Advisory on auto-population of e-invoice details into GSTR-1

1. Certain notified taxpayers have to prepare and issue their invoices by obtaining an Invoice Reference Number (IRN) from the Invoice Registration Portal (IRP) (commonly referred to as ‘e-invoices’).

2. Upon successful generation of IRN, details of such e-invoices will be auto-populated in respective tables of GSTR-1. The same can be downloaded as an Excel file as well.

3. In case the GSTR-1 for the corresponding period was already filed by the taxpayer, then, the details from e-invoices can be downloaded as an Excel file only.

 

e invoice

 

4. The details would be auto-populated based on the document date.

5. Auto-population into GSTR-1 is as follows:

 

[table id=69 /]

 

6. The item-level details in the document will be aggregated at the rate level for auto-population into GSTR-1. For the auto-populated invoices, below additional details will also be displayed.

a. Source (e-invoice)

b. Invoice Reference Number (IRN)

c. Invoice Reference Number Date (IRN Date)

7. After auto-population of details from e-invoices, in case of cancellation of IRN, such documents will be deleted in the respective table.

8. Details of e-invoices auto-populated in GSTR-1 can be edited/deleted by the taxpayer. However, in such cases, the ‘Source’, ‘IRN’ and ‘IRN date’ fields will be reset to blank in respective tables of GSTR-1. Such edited documents will be treated as if they were not auto-populated but uploaded separately by taxpayer.

9. Before filing GSTR-1, taxpayers are advised to review the details of e-invoices auto-populated in specified tables:

a. By viewing them online on GST Portal, or

b. By downloading the JSON from GST Portal, or

c. By using APIs via GSP

10. Taxpayers are advised to modify/update only those documents where the details auto-populated from e-invoices are not as per the actual invoice issued.

11. Taxpayers are required to add details of supplies made in respective tables of GSTR-1, other than those auto-populated from e-invoices.

12. An additional facility for the consolidated download of all documents auto-populated from e-invoices is available in the GSTR-1 dashboard. For this, you can use the ‘Download details from e-invoice (Excel)’ button on the GSTR-1 dashboard. It may be noted that the auto-populated details in this Excel file are as reported on the e-invoice portal Invoice Registration Portal (IRP). So, this Excel file would not reflect any subsequent modifications to the auto-populated documents (in GSTR-1 tables).

13. Taxpayers can use the link ‘e-invoice download history’ to view the list of the last five downloaded files. On clicking the link, you can download the file.

14. The Excel file downloaded from the GSTR-1 dashboard page will have details of all the e-invoices received from the Invoice Registration Portal (IRP) including cancelled invoices.

Following additional information relating to such e-invoices will also be available:

a. Invoice Reference Number (IRN) – 64 string hash

b. Date of Invoice Reference Number (IRN date)

c. e-invoice Status – Valid/ Cancelled

d. Date of auto-population/ deletion (in case of canceled IRN) will be the date when the e-invoice details are auto-populated in GSTR-1 or when the IRN was cancelled. Any subsequent modifications made to the auto-populated documents (in GSTR-1 tables) would not be reflected in this excel file.

e invoice

 

e. GSTR-1 auto-population / deletion status (either of the following):

• Auto-populated,

• Deleted,

• Auto-population failed,

• Deletion failed

f. Error in auto-population/ deletion – Error description, if any

EXTENDED GST AMNESTY EASIER REPORTING & RELIEF FOR NON-FILERS

In a significant move aimed at providing relief to taxpayers and simplifying compliance procedures, GST Council Meeting has recommended in its 50th Meeting the extension of several crucial amnesty schemes and relaxations. These measures, covering non-filers of certain returns, the revocation of registration cancellations, and assessment order withdrawals, have been extended until August 31, 2023. Additionally, the relaxations provided for the financial year (FY) 2021-22 regarding various aspects of FORM GSTR-9 and FORM GSTR-9C will be continued for FY 2022-23

 

Extension of Amnesty Schemes

i. Non-filers of Returns (FORM GSTR-4, FORM GSTR-9, and FORM GSTR-10)

The GST Council has recommended the extension of amnesty schemes initially introduced through notifications dated March 31, 2023. These schemes provide relief to non-filers of returns such as FORM GSTR-4, FORM GSTR-9, and FORM GSTR-10 [For the year 2017-18, 2018-19, 2019-20 and 2020-21]. The extension until August 31, 2023, offers non-compliant taxpayers an opportunity to rectify their filing status without incurring penalties or legal consequences.

gst

 

ii. Revocation of Cancellation of Registration

Taxpayers who had their GST registrations canceled and wish to have them reinstated will also benefit from the extension of these amnesty schemes. The recommended extension allows for the revocation of canceled registrations until August 31, 2023, providing a lifeline for those seeking to regularize their compliance status.

