GST Practice Manual is a comprehensive guide in understanding the 'background', 'concepts', 'execution', 'challenges', and 'solution(s)' involved in your 'day-to-day' compliance of GST. It explains the provisions of the GST law in a lucid manner. This book will be helpful for GST Professionals engaged in managing the client's day to day GST related affairs, i.e., advisory, compliance and litigation services. The Present Publication is the 5th Edition, authored by Aditya Singhania, updated till 22nd June 2021, with the following noteworthy features: • [Topic-Wise Explanation] incorporating related Notifications and Circulars • [Stepwise Guide] for GST Compliances • [Practical Issues] with Solutions • [Tabular Format] of GST Case Laws (including Advance Rulings) • [Ready Referencer] of Sections, Rules, and Forms • [Comprehensive Coverage] through Detailed Analysis and Relevant Illustrations • [GST Common Portal] Content Synchronized with the current features available at GST common portal • [Quick Referencer] to get a Birds Eye View of the entire GST Law and its Execution • Taxmann's series of Bestseller Books on GST Compliances • Follows the six-sigma approach to achieve the benchmark of 'zero error' The contents of the book are as follows: • Levy & Exemptions • Time/Place of Supply & Valuation • Accounting in GST • Registration • Specified Taxable Person • Composition Scheme • Input Tax Credit (including ISD) • Returns • Audit • TDS & TCS • Payment • Refunds • Assessment • Search and Seizure • Advance Rulings • Demand & Recovery • Appeals • Offences • Miscellaneous

1. Sample
Read

2. We are pleased to share that writing of this book has
been successful due to the blessings of almighty God. The
immense support of our family members has been the
key force which has led to the birth of this book. We are
really thankful to Swamiji Shri ‘Jaipad Balak Swami, Shri
Keshwacharyaji Maharaj’, Fr. Varghese Panangatt, Saint
Joseph’s School, Bhagalpur for his blessings, Shri Adesh
Kumar, Retired Additional Commissioner, SGST, Govt. of
West Bengal, Shri Rakesh Bhargava Sir, Late Shri Amit
Bhargava Sir, Shri Rajul Bhargava Sir, Shri Ansh
Bhargava, Shri Piyush Kumar Sir, Shri Mitrapal Sir, Late
Shri Sunil Kapoor Sir, Late Shri Sundeep Jain Sir, Shri
Brijesh Agarwal and everyone associated therein, Shri
Ram Niwas Choudhary Ji and our grandparents, our fam-
ily members, teachers, mentors, friends, readers etc. for
their support and blessings.
DEDICATED TO
Shri Balmukund Singhania
Smt. Neelam Devi Singhania
Amrit Singhania
ADITYA SINGHANIA
Singhania’s GST Consultancy & Co.
In case of any queries please drop mail at:
info@singhaniasgstconsultancy.com
www.singhaniasgstconsultancy.com
+91 9163727490

5. 2>=C4=CB
I-5
0!'%
Quick Referencer I-11
DIVISION ONE
LEVY & EXEMPTIONS
CHAPTER 1 : ,EVY
COLLECTION
OF
TAX 3
CHAPTER 2 : 2EVERSE
CHARGE 98
CHAPTER 3 : %XEMPTIONS
FROM
'34
ON
GOODS 117
CHAPTER 4 : %XEMPTIONS
FROM
'34
ON
SERVICES 136
CHAPTER 5 : $EFINITIONS 247
DIVISION TWO
TIME/PLACE OF SUPPLY VALUATION
CHAPTER 6 : 4IME
OF
SUPPLY 265
CHAPTER 7 : 0LACE
OF
SUPPLY 279
CHAPTER 8 : 6ALUATION 314
DIVISION THREE
ACCOUNTING IN GST
CHAPTER 9 : )NVOICING 393
CHAPTER 10 : !CCOUNTS
RECORDS 444
CHAPTER 11 : %
WAY
BILL 457
CHAPTER 12 : *OB
WORK 498

6. #/.4%.43
I-6
0!'%
DIVISION FOUR
REGISTRATION
CHAPTER 13 : ASICS
OF
REGISTRATION 529
CHAPTER 14 : #OMPULSORY
REGISTRATION 543
CHAPTER 15 : 0ERSON
NOT
LIABLE
TO
TAKE
REGISTRATION
VOLUNTARY
REGISTRATION
549
CHAPTER 16 : 'ENERAL
PROCEDURE
OF
REGISTRATION 561
CHAPTER 17 : !MENDMENT
OF
REGISTRATION 604
CHAPTER 18 : #ANCELLATION
OR
SUSPENSION
OF
REGISTRATION 610
CHAPTER 19 : 2EVOCATION
OF
REGISTRATION 633
DIVISION FIVE
SPECIFIED TAXABLE PERSON
CHAPTER 20 : .ON
RESIDENT
TAXABLE
PERSON 645
CHAPTER 21 : /)$!2 667
CHAPTER 22 : 5NIQUE
)DENTIFICATION
.UMBER
5). 685
DIVISION SIX
COMPOSITION SCHEME
CHAPTER 23 : ASICS
OF
COMPOSITION
SCHEME 701
CHAPTER 24 : #OMPLIANCES
UNDER
COMPOSITION
SCHEME 719
CHAPTER 25 : 7ITHDRAWAL
FROM
COMPOSITION
SCHEME 727
CHAPTER 26 : 2ETURNS
UNDER
COMPOSITION
SCHEME 731
DIVISION SEVEN
INPUT TAX CREDIT (INCLUDING ISD)
CHAPTER 27 : %LIGIBILITY
OF
INPUT
TAX
CREDIT 743
CHAPTER 28 : !PPORTIONMENT
OF
INPUT
TAX
CREDIT 785
CHAPTER 29 : !VAILABILITY
OF
)4#
IN
CERTAIN
CIRCUMSTANCES 844
CHAPTER 30 : )4#
FOR
JOB
WORKER 856

7. I-7 #/.4%.43
0!'%
CHAPTER 31 : #OMPLIANCE
FOR
INPUT
SERVICE
DISTRIBUTOR 862
CHAPTER 32 : 2ETURNS
FOR
AN
INPUT
SERVICE
DISTRIBUTOR
)3$ 873
DIVISION EIGHT
RETURNS
CHAPTER 33 : )NTRODUCTION
TO
'34
RETURNS 899
CHAPTER 34 : '342
915
CHAPTER 35 : '342

8. !
AND
981
CHAPTER 36 : '342
1007
CHAPTER 37 : '342
1014
CHAPTER 38 : -ATCHING
CONCEPT 1076
CHAPTER 39 : 0ROPOSED
NEW
'34
RETURN 1090
CHAPTER 40 : !NNUAL
RETURN
FOR
NORMAL
TAXPAYER 1093
CHAPTER 41 : !NNUAL
RETURN
FOR
COMPOSITION
TAXPAYER 1119
CHAPTER 42 : INAL
RETURN 1141
DIVISION NINE
AUDIT
CHAPTER 43 : $EPARTMENTAL
AUDIT 1153
CHAPTER 44 : '34
AUDIT 1167
DIVISION TEN
TDS TCS
CHAPTER 45 : 4AX
DEDUCTION
AT
SOURCE
4$3 1181
CHAPTER 46 : 4AX
COLLECTION
AT
SOURCE
4#3 1209
DIVISION ELEVEN
PAYMENT
CHAPTER 47 : ASICS
OF
PAYMENT 1239
CHAPTER 48 : 4REATMENT
OF
INPUT
TAX
CREDIT
FOR
PAYMENT 1249
CHAPTER 49 : 4REATMENT
OF
ELECTRONIC
CASHCREDIT
LEDGER 1254

9. #/.4%.43
I-8
0!'%
CHAPTER 50 : 4REATMENT
OF
ELECTRONIC
LIABILITY
LEDGER 1289
CHAPTER 51 : -ISCELLANEOUS
ON
PAYMENTS 1296
DIVISION TWELVE
REFUNDS
CHAPTER 52 : ASICS
OF
REFUNDS 1315
CHAPTER 53 : 2EFUND
PROCEDURES 1331
DIVISION THIRTEEN
ASSESSMENT
CHAPTER 54 : 3ELF
PROVISIONAL
ASSESSMENT 1391
CHAPTER 55 : 3CRUTINY
OF
RETURNS 1403
CHAPTER 56 : !SSESSMENT
OF
NON
FILERS
OF
RETURNS 1408
CHAPTER 57 : !SSESSMENT
OF
UNREGISTERED
PERSONS 1414
CHAPTER 58 : 3UMMARY
ASSESSMENT 1417
CHAPTER 59 : INALIZATION
OF
PROVISIONAL
ASSESSMENT

