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ITC mismatch in GSTR-3B and GSTR-2B: Ready to receive notice if mismatch exceeds 20%

 


  • The Goods and Services Department has been noticing the mismatches in the Input Tax Credit Claim in GSTR-3B and GSTR-2B while filing the returns. Also, they were continuously sending the GST ASMT-10 to the taxpayers for such mismatches in the claims. The GST ASMT-10 is a notification issued by tax authorities to registered taxpayers in instances where discrepancies or inconsistencies are identified in the GST returns filed by the taxpayer. The GST authorities have the right to warn a firm in situations where there is a discrepancy between the input tax credit (ITC) claimed by a business and the output tax liability declared by the supplier. The business may be required to pay an amount equal to the “excess of credit claimed” in addition to any relevant interest and penalties if it fails to respond in a timely manner.
  • The Department may issue a GST notice to the taxpayer if the discrepancy between the ITC claimed in GSTR-3B and GSTR-2B is greater than 20% or surpasses Rs. 25 lakh, according to the reports. The same is an agenda for the 50th GST council to be held on 11th July 2023.
  • It is recommended to exercise caution while filing your tax returns and seek assistance from a tax practitioner. Additionally, it is crucial to thoroughly review all documents and numbers for accuracy and completeness.

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