Under GST regime, in order to claim input tax credit paid on purchases, there has to be corresponding outward supply entry from a registered taxable person. It means every input tax credit should be matched with the output tax liability. This may create a lot of burden both on the receiver and supplier for matching the transactions.
For all transactions between registered persons, invoice wise details shall be uploaded while filing GST returns and the same shall be matched. In case of any discrepancy found by the system, the said invoice will be treated as mismatched invoice which should be rectified either by supplier or receiver. The system shall match following items in every tax invoice uploaded in GST Network in order to pass on the input tax credit:
- GSTIN of Supplier or Receiver
- Invoice or Debit Note Number & Date
- Taxable Value & Tax Amount
All the invoices issued or received between taxable persons shall be matched for all the above parameters and the receiver would be able to claim the input tax credit. For all unmatched invoices, receiver and supplier shall get one month time to rectify the mistake while uploading the details of invoices. If details are corrected in following month then the receiver shall get the tax credit otherwise it will not be allowed. This may lead to cash loss to the receiver which will need more working capital to manage tax payments.
Know More about Forms under GST
Know More about Tax on Goods in Delhi