10. APPEAL 1421
DIVISION FOURTEEN
SEARCH AND SEIZURE
CHAPTER 60 : )NSPECTION

11. SEARCH
AND
SEIZURE 1429
CHAPTER 61 : !RREST 1464
DIVISION FIFTEEN
ADVANCE RULING
CHAPTER 62 : ASICS
OF
ADVANCE
RULING 1487
CHAPTER 63 : !PPLICATION
AND
COMPLIANCES
FOR
ADVANCE
RULING 1496
CHAPTER 64 : !PPELLATE
AUTHORITY
FOR
ADVANCE
RULING 1508
DIVISION SIXTEEN
DEMAND RECOVERY
CHAPTER 65 : !DMINISTRATION
IN
'34 1515

12. I-9 #/.4%.43
0!'%
CHAPTER 66 : $EMAND 1567
CHAPTER 67 : 2ECOVERY 1593
DIVISION SEVENTEEN
APPEALS
CHAPTER 68 : !PPEALS
TO
!PPELLATE
!UTHORITY 1639
CHAPTER 69 : !PPEALS
TO
!PPELLATE
4RIBUNAL 1669
CHAPTER 70 : !PPEALS
TO
(IGH
#OURT
3UPREME
#OURT 1681
CHAPTER 71 : -ISCELLANEOUS
ON
APPEALS 1686
DIVISION EIGHTEEN
OFFENCES
CHAPTER 72 : 0ENALTY 1691
CHAPTER 73 : $ETENTION

13. SEIZURE
AND
RELEASE
OF
GOODS
AND
CONVEYANCES
IN
TRANSIT
1702
CHAPTER 74 : #ONFISCATION
OF
GOODS
OR
CONVEYANCES 1723
CHAPTER 75 : -ISCELLANEOUS
TOPICS
UNDER
OFFENCES 1731
CHAPTER 76 : #OMPOUNDING
OF
OFFENCES 1740
DIVISION NINETEEN
MISCELLANEOUS
CHAPTER 77 : #ORPORATE
DEBTOR
UNDER
)#

14. 1747
CHAPTER 78 : ,IABILITY
TO
PAY
IN
CERTAIN
CASES 1753
CHAPTER 79 : 2EPEAL
AND
SAVING 1764
SUBJECT INDEX 1771

15. 38.1 MATCHING CONCEPT
!FTER
HAVING
A
DETAILED
DISCUSSION
ON
'342

16. '342
AND
'342

17. ONE
COMES
TO
KNOW
THAT
THE
AVAILABILITY
OF
CREDIT
OF
INPUT
TAX
IN
'34
REGIME
IS
NOT
SO
EASY
AND
CONVENIENT
UNLIKE
UNDER
THE
EARLIER
REGIME
4HE
SOLE
REASON
IS
THE
INTRODUCTION
OF
THE
hMATCHINGv
CONCEPT
.OW

18. THE
QUESTION
ARISES

19. WHAT
IS
THIS
MATCHING
ALL
ABOUT
4HE
MATCHING
CONCEPT
IS
THE
MECHANISM
WHICH
HAS
BEEN
DESIGNED
BY
THE
'OVERNMENT
FOR
ALLOWING
THE
INPUT
TAX
CREDIT
TO
THE
RECIPIENT
OF
THE
SUPPLY
ONLY
OF
THOSE
SUPPLIES
WHICH
HAS
BEEN
SHOWN
AND
REPORTED
BY
THE
CORRESPONDING
SUPPLIER
(AD
THERE
BE
NO
MATCHING
CONCEPT

20. THERE
WOULD
BE
NO
REQUIREMENT
OF
'342
AND
'342
AND
THE
ONE
AND
ONLY
DETAILED
'342
WOULD
HAVE
BEEN
INTRODUCED
EFORE
GOING
INTO
THE
DETAILS
OF
THE
MATCHING
PROVISIONS

21. LET
US
HAVE
A
BIRD
EYE
VIEW
OF
THE
PROVISIONS
INCORPORATED
IN
THIS
REGARD
GST Act, 2017
Section Provision
#LAIM
OF
INPUT
TAX
CREDIT
AND
provisional acceptance
THEREOF
-ATCHING

22. REVERSAL
AND
RECLAIM
OF
input tax credit
-ATCHING

23. REVERSAL
AND
RECLAIM
OF
reduction in output tax liability.
GST Rules, 2017
Rule Description
-ATCHING
OF
CLAIM
OF
INPUT
TAX
CREDIT
INAL
ACCEPTANCE
OF
INPUT
TAX
CREDIT
AND
COMMUNICATION
THEREOF
#OMMUNICATION
AND
RECTIlCATION
OF
DISCREPANCY
IN
CLAIM
OF
INPUT
TAX
CREDIT
AND
REVERSAL
OF
CLAIM
OF
INPUT
TAX
CREDIT
#LAIM
OF
INPUT
TAX
CREDIT
ON
THE
SAME
INVOICE
MORE
THAN
ONCE
-ATCHING
OF
CLAIM
OF
REDUCTION
IN
THE
OUTPUT
TAX
LIABILITY
0C278=62=24?C
38
C H A P T E R
1076

24. Rule Description
INAL
ACCEPTANCE
OF
REDUCTION
IN
OUTPUT
TAX
LIABILITY
AND
COMMUNICA-
TION
THEREOF
#OMMUNICATION
AND
RECTIlCATION
OF
DISCREPANCY
IN
REDUCTION
IN
OUTPUT
TAX
LIABILITY
AND
REVERSAL
OF
CLAIM
OF
REDUCTION
#LAIM
OF
REDUCTION
IN
OUTPUT
TAX
LIABILITY
MORE
THAN
ONCE
2EFUND
OF
INTEREST
PAID
ON
RECLAIM
OF
REVERSALS
-ATCHING
OF
DETAILS
FURNISHED
BY
THE
E
#OMMERCE
OPERATOR
WITH
THE
DETAILS
FURNISHED
BY
THE
SUPPLIER
#OMMUNICATION
AND
RECTIlCATION
OF
DISCREPANCY
IN
DETAILS
FURNISHED
BY
THE
E
COMMERCE
OPERATOR
AND
THE
SUPPLIER
38.2 MATCHING CONCEPT IN REGARD TO CLAIM OF INPUT TAX
CREDIT
OR
THE
PURPOSE
OF
UNDERSTANDING
THIS
TOPIC

25. 3ECTIONS
AND
OF
THE
'34
!CT

26. HAS
TO
BE
READ
WITH
2ULES

27. AND
OF
THE
'34
2ULES

28. Input Tax Credit shall be allowed on provisional basis - 4HE
REGISTERED
PER-
SON
CLAIMING
THE
CREDIT
OF
INPUT
TAX
SHALL
BE
ENTITLED
TO
TAKE
THE
CREDIT
OF
ELIGIBLE
INPUT
TAX
WHICH
HAS
BEEN
SELF
ASSESSED
BY
THE
RECIPIENT
IN
'342
AFTER
TAKING
INTO
ACCOUNT
THE
INWARD
SUPPLIES
AUTO
POPULATED
IN
'342
!
!LL
THE
INPUT
TAX
CREDIT
CLAIMED
BY
THE
RECIPIENT
SHALL
BE
ALLOWED
ON
A
pro-
visional basis. 4HE
SAID
AMOUNT
OF
CREDIT
ALLOWED
ON
PROVISIONAL
BASIS
WILL
BE
credited to the Electronic Credit Ledger
OF
THE
RECIPIENT
INCLUDING
THOSE
INWARD
SUPPLIES
WHICH
HAS
NOT
BEEN
SHOWN
BY
THE
CORRESPONDING
SUPPLIER
Restricted utilization of provisional Input Tax Credit - 4HE
PROVISIONAL
CREDIT
OF
INPUT
TAX
SHALL
BE
UTILIZED
ONLY
FOR
THE
PAYMENT
IF
SELF
ASSESSED
OUTPUT
TAX
AS
PER
'342
Matching of Input Tax Credit - 4HE
DETAILS
OF
EVERY
INWARD
SUPPLY
FURNISHED
BY
THE
hRECIPIENTv
FOR
A
TAX
PERIOD
SHALL
BE
MATCHED
a
With
THE
CORRESPONDING
DETAILS
OF
outward supply
FURNISHED
BY
THE
CORRESPONDING
REGISTERED
SUPPLIER
IN
HIS
VALID
RETURN
FOR
THE
same tax
period
OR
any preceding tax period
b
With
THE
)'34
PAID
UNDER
SECTION
OF
THE
#USTOMS
4ARIFF
!CT

