27 August 2018
The asses see is taking input tax credit based on supplier invoice, actual receipt of materials, acceptance of quality and rate as per their Purchase order and also raising goods receipt note / material receipt note.
If the supplier fails to file their GSTR 1 or wrongly mentions receiver GST Number or their invoice no date, qty and amount , it will not be reflected in GSTR 2 A of the recipient. The recipient is also informing the discrepancies to the supplier through mail after checking GSTR 2A and even then supplier fails to Rectify the discrepancy, whether recipient credit will be disallowed by the department?
27 August 2018
Dear Sir/Madam, As per the CGST Act Sec.42 (5) summarized: Even after the communication if the supplier fails to rectify ,the receipent may add back to the output liability , further please do read Sec 42 of CGST Act, which focuses on Matching , reversal and reclaim of input credit.
42. (1) The details of every inward supply furnished by a registered person (hereafter in this section referred to as the “recipient”) for a tax period shall, in such manner and within such time as may be prescribed, be matched–– (a) with the corresponding details of outward supply furnished by the corresponding registered person (hereafter in this section referred to as the “supplier”) in his valid return for the same tax period or any preceding tax period; (b) with the integrated goods and services tax paid under section 3 of the Customs Tariff Act, 1975 in respect of goods imported by him; and (c) for duplication of claims of input tax credit. (2) The claim of input tax credit in respect of invoices or debit notes relating to inward supply that match with the details of corresponding outward supply or with the integrated goods and services tax paid under section 3 of the Customs Tariff Act, 1975 in respect of goods imported by him shall be finally accepted and such acceptance shall be communicated, in such manner as may be prescribed, to the recipient. (3) Where the input tax credit claimed by a recipient in respect of an inward supply is in excess of the tax declared by the supplier for the same supply or the outward supply is not declared by the supplier in his valid returns, the discrepancy shall be communicated to both such persons in such manner as may be prescribed. (4) The duplication of claims of input tax credit shall be communicated to the recipient in such manner as may be prescribed. (5) The amount in respect of which any discrepancy is communicated under sub-section (3) and which is not rectified by the supplier in his valid return for the month in which discrepancy is communicated shall be added to the output tax liability of the recipient, in such manner as may be prescribed, in his return for the month succeeding the month in which the discrepancy is communicated.
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