing returns and obtaining input tax credits.

    How are GST Returns Currently filed?

    Taxpayers must submit two GST returns monthly: Form GSTR-3B and Form GSTR-1. GSTR-2 and GSTR-3 returns are not required to be submitted.

    What is the New & Simplified Return Scheme?

    Under the new scheme proposed under Section 43A:

    Key Points of Section 43A

    Section 43A should provide some much-needed relief to taxpayers, and industry concerns should be significantly reduced. However, it will not be applicable till it is officially announced.

    Current Provisions in the Absence of Section 43A

    Only the amount reported on forms GSTR-2B and GSTR-2A may be used to claim ITC in GSTR-3B. To clarify, starting on January 1, 2022, this is specified in Section 16(2)(aa) of the CGST Act. Before that time, taxpayers submitting GSTR-3B may also claim an extra 5% in ITC on top of the ITC already shown on GSTR-2B.


    In conclusion, the process for adequately filing reports and obtaining input tax credits is outlined in Section 43A of the GST Act. This section is responsible for laying down the procedure. To avoid incurring any punishment or having their credit reduced, taxpayers must have a solid understanding of the prerequisites and deadlines outlined in this section.

    Taxpayers can guarantee the prompt and accurate submission of reports and hassle-free access to the advantages of the input tax credit by following the instructions supplied under Section 43A and doing so in the correct order. This provision is a significant move towards achieving the government’s objective of streamlining the tax system for companies, as it aims to promote transparency and conformance within the GST framework.

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