Matching reversal and reclaim of ITC (Input Tax Credit) are important for taxpayers because it helps in claiming the accurate amount of ITC without any discrepancy. One can be considered as completely compliant to GST if their ITC claims are in place.
The following topics have been discussed in this article like reversal and reclaim of input tax credit, ITC reclaim under GST, ITC reclaimed meaning, amount of ITC reclaimed in GSTR 9 meaning and much more as shown below
Issues related to unavailability of Input Tax Credit (ITC) are some of the major concerns for several taxpayers in India. The basic meaning of mismatched ITC can be understood as:
Any of these mismatches which are noticed in returns will lead to issuance of scrutiny notices by officers to taxpayers.
The discrepancies noticed by an authorized officer in the filed returns will be communicated to the respective taxpayer through Form GST ASMT-10. This form will include:
Upon receiving the notice, taxpayers can accept the notice or reject the notice:
ITC reversed in GST, or ITC reversal as per section 17(5), reversal of itc wrongly availed but not utilised or any discrepancy which arises in returns or ITC wrongly reversed may be rectified in the following manner:
Reclaim of ITC under GST means reclaiming the ITC which was reversed previously because of a discrepancy in the ITC declared by the supplier in his returns or because of the amount of ITC reclaimed (other than b above) under the provisions of the act or because of GST rules. The supplier can only make ITC reclaim if the invoice and/or debit notes details are declared by him in the returns for the period in which the supplier noticed the discrepancy (omission or incorrect entries), or when such discrepancy was communicated by the officer to the supplier. Any interest which was paid for mismatched ITC claimed previously will be refunded to the recipient’s Electronic Cash Ledger. However, no refund will be allowed in case of ITC claim duplication as it will be against the GST provisions.
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