Matching Process :

After the due date for filing of return, the invoices for ITC claims of taxpayers will be matched with corresponding outward supplies as per section 29 of the draft model bill. If the recipient has claimed ITC based on the details auto-populated in his GSTR-2 without any modifications, it will be presumed that the ITC has been matched if the corresponding supplier has discharged his tax liability, that is, his return is a valid return.

The invoices for ITC claims will be matched for duplicates and with the tax paid on the invoices of corresponding outward supplies. For the purpose of matching, invoice number, invoice date, taxable value, tax rate and tax amount shall be matched. If the details match, that is, if the other fields are same and the tax amount in the ITC claim is less than or equal to the tax amount in the invoice for the corresponding outward supply, the input tax credit claim will be finally accepted and final acceptance of the credit will be communicated to the taxpayer as provided in section 29 (2).

Where the claim of ITC is found to be duplicate, the person making the claim alone shall be intimated and where there is a mismatch, both the supplier and recipient shall be intimated.