GST REALTED QUERY

Hey Ajnas, let's break down your GST questions step-by-step:

1. Supplier filed GSTR-1 with ITC ₹1,50,000 + 18% GST, but actual invoice was ₹1,00,000 + 18% GST.

Recipient claimed ITC ₹1,00,000 + 18% GST without amendment. Time limit to amend supplier's GSTR-1 for FY 2019-20 expired.
Is the recipient’s action correct?

• Yes, the recipient can claim ITC only on the actual invoice value (₹1,00,000 + GST).

• Since the supplier did not amend the GSTR-1 and the time limit expired, the ITC auto-populated in GSTR-2A is higher, but the recipient should only claim ITC on the amount supported by the actual invoice.

• The recipient must ensure that their claim matches the invoice and not the supplier’s GSTR-1 data.

2. Supplier filed GSTR-1 with ITC ₹1,50,000 + 18% GST, actual invoice was ₹2,00,000 + 18% GST.

Supplier did not amend invoice before the deadline. Recipient claimed ITC ₹1,50,000 + 18% GST auto-populated in GSTR-2A.
Is the recipient’s action correct?

• Recipient can only claim ITC on the value reported by the supplier in GSTR-1 (₹1,50,000 + GST) because GSTR-2A matches supplier data.

• Since supplier did not amend the invoice (₹2,00,000), recipient cannot claim ITC on ₹2,00,000.

• Recipient’s claim is correct as per supplier's filed data.

3. Are the above cases considered for 105% ITC calculation?

• The 105% rule applies to reconcile ITC claimed with supplier’s GSTR-2A.

• Since in first case, recipient claimed less than supplier’s GSTR-1 (₹1,00,000 < ₹1,50,000), no discrepancy arises for 105% rule.

• In the second case, recipient claimed ITC exactly equal to GSTR-2A (₹1,50,000), so it is within limit.

• Therefore, both cases are considered while doing 105% ITC reconciliation and no mismatch penalty should arise if the recipient claims within these values.

Summary:

• Recipient should claim ITC only on actual invoice value supported by supplier’s invoice.

• If supplier’s data is incorrect and amendment deadline expired, recipient cannot claim beyond supplier’s declared amount.

• 105% ITC rule helps catch major mismatches but minor issues may be resolved by supplier’s amendment or recipient’s communication.

If you want, I can help draft an action plan to reconcile or approach your supplier.