Oct 16, 2017
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GST Return filing: Matching,reversal,reclaim,reduction in output tax liability

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GST Return filing in relation to output Tax Liability

Matching, reversal and reclaim of reduction in output tax liability deals with Rule 14,15,16,17,18 which elaborate 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 reduction in output tax liability deals with Rule 14,15,16,17,18 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 of reduction in output tax liability:

14.Matching of claim due to reduction in the output tax liability
15. Final acceptance of reduction due to output tax liability and communication thereof
16. Communication and rectification of discrepancy due to reduction in output tax liability and reversal of claim of reduction
17. Claim of reduction in output tax liability more than once
18. Refund of interest paid on reclaim of reversals due to reduction in output tax liability more than once

Which FORM applicable to issue Matching, reversal and reclaim in reduction of output tax liability?

Matching, reversal and reclaim of reduction in output tax liability deals with Rule 14,15,16,17,18  of the GST revise return rules,2017

RULE

FORM filed Electronically

CONTENT WITH REFERENCE

14.Matching of claim of reduction due to the output tax liability

Furnishing the return in FORM GSTR-3

The following details relating to the claim of reduction in output tax liability shall match under section 43 after the due date for furnishing the return

(a) GSTIN of the supplier;

(b) GSTIN of the recipient;

(c) credit note number;

(d) credit 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.

15. Final acceptance of reduction due to output tax liability and communication thereof

FORM GST MIS – 3

Thus final acceptance of claim of reduction in output tax liability in respect of any tax period, specified in section 43(2), shall made available electronically to the person making such claim.
16. Communication and rectification of discrepancy due to reduction in output tax liability and reversal of claim of reduction

FORM GST MIS-3

FORM GST MIS-4

Any discrepancy in claim of reduction in output tax liability, specified in section 43(3), and the details of output tax liability to add under section 43(5) of the said section on account of continuation of such discrepancy shall made available to the registered person making such claim.
17. Claim due to reduction in output tax liability more than once

FORM GST MIS – 3

However duplication of claims for reduction in output tax liability in the details of outward supplies shall communicate to the registered person
18. Refund of interest paid on reclaim of reversals due to  reduction in output tax liability more than once

FORM GST PMT-3

Thus interest to be refunded under sub-section (9) of section 43 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:

14. Matching of claim due to reduction in the output tax liability

The following details relating to the claim of reduction in output tax liability shall match under section 43 after the due date for furnishing the return in FORM GSTR-3 –
(a) GSTIN of the supplier;
(b) GSTIN of the recipient;
(c) credit note number;
(d) credit note date;
(e) taxable value; and
(f) tax amount: Provided that where the time limit for furnishing FORM GSTR-1 under section 37 and FORM GSTR-2 under section 38 has extend, the date of matching of claim of reduction in the output tax liability shall extend accordingly.

Explanation 1.-

The claim of reduction in output tax liability due to issuance of credit notes in FORM GSTR-1 so accepted by the recipient in FORM GSTR-2 without amendment shall treat as matched if the corresponding recipient has furnished a valid return.

Explanation 2.-

The claim of reduction in the output tax liability shall consider as matched, where the amount of reduction claimed is equal to or less than the claim of reduction in input tax credit admitted and discharged on such credit note by the corresponding recipient in his valid return.

15. Final acceptance due to reduction in output tax liability and communication thereof

(1) Thus final acceptance of claim of reduction in output tax liability in respect of any tax period, specified in sub-section (2) of section 43, shall made available electronically to the person making such claim in FORM GST MIS – 3 through the Common Portal.
(2) The claim of reduction in output tax liability in respect of any tax period which had communicate as mis-matched but so found to match after rectification by the supplier or recipient shall  finally accepted and made available electronically to the person making such claim in FORM GST MIS – 3 through the Common Portal.

16. Communication and rectification of discrepancy due to reduction in output tax liability and reversal of claim of reduction

  1. Any discrepancy in claim of reduction in output tax liability, specified in sub-section (3) of section 43, and the details of output tax liability to be added under sub-section (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 – 3 and the recipient electronically in FORM GST MIS – 4 through the Common Portal on or before the last date of the month in which the matching has been carried out.
  2. Thus 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. However 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. 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 supplier and debited  to tax liability register and also shown in his return 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 deleting 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 adding or correcting the details of an inward supply so as to match the details of corresponding outward supply declared by the supplier.

17. Claim due to reduction in output tax liability more than once

However,Duplication of claims for reduction in output tax liability in the details of outward supplies shall communicate to the registered person in FORM GST MIS – 3 electronically through the Common Portal.

18. Refund of interest paid on reclaim of reversals due to reduction in output tax liability more than once

Thus interest to refund under sub-section (9) of section 43 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 credited shall  available for payment of 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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