Category: Returns under GST

1. As per section 42(8) of the CGST Act, the recipient is liable to pay interest on the differential tax liability arising on account of mismatch of input tax credit or due to duplicate claim of input tax credit at the rate specified in section 50(1).
2. The interest is liable to be paid from the date on which credit is availed till the date on which such differential tax liability is added to the output tax liability of the recipient.

(ICAI FAQ PUBLICATIONS 06-09-2017 RETURNS : FAQ NO.36)

1. If the supplier declares incorrect details in its FORM GSTR-1 or does not declare a particular supply in FORM GSTR-1, the recipient has an option of
   modifying/deleting/adding such details in FORM GSTR-2.
2. Once the recipient modifies/deletes/adds such details in its FORM GSTR-2, the supplier will be intimated of such modification/deletion/addition in FORM GSTR-1A.
3. The supplier has the option to accept or reject such modification/ deletion/ addition.
4. If the supplier accepts such modification/deletion/addition, his FORM GSTR-1 is also amended accordingly and the issue of mismatch of credit does not arise.
5. However, if the supplier rejects such modification/deletion/addition, then there will be a mismatch in the claim of input tax credit availed by the recipient.
6. Such mismatch in input tax credit will be communicated to the supplier in FORM GST MIS-1 and in to the recipient in FORM GST MIS-2 on or
   before the last day of the month in which such matching is carried out.
7. On receipt of such communication, either the supplier or the recipient can rectify the details so as to match the claim of input tax credit.
8. If the supplier/recipient does not correct the discrepancy, the tax payable on account of such mismatch will be added to the output tax liability of the recipient in the month succeeding the month in which discrepancy is made available.

(ICAI FAQ PUBLICATIONS 06-09-2017 RETURNS : FAQ NO.35)

1. If there is a mismatch in the claim of input tax credit, a communication in
   FORM GST MIS-1 will be sent to the supplier and communication in FORM GST MIS-2 will be sent to the recipient of such supply.
2. If the discrepancy is due to the incorrect particulars entered by the recipient, then the recipient can rectify such discrepancy in its return for the month in which FORM GST MIS-2 is communicated to him.
3. Once the discrepancy is rectified and the input tax credit is matched, a communication in FORM GST MIS-1 will be sent to the recipient and the claim of input tax credit will be finally accepted.
4. However, if the recipient does not rectify the discrepancy in the month in which such discrepancy is communicated, the amount of tax payable on account of such discrepancy will be added to the output tax liability of the recipient for the month succeeding the month in which the discrepancy is communicated to the recipient.

(ICAI FAQ PUBLICATIONS 06-09-2017 RETURNS : FAQ NO.34)

1. If the input tax credit claimed by the recipient is in excess of the output tax declared by the supplier for the same supply or where the supplier does not declare such outward supply in the returns, the discrepancy will be communicated to the supplier in FORM GST MIS-1 and to the recipient in FORM GST MIS-2 on or before the last day of the month in which such matching is carried out.
2. On receipt of such communication, either the supplier or the recipient can rectify the details so as to match the claim of input tax credit.
3. Where the supplier rectifies the mistake, the amount claimed as credit
   shall be allowed, and the supplier shall be liable to pay due tax and interest thereon.
4. However, where the supplier does not accept the excess input tax credit claimed by the recipient, such excess shall be added to the output tax liability of the recipient in the following month, and interest shall be payable on such amount by the recipient.

(ICAI FAQ PUBLICATIONS 06-09-2017 RETURNS : FAQ NO. 33)

Section 42(4) of the CGST Act provides that duplicate claims of input tax credit will be communicated to the recipient in FORM GST MIS-1. Such duplicate claim of input tax credit will be added to the output tax payable for the month in which such FORM GST MIS-1 is communicated to the recipient, and interest shall be payable thereon.

(ICAI FAQ PUBLICATIONS 06-09-2017 RETURNS : FAQ NO. 32)

1. Once the details of inward supply and input tax credit are matched with the
   corresponding details of outward supply furnished by the supplier in his valid return for the same tax period (or earlier tax periods), or with the additional duty of customs paid by the person himself, the input tax credit shall be finally accepted.
2. Once the input tax credit is finally accepted, the details of such acceptance will be communicated to the assesse in FORM GST MIS-1.

(ICAI FAQ PUBLICATIONS 06-09-2017 RETURNS : FAQ NO. 31)

As per Section 42(1), the details of inward supplies and input tax credit availed by the recipient and disclosed in FORM GSTR-2 have to be matched with the following: –
(a) Corresponding details of outward supply furnished by the supplier in his valid return for the same tax period or earlier tax period,
(b) Additional duty of customs paid under section 3 of the Customs Act in respect of imported goods, and Further, duplication of claims of input tax credit would also be noted. Also, the details of the GSTIN of the supplier, GSTIN of the recipient, invoice/debit note number, taxable value and the tax amount shall also be matched.

(ICAI FAQ PUBLICATIONS 06-09-2017 RETURNS : FAQ NO. 30)

1. Under the GST regime, the responsibility to compute the correct output tax liability, eligible input tax credit and net tax liability lies with the assesse.
2. The assesse must determine the rate of tax, value of supply and the output tax payable.
3. The assesse must also decide the eligibility of input tax credit in respect of the various inward supplies.
4. The determination of turnover, rate of tax, value of supply, eligibility to input tax credit, reversal of input tax credit, etc. done by the assesse himself is called as self assessment.

(ICAI FAQ PUBLICATIONS 06-09-2017 RETURNS : FAQ NO. 29)

1. The input tax credit availed by the recipient in its return is allowed to the recipient on a provisional basis.
2. Once the input tax credit availed by the recipient is matched with the corresponding details of outward supply furnished by the supplier or with the additional duty of customs paid by the recipient in respect of imported goods, the input tax credit will become final.

(ICAI FAQ PUBLICATIONS 06-09-2017 RETURNS : FAQ NO. 28)

As per Section 40, a registered taxable person is required to file First Return to disclose the details of supplies effected during the period between the date on which he became liable to registration till the date on which registration is granted. Therefore, the assesse will disclose the details from 12.07.2017 to 16.08.2017 in the August Return.

(ICAI FAQ PUBLICATIONS 06-09-2017 RETURNS : FAQ NO. 27)