GST Notice & Scrutiny
State GST Department of Karnataka has started issuing notices under Rule 99(1) in Form ASMT 10 (Scrutiny Notice) to the taxpayers informing about the difference between the credits availed by such taxpayers in Form GSTR 3B when compared to the credits appearing in Form GSTR 2A (auto-populated based on the details uploaded by vendors with the GSTIN of the taxpayer).
What the officers missed is:
- Credits need not be taken in the same month
- RCM credits shown with the regular credits. RCM credits obviously don’t reflect in GSTR 2A
- Matching was for GSTR 2 of the taxpayer with GSTR 1 of vendor and not 3B of the taxpayer with auto-populated details in GSTR 2A
- Where is a requirement in law to match credits disclosed in 3B (which is a temporary return which is to be filed when the due date of GSTR 1 and 2 gets extended) with the 2A?
- What can recovery actions be taken for a matching which is not provided for under the law?
- In the recent council meeting it was decided that tax not paid will not be recovered from the taxpayer but from the vendor and the entire matching exercise will not be operational at least for a year These notices will only add to the never-ending data entry TODO list of the taxpayers and professionals