Oct 16, 2017
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GST Return filing: Matching, reversal and reclaim of input tax credit

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GST Return Filing in relation to Input Tax Credit

Matching, reversal and reclaim of input tax credit so elaborated in GST return filing article. GST return filing article mainly talks about the rules that are revised by the GST council.  Furthermore, to help person to issue matching, reversal and reclaim of input tax credit deals with rule 10,11,12,13,18 of the GST revise return rules. Under GST , the council has clearly stated the types and forms so required to file the return.  Thus only registered person has right to claim. And filed for return under GST India.

Following Rules deals with matching, reversal and reclaim in relation to Input Tax Credit :

10- Matching, reversal and reclaim due to input tax credit
11. Final acceptance due to  input tax credit and communication thereof
12. Communication and rectification of discrepancy in claim of input tax credit and reversal of claim of input tax credit
13. Claim due to  input tax credit on the same invoice more than once
18. Refund of interest paid on reclaim of reversals due to input tax credit

 

Which FORM applicable to issue Matching, reversal and reclaim of input tax credit?

Matching, reversal and reclaim of input tax credit deals with Rule 10,11,12,13,18 of the GST revise return rules,2017

RULE

FORM filed Electronically

CONTENT WITH REFRENCE

10- Matching, reversal and reclaim of input tax credit

Furnishing the return in FORM GSTR-3

Provisionally allowed under section 41, shall match under section 42 after the due date

(a) GSTIN of the supplier;

(b) GSTIN of the recipient;

(c) Invoice/ or debit note number;

(d) Invoice/ or debit note date;

(e) taxable value; and

(f) tax amount :

However provided that where the time limit for furnishing FORM GSTR-1 specified under section 37 and FORM GSTR-2 specified under section 38 has extend, the date of matching relating to claim of input tax credit shall also extend accordingly.

11. Final acceptance of input tax credit and communication thereof

FORM GST MIS – 1

Thus final acceptance of claim of input tax credit in respect of any tax period, specified in section 42(2) made available electronically to the registered person
12. Communication and rectification of discrepancy in claim of input tax credit and reversal of claim of input tax credit

FORM GST MIS-1

FORM GST MIS-2

Any discrepancy in the claim of input tax credit in respect of any tax period, specified in section 42(3) and the details of output tax liable to add under section 42(5) on account of continuation of such discrepancy shall made available to the register person in particular form
13. Claim of input tax credit on the same invoice more than once

FORM GST MIS – 1

However duplication of claims of input tax credit in the details of inward supplies shall be communicated to the registered person
18. Refund of interest paid on reclaim of reversals

FORM GST PMT-3

The interest to be refunded under sub-section (9) of section 42 shall claim by the registered person in his return in FORM GSTR-3. And it available for payment of any future liability towards interest or the taxable person may claim refund of the amount under section 54.

what are the procedure to follow:

10. Matching of claim of input tax credit:

The following details relating to the claim of input tax credit on inward supplies including imports, provisionally allowed under section 41, shall match under section 42 after the due date for furnishing the return in FORM GSTR-3
(a) GST IN of the supplier;
(b) GST IN of the recipient;
(c) Invoice/ or debit note number;
(d) Invoice/ or debit note date;
(e) taxable value; and
(f) tax amount: Provided that where the time limit for furnishing FORM GSTR-1 specified under section 37 and FORM GSTR-2 specified under section 38 has extend, the date of matching relating to claim of input tax credit shall also extend accordingly.

Explanation 1.-

Thus claim of input tax credit in respect of invoices and debit notes in FORM GSTR-2 so accepted by the recipient on the basis of FORM GSTR-2A without amendment shall treat as match if the corresponding supplier has furnished a valid return.

Explanation 2. –

The claim of input tax credit shall consider as matched, where the amount of input tax credit claimed is equal to or less than the output tax paid on such tax invoice or debit note by the corresponding supplier.

11.final acceptance of input tax credit and communication thereof:

(1) The final acceptance of claim of input tax credit in respect of any tax period, so specified in sub-section (2) of section 42, shall be made available electronically to the registered person making such claim in FORM GST MIS -1 through the Common Portal.
(2) The claim of input tax credit in respect of any tax period which had been communicated as mismatched but is found to be matched after rectification by the supplier or recipient shall be finally accepted and made available electronically to the person making such claim in FORM GST MIS – 1 through the Common Portal.

12.Communication and rectification of discrepancy in claim of input tax credit and reversal of claim of input tax credit

  1. Any discrepancy in the claim of input tax credit in respect of any tax period, specified section 42(3) and the details of output tax liable to be added under subsection (5) of the said section on account of continuation of such discrepancy shall be made available to the registered person making such claim electronically in FORM GST MIS -1 and to the supplier electronically in FORM GST MIS-2 through the Common Portal on or before the last date of the month in which the matching has been carried out.
  2. However, A supplier to whom any discrepancy is made available under sub-rule (1) may make suitable rectifications in the statement of outward supplies to be furnished for the month in which the discrepancy is made available.
  3. Thus a recipient to whom any discrepancy is made available under sub-rule (1) may make suitable rectifications in the statement of inward supplies to be furnished for the month in which the discrepancy is made available.
  4. However where the discrepancy is not rectified under sub-rule (2) or sub-rule (3), an amount to the extent of discrepancy shall be added to the output tax liability of the recipient in his return to be furnished in FORM GSTR-3 for the month succeeding the month in which the discrepancy is made available.

Explanation 1. –

However,rectification by a supplier means adding or correcting the details of an outward supply in his valid return so as to match the details of corresponding inward supply declared by the recipient.

Explanation 2. –

Thus rectification by the recipient means deleting or correcting the details of an inward supply so as to match the details of corresponding outward supply declared by the supplier.

13.Claim of input tax credit on the same invoice more than once:

Additionally duplication of claims of input tax credit in the details of inward supplies shall communicate to the registered person in FORM GST MIS–1 electronically through the Common Portal.

18. Refund of interest paid on reclaim of reversals

The interest to refund under sub-section (9) of section 42 shall claim by the registered person in his return in FORM GSTR-3 and shall  credit to his electronic cash ledger in FORM GST PMT-3 and the amount so credit shall available for payment on any future liability towards interest or the taxable person may claim refund of the amount under section 54.

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Renuka is a Final Year LL.B. student at Siddharth College of Law. She has done her Bachelors in Banking & Insurance and has also completed her Masters in Business Management . She likes to participate in legal workshops and Moot Courts. Besides her interest in law, she has a keen aptitude for legal research and is good at putting her analysis into words.

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