Mismatch in GST of 2018-19

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Chartered Accountant
508 Points Posted on 02 August 2020

Dear Esteemed Members,

I need an urgent help on the below GST Issue.

X1 has purchased goods from Y in June 2018. Invoice was in X1's GSTIN.

But Y has shown that bill in X2's GSTIN while filing his GSTR 1.

(X1 & X2 are same companies having different GSTIN's of different states)

X1 has claimed input credit on the basis of Invoice and X2 did nothing & ignored the credit given in 2A.

So, now X1 has a shortfall of Input Credit in GSTR2A and X2 has a excess of Input Credit in 2A.

Y is not able to rectify this mistake now as it is time barred.

Now how the company X will deal will this error at present.

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On 02 August 2020 at 00:39 Report
Replies (4)
Quick Summary
This discussion addresses a critical GST issue from the 2018-19 financial year where a supplier (Y) incorrectly reported a purchase invoice under the GSTIN of company X2 instead of company X1. Company X1 claimed input tax credit (ITC) based on the invoice, leading to a shortfall in its GSTR-2A, while X2 showed an excess. The supplier Y is unable to amend the error due to time limitations. The core of the problem lies in reconciling the claimed ITC with GSTR-2A data, especially considering that Rule 36(4) was not applicable for the 2018-19 period. The conversation explores potential solutions and the implications of Section 16(2)(d) of the CGST Act regarding the supplier's obligation to upload invoices.

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Dhruv dedhia
64 Points Posted on 02 August 2020
Rule 36(4) which is reconciliation of ITC ledger with GSTR 2A is applicable from October 2019 and not for FY 2018-19 transaction. In case invoice is valid then ITC can be taken in the GSTIN mentioned in the invoice. reasons could be noted and kept ready in case of departmental audit.
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On 02 August 2020 at 08:17
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Chartered Accountant
508 Points Posted on 03 August 2020

Hi Dhruv,

Thanks for your prompt response. But what about Clause (d) of Sec 16(2) of CGST Act. It puts up a condition that "he has furnished the return under section 39 [every taxable person is required to file electronic return every month as per section 39 of CGST Act]."

Isn't the intention of the act here was that supplier should upload the invoice in his GSTR1? 

What's your opinion?

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On 03 August 2020 at 16:29
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CA
1258 Points Posted on 07 August 2020

Even if the time is passed, Y can amend the invoice with X1 GSTIN. Since X1 has already taken ITC no action required from X1 side. For X2 what you have done is correct so no action required from X2 too

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On 07 August 2020 at 14:17
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Chartered Accountant
508 Points Posted on 07 August 2020

Hi Bhavika,

Thanks for your response. Yes, X1 & X2 both are correct on their part. But How Y can amend it with X1's GSTIN now?

Because when Y tries to amend the details in his current GSTR -1, the drop-down shows only two options, 2019-20 & 2020-21, and not 2018-19.

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On 07 August 2020 at 15:58

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