Claim Matching Reversal And Reclaim Of Input Tax Credit And Output Tax

Claim of input tax credit (Section 41 of CGST)
Every registered person shall be eligible to take credit of tax paid on input in return and such input tax credit shall be credited to their electronic ledger
Input tax credit shall be utilize for self-assessed output tax in return.

Matching Reversal And Reclaim Of Input Tax Credit (Section 42 of CGST)

1. Every detail of inward supply received by recipient shall be matched with
   a. with the Corresponding detail furnished by corresponding outward supplier after the due date of Form GSTR-3 ( after 20th of following month)
   b. with IGST paid on imported by him
   c. duplicate claim of Input tax credit
   d. GSTIN of Supplier
   e. GSTIN of recipient’s
   f. Debit note number and date
   g. Amount of tax
2. Every claim of input tax credit on inward supply recipient on the basis of invoice or debit note that match with corresponding outward supply made by supplier or with IGST paid under section 3 of The Custom Tariff Act 1975 on goods imported by recipient shall be accepted and communicated to recipient. Claim of input tax credit shall be made available on GST portal in Form GST MIS-1 to registered person
3. In case input tax credit claimed by recipient on inward supply which is in excess of value declared by supplier in his return then such discrepancy shall be communicated to both recipient and supplier. Discrepancy found in input tax credit shall be available to recipient in Form GST MIS-1 and to supplier in Form GST MIS-2 on the portal.
4. If any duplicate claim of input tax credit made recipient then such duplicated claim shall be communicated to recipient in Form GST MIS-1.
5. In case discrepancy noticed under point 3 is not rectified by supplier in his return for the month in which such discrepancy was communicated then the amount shall be added to output tax liability of recipient in his return for the month following the month in which such discrepancy was communicated. Detail of such addition to output liability shall be available on Portal in Form GSTR-3.
6. if such above claim is not rectified by recipient in his return then such excess input tax credit shall be added to his output liability of Supplier for the month of succeeding the month I which discrepancy communicated.
7. The recipient shall be eligible to take credit of tax paid under point 5 and reduce his output tax liability only if the supplier furnish the detail of invoice or debit note in his return within due date as specified in section 39(9) of CGST.
8. The recipient whose output tax liability increased on point no. 5 and 6 shall also be liable to pay interest at the rate 18 % under section 50(1) of CGST from the day of availing credit till the date of addition made under this.
9. In case of eligibility of input tax credit or reduction in output tax liability accepted under point 7 then interest paid in point 8 shall refunded to recipient and such refund shall be credited in his cash ledger in Form GST PMT-05 provided that amount of interest credited shall not exceed to the amount of interest paid by supplier.
10. If amount of output tax liability reduced in contravention of point no. 7 then the amount shall be added to output tax liability of recipient in his return related to month in which such contravention taken place and recipient shall also be liable to pay interest @ 24% under section 50(3) of the CGST.

Matching reversal and reclaim of output tax (Section 43 of CGST)

1. Every credit note furnished by supplier in relation to his outward supplies then same shall be matched with
   a. Corresponding reduction of claim in input tax credit by recipient in his return.
   b. Duplicate reduction of output tax liability.
2. Every claim of reduction in output tax liability made by supplier which matched with the corresponding reduction made in input tax credit by recipient shall be accepted and communicated to supplier. And such credit shall be available in Form GST MIS-1.
3. In case of reduction of output tax liability on outward supplies made by supplier which is in excess of claim of input tax credit or credit note which is not declared by recipient in his return then such discrepancy shall be communicated to both recipient and supplier in Form GST MIS-1.
4. If any duplicate claim for reduction output tax liability made supplier on outward supplies then such duplicated claim shall be communicated to supplier Form GST MIS-1.
5. In case discrepancy noticed under point 3 is not rectified by recipient in his return for the month in which such discrepancy was communicated then the amount shall be added to output tax liability of Supplier in his return for the month following the month in which such discrepancy was communicated. And such discrepancy shall be available to supplier in Form GST MIS-1 and to recipient in Form GST MIS-2.
6. The amount of reduction made in output tax liability which is found duplicate then such claim shall be added to output tax liability of supplier in return for the month in which such duplication was communicated.
7. The supplier shall be eligible to take credit and reduce his output tax liability which was paid under point 5 only if recipient furnish the detail of credit note in his return within due date.
8. The supplier whose output tax liability was increased under point 5 and 6 shall also be liable to pay interest at the rate of 18 % -under section 50(1) of the CGST from the day of claim till the date of addition made under this.
9. In case where recipient furnish the detail of credit not which result in reduction in output tax liability then interest paid under point 8 shall be refunded to supplier and such amount shall be credited to his cash ledger in Form GST PMT-05 and provided that amount of interest credite shall not exceed to the amount of interest paid by recipient.
10. If amount of output tax liability reduced in contravention of point no. 7 then the amount shall be added to output tax liability of supplier in his return related to month in which such contravention taken place and recipient shall also be liable to pay interest @ 24% under section 50(3) of the CGST.
    
11. Note:- if due date of furnishing of return extended then Form GSTR-1 and Form GSTR-2 then date of matching shall also be extended

Matching, rectification and communication of return furnished by E-commerce Operator

Matching

Every E-commerce Operator shall have to furnish their return of income in Form GSTR-08 and such detail of return shall be match with corresponding return furnished by supplier in Form GSTR-01
a. State of place of supply and
b. Net taxable Value
Note:- if due date of furnishing of return extended then Form GSTR-1 and Form GSTR-2 then date of matching shall also be extended

Rectification And Communication

1. Any mismatch arise on account of detail furnished by e-commerce operator and detail declared by supplier shall be available to supplier in electronic Form GST MIS -3and to e-commerce operator in Form GST MIS-4 on the common portal of GST and such detail shall be available before the last date of month in which matching is carried out.
2. The supplier shall make rectification, if any, in statement of outward supply for the month in which such discrepancy found.
3. E-commerce Operator shall make rectification, if any, in statement to be furnished for the month in which such discrepancy found.
4. In case such discrepancy is not rectified then amount involved in discrepancy shall be added to the output tax of supplier in his return Form GSTR-03 for the month following the month in which discrepancy detail are available along with Interest @ 18 %.