Answer

1. F

   Facts

   Differences between ITC in books and ITC in returns need explanation, such as blocked credits booked as expense, ITC of the year claimed next year, or reversals.

2. P

   Provisions and law

   • Sec 16(4), CGST Act 2017No ITC on an invoice after 30 November following the end of the financial year, or after filing the annual return, whichever is earlier.
   • Sec 17(5), CGST Act 2017Lists blocked credits, such as motor vehicles (with exceptions), food and beverages, club membership, works contract for immovable property and goods for personal use.
   • Rule 80(3), CGST Rules 2017A taxpayer whose aggregate turnover exceeds ₹5 crore files a self-certified reconciliation statement in GSTR-9C along with GSTR-9.
3. A

   Analysis

   Make a schedule: ITC as per books, less blocked credits, less reversals under Rules 37, 42 and 43, plus ITC of earlier year claimed this year, equals ITC as per GSTR-9. ITC of the year claimed after the year shows in GSTR-9 separately. Credit not claimed by 30 November is lost under Sec 16(4). Keep the schedule for audit.

4. C

   Conclusion

   1. 1Pull ITC from books and returns.
   2. 2List blocked credits and reversals.
   3. 3Account for timing differences across years.
   4. 4Prepare the schedule and keep it.

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.