- For issue of Scrutiny notices, what does mismatch in credit mean?
- Modes of communicating differences noticed in the returns by officers
- Actions available to taxpayers who receive notice
- Rectification of discrepancies
- Re-Claim of ITC
For issue of Scrutiny notices, what does mismatch in credit mean?Several taxpayers are concerned about the issues around non availability of credit. Here’s basically what mismatched credit means –
- Differences between the amount of credit shown in GSTR- 3B and the GSTR 2A or/and
- Discrepancies between GSTR-3B and GSTR-1 or/and
- DIfferences in the provisional credit claimed and actual credit that is claimable. This situation arises usually during transition stages.
Modes of communicating differences noticed in the returns by officersAny difference noticed by the authorised officer shall be communicated to the concerned person in FORM GST ASMT-10. Content of the form
- Observations of the officer
- Time available to the taxpayer to give his explanation in response to this notice.
- Tax amount that is different and is the reason for the discrepancy may or may not be mentioned in this form.
Actions available to taxpayers who receive noticeView Form GST ASMT-11 View Form GST ASMT-12.
Any differences between your monthly/quarterly/yearly GST returns? ClearTax won’t let you worryAs a one stop solution for various taxpayers regarding these notices we suggest to use our products. At ClearTax :
- GSTR 3B Vs GSTR 1 report is generated to help customers know about any differences connected to payment of taxes on all outward supplies
- A comparison report between the GSTR 3B and GSTR 2A is generated. This helps to be sure that the credits claimed are related to taxes actually paid by the suppliers.
- The invoicing cum filing platform fastens the invoice generation and return filing process with accuracy. Invoices created via ClearTax help in auto preparation of the GST returns and thus the chances for errors get reduced to almost nil.
- Multiple validations connected to GST are done. Checks of HSN code, tax rate. GSTINs, Place of supply, date format, deadline checks, etc, help in better compliance of requirements and early detection of any mismatches.
Rectification of discrepanciesIf a discrepancy arises, it can be rectified in the following ways:
Excess ITC claimed w.r.t. declaration by supplier or outward supply is not declared by the Supplier:
- In case of discrepancy of claim w.r.t. declaration by supplier in his valid return, such discrepancy shall be communicated to supplier and recipient. On receipt of such a communication, the supplier shall be asked to rectify the discrepancy in his valid return for the month in which discrepancy is communicated.
- If the supplier does not rectify the discrepancy, the excess ITC claimed earlier shall be added to the output tax liability of the recipient in the next month
Duplication of claim of ITC by recipient:
- In case of a duplication of claim, the recipient will be intimated about the duplication of claim. If a rectification is not made, then the ITC claimed earlier shall be added to the output tax liability of the recipient for the month in which duplication communicated
Re-Claim of ITC
- It means re-claiming the amount of ITC which was earlier reversed due to discrepancy in amount declared by supplier in his valid return or duplication of the ITC claim. Such re-claims can be made by the supplier only in case the supplier declares the details of invoice and/or debit notes in his valid return pertaining to the period in which the omission or incorrect particulars were noticed by the supplier, or the communication about the same was received.
- Any interest paid earlier on excess claim of ITC will be refunded by crediting the amount to the recipient’s Electronic Cash Ledger.
- In case of duplication of ITC claim, no refund will be allowed as it is a contravention of the GST provisions.