Mismatch on Supplier’s details and Recipient details. How to settle ITC under GST in India?

Mismatch on Supplier’s details and Recipient details. How to settle ITC under GST in India?

Mismatch on Supplier’s details and Recipient details. How to settle ITC under GST in IndiaAs we have explained earlier, input tax credit is sanctioned mainly by cross checking outward details furnished by supplier in his valid GST return. (Valid here mainly means with GST payment). So any Input Tax credit is settled based on the details filed by supplier and details verified by the recipient. If both details of same transaction get tallied, the input tax credit can be settled immediately electronically.

ITC would be confirmed only if the inward details filed by the recipient are matched with the outward details furnished by the supplier in his valid return. What happens if there is a mismatch?

This could happen common among who claim for ITC of GST. As one of the main features of GST tax system is that all entries are electronic system of arrangements and the details can be verified and found errors or discrepancy if any immediately. The e-ledger of supplier and recipient can be easily reconciled within seconds.

As per GST Law, in case of mismatch between the inward and outward details, the supplier would be required to rectify the mis-match within a period of two months and if the mis-match continues, the ITC would have to be reversed by the recipient.

So, if the supplier could not find or does not rectify the discrepancy in inward and outward details of GST tax and return details, the GST authorities treats as mis match of inward and outward supplies and the Input Tax Credit is reversed by the recipient of supply.

So, any Input Tax Credit claim, the valid GST tax return details of inward supplies and outward supplies have to be matched. (I remember, Double Entry system of book keeping here – If there is a debit entry, there is a credit entry. But here, value of transaction changes)

 

Input Tax Credit claim procedures and formalities with mis-match of inward and outward supply of GST tax returns are explained in this post. If you have more information and views about mis-match of supplier’s e-ledger with recipient’s e-ledger in terms of inward and outward supplies, please share below:

 

Click here to know GST rate of your product or service

 

GST Exemption list of goods and services

Find HSN number or Service tariff code for GST

GST registration guidelines

Indian GST Laws

How to export your goods?

Centralized GST registration of services permitted in India?

Retired from business ownership. Fresh GST registration in India?

GST Registration for Job workers in India

GST registration mechanism in India

Pre-registration of credit card necessary for GST payment in India

Is GST Registration required for a Job worker in India?

We have applied for GST registration, but not obtained registration certificate. Can we claim ITC in India?

Date of GST registration and date of eligibility to claim ITC

Notice to GST return filing defaulters

 

When to file Annual Return of GST online?

 

Procedures to claim reduction in output tax liability of GST in India

 

Procedures to claim Input Tax Credit under GST in India

 

When to file first Return of GST tax in India?

 

GST Tax returns filing – Who, How and When?

 

How is time of supply accounted under GST Tax Calculation

 

Valuation of GST under special cases

 

Valuation of GST Taxable supply

 

When to pay GST for supply of services?

 


Comments


shalini: Why mismatch of inward details is differ from auto generated in gst portal

Discussion Forum

You can also share your thoughts about this article.
Any one can answer on question posted by Readers