29. IN
RESPECT
OF
GOODS
IMPORTED
BY
HIM
AND
c
For
DUPLICATION
OF
CLAIMS
OF
INPUT
TAX
CREDIT
Timeofmatching-4HE
CLAIM
OF
INPUT
TAX
CREDIT
ON
INWARD
SUPPLIES
INCLUDING
IMPORTS

30. PROVISIONALLY
ALLOWED
UNDER
SECTION

31. SHALL
BE
MATCHED
UNDER
SECTION
after the due date for furnishing the return in FORM GSTR-3
1077 #(
-!4#().'
#/.#%04 Para 38.2

32. Parameters for matching - #ERTAINLY
FOR
MATCHING
ANY
DATA
THERE
WOULD
BE
CERTAIN
PARAMETERS
ON
THE
BASIS
OF
WHICH
THE
MATCHING
EXERCISE
CAN
BE
CARRIED
OUT
BY
THE
GOVERNMENT
BETWEEN
THE
INWARD
SUPPLIES
OF
THE
RECIPIENT
WITH
THE
CORRESPONDING
OUTWARD
SUPPLIES
OF
THE
SUPPLIER
OR
THIS
PURPOSE

33. THE
FOLLOWING
DETAILS
RELATING
TO
THE
CLAIM
OF
INPUT
TAX
CREDIT
ON
INWARD
SUPPLIES
INCLUDING
IMPORTS

34. PROVISIONALLY
ALLOWED
UNDER
SECTION

35. SHALL
BE
MATCHED
UNDER
SECTION
AFTER
THE
DUE
DATE
FOR
FURNISHING
THE
RETURN
IN
/2-
'342
a
'34).
OF
THE
supplier
b
'34).
OF
THE
recipient
c
)NVOICE
OR
DEBIT
NOTE
number
d
)NVOICE
OR
DEBIT
NOTE
date
AND
e
Tax
AMOUNT
Auto-Extension in the date of matching
7HERE
THE
TIME
LIMIT
FOR
FURNISHING
'342
AND
'342
HAS
BEEN
EXTENDED

36. THE
DATE
OF
MATCHING
RELATING
TO
CLAIM
OF
INPUT
TAX
CREDIT
SHALL
ALSO
BE
EXTENDED
ACCORDINGLY
Power to extend the date of matching
4HE
Commissioner
MAY

37. ON
THE
RECOMMENDATIONS
OF
THE
#OUNCIL

38. BY
order

39. EXTEND
THE
DATE
OF
MATCHING
RELATING
TO
CLAIM
OF
INPUT
TAX
CREDIT
TO
SUCH
DATE
AS
MAY
BE
SPECIFIED
THEREIN
Treated as matched - 4HE
CLAIM
OF
INPUT
TAX
CREDIT
IN
RESPECT
OF
INVOICES
AND
DEBIT
NOTES
IN
/2-
'342
THAT
WERE
ACCEPTED
BY
THE
RECIPIENT
ON
THE
BASIS
OF
/2-
'342
!
without amendment
SHALL
BE
TREATED
AS
matched
IF
THE
CORRESPONDING
SUPPLIER
HAS
FURNISHED
A
VALID
RETURN
URTHER

40. THE
CLAIM
OF
INPUT
TAX
CREDIT
SHALL
BE
CONSIDERED
AS
MATCHED
WHERE
THE
amount of input tax credit claimed IS
equal to
OR
less than the output
tax paid
ON
SUCH
TAX
INVOICE
OR
DEBIT
NOTE
BY
THE
CORRESPONDING
SUPPLIER
)T
IS
PERTINENT
TO
NOTE
THAT
IF
THE
INPUT
TAX
CREDIT
CLAIMED
IS
LESS
THAN
THE
TAX
SHOWN
ON
THE
CORRESPONDING
OUTWARD
SUPPLIES
THEN
IN
SUCH
A
CASE
IT
SHALL
BE
treated as matched.
Process when the inward supplies gets matched with the corresponding
outward supplies - )F
THE
INWARD
SUPPLIES
PERTAINING
TO
INPUT
TAX
CREDIT
IN
'342
GETS
MATCH
WITH
a
4HE
DETAILS
OF
CORRESPONDING
OUTWARD
SUPPLIES

41. OR
b
4HE
)'34
PAID
UNDER
SECTION
OF
THE
#USTOMS
4ARIFF
!CT

42. IN
RESPECT
OF
GOODS
IMPORTED
BY
HIM
SHALL
BE
finally accepted. 4HE
ACCEPTANCE
HAS
A
SIGNIFICANCE
THAT
THE
pro-
visional credit
OF
INPUT
TAX
CLAIMED
BY
THE
RECIPIENT
GETS
finalised
0OST
ACCEPTANCE
OF
SUCH
CLAIM
OF
INPUT
TAX
CREDIT
PERTAINING
TO
SUCH
INWARD
SUPPLIES

43. THE
ACCEPTANCE
SHALL
BE
communicated TO
THE
recipient
Para 38.2 $)6
2%452.3 1078

44. Communication to the recipient on input tax credit claimed on inward
supplies being matching - 4HE
FINAL
ACCEPTANCE
OF
CLAIM
OF
INPUT
TAX
CREDIT
IN
RESPECT
OF
ANY
TAX
PERIOD
SHALL
BE
MADE
AVAILABLE
ELECTRONICALLY
TO
THE
REGISTERED
PERSON
MAKING
SUCH
CLAIM
IN
/2-
'34
-)3
THROUGH
THE
COM-
MON
PORTAL
AS
STIPULATED
IN
2ULE
OF
THE
'34
2ULES

45. Reasons of mismatch or discrepancy in input tax credit - 4HERE
ARE
BROADLY
TWO
SECTIONS
WHICH
STIPULATES
THE
REASONS
FOR
SUCH
MIS
MATCHES
NAMELY
3ECTION
a
b

46. AND
3ECTION
c
OF
THE
'34
!CT

47. Section 42(1)(a) (b) of GST Act, 2017 - !S
PER
THIS
SECTION

48. IF
THE
INPUT
TAX
CREDIT
CLAIMED
BY
THE
RECIPIENT
IN
RESPECT
OF
INWARD
SUPPLIES
IS
‹
)N
excess of the tax declared by the supplier for the same supply,
OR
‹
4HE
OUTWARD
SUPPLY
IS
not declared by the supplier
IN
HIS
VALID
RETURNS
Communication to both the supplier and recipient on input tax credit
claimed on inward supplies being un-matched under Section 42(3) - 4HE
DISCREPANCY
SHALL
BE
COMMUNICATED
TO
BOTH
SUCH
PERSONS
IN
SUCH
MANNER
AS
MAY
BE
PRESCRIBED
!NY
DISCREPANCY
IN
THE
CLAIM
OF
INPUT
TAX
CREDIT
IN
RESPECT
OF
ANY
TAX
PERIOD

49. SPECIFIED
IN
3ECTION
SHALL
BE
MADE
AVAILABLE
ELECTRONICALLY
THROUGH
THE
COMMON
PORTAL
on or before the last date of the
month in which the matching has been carried out
TO
‹
4HE
recipient
MAKING
SUCH
CLAIM
ELECTRONICALLY
IN
/2-
GST MIS-1
AND
‹
4HE
supplier
IN
/2-
GST MIS-2
Opportunity to rectify the discrepancies
‹
Option to the supplier: !
SUPPLIER
TO
WHOM
ANY
DISCREPANCY
IS
MADE
AVAILABLE
may
MAKE
SUITABLE
rectifications
IN
THE
STATEMENT
OF
OUTWARD
SUPPLIES
i.e. '342
TO
BE
FURNISHED
for the month in which
the discrepancy is made available
2ECTIFICATION
BY
A
SUPPLIER
MEANS
adding
OR
correcting
THE
DETAILS
OF
AN
OUTWARD
SUPPLY
IN
HIS
VALID
RETURN
SO
AS
TO
match the details of corresponding inward supply
DECLARED
BY
THE
RECIPIENT
‹
Option to the recipient: !
RECIPIENT
TO
WHOM
ANY
DISCREPANCY
IS
MADE
AVAILABLE
may
MAKE
SUITABLE
RECTIFICATIONS
IN
THE
STATEMENT
OF
INWARD
SUPPLIES
i.e. '342
TO
BE
FURNISHED
for the month in which
thediscrepancyismadeavailable.2ECTIFICATION
BY
THE
RECIPIENT
MEANS
deleting
OR
correcting
THE
DETAILS
OF
AN
INWARD
SUPPLY
SO
AS
TO
match
the details of corresponding outward supply declared by the supplier
‹
If discrepancy not rectified then addition in the output tax liability
of the recipient: 4HE
AMOUNT
IN
RESPECT
OF
WHICH
ANY
DISCREPANCY
IS
COMMUNICATED
UNDER
3ECTION
AND
IS
notrectifiedbythe‘supplier’
IN
HIS
VALID
RETURN
FOR
THE
MONTH
IN
WHICH
DISCREPANCY
IS
COMMU-
1079 #(
-!4#().'
#/.#%04 Para 38.2

