In a deeply concerning development, the GST Portal has silently removed the cross-utilisation facility of Input Tax Credit (ITC) from its earlier advisory—without any official notification, press release, or clarification.
🔍 What Changed Overnight?
- The January 30 advisory, which originally allowed flexible utilisation of CGST & SGST against IGST, has now been quietly altered.
- The advisory has been modified from 4 key points to 3, with the critical cross-utilisation point completely deleted [https://tutorial.gst.gov.in/downloads/news/final_advisory_on_interest_calculator.pdf].
- Despite the change, the date and link of the advisory remain the same, creating serious confusion.
⚠️ Why This Is a BIG DEAL
- The earlier system allowed SGST adjustment against IGST before exhausting CGST, deviating from Section 49 rules.
- Many taxpayers already filed February GSTR-3B returns based on this functionality.
- Now, with the feature removed silently:
- ❗ Will those returns be considered incorrect?
- ❗ Will interest or notices follow?
- ❗ Who is accountable for system-driven compliance errors?
As highlighted in the tweet (Page 1), “no communication regarding the same” and “advisory silently modified” has raised serious concerns about transparency and governance.
📉 Timeline Confusion Adds Fuel
- Initially applicable from January GSTR-3B
- Then shifted to February
- Now feature removed without explanation
This flip-flop has left taxpayers and professionals in complete uncertainty.
💼 Impact: Huge & Immediate
- Affects 1.4 crore taxpayers and lakhs of professionals
- Potential for:
- Interest liability
- Departmental disputes
- Increased litigation
- Undermines trust in GST system & portal-based compliance
📢 Experts Demand Urgent Action
Tax experts are now calling for:
- ✅ Immediate official clarification from GSTN & CBIC
- ✅ Clear guidance on validity of February returns
- ✅ Assurance against retrospective penalties
🧾 Bottom Line for Taxpayers & Professionals
Until clarity emerges:
👉 Exercise extreme caution in ITC utilisation
👉 Re-evaluate recent GSTR-3B filings
👉 Stay alert for official updates or notices
💬 This isn’t just a technical glitch — it’s a serious governance issue that could trigger nationwide compliance chaos if not addressed immediately.
Source: GST Portal, Social Media Channels
