All of us have now gone through one cycle of GST credit matching i.e. for the nine months of Finance year 2017-18. I am sharing the experience I had so far related to the common mistakes made by vendors while uploading their returns across states.
These observations can be used by the reader in developing a vendor education program fit for their organization basis type of errors encountered. Such programs would then help in overcoming similar challenges in the forthcoming year reconciliation process.
1. Only GSTR 3B return is filed (used for making tax payment) GSTR1 return which is used by customer to take credit not filed
2. GSTN and Invoice under different names eg: Firm and proprietor
3. GSTN used for customer is different from the entity for which supply has been done, this is mostly in cases where customer has many legal entities across the country and the vendor supplies to more than one legal entity.
4. Some other company Invoices uploaded in other company GSTN
5. Invoice number uploaded is not tax invoice number, some affixes and suffixes, year have been used
6. Using only last 3-4 digits of invoice number to upload in the GSTN
7. Invoice date use is incorrect
8. Indirect payments like freight forwarder, where GSTN filing is done by first vendor, eg: Central warehousing and invoice is received from the agent.
9. Reverse charge vendor not ticking RCM and the same incorrectly appears in the company GSTN portal as credit.
10. Not submitting invoices on time, resulting in mismatch till such time the filing is done.
11. Summary invoice have been given to customer but uploaded detailed invoices in Portal, eg: Telephone, Airlines
12. General-Incorrect data entry like ‘0’ instead of ‘O’.
13. Manual correction to invoices pre-post shipment, though the GSTN has data as per the system generated invoice, or vice versa.
The gist of all of the above is that the invoice has to be declared on time through GSTR1 on GSTN portal and exactly in the same format as is provided to customer, else this leads to tax credit loss
Author Bio
Thanks for you input Ravee, we are just starting the real time matching environment for tax credits. The vendor education programs are likely to yield results in the times to come
Thqs for the article and most difficulties faced were covered. As briefed, common mistakes founds were mismatching of invoice nos., date, amount, instead of entity name Proprietor/Legal origin name appearing, invoices not appearing in the current month instead going to beyond 2 to 3 months due to late filing and non reflectionof invoices and others.., which creates lot of confusion and difficulty in reconciliation. Govt has to seek a solution to simplify this otherwise lot of reversal of ITC and interest and penalty has tobe paid by the concerned. ravee 9898482077