50. NICATED
SHALL
BE
added to the output tax liability of the ‘recipient’ IN
HIS
RETURN
4HE
INPUT
TAX
CREDIT
AMOUNT
WHICH
SHALL
BE
ADDED
IN
THE
OUTPUT
TAX
LIABILITY
SHALL
BE
for the month succeeding the month in
which the discrepancy is communicated
URTHER

51. AS
PER
2ULE
OF
THE
'34
2ULES

52. WHERE
THE
DISCREPANCY
IS
NOT
RECTIFIED
BY
THE
@supplier’
OR
THE
@recipient’

53. AN
AMOUNT
TO
THE
EXTENT
OF
DISCREPANCY
SHALL
BE
ADDED
TO
THE
OUTPUT
TAX
LIABILITY
OF
THE
RECIPIENT
IN
HIS
RETURN
TO
BE
FURNISHED
IN
/2-
'342
FOR
THE
MONTH
SUCCEEDING
THE
MONTH
IN
WHICH
THE
DISCREPANCY
IS
MADE
AVAILABLE
Reduction in the output tax liability of the recipient in specified situation
- 4HE
recipient
SHALL
BE
ELIGIBLE
TO
reduce

54. FROM
HIS
OUTPUT
TAX
LIABILITY

55. THE
AMOUNT
ADDED
IN
THE
OUTPUT
TAX
LIABILITY

56. if the supplier declares the details
of the invoice or debit note in his valid return
WITHIN
THE
time specified in
Section 39(9)
OF
THE
'34
!CT

57. 4HE
TIME
SPECIFIED
UNDER
3ECTION
OF
THE
'34
!CT

58. SHALL
NOT
BE
AFTER
THE
DUE
DATE
FOR
FURNISHING
OF
RETURN
FOR
THE
MONTH
OF
3EPTEMBER
OR
THE
ACTUAL
DATE
OF
FURNISHING
OF
RELEVANT
ANNUAL
RETURN

59. WHICHEVER
IS
EARLIER
4HE
CLAIM
OF
INPUT
TAX
CREDIT
IN
RESPECT
OF
ANY
TAX
PERIOD
WHICH
HAD
BEEN
COMMUNICATED
AS
mismatched but is found to be matched after rectification
by the supplier or recipient
SHALL
BE
finally accepted
AND
MADE
AVAILABLE
ELECTRONICALLY
TO
THE
recipient
IN
/2-
GSTMIS-1
THROUGH
THE
COMMON
PORTAL
(OWEVER

60. IF
THE
AMOUNT
IS
REDUCED
FROM
THE
OUTPUT
TAX
LIABILITY
in contra-
vention of the provisions of Section 42(7)
SHALL
BE
ADDED
TO
THE
OUTPUT
TAX
LIABILITY
OF
THE
RECIPIENT
IN
HIS
RETURN
FOR
THE
MONTH
IN
WHICH
SUCH
CONTRA-
VENTION
TAKES
PLACE
AND
SUCH
RECIPIENT
SHALL
BE
LIABLE
TO
PAY
INTEREST
ON
THE
AMOUNT
SO
ADDED
AT
THE
RATE
SPECIFIED
IN
3ECTION
OF
THE
'34
!CT

61. Section 42(1)(c) of GST Act, 2017 - !S
PER
THIS
SECTION

62. IF
THE
RECIPIENT
HAS
CLAIMED
THE
INPUT
TAX
CREDIT
ON
THE
SAME
INVOICE
MORE
THAN
ONCE
i.e. du-
plication of claims of input tax credit, THEN
IT
SHALL
BE
ONE
OF
THE
REASONS
FOR
MIS
MATCHES
Communication to the recipient in case of duplication of claims of input
tax credit - )T
SHALL
BE
COMMUNICATED
TO
THE
recipient IN
/2-
GST MIS-1
ELECTRONICALLY
THROUGH
THE
COMMON
PORTAL
Addition in the output tax liability - 4HE
AMOUNT
CLAIMED
AS
INPUT
TAX
CREDIT
THAT
IS
FOUND
TO
BE
IN
excess on account of duplication of claims
SHALL
BE
added to the output tax liability
OF
THE
RECIPIENT
IN
HIS
RETURN
FOR
THE
MONTH
IN
WHICH
THE
DUPLICATION
IS
COMMUNICATED
Payment of Interest by the recipient in case of addition of amount claimed
as Input Tax Credit in the Output Tax Liability - !
RECIPIENT
IN
WHOSE
OUTPUT
TAX
LIABILITY
ANY
AMOUNT
HAS
BEEN
ADDED
UNDER
3ECTION
OR

63. SHALL
BE
LIABLE
TO
PAY
INTEREST
AT
THE
RATE
SPECIFIED
UNDER
3ECTION
ON
THE
Para 38.2 $)6
2%452.3 1080

64. AMOUNT
SO
ADDED
FROM
THE
DATE
OF
AVAILING
OF
CREDIT
TILL
THE
CORRESPONDING
ADDITIONS
ARE
MADE
UNDER
THE
SAID
SUB
SECTIONS
Refund of Interest in case of reduction in the Output Tax Liability: 4HE
IN-
TEREST
TO
BE
REFUNDED
shall be claimed by the registered person
IN
HIS
RETURN
IN
/2-
GSTR-3
AND
SHALL
BE
credited to his electronic cash ledger in FORM
GST PMT-05
AND
THE
AMOUNT
CREDITED
SHALL
BE
AVAILABLE
FOR
PAYMENT
OF
ANY
FUTURE
LIABILITY
TOWARDS
INTEREST
OR
THE
TAXABLE
PERSON
may claim refund of
the amount under section 54
URTHER

65. THE
AMOUNT
OF
INTEREST
TO
BE
CREDITED
IN
ANY
CASE
SHALL
NOT
EXCEED
THE
AMOUNT
OF
INTEREST
PAID
BY
THE
SUPPLIER
38.3 MATCHINGCONCEPTINREGARDTOREDUCTIONINOUTPUT
TAX LIABILITY
OR
THE
PURPOSE
OF
UNDERSTANDING
THIS
TOPIC

66. 3ECTION
OF
THE
'34
!CT

67. HAS
TO
BE
READ
WITH
2ULES

68. AND
OF
THE
'34
2ULES

69. Reduction in Output Tax Liability by way of Credit Note : 3ECTION
37
DEFINES
hCREDIT
NOTEv
AS
A
DOCUMENT
ISSUED
BY
A
REGISTERED
PERSON
UNDER
3ECTION
OF
THE
'34
!CT

70. 4HE
SITUATIONS
IN
WHICH
THE
CREDIT
NOTE
CAN
BE
RAISED
BY
THE
TAXPAYER
ARE
MENTIONED
BELOW
‹
7HERE
A
TAX
INVOICE
HAS
BEEN
ISSUED
FOR
SUPPLY
OF
ANY
GOODS
OR
SERVICES
AND
THE
TAXABLE
VALUE
OR
TAX
CHARGED
IN
THAT
TAX
INVOICE
IS
FOUND
TO
exceed
THE
TAXABLE
VALUE
OR
TAX
PAYABLE
IN
RESPECT
OF
SUCH
SUPPLY

