GSTR-3B/GSTR-2B difference on GST Council Meet Agenda: You may get notice if mis-match exceeds 20%

If there is a discrepancy between the input tax credit (ITC) that a business claims and the output tax liability that the supplier has declared, the indirect tax authorities may notify the business. If they don’t respond in a satisfactory manner, they can even be requested to pay an amount equivalent to the “excess of credit claimed” plus interest and penalties.

A committee of officials has advocated further restricting the returns filing system to limit the scope of claiming input tax credit to deter fraudulent practices before the Goods and Services Tax (GST) Council meeting the following week.

As per the news sources, the taxpayer might get a GST notice from Department if the mismatch between ITC claimed in GSTR-3B and GSTR-2B exceeds 20% or more than Rs. 25 Lakh.

This is the current agenda of the upcoming GST Council Meeting, to be held on 11th July 2023, i.e., Tuesday.