Admin[By Shaleen Shah (Partner), VNCA]
GST law has introduced a concept of `matching’ which forms the backbone of ITC (Input Tax Credit). Under the matching concept, having a prescribed document in the form of a Tax Invoice or Debit Note is not in itself sufficient to claim ITC.
Without getting into the details of the process, matching concept in short means that the ITC claim of the recipient / purchaser will be accepted only if his claim matches the corresponding outward supply details filed by his supplier in GSTR-1. This matching was earlier to be done through filing of returns GSTR-1 & GSTR-2, etc. Though filing of GSTR-2 has been suspended, the matching process remains albeit in an indirect manner through GSTR-2A.
On the basis of GSTR-1 filed by all registered suppliers, the GST Portal creates a draft `statement of inward supplies’ for each recipient / purchaser in for GSTR-2A. Since currently there is no direct mechanism for matching, we advise you to do this exercise manually and reverse any ITC that you have claimed in GSTR-3B but is not reflecting in GSTR-2A or ask your supplier to make necessary rectification in their GSTR-1.
So before you close your books of accounts for FY 17-18, it is imperative that your ITC claim in GSTR-3B matches or reconciles with the GSTR-2A. The amount of unreconciled ITC claim and which is not rectified by the supplier, shall have to be added to your output tax liability.
