GST department is sending notices for input mismatch

[SARAVANAN RENGACHARY]

Dear Experts,

GST department has started to send notices to assesses in Form GST ASMT 10 seeking clarification for the mismatch of input credit between GSTR3B and GSTR2A. i.e. Quarter Oct to Dec'17.

When GSTR2A tool is not functioning, it is mandatory for the assesses to check the availability of credit in GSTR2A while availing the credit.

Regards

Saravanan

[Ganeshan Kalyani]

Presently the mechaniwm of GSTR2A reconciliation is bot in operation. So the assesse has been allowed to take credit on self declaration basis thru GSTR 3B.

However, the purpose of online filing of invoice wise sales by a supplier is to enable the buyer to take credit based on the invoice he has received and accounted as his purchase. On matching of sales by a supplier as a purchase of a buyer the input tax credit is allowed. This system based credit is going to come for sure.

Only because the mechanism is not in place one cannot say that department cannot issue notice and verify the credit. Hence in my view you have to comply to the noticr.

[YAGAY and SUN]

You may prepare a reconciliation statement along with the documentary proofs.

[CASusheel Gupta]

Dear SARAVANAN RENGACHARY

You need to download the Form 2A, reconcile it with your ITC claimed in 3B and filed reply with in 30 days in Form ASMT-11

Thanks and Regards

CA Susheel Gupta

8510081001, 9811004443

[DR.MARIAPPAN GOVINDARAJAN]

This type of problem would be faced by many of the assessees.

AI Summary

Input tax credit mismatch requires reconciliation and formal reply to assessment notices to substantiate claimed credits. Notices in assessment proceedings seek explanation for mismatches between input tax credit claimed in GSTR 3B and supplier-reported entries in GSTR 2A. Although the invoice-matching mechanism was not fully operational and many claimed credit on a self-declaration basis through GSTR 3B, the department may still verify credits. Taxpayers should prepare a reconciliation statement, collate documentary proof, download GSTR 2A data, and file a formal reply using the assessment reply procedure within the prescribed period.