Understanding GSTR-2 : Part 11
In our previous blog, we learnt about how to file GSTR-2 Part 10, where we discussed about furnishing details of ITC reversed in table 11 of GSTR-2. In this blog, we will discuss the details of addition and reduction in output tax amount for mismatch and other reasons.
Filing GSTR-2 -Table 12
Under GST, if your supplier fails to furnish the valid returns (furnishing returns along with payment of tax), or the details of inward supplies are not declared (Form GSTR-1) and accepted (Form GSTR-1A) by your supplier as outward supplies, the provisional ITC claimed by you in GSTR-2 will not match with your suppliers invoice. These discrepancies will be communicated in GST MIS-1 and GST MIS-2 to the recipient and the supplies. If such discrepancies are not ratified within prescribed timeline, the provisional ITC claimed earlier will be reversed and added as output tax liability.
To know more about the matching of invoices and subsequent reversal of ITC, please read our blog Reversal of GST Input Tax Credit (ITC). Any reversal of ITC – discrepancies not ratified or reduction of output tax ability – on account of ratification, will be captured in Table 12.
Table 12 is not applicable for July, 2017 returns. This because, July, 2017 return being the first GST return period, the discrepancies will arise from subsequent month onwards and accordingly, Table 12 is not activated in the GST portal. We expect these details to be auto-populated in GSTR-2.
Let us discuss the details of table 12 in detail.
- a) ITC claimed on mismatched/duplication of invoices/debit notes: [ADD]The mismatch of invoices which are not ratified within the prescribed timeline and reporting of duplicate inward supplies will lead to an excess claim of ITC. This will be reversed and added to the output tax liability. Same holds good even in case of debit note.
- b) Tax liability on mismatched credit notes: [ADD] The credit notes issued by the supplier will be matched with the Debit Note details furnished by the recipient. Only when it matches, the supplier tax liability to extent of Credit Note will be reduced. During the matching process, if details are not matched, it will be added as a tax
- c) Reclaim on account of rectification of mismatched invoices/debit notes: [REDUCE] You are allowed to reclaim the ITC which was reversed earlier and added to output tax liability due to mismatch (discussed in point A), if that mismatch is ratified by the supplier. . This amount will be reduced from your output tax liability.
- d) Reclaim on account of rectification of mismatched credit note: [REDUCE]This is similar to point (C). If the discrepancies in credit note which was reversed earlier are ratified later, you will be allowed to reduce the output tax liability.
- e) Negative tax liability from previous tax periods: [REDUCE] This situation will occur, if the excess tax is paid during the previous month. This will be reduced from the output tax liability of the current
- f) Tax paid on advance in earlier tax periods and adjusted with tax on supplies made in current tax period: [REDUCE]This refers to tax paid along with advance payments in earlier months for supplies received during this month.
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Author: Yarab AYarab is associated with Tally since 2012. In his 7+ years of experience, he has built his expertise in the field of Accounting, Inventory, Compliance and software product for the diverse industry segment. Being a member of ‘Centre of Excellence’ team, he has conducted several knowledge sharing sessions on GST and has written 200+ blogs and articles on GST, UAE VAT, Saudi VAT, Bahrain VAT, iTax in Kenya and Business efficiency.
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