Recently Companies have received notice from Department for GST MISMATCH.
We have discussed the possible reason for mismatch in two scenario:
- Mismatch of GSTR1 and GSTR2 due to the mistake at recipient side.
If mismatch of GSTR2 and GSTR1 is due to mistake at the side of recipient, no further action is required.
The mistake of supplier on details under any supply could be possible when invoice against a supply is generated and issued but the said invoice has not been uploaded. Means the supplier would not have accounted the said transaction legally by filing valid GST return.
Q. What steps to be followed in such cases where supplier omitted to feed a particular supply details electronically by filing valid GST returns wilfully or by mistake?
Ans: The recovery action shall be taken against the supplier against such default on omission to feed supply details without GST payment against the said supply.
So all mismatch of receipts and supply of entries (mismatch in GSTR1 and GSTR2) is reversed electronically, in turn reversal of Input Tax Credit. As per GST Law in India, all mismatched entries lead to proceedings, if the supplier has made a supply but not paid tax on it.