Circular No. 183/15/2022-GST dt. 27.12.2022 has been issued dealing with the issue of mismatch of the input tax credit (ITC) claim made in GSTR 3B with GSTR 2A for FY 2017-18 & FY 2018-19. The said Circular only applies to situations where bonafide errors have been committed by the vendors in furnishing the details of outward supplies in GSTR 1 whereas GSTR 3B stands filed. Readers may refer to our communication dated 30.12.2022 for the details.
In case of a mismatch of the ITC, the Circular states that the officers can allow the claim subject to the claimant furnishing the following certificate:
- Where the difference of ITC in respect of a particular supplier for the financial year exceeds Rs 5 lakh, the proper officer shall ask the registered person to produce a certificate for the concerned supplier from the Chartered Accountant (CA) or the Cost Accountant (CMA), certifying that supplies in respect of the said invoices of the supplier have actually been made by the supplier to the said registered person and the tax on such supplies has been paid by the said supplier in his return in FORM GSTR 3B. Certificates issued by CA or CMA shall contain UDIN.
- Where the difference of ITC is upto Rs 5 lakh, the proper officer shall ask the claimant to produce a certificate from the concerned supplier to the effect that said supplies have actually been made by him to the said registered person and the tax on said supplies has been paid by the said supplier in his return in FORM GSTR 3B.
We, therefore, share the following draft certificates which can be used by the trade for the aforesaid purpose.
CA/CMA CERTIFICATE
(To be issued where the mismatched ITC qua a vendor for a financial year exceeds Rs. 5 lakhs)
TO WHOMSOEVER IT MAY CONCERN
Based on the examination of the records as well as returns maintained and filed by M/s _________________ bearing GSTIN _______________, we certify that the said M/s ______________ has actually made supplies to M/s _________________ bearing GSTIN ____________________ via the tax invoices (details thereof appended herewith and marked as Annexure A) and the tax on such supplies have been paid in the return filed in FORM GSTR – 3B.
Firm Name
Name of CA/CMA
(Designation)
Membership No.
Firm Reg. No.
UDIN.
Place:
Date:
Annexure A
| Sr. No. | Invoice No. | Invoice date | Taxable value | CGST | SGST | IGST | Compensation Cess |
| TOTAL | |||||||
VENDOR CERTIFICATE
(To be issued where the mismatched ITC qua a vendor for a financial year is upto Rs. 5 lakhs)
TO WHOMSOEVER IT MAY CONCERN
We, M/s _________________ bearing GSTIN _______________ hereby certify that we have actually made supplies to M/s _________________ bearing GSTIN ____________________ via the tax invoices (details thereof appended herewith and marked as Annexure A) and the tax on such supplies have been paid in the returns filed in FORM GSTR – 3B.
Vendor name
Authorized Signatory
Place:
Date:
Annexure A
| Sr. No. | Invoice No. | Invoice date | Taxable value | CGST | SGST | IGST | Compensation Cess |
| TOTAL | |||||||
In addition to the aforesaid certificates, the officer can allow the claim of the ITC subject to verification of the following:
- Recipient is in the possession of a tax invoice or debit note issued by the supplier or such other tax-paying documents.
- Recipient has received the goods or services or both.
- Recipient has made payment for the amount towards the value of supply, along with tax payable thereon, to the supplier.
- Recipient has reversed the ITC u/s 17 or u/s 18 of the CGST Act, if applicable.
- Recipient has taken the ITC within the period specified u/s 16(4).
The claimant may have to therefore additionally submit the evidence/certificate/undertaking as sought by the officer disputing the ITC claim to satisfy the aforesaid aspects.
Author Bio
Audit under GST Act has been completed and officer has rejected the ITC for not reflecting in the GSTR – 2A. But now the defaulted supplier has issued certificate as per Circular 183. Can the officer withdraw the demanded tax