71. OR
‹
7HERE
THE
GOODS
SUPPLIED
ARE
returned
BY
THE
RECIPIENT

72. OR
‹
7HERE
GOODS
OR
SERVICES
SUPPLIED
ARE
FOUND
TO
BE
deficient
4HE
REGISTERED
PERSON

73. WHO
HAS
SUPPLIED
SUCH
GOODS
OR
SERVICES
OR
BOTH

74. may
ISSUE
TO
THE
RECIPIENT
A
CREDIT
NOTE
CONTAINING
SUCH
PARTICULARS
AS
MAY
BE
PRESCRIBED
)N
THIS
CASE

75. UNLIKE
DEBIT
NOTE

76. IT
IS
UPON
THE
DISCRETION
OF
THE
SUPPLIER
WHETHER
HE
WANTS
TO
RAISE
CREDIT
NOTE
OR
NOT

77. AS
BECAUSE
ISSUANCE
OF
CREDIT
NOTE
SIMULTANEOUSLY
REDUCES
THE
TAX
LIABILITY
!NY
REGISTERED
PERSON
WHO
ISSUES
A
CREDIT
NOTE
IN
RELATION
TO
A
SUPPLY
OF
GOODS
OR
SERVICES
SHALL
DECLARE
THE
DETAILS
OF
SUCH
CREDIT
NOTE
in the re-
turn for the month during which such credit note has been issued
BUT
NOT
LATER
THAN
3EPTEMBER
FOLLOWING
THE
END
OF
THE
FINANCIAL
YEAR
IN
WHICH
SUCH
SUPPLY
WAS
MADE

78. OR
THE
DATE
OF
FURNISHING
OF
THE
RELEVANT
ANNUAL
RETURN

79. WHICHEVER
IS
EARLIER
4HE
TAX
LIABILITY
SHALL
BE
ADJUSTED
IN
SUCH
MANNER
AS
MAY
BE
PRESCRIBED
(OWEVER

80. IT
MUST
BE
PERTINENT
TO
NOTE
THAT
THERE
SHALL
BE
NO
REDUCTION
IN
OUTPUT
TAX
LIABILITY
OF
THE
SUPPLIER
IF
THE
incidence of tax and interest on
such supply has been passed on
TO
ANY
OTHER
PERSON
1081 #(
-!4#().'
#/.#%04 Para 38.3

81. Matching of claim of reduction in the Output Tax Liability - 3O
THE
DETAILS
OF
THE
CREDIT
NOTE
FURNISHED
IN
THE
'342
SHALL
BE
MATCHED
AS
PER
3ECTION
READ
WITH
2ULE
a
with
THE
CORRESPONDING
reduction in the claim for input tax credit
BY
THE
recipient
IN
HIS
VALID
RETURN
FOR
THE
SAME
TAX
PERIOD
OR
ANY
SUBSEQUENT
TAX
PERIOD
AND
b
for
DUPLICATION
OF
CLAIMS
FOR
REDUCTION
IN
OUTPUT
TAX
LIABILITY
Time of matching - 4HE
CLAIM
OF
REDUCTION
IN
OUTPUT
TAX
LIABILITY
SHALL
BE
MATCHED
UNDER
3ECTION
after the due date for furnishing the return in
FORM GSTR-3
Parameters for matching - #ERTAINLY
FOR
MATCHING
ANY
DATA
THERE
WOULD
BE
CERTAIN
PARAMETERS
ON
THE
BASIS
OF
WHICH
THE
MATCHING
EXERCISE
CAN
BE
CARRIED
OUT
BY
THE
GOVERNMENT
IS
AS
MENTIONED
BELOW
a
'34).
OF
THE
supplier
b
'34).
OF
THE
recipient
c
#REDIT
.OTE
number
d
#REDIT
.OTE
date
AND
e
Tax
AMOUNT
Auto-Extension in the date of matching - 7HERE
THE
TIME
LIMIT
FOR
FURNISHING
'342
AND
'342
HAS
BEEN
EXTENDED

82. THE
DATE
OF
MATCHING
RELATING
TO
CLAIM
OF
REDUCTION
IN
THE
OUTPUT
TAX
LIABILITY
SHALL
BE
EXTENDED
ACCORDINGLY
Power to extend the date of matching -
4HE
Commissioner
MAY

83. ON
THE
RECOMMENDATIONS
OF
THE
#OUNCIL

84. BY
order

85. EXTEND
THE
DATE
OF
MATCHING
RELATING
TO
CLAIM
OF
REDUCTION
IN
THE
OUTPUT
TAX
LIABILITY
TO
SUCH
DATE
AS
MAY
BE
SPECIFIED
THEREIN
Treated as matched - 4HE
CLAIM
OF
REDUCTION
IN
OUTPUT
TAX
LIABILITY
DUE
TO
ISSUANCE
OF
CREDIT
NOTES
IN
/2-
'342
THAT
WERE
accepted
BY
THE
CORRE-
SPONDING
RECIPIENT
IN
/2-
GSTR-2 without amendment
SHALL
BE
TREATED
AS
matched
IF
THE
SAID
RECIPIENT
HAS
FURNISHED
A
VALID
RETURN
URTHER

86. THE
CLAIM
OF
REDUCTION
IN
THE
OUTPUT
TAX
LIABILITY
SHALL
BE
CONSID-
ERED
AS
MATCHED
WHERE
THE
AMOUNT
OF
OUTPUT
TAX
LIABILITY
AFTER
TAKING
INTO
ACCOUNT
THE
REDUCTION
CLAIMED
IS
EQUAL
TO
OR
MORE
THAN
THE
CLAIM
OF
INPUT
TAX
CREDIT
AFTER
TAKING
INTO
ACCOUNT
THE
REDUCTION
ADMITTED
AND
DISCHARGED
ON
SUCH
CREDIT
NOTE
BY
THE
CORRESPONDING
RECIPIENT
IN
HIS
VALID
RETURN
Process when the inward supplies gets matched with the corresponding
outward supplies - )F
THE
CLAIM
FOR
REDUCTION
IN
OUTPUT
TAX
LIABILITY
BY
THE
SUPPLIER
GETS
MATCH
WITH
THE
CORRESPONDING
REDUCTION
IN
THE
CLAIM
FOR
INPUT
TAX
CREDIT
BY
THE
RECIPIENT
SHALL
BE
finally accepted. 0OST
ACCEPTANCE
OF
SUCH
CLAIM

87. THE
ACCEPTANCE
SHALL
BE
communicated TO
THE
supplier
Para 38.3 $)6
2%452.3 1082

88. Communication to the supplier on claim being accepted - 4HE
FINAL
AC-
CEPTANCE
OF
CLAIM
OF
REDUCTION
IN
OUTPUT
TAX
LIABILITY
IN
RESPECT
OF
ANY
TAX
PERIOD
SHALL
BE
MADE
AVAILABLE
ELECTRONICALLY
TO
THE
PERSON
MAKING
SUCH
CLAIM
IN
/2-
'34
-)3
THROUGH
THE
COMMON
PORTAL
Reasonsofmismatchordiscrepancy - 4HERE
ARE
BROADLY
TWO
SECTIONS
WHICH
STIPULATES
THE
REASONS
FOR
SUCH
MIS
MATCHES
NAMELY
3ECTION
a
AND
3ECTION
b
OF
THE
'34
!CT

89. Section43(1)(a)ofGSTAct,2017-7HERE
THE
REDUCTION
OF
OUTPUT
TAX
LIABILITY
IN
RESPECT
OF
OUTWARD
SUPPLIES
exceeds
THE
corresponding reduction in the
claim for input tax credit
OR
the corresponding credit note is not declared by
the recipient in his valid returns

