The goods and services tax till date needs rectification on a regular basis and the GST officials, GST council as well as GST department are always in a fix to make things work.
Talking about a common problem in the GST related technical portal and working of the overall structure, there is the reconciliation and matching process of the ITC which is having the most issues.
The GST department regularly sends notices to the taxpayers and assessees asking the differences on the ITC claim and if in case assessees do not come up with any clarification, the department is obliged to reverse all the ITC with the penalty and interest applicable on it.
There are two forms for the ITC claim purpose namely Form GSTR 3B and GSTR 2B which are auto-populated and also a monthly summary and there are multiple laws related to the mismatch problems of the ITC.
The GST department will be contacting both the supplier as well as the recipient if the GSTR 2A and 3B mismatch come to the surface. The argument can be done on the basis of Section 42(3) of The CGST Act and the act stated that the department will have to ask both parties and not only the recipient.
Impossibility doctrine is also there in Section 16 (2) (c) of the CGST Act in which the ITC claim can not be denied to the taxpayer if the supplier has failed to do so.
Around 10 per cent mismatch is allowed as per the Rule 36 of CGST Rules by inserting sub-rule (4) which has carried the fact that 20 per cent ITC which is eligible can be taken by the assess on the debit notes and invoices even if the details are not given by the supplier. However, now there is only a 10% provision of ITC.
Very strict action would be taken on the basis of a fake invoice claim and no bail will be provided to the concerned party. The judgment is approved by the budget 2020 and GST council.
