We have two branches in India one in Delhi and other one in Gujarat.
our one client issued the Tax Invoice in July 2018 in our Gujarat Branch, but during the filling the GST Return he have mentioned our Delhi GST instead of Gujarat GST
We had claimed GST ITC as per the Tax Invoice received in our Gujarat branch. But, Now we are facing mismatch in GST2A in Gujarat Branch.
Currently, we did not filed our GST Audit due to this. Please let us know how can we fixed the issue.
23 October 2020
You may not do anything if goods/services were used in Gujarat and Tax invoice has correct GSTIN.If there is question later on then you can explain to the department.
26 July 2024
In your case, where the GST number mentioned on the invoice by the service provider does not match the GST number of your branch receiving the service, there are several steps you can take to rectify the situation and address any potential issues. Here’s a detailed guide:
### **Understanding the Issue**
- **Invoice with Wrong GST Number:** Your service provider issued an invoice with the GST number of your Delhi branch instead of your Gujarat branch. Since GST ITC can only be claimed against invoices where the GST number matches the receiving branch, this mismatch has led to a discrepancy in your GST records and GST2A.
### **Steps to Resolve the Issue**
1. **Communicate with the Service Provider:** - **Request Correction:** Contact the service provider and request them to issue a revised invoice with the correct GST number (i.e., the Gujarat GST number). They can issue a **credit note** for the incorrect invoice and a **new invoice** with the correct details. - **Updated GST Details:** Ensure that the service provider updates their records and reports the corrected invoice in their GST returns.
2. **File a Rectification Request:** - **GST Portal:** If your service provider is unable to issue a revised invoice or if there are issues with their GST returns, you may need to request them to rectify their GST return details via the GST portal. This can involve making corrections to previously filed GST returns.
3. **Correct Your GST Returns:** - **Adjust ITC Claim:** Once you receive the revised invoice from the service provider, you should update your GST records accordingly. You may need to adjust your ITC claim in your GST returns for the relevant period to reflect the correct details.
4. **GST Audit:** - **Disclose the Issue:** During the GST audit, disclose the issue to the auditor. Provide documentation showing that you’ve requested a correction from the service provider and any steps taken to resolve the mismatch. - **Provide Evidence:** Ensure that you have documentation of communications with the service provider, the revised invoice, and any amendments made to your GST returns.
5. **Potential Tax Implications:** - **Department's View:** If the service provider does not correct the invoice and the mismatch persists, you may face challenges in reconciling ITC claims. The department may initially consider this as an irregularity. - **Safe Side:** To safeguard yourself, you might consider withholding the ITC claim for this invoice until the issue is resolved or seek advice from a tax professional to ensure you are compliant.
6. **Communication with GST Department:** - **Clarification Letter:** You can write a letter to the GST department explaining the situation, including details of the mismatch and steps taken to resolve the issue. Attach any relevant documents to support your case.
### **Key Points to Consider**
- **Timeliness:** Address the issue as soon as possible to avoid further complications, especially if you are approaching the GST audit or have already filed returns. - **Documentation:** Maintain comprehensive records of all communications and documents related to the correction of the invoice and the adjustment of ITC claims. - **Professional Advice:** Consulting with a GST consultant or tax advisor can provide tailored guidance and help ensure compliance with GST regulations.
### **Conclusion**
The primary step is to get a corrected invoice from your service provider and update your GST records accordingly. Disclose the issue during the audit and provide evidence of your efforts to resolve it. Keeping detailed records and consulting with a professional can help mitigate any potential issues with the GST department.
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