90. THE
DISCREPANCY
SHALL
BE
COMMUNICATED
TO
both
SUCH
PERSONS
IN
SUCH
MANNER
AS
MAY
BE
PRESCRIBED
Communication to both the supplier and recipient - 4HE
DISCREPANCY
SHALL
BE
COMMUNICATED
TO
BOTH
SUCH
PERSONS
IN
SUCH
MANNER
AS
MAY
BE
PRE-
SCRIBED
!NY
DISCREPANCY
IN
CLAIM
OF
REDUCTION
IN
OUTPUT
TAX
LIABILITY
SHALL
BE
MADE
AVAILABLE
THROUGH
THE
COMMON
PORTAL
ON
OR
BEFORE
THE
LAST
DATE
OF
THE
MONTH
IN
WHICH
THE
MATCHING
HAS
BEEN
CARRIED
OUT
TO
‹
4HE
supplier
MAKING
SUCH
CLAIM
ELECTRONICALLY
IN
/2-
GST MIS- 1
AND
‹
4HE
recipient
ELECTRONICALLY
IN
/2-
GST MIS- 2
Opportunity to rectify the discrepancies
‹
Option to the supplier: !
SUPPLIER
TO
WHOM
ANY
DISCREPANCY
IS
MADE
AVAILABLE
may
MAKE
SUITABLE
rectifications
IN
THE
STATEMENT
OF
OUT-
WARD
SUPPLIES
i.e. '342
TO
BE
FURNISHED
for the month in which
the discrepancy is made available
2ECTIFICATION
BY
A
SUPPLIER
MEANS
deleting
OR
correcting
THE
DETAILS
OF
AN
OUTWARD
SUPPLY
IN
HIS
VALID
RETURN
SO
AS
TO
match the details of corresponding inward supply
DECLARED
BY
THE
RECIPIENT
‹
Option to the recipient: !
RECIPIENT
TO
WHOM
ANY
DISCREPANCY
IS
MADE
AVAILABLE
may
MAKE
SUITABLE
RECTIFICATIONS
IN
THE
STATEMENT
OF
INWARD
SUPPLIES
i.e. '342
TO
BE
FURNISHED
for the month in which the
discrepancy is made available
2ECTIFICATION
BY
THE
RECIPIENT
MEANS
adding
OR
correcting
THE
DETAILS
OF
AN
INWARD
SUPPLY
SO
AS
TO
match
the details of corresponding outward supply declared by the supplier
‹
If discrepancy not rectified then addition in the output tax liability
of the recipient: 4HE
AMOUNT
IN
RESPECT
OF
WHICH
ANY
DISCREPANCY
IS
COMMUNICATED
UNDER
3ECTION
AND
IS
not rectified by the
‘recipient’
IN
HIS
VALID
RETURN
FOR
THE
MONTH
IN
WHICH
DISCREPANCY
IS
COMMUNICATED
SHALL
BE
added to the output tax liability of the ‘sup-
plier’ IN
HIS
RETURN
4HE
AMOUNT
WHICH
SHALL
BE
ADDED
IN
THE
OUTPUT
1083 #(
-!4#().'
#/.#%04 Para 38.3

91. TAX
LIABILITY
SHALL
BE
for the month succeeding the month in which
the discrepancy is communicated
URTHER

92. WHERE
THE
DISCREPANCY
IS
NOT
RECTIFIED
BY
THE
@supplier’
OR
THE
@recipient’

93. AN
AMOUNT
TO
THE
EXTENT
OF
DISCREPANCY
SHALL
BE
ADDED
TO
THE
OUTPUT
TAX
LIABILITY
OF
THE
SUPPLIER
IN
HIS
RETURN
TO
BE
FURNISHED
IN
/2-
'342
FOR
THE
MONTH
SUCCEEDING
THE
MONTH
IN
WHICH
THE
DISCREPANCY
IS
MADE
AVAILABLE
Reduction in the output tax liability of the supplier in specified situation
- 4HE
supplier
SHALL
BE
ELIGIBLE
TO
reduce

94. FROM
HIS
OUTPUT
TAX
LIABILITY

95. THE
AMOUNT
ADDED
IN
THE
OUT
TAX
LIABILITY

96. if the recipient declares the details of
the credit note in his valid return
WITHIN
THE
time specified in Section 39(9)
OF
THE
'34
!CT

97. 4HE
TIME
SPECIFIED
UNDER
3ECTION
OF
THE
'34
!CT

98. SHALL
NOT
BE
AFTER
THE
DUE
DATE
FOR
FURNISHING
OF
RETURN
FOR
THE
MONTH
OF
3EPTEMBER
OR
THE
ACTUAL
DATE
OF
FURNISHING
OF
RELEVANT
ANNUAL
RETURN

99. WHICHEVER
IS
EARLIER
4HE
CLAIM
OF
REDUCTION
IN
OUTPUT
TAX
LIABILITY
IN
RESPECT
OF
ANY
TAX
PERIOD
WHICH
HAD
BEEN
COMMUNICATED
AS
mis-matched but is found to be matched
after rectification by the supplier or recipient
SHALL
BE
finally accepted
AND
MADE
AVAILABLE
ELECTRONICALLY
TO
THE
supplier
IN
/2-
'34
-)3
THROUGH
THE
COMMON
PORTAL
(OWEVER

100. IF
THE
AMOUNT
IS
REDUCED
FROM
THE
OUTPUT
TAX
LIABILITY
in contra-
vention of the provisions of Section 43(7)
SHALL
BE
ADDED
TO
THE
OUTPUT
TAX
LIABILITY
OF
THE
SUPPLIER
IN
HIS
RETURN
FOR
THE
MONTH
IN
WHICH
SUCH
CONTRA-
VENTION
TAKES
PLACE
AND
SUCH
RECIPIENT
SHALL
BE
LIABLE
TO
PAY
INTEREST
ON
THE
AMOUNT
SO
ADDED
AT
THE
RATE
SPECIFIED
IN
3ECTION
OF
THE
'34
!CT

101. Section 43(1)(b) of GST Act, 2017 - !S
PER
THIS
SECTION

102. IF
THE
RECIPIENT
HAS
CLAIMED
THE
REDUCTION
IN
OUTPUT
TAX
LIABILITY
ON
THE
SAME
CREDIT
NOTE
MORE
THAN
ONCE
i.e. duplication of claims for reduction in output tax liability,
THEN
IT
SHALL
BE
ONE
OF
THE
REASONS
FOR
MIS
MATCHES
Communication to the supplier - )T
SHALL
BE
COMMUNICATED
TO
THE
supplier
IN
/2-
GST MIS-1
ELECTRONICALLY
THROUGH
THE
COMMON
PORTAL
Addition in the output tax liability - 4HE
AMOUNT
CLAIMED
AS
REDUCTION
IN
OUTPUT
TAX
LIABILITY
THAT
IS
FOUND
TO
BE
on account of duplication of claims
SHALL
BE
added to the output tax liability
OF
THE
SUPPLIER
IN
HIS
RETURN
FOR
THE
MONTH
IN
WHICH
THE
DUPLICATION
IS
COMMUNICATED
Payment of Interest by the supplier - !
SUPPLIER
IN
WHOSE
OUTPUT
TAX
LIABILITY
ANY
AMOUNT
HAS
BEEN
ADDED
UNDER
3ECTION
OR
3ECTION

103. SHALL
BE
LIABLE
TO
PAY
INTEREST
AT
THE
RATE
SPECIFIED
UNDER
3ECTION
IN
RESPECT
OF
THE
AMOUNT
SO
ADDED
FROM
THE
DATE
OF
SUCH
CLAIM
FOR
REDUCTION
IN
THE
OUTPUT
TAX
LIABILITY
TILL
THE
CORRESPONDING
ADDITIONS
ARE
MADE
UNDER
THE
SAID
SUB
SECTIONS
Para 38.3 $)6
2%452.3 1084

104. Refund of Interest in case of reduction in the Output Tax Liability: 4HE
IN-
TEREST
TO
BE
REFUNDED
shall be claimed by the registered person
IN
HIS
RETURN
IN
/2-
GSTR-3
AND
SHALL
BE
credited to his electronic cash ledger in FORM
GST PMT-05
AND
THE
AMOUNT
CREDITED
SHALL
BE
AVAILABLE
FOR
PAYMENT
OF
ANY
FUTURE
LIABILITY
TOWARDS
INTEREST
OR
THE
TAXABLE
PERSON
may claim refund of
the amount under section 54
URTHER

105. THE
AMOUNT
OF
INTEREST
TO
BE
CREDITED
IN
ANY
CASE
SHALL
NOT
EXCEED
THE
AMOUNT
OF
INTEREST
PAID
BY
THE
SUPPLIER
38.4 MATCHING OF DETAILS FURNISHED BY THE E-COMMERCE
OPERATOR WITH THE DETAILS FURNISHED BY THE SUPPLIER
4HE
FOLLOWING
DETAILS
RELATING
TO
THE
SUPPLIES
MADE
THROUGH
AN
E
#OMMERCE
OPERATOR

106. AS
DECLARED
IN
/2-
'342

107. SHALL
BE
MATCHED
WITH
THE
CORRE-
SPONDING
DETAILS
DECLARED
BY
THE
SUPPLIER
IN
/2-
'342

108. a
3TATE
OF
PLACE
OF
SUPPLY
AND
b
NET
TAXABLE
VALUE
Communication and rectification of discrepancy in details furnished by
the e-commerce operator and the supplier - !NY
DISCREPANCY
IN
THE
DE-
TAILS
FURNISHED
BY
THE
operator
AND
THOSE
DECLARED
BY
THE
supplier shall
be made available to the supplier
ELECTRONICALLY
IN
/2-
GST MIS-3
AND
TO
THE
e-commerce operator
ELECTRONICALLY
IN
/2-
GST MIS-4
ON
THE
COMMON
PORTAL
ON
OR
BEFORE
THE
LAST
DATE
OF
THE
MONTH
IN
WHICH
THE
MATCHING
HAS
BEEN
CARRIED
OUT
!
supplier
OR
AN operator
TO
WHOM
ANY
DISCREPANCY
IS
MADE
AVAILABLE
MAY
MAKE
SUITABLE
RECTIFICATIONS
IN
THE
STATEMENT
OF
OUTWARD
SUPPLIES
TO
BE
FURNISHED
FOR
THE
MONTH
IN
WHICH
THE
DISCREPANCY
IS
MADE
AVAILABLE
7HERE
THE
DISCREPANCY
IS
NOT
RECTIFIED

