ITC under GST

[THYAGARAJAN KALYANASUNDARAM]

Dear Experts

One of my clients who purchased the goods and availed the ITC under CGST and SGST as charged by the supplier. Also the supplier was mentioned as buyer and consignee as same address I.e. in Tamilnadu branch. But while filing their monthly returns, the supplier has mentioned in GSTR-1, our other state GST due to which my client got a notice from the department for mismatch of ITC between GSTR-2A and GSTR-3B. How to handle this situation. Please explain the same.

Thanks in Advance.

AI Summary

Client Faces ITC Mismatch Due to Supplier Error in GSTR-1; Solutions Involve Amendments and Supplier Declarations A client purchased goods and claimed Input Tax Credit (ITC) under CGST and SGST, but the supplier mistakenly reported the client's other state GST in GSTR-1, leading to a mismatch notice from the tax department. Experts advised that the client may receive a Show Cause Notice and should prepare a response. Solutions include checking if the supplier paid taxes under the correct account heads, amending GSTR-1 if possible, and obtaining a declaration from the supplier regarding the error. If taxes were paid under the wrong head, the supplier should correct this and seek a refund for any overpaid amounts.