The spate of notices on difference between GSTR 3B and 2B some of them allowing only 3 days time to reply mainly by the State GST officers in some States of India has led to fear of return of the Inspector Raj and 100% scrutiny for all. GST was to be a SELF ASSESSMENT REGIME. Hopefully, unlike VAT which was also self-assessment but converted into assessment for ALL, in GST it would not happen.
Polite reply in writing is the best defense for such frivolous letters/ notices.
Draft Reply after confirmation of applicability/suitability could include the following points provided:
Date ---------- RPAD/ Speed Post
GST Officer ( issuing notice)
Sub: Reply to ASMT 1 difference in credit notice dt….. in addition to reply submitted online.
Ref: Our GSTR no……….
We are in receipt of the online mail from mail ID…..Please confirm whether this would be the official ID for further mails and we can reply to this ID.
The period provided of …days is less than the 30 days provided in general for any replies.
The lumpsum figure does not provide the period and the list of credits which have been compared with our figures in 3B. ( We provide our list of credits in Annexure-1 for your information)
GST was supposed to be based on voluntary compliance and non-invasive. This communication is difficult to reply due to various reasons which have ben further elaborated later.
As we understand GSTR 2A is not available or mandatory and therefore comparison with that document may not be fair and in line with GST Act. Many suppliers have not complied as it is not mandatory.
It would have been proper to compare the GSTR1 of the supplier and our 3B which could be confirmed.
The reasons for differences could be as under:
1. Delay in availing the credit of earlier months availed in the month under question. [ If list provided then we can identify such credits]
2. Ineligible credits not claimed by us.
3. Reverse charge payments and consequent credits not considered. [indicated in list submitted by us]
4. Import IGST credits similarly not considered. [indicated in list submitted by us]
5. The non-compliance from the suppliers side could be due to the following reasons:
- due to non-payment,
- incorrect uploading,
- data entry mistake in figures or GST numbers,
- classifying at B2C instead of B2B and
- maybe many more which we are still to see
None of these are in our control.
We understand that only in exceptional cases like missing dealer etc, we would be questioned about non-compliance by supplier and have to prove our compliance as per the March GST Council meeting.
We have a system of verification of the credits once in a quarter and would be availing the missed credits and reverse the excess credit availed in the subsequent GSTR3B.
Considering all of the above it appears that the notice is too early [system itself not stable or set] and as we understand may not be legally valid.
Please provide us the list of credits as per your record and also confirm that this reconciliation is required in law.
We as law abiding assessees would like to be on the right side of law but do not wish to be burdened with additional costs of preparation of statements, getting them verified by our Consultants if there is no requirement under law.
Kindly acknowledge the receipt of this letter and advise on the questions raised especially in regard to the legal validity and the request for information from your side.
CC to Commissioner SGST