Taxblock
Mismatch in context of GST refers to the amount of disparity disclosed in GSTR 3B with the details given in GSTR 2B along with GSTR 2A. GSTR 3B is the consolidated form of monthly returns that contains details of total inward supply, outward supply, input tax availed, tax paid, and tax collected made by a registered person during a year. GSTR 2A is an auto-populated form that contains details of all the inward supplies made by the registered person in a given month, this form is auto-populated when seller files his GSTR 1. GSTR 2B is a system-generated static form that gets generated on 12 the of the succeeding month that contains all the input tax credits availed on every recipient of supplies made by the seller on every tax period. The amount stated in form GSTR - 2A and GSTR 2B should be equal to amount stated in GSTR 3B.
Section 42 of CGST Act provides for matching, reversal, and reclaim of ITC and provides mechanism for matching of ITC with output liability as declared by the supplier.
NOTICE IN CASE OF MISMATCH
If in case of any discrepancy between information furnished by suppliers and buyers, the same shall be communicated to Both the gatherings have been given an Both the parties have been given an opportunity to make suitable rectification in their next returns. If the suitable rectification is not made within the given time receipts is required to reverse ITC on the same.
REASONS FOR MISMATCH
- 1. The vendor has declared liability but credit is not availed in his returns
- 2. The seller has not proclaimed responsibility yet credit is benefited in his profits
- 3. Mismatch between tax liability and credit availed in returns
- 4. Mistakes in GSTIN of supplier/receipts, invoice number and date of invoice/debit notes etc.
IMPORTANCE OF GST RECONCILIATION
1. Taxpayer will be able to claim ITC only if the invoice is present as a part of their GSTR - 2B. Due to this taxpayer is now required to reconcile whenever the ITC as per the purchase register furthermore, GSTR - 2B information isn't coordinating.
2. GSTR are filed on a monthly or quarterly basis. At last, after the monetary year gets over, annual returns must be filed before 31 st December of subsequent financial years
3. Certain deadlines are stipulated in GST laws for making amendments to GST returns data or to claim ITC. As per provisions of section 16 of CGST Act, 2017 a registered person shall be eligible to claim input tax credit earned during a year before -
- Filing his annual return or
- 30th September
Whichever is earlier. Therefore reconciliation needs to be done to ensure that all ITC has been considered in GSTR 3B, GSTR 2A and GSTR 2B.
4. As per sub-rule (4) under Rule 36 of the CGST Rules, 2017 a registered person can claim provisional ITC (without invoices on GSTR 2B) to the extent of 5% of ITC appearing in GSTR 2B, meaning if your total ITC is Rs. 1,000 but as per invoices in GSTR 2B your ITC stands at Rs. 700 then you can claim ITC in GSTR 3B up to only Rs. 735 (i.e. Rs. 700 x 105%).
Authored by Vinit Ugale
CAclubindia