109. AN
AMOUNT
TO
THE
EXTENT
OF
DISCREP-
ANCY
SHALL
BE
ADDED
TO
THE
OUTPUT
TAX
LIABILITY
OF
THE
SUPPLIER
IN
HIS
RETURN
IN
/2-
'342
FOR
THE
MONTH
SUCCEEDING
THE
MONTH
IN
WHICH
THE
DETAILS
OF
DISCREPANCY
ARE
MADE
AVAILABLE
AND
SUCH
ADDITION
TO
THE
OUTPUT
TAX
LIA-
BILITY
AND
INTEREST
PAYABLE
THEREON
SHALL
BE
MADE
AVAILABLE
TO
THE
SUPPLIER
ELECTRONICALLY
ON
THE
COMMON
PORTAL
IN
/2-
'34
-)3
38.5 SYSTEM BASED RECONCILIATION OF INFORMATION FUR-
NISHEDINFORMGSTR-1ANDFORMGSTR-2WITHFORMGSTR-3B
ASPERCIRCULARNO.7/7/2017-GSTDATED1STSEPTEMBER,2017
Introduction - 3ECTIONS

110. AND
OF
THE
#'34
!CT

111. HEREINAFTER
REFERRED
TO
AS
@THE
!CT
READ
WITH
RULES

112. AND
OF
THE
#'34
2ULES

113. HEREINAFTER
REFERRED
TO
AS
@THE
2ULES
REQUIRE
EVERY
REGISTERED
PERSON
TO
FURNISH
DETAILS
OF
OUTWARD
SUPPLIES
MADE
IN
A
MONTH
IN
/2-
'342

114. 1085 #(
-!4#().'
#/.#%04 Para 38.5

115. DETAILS
OF
INWARD
SUPPLIES
RECEIVED
IN
A
MONTH
IN
/2-
'342
AND
A
RETURN
IN
/2-
'342
BY
THE
TH

116. TH
AND
TH
OF
THE
NEXT
MONTH
RESPECTIVELY
+EEPING
IN
VIEW
THAT
TAXPAYERS
MAY
FACE
CERTAIN
ISSUES
IN
THE
INITIAL
DAYS
AFTER
THE
INTRODUCTION
OF
'34

117. THE
'34
#OUNCIL
EXTENDED
THE
DATE
FOR
FILING
OF
/2-
'342
AND
/2-
'342
FOR
THE
MONTHS
OF
*ULY
AND
!UGUST

118. AND
APPROVED
THE
FILING
OF
A
SIMPLIFIED
RETURN
IN
/2-
'342
FOR
THESE
TWO
MONTHS
BY
THE
NOTIFIED
DUE
DATES
AFTER
MAKING
THE
DUE
PAYMENT
OF
TAX
4HE
SAME
HAS
BEEN
EXTENDED
FOR
FURTHER
FOUR
MONTH
UPTO
$ECEMBER

119. vide 0RESS
2ELEASE
DATED
TH
3EPTEMBER

120. 2ECOMMENDATIONS
MADE
BY
THE
'34
#OUNCIL
IN
THE
ST
MEETING
AT
(YDERABAD
2EGISTERED
PERSONS
OPTING
TO
UTILIZE
TRANSITIONAL
CREDIT
AVAILABLE
UNDER
SEC-
TION
OF
THE
!CT
READ
WITH
THE
RULES
MADE
THERE
UNDER
FOR
DISCHARGING
THE
TAX
LIABILITY
FOR
THE
MONTH
OF
*ULY

121. WERE
REQUIRED
TO
FILE
/2-
'34
42!.
ON
OR
BEFORE
TH
!UGUST

122. 4HIS
TRANSITIONAL
CREDIT
WAS
TO
BE
CREDITED
TO
THE
ELECTRONIC
CREDIT
LEDGER
AND
BE
AVAILABLE
FOR
DISCHARGING
THE
TAX
LIABILITY
!S
PER
0RESS
2ELEASE
DATED
TH
3EPTEMBER

123. 2ECOMMENDATIONS
MADE
BY
THE
'34
#OUNCIL
IN
THE
ST
MEETING
AT
(YDERABAD
/2-
'34
42!.
CAN
BE
REVISED
ONCE
URTHER

124. THE
DUE
DATE
FOR
SUBMISSION
OF
/2-
'34
42!.
HAS
BEEN
EXTENDED
BY
ONE
MONTH
i.e. ST
/CTOBER

125. !S
PER
THE
PROVISIONS
OF
SUB
RULE
OF
RULE
OF
THE
2ULES

126. THE
RETURN
IN
/2-
'342
WAS
REQUIRED
TO
BE
FURNISHED
WHEN
THE
DUE
DATES
FOR
FILING
OF
/2-
'342
AND
/2-
'342
HAVE
BEEN
EXTENDED
!FTER
THE
RETURN
IN
/2-
'342
HAS
BEEN
FURNISHED

127. THE
PROCESS
OF
RECONCILIATION
BETWEEN
THE
INFORMATION
FURNISHED
IN
/2-
'342
WITH
THAT
FURNISHED
IN
/2-
'342
AND
/2-
'342
WOULD
BE
CARRIED
OUT
IN
ACCORDANCE
WITH
THE
PROVISIONS
OF
SUB
RULE
OF
RULE
OF
THE
2ULES
4HE
DETAILED
PROCEDURE
FOR
RECONCILIATION
OF
INFORMATION
FURNISHED
IN
/2-
'342
AND
/2-
'342
IS
DETAILED
IN
SUCCEEDING
PARAS
Furnishing of information in FORM GSTR- 1 FORM GSTR-2 - )T
MAY
BE
NOTED
THAT
AFTER
THE
REGISTERED
PERSON
HAS
FILED
HIS
RETURN
IN
/2-
'342
AND
THE
STATEMENT
OF
OUTWARD
SUPPLIES
IN
/2-
'342

128. THE
INWARD
SUPPLIES
SHALL
BE
AUTO
DRAFTED
FOR
ALL
REGISTERED
PERSONS
CORRESPONDING
RECIPIENTS
OF
SUPPLY
AND
MADE
AVAILABLE
TO
THEM
IN
/2-
'342
!
AS
PER
SUB
RULE
OF
RULE
OF
THE
2ULES
/2-
'342
!
IS
THE
EXACT
REPLICA
OF
/2-
'342
CONTAINING
ONLY
THOSE
DETAILS
THAT
ARE
AUTO
POPULATED
FROM
THE
DETAILS
FUR-
NISHED
IN
/2-
'342
BY
THE
CORRESPONDING
SUPPLIERS
ASED
ON
THE
DETAILS
COMMUNICATED
IN
/2-
'342
!

