GST Notice reply - How to reply to notices of mismatch of GSTR 3B and 2A

GST Notice reply - How to reply to notices of mismatch of GSTR 3B & 2A


Even after five years of GST implementation and over a thousand notifications and circulars, we are still experiencing numerous issues with GST notice replies, on-site maintenance and department operations.


Businesses and professionals face numerous challenges due to issues and constant change. But, unfortunately, even after five years, we still expect and hope for stability in the GST notice reply and the department's operation.


Taxpayers began receiving notices from the department, as they do every year, regarding data mismatches in GSTR 3B or GSTR 9 annual returns, as well as data reflected in GSTR 2A, which Suppliers filed. The topic of today's article is the best way to respond to GSTR 3B and GSTR 2A mismatch notices.


The council has every recovery mechanism for defaulters under sections 73, 78, 79, and so on. Following the last process, the committee may attach the defaulter's bank account or property.


The receipt cannot control the supplier and cannot compel the supplier to execute because "neither receipt has any legal mechanism for recovering the defaulter supplier." Therefore, the council will assign the party to the defaulter in the recovery notice and immediately recover the default liability.


This law will not compel the recipient to do the unthinkable to ensure that the supplier has provided "the tax to the government." It is unjust to deny credit to the recipient" because the supplier's section did not file the information within the time frame specified.


Provision to claim ITC


ITC can be claimed under the matching principle if the recipient accepts the information provided by the supplier and vice versa. If there is a discrepancy between the information provided by the supplier and the recipient, it must be communicated to both parties as a mismatch report. Both the supplier and the recipient can make rectifications before the next return date.


The requirement to file Form GSTR-2 and Form GSTR-3 has been suspended since the inception of the GST Regime. While GSTR-3B is required in place of GSTR-3, there is no legal replacement for GSTR-2. No provision in the CGST Act allows the denial of ITC claims due to differences in the details provided in GSTR-2A and GSTR-3B. If there is a mismatch, the matching must be done through the flow of information in GSTR-1 and GSTR-2 and the result thereof.


In the absence of cooperation between supplier and recipient, ITC must be allowed.


The most apparent flaw in Section 16(2)(c) is that it imposes an unreasonable burden on a recipient who may otherwise be genuine. It holds the recipient liable for the supplier's actions, even if they are unrelated. As a result, even in the absence of cooperation between the two, it penalises the recipient for the fault of a third party, namely the supplier.


Several judgments in the VAT regime highlight this flaw in the law and the disadvantage it imposes on the recipient. Under the VAT regime, the Courts have consistently held that where the purchaser is bona fide and there is no mala fide intention, connivance, or wrongful association of the purchaser with the supplier, the reversal cannot be sought from the purchaser.


Criteria for GST notice reply - Response to Input Tax Credit Discrepancy as Per GSTR-2A & GSTR-3B


  • According to Rule 60(1), Form GSTR-2A is "Details of Auto-Drafted Supplies" and contains information on Inward Supplies received and Inputs thereon. Also, the GST notice reply format is implemented by the GST department.


  • According to the Rule Form, GSTR-2A was auto-drafted in 2017-18 based on "Form GSTR-1, GSTR-5, GSTR-6, GSTR-7, and GSTR-8." However, following the amendment to the Rules, Form GSTR-2A is now auto-drafted based on "Form GSTR-1, GSTR-5, GSTR-6, GSTR-7, GSTR-8, Import of Goods and Inward Supplies of Goods received from SEZ Units/Developers."


  • The relevant original extract of Rule 60(1) [Form and manner of ascertaining details of inward supplies] is "Every registered person, other than a person referred to in section 14 of the Integrated Goods and Services Tax Act, 2017, who is required to furnish the details of inward supplies of goods or services or both received during a tax period under sub-section (2) of section 38, shall prepare such details as specified in sub-section (1) of the said section and furnish the same in FORM GSTR-2 electronic."


  • "The details of outward supplies furnished by the supplier in FORM GSTR-1 or using the IFF shall be made electronically available to the concerned registered persons (recipients) in Part A of FORM GSTR-2A, FORM GSTR-4A, and FORM GSTR-6A, as applicable, through the common portal."


  • As a result, details of Inputs and Input Tax Credit (ITC) of Import of Goods and Inward Supplies of Goods Received from SEZ Units/Developers need to be added to Form GSTR-2A for 2017-18.




The Department is not justified in imposing such demands on assessors due to the lack of enforcement of the entire scheme of the Act as proposed. The mechanism for obtaining ITC, which can be considered the system's flagship, was implemented to prevent fraudulent ITC utilisation, and the Department is unquestionably correct in disciplining the same. However, the legality of the action is called into question when it enters the rink of legitimate taxpayers, the threshold of which is.

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