TaxTMI 
TaxTMI 
My client has passed entry in tally as per the invoice dated April but the third party had taken it in May GSTR 1 instead of April's GSTR 1 due to which mismtach has occurred of amounts in both the month as we had taken more ITC in April compared to that month's 2B and less in May compared to May' 2B. Also there have been mismtach between Tally and 2B as some ITC Reported in 2B was not there in Tally and vice versa. On this case, the officer has given a scrutiny notice for the year 2022-23 regarding the discrepancies as of ITC Claimed in 3B and 2A which is due to above reason mentioned in the paragraph. I need to explain this to officer in clear words. Guide me through this.
ITC mismtach in 3B and 2B due to late filing of GSTR 1 by client
Palak Jain
Input tax credit mismatches from late supplier reporting can create GSTR-3B and GSTR-2B discrepancies under GST scrutiny. Input tax credit mismatches arise when an invoice is recorded in one tax period but reported by the supplier in a later GSTR-1 period, causing differences between GSTR-3B, GSTR-2B/2A, and the recipient's accounting records. The issue concerns excess ITC claimed in one month, reduced ITC in the later month, and other discrepancies between the books and the 2B statement. A scrutiny notice has been issued on the basis of these ITC discrepancies. (AI Summary)