Mismatch in ITC claimed between GSTR - 3B Vs GSTR - 2A

Save Share

This query is : Resolved

Quick Summary

A corporate client has received GST notices for mismatches between claimed ITC in GSTR-3B and GSTR-2A for FY19-20 to FY21-22. This arose because the client's GSTN wasn't updated, leading to sales being incorrectly reported as B2C instead of B2B. While confirmation letters and invoices have been provided, the relevant period isn't covered by recent CBIC circulars, suggesting a potentially lengthy process to justify the input tax credit.

AJAY VEDPATHAK

AJAY VEDPATHAK (Querist)

13 February 2023 Dear Sir,

We being a corporate client has rec’d GST notices from FY19-20 to FY21-22 regarding mismatch in ITC claimed between GSTR - 3B Vs GSTR - 2A.

Background:
The client has not updated their GSTN in our record. As a result, we have reported all their sales under B2C sales in monthly GSTR-1 return instead of B2B category.

Now on client request, we have issue them confirmation letters saying that the said sales are treat as B2B sales and enclosed all taxable invoices of respective Yrs.

Request you to guide whether client would get GST input Credit for all the Yrs?

Regards,

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)

14 February 2023 unfortunately period from 2019-20 to 2021-22 is not covered under recent CBIC Circular regarding submission of CA certificate or self certification on letter head in case of mismatches for Rs. 5 lacs or more and less than 5 cr respectively so your client may have to fight a long battle for justifying his input tax credit as the authorities may not agree here.

AJAY VEDPATHAK

AJAY VEDPATHAK (Querist)

15 February 2023 Many Thanks Sir for your valuable response.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now