GST AMENDMENT QUERY

Hi Ajnas,

Let's break down your two scenarios regarding GST amendment and ITC claims:

Scenario 1:

• Supplier filed GSTR-1 for Sept 2020 showing Invoice value Rs. 150,000 + 18% GST

• Recipient's actual invoice value is Rs. 100,000 + 18% GST

• Recipient claimed ITC based on Rs. 100,000 (correct value) without supplier amending the invoice

• Time limit to amend invoice for FY 2019-20 expired in Sept 2020

• Recipient claims ITC of Rs. 100,000

Is recipient action correct?

Answer:
Yes, the recipient can claim ITC only for the actual invoice value, i.e., Rs. 100,000 + GST, even if supplier hasn't amended the invoice, but only if the supplier's GSTR-1 cannot be amended now (time limit expired).

• Recipient must claim ITC based on the invoice value actually paid or agreed, not on inflated value in supplier's GSTR-1.

• Recipient should keep documentary proof showing actual value.

• If discrepancy is large, recipient may face scrutiny or reversal demand, but technically ITC claim is limited to actual invoice value.

Scenario 2:

• Supplier filed GSTR-1 showing Rs. 150,000 + GST

• Actual invoice value is Rs. 200,000 + GST

• Supplier claimed ITC Rs. 100,000 + GST (less than actual) without amending invoice

• Time limit to amend GSTR-1 expired for FY 2019-20

• Recipient claims ITC of Rs. 150,000 + GST (based on supplier's filed GSTR-1)

Is recipient action correct?

Answer:
Recipient can claim ITC only for the amount declared by the supplier in GSTR-1 (Rs. 150,000 + GST), even if the actual invoice is Rs. 200,000.

• ITC eligibility is limited to the supplier's declared outward supply in GSTR-1.

• Since supplier has declared only Rs. 150,000, recipient cannot claim ITC for Rs. 200,000.

• Recipient claiming Rs. 150,000 ITC is correct.

• Recipient cannot claim ITC of Rs. 200,000 without supplier amending returns.

Summary:

• Recipient ITC claim is limited by supplier’s declared GSTR-1 values within allowed amendment period.

• Post amendment deadline, ITC claim must be based on supplier's declared invoices.

• Recipient claiming ITC less or equal to declared values is correct.

• Recipient claiming ITC more than supplier declared is not correct.