A mismatch is a situation when details of a Tax Invoice uploaded by a Supplier in its GSTR-1 (Return for Outward Supplies) do not match with the details entered by the Receiver in its books of accounts. There can be following types of differences in an invoice which leads to a mismatch in input tax credit:
- GSTIN of Supplier or Receiver
- Invoice or Debit Note Number & Date
- Taxable Value & Tax Amount
In case, input tax credit claimed by the buyer/receiver is less than the input tax credit provided by the supplier then transaction shall be accepted by the system otherwise the tax credit shall not be allowed. Any claim of input tax credit over and above the corresponding output tax liability shall be added to output tax liability of the receiver in the return of the same month.
For example, ABC Pvt Ltd. supplies goods to XYZ Pvt Ltd for Rs.9,500 plus GST of Rs.1,710. However, XYZ Pvt Ltd entered purchases for Rs.10,000/- plus GST of Rs.1,800/- in its books of accounts. Here, there is a difference in tax amount provided by ABC Pvt Ltd and XYZ Pvt Ltd. and such cases shall be treated as mismatch invoices. Now if XYZ Pvt Ltd claims input tax credit based on this invoice, the same shall be accepted by ABC Pvt Ltd but if not accepted then Rs.90 (excess credit) shall be added back in the liability of XYZ Pvt Ltd.
The receiver or supplier shall have to rectify the said mismatch transactions either in the return of same month or in the return of the following month. Further, it can also be rectified by way of issuing debt note in later months.
We will work with your team in resolving all types of mismatch issues within the timeline prescribed by the law which will save both time and money.
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