Kerala State GST introduces Standard Operating Procedures #SOP for Monitoring Ineligible IGST Input Tax Credit (SOP-1/2023): Reversal by Taxpayers in Return. ✅This SOP is with case studies/examples too Join our WhatsApp group: chat.whatsapp.com/FVX5u9prcRe37lQ14ggzdD Key Points are: 🧵

✅ Taxpayers must self-correct any improper IGST ITC reversals. ✅The GST authorities will track taxpayers' corrections through the GSTR-3B form.

✅If the GST authorities find that a taxpayer has not self-corrected an improper IGST ITC reversal, they may initiate recovery proceedings.

✅The SOPs will likely lead to an increase in the number of self-corrections by taxpayers. This is because taxpayers will now be aware that the GST authorities are tracking their IGST ITC reversals.

✅In short, The SOP will track taxpayers' corrections of improper IGST ITC reversals by using the GSTR-3B form. The GSTR-3B form is a monthly return that taxpayers must submit to the GST authorities.

✅The SOP will use data from the GSTR-3B form to identify any taxpayers who have reversed ineligible IGST ITC. The GST authorities will then follow up with these taxpayers to ensure that the ineligible ITC is reversed correctly.

✅The SOPs are likely to increase the compliance burden on taxpayers. They will need to be more careful about making sure that they are claiming ITC correctly, and they will need to be able to provide documentation to support their claims.