Can recipient take credit of invoice not uploaded by supplier in his GST Return. The answer to the said question is given in this article.
I. Meaning of Missing invoices
Under New GST Returns, suppliers is required to upload invoices of outward supplies, imports and inward supplies attracting reverse charge in Form GST Annx 1 up to 10th of the next month. This invoice will be posted continuously in the viewing facility of the recipient for the purpose of availing credit.
However, many a times due to some reason or other, invoices or debit notes are not uploaded by the supplier on the GST portal. Under this new return system, recipient can still avail credit of invoices or debit notes and they are called as “missing invoices”. Credit can be availed on missing invoices provided such credit is not blocked under the provision of section 17 of the CGST Act.
II. Action to be taken by recipient
Recipient can avail credit on missing invoices by disclosing such missing invoices by in table 4A(10) of Form GST RET-1. However, recipient cannot avail the credit which is blocked under section 17 of the CGST Act.
'Provisional input tax credit on documents not uploaded by the suppliers [net of ineligible credit]'
Also, recipient is required to follow up with the supplier and get the missing invoice uploaded from him in Form GST ANX 1 within 2 tax period.
Procurement made by recipient in the month of October 2020.Supplier has not uploaded the same inform GST Anx-1. In present case, tax period available for follow-up is November 2020 and December 2020.
Following things can happen during this tax periods :
a. Supplier uploads the invoice within 2 tax period
If supplier uploads the invoice then recipient has to reverse such credit in table 4B(3) of Form GST RET-1 because recipient has already availed credit and thus he cannot take credit of the same invoice twice.
b. Supplier does not uploads the invoice within 2 tax period
In this case recipient has to upload document wise details in table 3L of Form GST Anx -1. Information about missing invoice uploaded by the recipient will be intimated to the supplier. However, missing invoice shown in table 3L will not get added to the liability of recipient.
It is pertinent to note that liability of recipient is to reverse the credit when the supplier will upload the invoice in future since credit cannot be availed twice on the same invoice.
If recipient has opted to file Form RET-1 on quarterly basis then such missing invoices has to be reported in the quarter immediately succeeding the quarter in which credit was claimed.
III. Liability on supplier
The supplier has to report missing invoice in Form GST Anx 1 in relevant table depending on the type of supply with payment of applicable interest.
As per latest update from the Government this facility of availing input tax credit on missing invoices will be available for period of six months after the new system of return is implemented.