Communication and rectification of discrepancy in claim of input tax credit and reversal of claim of input tax credit in respect of invoice or debit note
Any discrepancy in the claim of input tax credit in respect of any tax period, specified in section 42(3) of CGST Act and the details of output tax liable to be added under section 45(5) on account of continuation of such discrepancy shall be made available to the registered person making such claim electronically in form GST MIS -1 and to the supplier electronically in form GST MIS-2 through the Common Portal on or before the last date of the month in which the matching has been carried out – rule 12(1) of Return Rules.
A supplier to whom any discrepancy is made available under rule 11(1) may make suitable rectifications in the statement of outward supplies to be furnished for the month in which the discrepancy is made available – rule 11(2) of Return Rules.
A recipient to whom any discrepancy is made available under rule 12(1) may make suitable rectifications in the statement of inward supplies to be furnished for the month in which the discrepancy is made available – rule 11(3) of Return Rules.
Where the discrepancy is not rectified under rule 12(2) or rule 12(3), an amount to the extent of discrepancy shall be added to the output tax liability of the recipient in his return to be furnished in form GSTR-3 for the month succeeding the month in which the discrepancy is made available.
Rectification by a supplier means adding or correcting the details of an outward supply in his valid return so as to match the details of corresponding inward supply declared by the recipient.
Rectification by the recipient means deleting or correcting the details of an inward supply so as to match the details of corresponding outward supply declared by the supplier.