SCENARIOS OF BONAFIDE ERRORS COMMITTED BY THE SUPPLIERS
1. The supplier has failed to furnish Form GSTR -1 but has furnished Form GSTR - 3B
2. The supplier has furnished both Form GSTR -1 & Form GSTR - 3B, but has failed to declare the particular supply in Form GSTR-1
3. Supplies were made to the registered person and an invoice was also issued as per Rule 46 with the recipient GSTIN, but the said B2B supply was wrongly reported as B2C.
4. The supplier has filed both Form GSTR -1 & Form GSTR - 3B, but the particular supply was declared in Form GSTR -1 with a wrong GSTIN.
VERIFICATION PROCESS TO BE CARRIED OUT BY AN OFFICER IN RESPECT OF MISMATCHED INVOICES
1. Whether the recipient is in possession of the tax invoice or debit note issued by the supplier or such other tax-paying documents for the respective supply
2. Whether the recipient has received the respective goods or services or both
3. Whether the recipient has paid the amount towards the value of the supply, along with tax payable thereon to the supplier .
4. Whether the recipient is liable to reverse credit in terms of Sections 17 & 18 of the CGST Act.
5. Whether the credit availed is within the time period specified under Section 16 (4) of the CGST Act [i.e., for FY 2017-18 till 31 March 19 and for FY 2018-19 till 20 Oct 19]
6. Whether the tax on the respective supply has been paid by the supplier to the Government as required under clause (c) of Sub-section (2) of Section 16 of the CGST Act.
CERTIFICATES REQUIRED TO BE SUBMITTED BY THE RECIPIENT TO JUSTIFY THE CONDITION UNDER SECTION 16(2)(c) [POINT NO - 6]
The amount of difference in each FY exceeds Rs. 5 lacs:
CA / CMA certificate (containing UDIN) for the respective supplier certifying:
- Supplies in respect of the said invoices issued by the supplier have actually been made by the supplier to the recipient
- Tax on such supplies has been paid by the said supplier in his return 3B
The amount of difference in each FY is up to Rs. 5 lacs
Instead of a certificate from a CA/CMA as mentioned above, the same certificate should be obtained from the respective supplier
- The benefit of the above procedure is not available for invoices pertaining to FY 17-18 uploaded by the suppliers after Mar 19.
- These instructions will apply only to ongoing proceedings in scrutiny/audit/investigation etc., including cases where any adjudication or appeal proceedings are still pending for FY 17-18 and FY 18-19.
- Under the 4th scenario above, the recipient whose GSTIN was wrongly mentioned by the supplier shall attract disallowance of credit if such recipient has availed the credit based on the mere appearance of the invoice in GSTR 2A.
- As the circular refers to the payment made in GSTR - 3B only, more clarity is required when payment is made through DRC-03.
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