TaxTMI 
TaxTMI 
ITC mismtach in 3B and 2B due to late filing of GSTR 1 by client
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....TC mismtach in 3B and 2B due to late filing of GSTR 1 by client<br> Query (Issue) Started By: - Palak Jain Dated:- 18-6-2026 Last Reply Date:- 21-6-2026 Goods and Services Tax - GST<br>Got 6 Replies<br>GST<br>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 i....
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....n 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 rea....
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....son mentioned in the paragraph. I need to explain this to officer in clear words. Guide me through this. Reply By KALLESHAMURTHY MURTHY K.N.: The Reply: Sir, It is a common factor, happening sometimes. You have to explain the facts of availing of ITC as per the invoice in April. However, the supplier has paid the taxes in the subsequent month and reflected it in May. You have availed the s....
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....ame one month in advance. If you have utilised ITC in April, you have to pay the applicable interest. In case it is not reflected in 2B, the officer required you to reverse the ITC. Even if taking less ITC in May without reflecting in 2B will be disputable. It may be demanded for reversal despite Judgements so that the purchaser is not punished. Reply By YAGAY andSUN: The Reply: You can submi....
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....t the following concise legal explanation to the scrutiny officer: It is respectfully submitted that the difference observed between ITC availed in GSTR-3B and the ITC reflected in GSTR-2A/2B for FY 2022-23 is primarily attributable to timing differences in reporting by certain suppliers and does not represent any excess or ineligible availment of ITC. In the present case, the assessee recorded....
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.... purchase invoices in its books of accounts (Tally) in the month of April based on the actual date of receipt of tax invoices and availed eligible ITC accordingly. However, certain suppliers reported the corresponding outward supplies in their GSTR-1 of May instead of April, resulting in the ITC appearing in GSTR-2B of a subsequent tax period. Consequently, the ITC claimed in April exceeded the IT....
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....C reflected in April GSTR-2B, whereas the ITC claimed in May was lower than the ITC reflected in May GSTR-2B. The variance is therefore a mere month-wise timing mismatch arising from delayed supplier reporting and not an excess claim of ITC for the financial year as a whole. Further, during reconciliation of books of accounts with GSTR-2B, certain invoices were identified wherein ITC was reflec....
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....ted in GSTR-2B but was not recorded in the books during the relevant period, while in certain other cases invoices recorded in the books appeared in GSTR-2B in a subsequent period due to delayed filing by suppliers. A detailed reconciliation statement has been prepared and furnished, proving that the discrepancies are attributable to accounting and reporting timing differences only. The assessee h....
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....as maintained valid tax invoices, has received the underlying goods/services, and the corresponding tax has been discharged by the suppliers. There has been no double availment, excess availment, or wrongful claim of ITC, and the overall ITC claimed during the financial year remains fully reconcilable with the eligible ITC reflected in supplier filings. The discrepancy, therefore, is procedural an....
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....d temporal in nature and does not result in any loss of revenue to the Government. In view of the above facts and the reconciliation submitted, the impugned difference may kindly be treated as satisfactorily explained and the scrutiny proceedings on this issue may be dropped. Reply By YAGAY andSUN: The Reply: For stronger support, attach: • Month-wise reconciliation of Tally vs G....
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....STR-2B. • Invoice-wise list showing April-booked invoices reported by suppliers in May GSTR-1. • Annual reconciliation proving that total ITC claimed for FY 2022-23 matches eligible ITC after considering timing differences. • Copies of sample invoices and supplier confirmations, if available. Reply By KASTURI SETHI: The Reply: In this scenario, only reco....
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....nciliation issue is involved. No revenue loss is involved. It is a matter of time-factor as discussed by the experts above. Under Section 155 of CGST Act the burden of proof is cast upon you. In order to get scrutiny notice closed, take help from the following judgement:-- 2025 (11) TMI 663 - DELHI HIGH COURT - Kemexel Ecommerce Pvt. Ltd. Versus Sales Tax Officer, Avato ....
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.... Reply By Shilpi Jain: The Reply: Do your reconciliations and explain the differences. In case of early availing of credit and where the credit has also been used up you would have to pay interest liability. Where ITC taken without being eligible, ITC reversal along with interest. Reply By Ganeshan Kalyani: The Reply: The supplier may have missed to report the invoice in GSTR-1 ....
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....of April month but you have received invoice copy and material /service as well. So you are eligible to take ITC. The supplier has uploaded it in May so the compliance it done and now it is populating in your 2B. Recipient should not be penalised for the mistake committed by the supplier. Genuine ITC, genuine mistake. ITC is eligible. Explain to the GST officer.<br> Discussion Forum - Knowledge Sh....
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....aring ....