GSTR-2A & GSTR-3B Mismatch Notice draft reply

These days many taxpayers are getting Notices from the department on account of Mismatch in GSTR-2A & GSTR-3B. This Article contains a drafted write-up of reply to GSTR-2A & GSTR-3B Mismatch Notice.

Hope you will Find the Same Helpful.

11-Mar-2021

To,
Assistant VATO
Ward No:001
Room No. – 10XX
Trade & Taxes Bhawan
Delhi Goods & Service Tax
New Delhi -110002

SUB: Reply to Discrepancy of Input Tax Credit as per GSTR-2A & GSTR-3B

REF: SMS & Email received on 26-Feb-2021 with DIN …………….

Respected Sir / Madam,

Greetings,

1. We have received SMS & Emails Notice on 26-Feb-2021 as follows:

“ Please refer to the GST Returns filed by you for the year 2017-18 on the subject matter.

In this regard, the following discrepancies have been noticed during the scrutiny of the GST Returns for the year 2017-18 as follows
You have availed more credit than available in GSTR-2A. The month-wise details are shown hereunder:”

2. In response to the above-mentioned Notice, we would like to hereby submit as follows.

• Form GSTR-2A is “Details of Auto-Drafted Supplies” as per Rule 60(1) which contains details of Inward Supplies received and Inputs thereon.
• In 2017-18 as per the Rule Form, GSTR-2A was auto-drafted on the basis of “Form GSTR-1, GSTR-5, GSTR-6, GSTR-7 and GSTR-8”. After Amendment to the Rules and Currently Form GSTR-2A is auto drafted on the basis of “Form GSTR-1, GSTR-5, GSTR-6, GSTR-7, GSTR-8, Import of Goods and Inward Supplies of Goods received from SEZ Unit/Developers”
• Relevant Extract of Rule 60(1) [Form and manner of ascertaining details of inward supplies] in Original is “Every registered person, other than a person referred to in section 14 of the Integrated Goods and Services Tax Act, 2017, required to furnish the details of inward supplies of goods or services or both received during a tax period under sub-section (2) of section 38 shall, on the basis of details contained in Part A, Part B and Part C of FORM GSTR-2A, prepare such details as specified in sub-section (1) of the said section and furnish the same in FORM GSTR-2 electronically through the common portal, either directly or from a Facilitation Centre notified by the Commissioner, after including therein details of such other inward supplies, if any, required to be furnished under sub-section (2) of section 38.”
• Relevant Extract of Rule 60(1) [Form and manner of ascertaining details of inward supplies] as Amended is “The details of outward supplies furnished by the supplier in FORM GSTR-1 or using the IFF shall be made available electronically to the concerned registered persons (recipients) in Part A of FORM GSTR-2A, in FORM GSTR-4A and in FORM GSTR-6A through the common portal, as the case may be.”
• Therefore, Form GSTR-2A of 2017-18 does not have details of Inputs and Input Tax Credit (ITC) of Import of goods and Inward Supplies of goods received from SEZ Units/Developers.
• Further, Form GSTR-2A also does not have details of “Import of Services”.
• We file FORM GSTR-3B as per Rule 61(5) / 61(1). We claim ITC through Table-4 “Eligible ITC” of Form GSTR-3B. Available ITC as per Table-4 are on
  • Import of Goods
  • Import of Services
  • Inward Supplies Liable to Reverse Charge (Other than 1 & 2 above)
  • Inward Supplies from ISD
  • All Other ISD
• Relevant Extract of Rule 61(5) [Form and manner of submission of monthly return] in Original is “Where the time limit for furnishing of details in FORM GSTR-1 under section 37 and in FORM GSTR-2 under section 38 has been extended and the circumstances so warrant, return in FORM GSTR-3B, in lieu of FORM GSTR-3, may be furnished in such manner and subject to such conditions as may be notified by the Commissioner.”
• Relevant Extract of Rule 61(1) [Form and manner of submission of monthly return] as Amended is “Every registered person other than a person referred to in section 14 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017) or an Input Service Distributor or a non-resident taxable person or a person paying tax under section 10 or section 51 or, as the case may be, under section 52 shall furnish a return in FORM GSTR-3B, electronically through the common portal either directly or through a Facilitation Centre notified by the Commissioner, as specified.”
• When we compare Table-4 of Form GSTR-3B and Input Tax Credit as per Form GSTR-2A then we will definitely find a mismatch because the base data in these two are different.

3. We have, therefore, prepared a reconciliation statement for differences in ITC. These differences are genuine differences and cannot be construed as discrepancy or mismatch. As we have complied with all the provisions in the GST Act or Rules, all the returns are duly furnished and we are claiming eligible Input Tax Credit as per the Laws.

4. We would hereby request you to drop the proceedings against the above-mentioned number.

Thanks & Regards,

For GST panacea.com Consultancy Private Limited

Director/Authorized Signatory
+91-9810638155, 7503031378
[email protected]

Annexure:

• Copy of the above-mentioned Notice.
• Detail Reconciliation of GSTR-2A & 3B

This Draft Notice has been written by CA Abhishek Raja Ram. He can be contacted at [email protected]