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ITC Unmatched with GSTR-2B and Huge Demand Notice Issued

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sujit naha

accountant

226 Points Posted on 03 March 2021

For The Month of JANUARY - 2021 ----

Our ITC Unmatched with GSTR-2B --- of Rs. 575000/- -----

Due to Some Invoices are not yet uploaded at GSTR-1 by Supplier ----

Supplier confirmed that He will upload the same within 2 days

Today GST Superintendent came and verified ----

Issue a Demand Notice Rs. 575000/- with Interest and directed us we have to deposit

this amount tomorrow

Question : This is Justified ???? What is GST Rule ?

please reply

Replies (4)

Quick Summary

A business received a GST demand notice for Rs. 575,000 due to Input Tax Credit (ITC) unmatched with their GSTR-2B. This occurred because suppliers hadn't uploaded their invoices. Despite the supplier's promise to upload within two days, the GST Superintendent issued the demand notice immediately, requiring payment with interest. The discussion questions the justification of this action and seeks clarification on GST rules regarding such situations.

Siva Raj

287 Points Posted on 03 March 2021

How much ITC reflected in your GSTR2B

CA. Sourav Sarkar

Chartered Accountant

16188 Points Posted on 03 March 2021

What is itc shown in 2b?

Kishor Lulla

656 Points Posted on 04 March 2021

Rule is correct. action of officer is wrong. can claim in next month.

Siva Raj

287 Points Posted on 04 March 2021

First calculate how much ITC reflected in your GSTR2B based on that calculate provisional ITC 5% as per Rule 36(4). if ITC availed is >5% then you can pay the demand with interest 24% p.a. next month you can reavail the same after reflection in your GSTR2B. you have 30 days to pay the demand