GST ITC Difference period 2022-23

[KS Bhat]

In June 2022 return total Sales 10000 rs reported in B to B and balance 90000 reported in B to C buyer received notice If i issue certificate about this technical error is sufficient to buyer so that his demand nullified

 

[Raam Srinivasan Swaminathan Kalpathi]

Dear Querist

Your suggestion would legally not be sufficient. Kindly note Circular 183 and 193 which allowed ITC based on a certificate either from the supplier or CA, depending on the quantum of ITC, is applicable only for the years 2017-20 and and 2020-21 respectively. Your only option will be to knock on the doors of the judiciary. Providing a certificate to the recipient may not solve this issue.

[KASTURI SETHI]

Dear querist,

There is a plethora of case laws on the issue of technical error/clerical error/ procedural lapse in favour of the assessees.

Pl. elaborate your query for the purpose of posting relevant case laws here.

[KS Bhat]

Sir

I have issued Sales invoice (two in number ) during June 2022 . One invoice updated in GSTR1 B to B another invoice updated in B to C of the relevant GSTR 1 . This month my customer received notice of ITC difference for the period 2022-23 . Now if i give certificate to him stating about this technical error is sufficient or any other option available to him to against demand created by department

[KASTURI SETHI]

Only specific case law on the issue can help you.

AI Summary

Input tax credit entitlement: whether a seller's certificate of technical error can negate a buyer's GST demand. Misclassification of supplies between B2B and B2C in a GST return led to an Input Tax Credit demand on the buyer; the core question is whether a seller's certificate declaring the misreporting as a technical error is sufficient to nullify the buyer's ITC demand or whether additional corrective filings, documentation, or formal communications to tax authorities are necessary.