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.

[YAGAY andSUN]

Your client will soon get a SCN as per the latest High Court's verdict on such mismatch. You have to submit a suitable reply against this impugned order.

[THYAGARAJAN KALYANASUNDARAM]

Dear sir,

Could you please share the citation details.

[Vel Murugan]

Sir,
It is understood that your client's supplier has wrongly entered GSTIN of your another branch (state) resulting in non-reflection in GSTR-2A which in turn begets mis-match between 3B Vs 2A. Now you need to consider two things.

1. Whether the supplier has mentioned the wrong GSTIN in GSTR-1 alone and paid the tax under correct account heads in GSTR 3B i.e. CGST & TNSGST ? If so, you may furnish the reply to the Tax Officer that all the conditions of Sec 16(2) are already fulfilled. In support of your claim copies of GSTR-1 & GSTR 3B may be submitted. Also, if it pertains to the recent period, your supplier can make amendments in GSTR-1.

2. In case your supplier has wrongly entered GSTIN in GSTR-1 and paid tax under wrong head i,.e IGST instead of CGST & SGST in GSTR 3B return, then your supplier may be asked to pay the tax under right account head and get refund of tax paid under the wrong head. There is no time limit applicable for this.

[Shilpi Jain]

Which period is this error pertaining to?

If there is an error in disclosure by the supplier, ask him to rectify by way of amendment (assuming it is within time limit)

Also get a declaration from him that he has supplied and paid taxes but made an error in disclosure and payment. Per this declaration the dept has to proceed against the supplier and not the recipient. Mistakes done my supplier should not restrict your credit.

[AdvMurari Kumar]

Hi,

supplier can amend invoice, if it is not time barred. this is only the possible way out.