ITC mismtach in 3B and 2B due to late filing of GSTR 1 by client

[Palak Jain]

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.

AI Summary

Input tax credit mismatch from delayed GSTR-1 reporting is a timing issue, with reconciliation and interest considerations on early availment.
Input tax credit mismatches between GSTR-3B and GSTR-2B may arise where a supplier reports an invoice in a later GSTR-1 period, although the recipient has already recorded the invoice in its books and received the goods or services. In such cases, the difference is explained as a month-wise timing mismatch rather than an excess or ineligible claim, provided the underlying tax invoice and receipt of supply are genuine and the annual reconciliation remains consistent with eligible credit. Reconciliation between books and GSTR-2B is necessary to explain the differences.