Mismatch in GST of 2018-19

Others 189 views 4 replies

ABHISHEK GARG

Chartered Accountant

508 Points Joined October 2011

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.

Replies (4)

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.

ABHISHEK GARG

Chartered Accountant

508 Points Joined October 2011

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?

Bhavika Kothari

1258 Points Joined May 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