 

iii. Deemed Withdrawal of Assessment Orders

Assessment orders issued under Section 62 of the CGST Act, 2017, will also be covered by the extension. Taxpayers with such assessment orders will have until August 31, 2023, to rectify any discrepancies and avoid the deemed withdrawal of these orders.

 

Continuation of Reporting Simplifications

The GST Council recognizes the need for simplifying compliance, and to that end, it has recommended the continuation of the relaxations introduced in the financial year 2021-22 regarding FORM GSTR-9 and FORM GSTR-9C. These relaxations, which aim to simplify the reporting process, will remain in place for FY 2022-23.

 

gst

 

The extension of amnesty schemes and the continuation of reporting simplifications underscore the government’s commitment to easing the compliance burden on taxpayers. These measures provide an opportunity for non-compliant taxpayers to rectify their filing status without facing punitive consequences. Furthermore, the simplifications in reporting acknowledge the challenges taxpayers face and seek to streamline the compliance process.

 

Read More: DECODING INCOME TAX AUDITS: SECTION 44AB

 

As these recommendations take effect, it is essential for taxpayers to stay informed, take advantage of the extended amnesty schemes if applicable, and ensure accurate and timely filings. Ultimately, these initiatives align with the broader goal of fostering a taxpayer-friendly and efficient GST system in India.

MISMATCH BETWEEN GSTR 2A, GSTR 2B AND GSTR 8A

The details of GSTR-2A, GSTR-2B, and GSTR-8A, and how the discrepancies between these forms can lead to issues for taxpayers.

 

1. GSTR-2A

GSTR-2A is an auto-generated statement of inward supplies. It contains details of purchases made by a taxpayer during a specific tax period as reported by their suppliers in their GSTR-1 returns. In simpler terms, it is a reflection of all the supplies that your suppliers have declared they made to you during a given month. It acts as a preliminary record for you to verify against your own purchase records.

 

2. GSTR-2B

GSTR-2B is also an auto-generated statement of inward supplies, similar to GSTR-2A. However, GSTR-2B is not based on real-time supplier data. It is a static statement generated on a monthly basis and provides a consolidated view of input tax credit (ITC) available to the recipient. It includes information from GSTR-1, but it is designed to be used for informational and reference purposes, and it helps taxpayers reconcile their input tax credit.

 

 

GSTR mismatch

 

3. GSTR-8A

GSTR-8A is the statement of tax collected at source (TCS) and TCS credit. It contains details of TCS collected by an e-commerce operator during a particular period. This form is applicable to e-commerce operators who are required to collect tax at source on behalf of sellers on their platform. It’s different from GSTR-2A and GSTR-2B, as it deals specifically with tax collection at source and not general purchases.

 

Discrepancies and Mismatches:

Now, if transactions from GSTR-2A are not appearing in GSTR-8A, there could be a few reasons for this:

 

1. Supplier Errors

Sometimes, suppliers might forget to report transactions in their GSTR-1, leading to missing entries in your GSTR 2A.

 

2. Timing Differences

The timing of when the supplier files their GSTR-1 and when you file your GSTR-2A might cause a mismatch, especially towards the end of the return-filing period.

 

3. Data Processing Issues

Technical glitches or processing delays in the GSTN (Goods and Services Tax Network) system could also result in discrepancies between forms.

 

4. Incorrect Reporting

Either the supplier or the recipient might make mistakes while reporting transactions, leading to mismatched entries.

 

5. Impact on Assessee

The discrepancies between GSTR-2A and GSTR-8A, along with other forms, can have several negative implications for the taxpayer:

 

a. ITC Mismatch

Mismatches between GSTR-2A and GSTR-8A can lead to inconsistencies in input tax credit claims, which can result in the reduction of available credit.

 

b. Reconciliation Challenges

Taxpayers have to spend additional time and effort reconciling these discrepancies, which can be time-consuming and resource-intensive.

 

GSTR mismatch

 

c. Interest and Penalties

If there’s a mismatch and you claim more ITC than what is actually available, you might have to pay interest on the excess claimed amount.

 

d. Compliance Issues

Mismatched data can lead to non-compliance with tax regulations, which might attract penalties or other legal consequences.

 

 

Read More: A Complete Overview of GSTR 2A Reconciliation

 

 

e. Cash Flow Impact

If there are delays or discrepancies in claiming ITC, it can impact your cash flow and working capital.

 

To address these issues, it’s crucial for taxpayers to regularly reconcile their purchases against the details in GSTR-2A, GSTR-2B, and other relevant forms. They should also communicate with their suppliers to rectify any discrepancies and ensure accurate reporting to avoid unnecessary complications and financial burdens.