composition dealer - DRC - 01

[Karuppannagounder Marimuthu]

 Summary of Show Cause Notice

DEFECT NO 1: Nil/Meagre tax Payer whose turnover in GSTR-1 and GSTR-3B lower than the purchases as per GSTR-2A/2B

How to submit reply

[KASTURI SETHI]

Dear Querist,

(i) Sometimes another registered person's sale figures/invoices crop up due to typographical error (human error) or snag in the functioning of software of Common Portal System. This may be the root cause of your problem.

(ii) Books of accounts are foundation for all purposes i.e. inward supply and outward supply. etc.

(iii) You are to justify actual purchase and sale figures with your books of accounts. The entries in your books of account must match with ALL GST returns including annual return. You are concerned with this only.

(iv) You are not responsible for another person's mistake.

[Shilpi Jain]

You could reply to department stating that further details of discrepancy required in order to clarify.

[Ganeshan Kalyani]

Compare / reconcile the invoice to invoice between books and GSTR-2A/2B. The mismatch to be identify as not pertaining to your business or not furnished in the return. Basis the working a suitable reply can be drafted.

AI Summary

GST reconciliation: substantiate purchases with books of accounts and invoice-level matching to address mismatch notices. Composition dealer should verify whether mismatches arise from typographical or portal errors, rely on books of accounts to substantiate actual purchases and sales, request further particulars if necessary, and perform invoice-to-invoice reconciliation to identify items not pertaining to the dealer or not furnished in returns, then draft a reasoned reply with supporting working papers.