Goods Short received from Supplier CR Note

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This query is : Resolved

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This discussion addresses a common issue where goods are received short from a supplier, leading to an ITC mismatch between the buyer's books and the GST portal. The core problem is that while the buyer has reduced their Input Tax Credit (ITC), the supplier has not yet reflected the corresponding credit note in their GSTR-1 filing. This creates a discrepancy in the buyer's GSTR-3B filing, potentially attracting departmental scrutiny. While reversing ITC proactively is a compliance measure, advice is given to request the supplier revise the bill and ensure the credit note is correctly reflected in their GSTR-1 to avoid future mismatches.

Surinder

Surinder (Querist)
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21 February 2023 Dear Sir

Some Goods Short received from Supplier. Supllier asking to us send Debit note we have sent debit note to Supplier We have decrease ITC in books but supplier has yet not show Credit note in His GSTR -1 Now as per books ITC and ITC available in GST portal are mismatch so please suggest in case what to do

CA. Bhavik P. Chudasama

CA. Bhavik P. Chudasama (Expert)
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21 February 2023 Supplier needs to Issue Debit Note and same to be reflected in the GSTR 1 when he files it and reduce his Output Liability.

CA Altamush Zafar

CA Altamush Zafar (Expert)
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22 February 2023 You just reduce your ITC since goods are not received by you. Compliance from your side ends here

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Surinder

Surinder (Querist)
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23 February 2023 Thank you Very much Respected Altamush Sir,

CA Altamush Zafar

CA Altamush Zafar (Expert)
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23 February 2023 You are most welcome

CA. Bhavik P. Chudasama

CA. Bhavik P. Chudasama (Expert)
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23 February 2023 I would like to differ a bit from Expert Opinion because

A. If you reduce ITC in current month and later supplier reflects in GSTR 1 which will impact the GSTR 2B of future month then how will the Buyer reflect the same in GSTR 3B. because that might Invite Departmental SCN regarding Mismatch in ITC in 2B vs 3B

CA Altamush Zafar

CA Altamush Zafar (Expert)
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23 February 2023 Since ITC would have been already reversed there won't be any problem. Claiming of ITC even if goods not received is a non compliance of section 16(2). He will save himself by reversing ITC beforehand.
Keep relevant documents and reconciliations

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CA. Bhavik P. Chudasama

CA. Bhavik P. Chudasama (Expert)
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23 February 2023 True about section 16(2) , but still would emphasis that you ask the supplier to revise the Bill because Department will call you for such difference in 2B vs 3B where supplier would make entry as Debit Note and in that Particular month if you dont reflect it is as Reversal in your GSTR 3B.

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