CA VAIBHAV JAIN

Chartered Accountant

B.Com (Hons), FCA, ACS, LLB, DISA (ICAI), MBF (ICAI), FAFD (ICAI), CCIDT (ICAI), CCCA (ICAI), ID (MCA-IICA), Registered Valuer (SFA) (IBBI)

Phone

+91-9711310004
+91-9868144380

Email

vaibhavjain@mehragoelco.com
vaibhavjain@inmacs.com
vaibhav@cavaibhavjain.com

Location

Delhi | Gurugram | Chandigarh

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Guidelines for ITC Matching: Important Aspects and Actions to Ensure Compliance

As informed earlier, you must check and ensure that the GST Credit claimed is reflected in your Form GSTR-2B. This is a continuous process and not one-time process.

    In this regard, we would like to draw your attention to the following important aspects related to ITC matching:

      1. ITC is claimed through Form GSTR 3B return filed on monthly basis.
      2. Form GSTR-2B is available on GST portal. Kindly make note of the following additionally:
        1. Form GSTR-2B is a static statement. It means the contents of GSTR-2B for any month remains unchanged.
        2. You have to download Form GSTR-2B separately for each month; there is no option available to download combined Form GSTR-2B for different months.
      3.  Do not consider following transactions for merging GSTR-2B:
        1. Transactions showing status as ‘NO ‘under head ‘ITC Availability’.
        2. Transactions showing status as ‘Y’ under head ‘Supply Attract Reverse Charge’. 
          In this regard, you have to ensure that you are paying liability on this transaction on reverse charge basis, if the same pertains to you.
      4. After matching the ITC as per Form GSTR 3B and as per Form GSTR-2B, you need to take following actions:

      Status of ITC Matching

      Action to be taken

      Matched completely

      No further action to be taken

      Mismatch in Amount

      • Whether mistake in Form GSTR-3B or Form GSTR-2B?
      • If mistake in Form GSTR-3B, rectification to be done in subsequent Form GSTR-3B.
      • If mistake in Form GSTR-2B, follow up to be done with Supplier for rectification.

      Transaction not reflecting in GSTR-2B

      Transaction not reflecting in Form GSTR-3B (and reflected in Form GSTR-2B)

    • Whether mistake in Form GSTR-3B or Form GSTR-2B?
    • If mistake in Form GSTR-3B, rectification to be done in subsequent Form GSTR-3B.
    • If mistake in Form GSTR-2B, follow up to be done with Supplier for rectification only if such supplier is known to you or else ignore such transactions.

      • You are also required to ensure that the suppliers are filing their Form GSTR-3B regularly and not just Form GSTR-1. Kindly make note that payment is done by filing Form GSTR-3B and not by filing Form GSTR-1.

      3. Steps to verify whether suppliers are filing their Form GSTR-3B regularly or not:

      • Go to gst.gov.in
      •  Click on Search Taxpayer à Search by GSTIN/UIN
      • Enter GSTIN of supplier
      • Enter Captcha Code and click on Search
      • Basic details of Supplier will appear on the screen
      • Click on ‘SHOW FILING TABLE’ tab.
      •  Filing table will be displayed on screen showing status of recent 10 GST Returns filed (GSTR-3B and GSTR-1/IFF return) by the suppliers along with GSTR-9/9C details, if any.

      You need to repeat the above mentioned process for each of your supplier.

      It may be further noted that even if your suppliers are filing GSTR-3B regularly, it is not conclusive evidence that they are paying GST on the transactions made to you. In some cases it is found by the Department that some registered persons are showing complete invoice wise details in GSTR-1 but are not disclosing and consequently not discharging their GST liability on transactions made either fully or partly through filing of GSTR-3B.

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