129. THE
REGISTERED
PERSON
SHALL
PREPARE
THE
STATEMENT
OF
INWARD
SUPPLIES
IN
/2-
'342
BY
a
ADDING

130. DELETING
OR
MODIFYING
THE
INVOICE
LEVEL
DETAILS
COMMUNICATED
IN
/2-
'342
!
Para 38.5 $)6
2%452.3 1086

131. b
ADDING
INFORMATION
PERTAINING
TO
DETAILS
THAT
ARE
REQUIRED
TO
BE
FUR-
NISHED
IN
'342
BUT
ARE
NOT
PART
OF
/2-
'342
!
LIKE
DETAILS
OF
IMPORTS

132. DETAILS
OF
SUPPLIES
ATTRACTING
REVERSE
CHARGE
THAT
HAVE
BEEN
RECEIVED
BY
REGISTERED
PERSON
c
PROVIDING
DETAILS
OF
SUPPLIES
RECEIVED
FROM
COMPOSITION
SUPPLIERS
AND
EXEMPT

133. NIL
RATED
NON
'34
INWARD
SUPPLIES
(d
PROVIDING
DETAILS
OF
ADVANCES
PAID
ON
INWARD
SUPPLIES
ATTRACTING
REVERSE
CHARGE

134. IF
ANY

135. ALONG
WITH
ADJUSTMENTS
e
PROVIDING
DETAILS
OF
REVERSAL
OF
)4#
AS
PER
THE
PROVISIONS
OF
RULES

136. AND
OF
THE
2ULES

137. IF
ANY
AND
(f
PROVIDING
(3.
WISE
SUMMARY
DETAILS
OF
INWARD
SUPPLIES
Correction of erroneous details furnished in FORM GSTR-3B - )N
CASE
THE
REGISTERED
PERSON
INTENDS
TO
AMEND
ANY
DETAILS
FURNISHED
IN
/2-
'342

138. IT
MAY
BE
DONE
IN
THE
/2-
'342
OR
/2-
'342

139. AS
THE
CASE
MAY
BE
OR
EXAMPLE

140. WHILE
PREPARING
AND
FURNISHING
THE
DETAILS
IN
/2-
'342

141. IF
THE
OUTWARD
SUPPLIES
HAVE
BEEN
UNDER
REPORTED
OR
EXCESS
REPORTED
IN
/2-
'342

142. THE
SAME
MAY
BE
CORRECTLY
REPORTED
IN
THE
/2-
'342
3IMILAR-
LY

143. IF
THE
DETAILS
OF
INWARD
SUPPLIES
OR
THE
ELIGIBLE
)4#
HAVE
BEEN
REPORTED
LESS
OR
MORE
THAN
WHAT
THEY
SHOULD
HAVE
BEEN

144. THE
SAME
MAY
BE
REPORTED
CORRECTLY
IN
THE
/2-
'342
4HIS
WILL
GET
REFLECTED
IN
THE
REVISED
OUTPUT
TAX
LIABILITY
OR
ELIGIBLE
)4#

145. AS
THE
CASE
MAY
BE

146. OF
THE
REGISTERED
PERSON
4HE
DETAILS
FURNISHED
IN
/2-
'342
AND
/2-
'342
WILL
BE
AUTO
POPULATED
AND
REFLECTED
IN
THE
RETURN
IN
/2-
'342
FOR
THAT
PARTICULAR
MONTH
Action on the system-based reconciliation - !FTER
THE
REGISTERED
PERSON
HAS
FURNISHED
THE
STATEMENT
OF
INWARD
SUPPLIES
IN
/2-
'342
BY
THE
EXTENDED
DATE

147. THE
COMMON
PORTAL
SHALL
AUTO
DRAFT
0ART
!
OF
THE
RETURN
IN
/2-
'342
FOR
THE
SAID
MONTH
BASED
ON
THE
INFORMATION
FURNISHED
IN
/2-
'342
AND
/2-
'342
ASED
ON
THE
REVISED
FIGURES
OF
OUTPUT
TAX
LIABILITY
AND
ELIGIBLE
INPUT
TAX
CREDIT

148. 4ABLE
OF
0ART
OF
/2-
'342
SHALL
BE
MADE
AVAILABLE
4HE
COMMON
PORTAL
WOULD
POPULATE
THE
CORRECT
FIGURES
OF
TAX
PAYABLE
IN
COLUMN
OF
4ABLE
OF
/2-
'342

149. BASED
ON
THE
INFORMATION
FURNISHED
IN
/2-
'342
AND
/2-
'342
The tax
paid through the electronic cash ledger and electronic credit ledger in the
return in FORM GSTR- 3B shall be displayed by the system in columns (3) to
(7) of the Table 12 of Part B of FORM GSTR-3.
7HERE
THERE
IS
NO
DIFFERENCE
BETWEEN
THE
DETAILS
OF
OUTPUT
TAX
LIABILITY
AND
ELIGIBLE
INPUT
TAX
CREDIT
FURNISHED
IN
/2-
'342
AND
THE
DETAILS
FURNISHED
IN
/2-
'342
AND
/2-
'342

150. THE
AMOUNT
OF
TAX
PAYABLE
AND
TAX
PAID
SHALL
BE
THE
SAME
IN
/2-
'342
AND
/2-
'342
4HE
PERSON
CAN
SIGN
AND
SUBMIT
/2-
'342
WITHOUT
ANY
ADDITIONAL
PAYMENT
OF
TAX
1087 #(
-!4#().'
#/.#%04 Para 38.5

151. Additional payment of taxes - 7HERE
THE
TAX
PAYABLE
BY
A
REGISTERED
PERSON
AS
PER
/2-
'342
IS
MORE
THAN
WHAT
HAS
BEEN
PAID
AS
PER
/2-
'342

152. THE
COMMON
PORTAL
WOULD
SHOW
ANOTHER
INSTANCE
OF
4ABLE
FOR
MAKING
ADDITIONAL
PAYMENT
OF
TAXES

153. IN
ACCORDANCE
WITH
THE
MANDATE
OF
CLAUSE
b
OF
SUB
RULE
OF
RULE
!S
THE
TAX
PAYABLE
IN
COLUMN
OF
4ABLE
OF
/2-
'342
IS
MORE
THAN
WHAT
WAS
SHOWN
IN
/2-
'342

154. THE
ADDITION-
AL
AMOUNT
OF
TAX
PAYABLE
CAN
BE
PAID
BY
DEBITING
THE
ELECTRONIC
CASH
OR
CREDIT
LEDGER
AS
PER
THE
PROVISIONS
CONTAINED
IN
SECTION
OF
THE
!CT
along
with applicable interest on delayed payment of tax
STARTING
FROM
TH
DAY
OF
!UGUST

155. TILL
THE
DATE
OF
DEBIT
IN
THE
ELECTRONIC
CASH
OR
CREDIT
LEDGER
)F
THE
ELIGIBLE
)4#
CLAIMED
BY
THE
PERSON
IN
/2-
'342
IS
LESS
THAN
THE
)4#
CLAIMED
AND
UTILISED
BY
THE
REGISTERED
PERSON
IN
/2-
'342

156. THE
SAME
WOULD
BE
ADDED
TO
HIS
OUTPUT
TAX
LIABILITY
AND
SHALL
HAVE
TO
BE
PAID
BY
HIM
ALONG
WITH
INTEREST
BY
DEBITING
THE
ELECTRONIC
CASH
OR
CREDIT
LEDGER
AS
PER
THE
PROVISIONS
CONTAINED
IN
SECTION
OF
THE
!CT
BEFORE
SUBMITTING
THE
RETURN
IN
/2-
'342
TO
COMPLETE
THE
PROCESS
)T
MAY
BE
NOTED
THAT
WHERE
THE
TRANSITIONAL
CREDIT
AS
DECLARED
IN
/2-
'34
42!.
IS
CREDITED
TO
THE
ELECTRONIC
CREDIT
LEDGER

157. THE
SAME
CAN
BE
UTILISED
FOR
THE
PAYMENT
OF
THE
SAID
ADDITIONAL
TAX
LIABILITY
Additional claim of eligible ITC - 7HERE
THE
ELIGIBLE
)4#
CLAIMED
BY
THE
TAXPAYER
IN
/2-
'342
IS
LESS
THAN
THE
)4#
ELIGIBLE
AS
PER
THE
DETAILS
FURNISHED
IN
/2-
'342

158. THE
ADDITIONAL
AMOUNT
OF
)4#
SHALL
BE
CREDITED
TO
THE
ELECTRONIC
CREDIT
LEDGER
OF
THE
REGISTERED
PERSON
WHEN
HE
SUBMITS
THE
RETURN
IN
/2-
'342
IN
ACCORDANCE
WITH
CLAUSE
c
OF
SUB
RULE
OF
RULE
(OWEVER

159. SIMULTANEOUSLY

160. IF
THERE
IS
AN
INCREASE
IN
THE
OUTPUT
TAX
LIABILITY

161. THE
REGISTERED
PERSON
CAN
UTILISE
THIS
ADDITIONAL
AMOUNT
OF
)4#
ELIGIBLE
AS
PER
THE
DETAILS
FURNISHED
IN
/2-
'342
ALONG
WITH
THE
BALANCE
IN
THE
ELECTRONIC
CASH
LEDGER

162. IF
REQUIRED

163. FOR
THE
PAYMENT
OF
THE
INCREASED
OUTPUT
TAX
LIABILITY
AND
SUBMIT
HIS
RETURN
IN
/2-
'342
Reduction in output tax liability - 7HERE
THE
OUTPUT
TAX
LIABILITY
OF
THE
REGISTERED
PERSON
AS
PER
THE
DETAILS
FURNISHED
IN
/2-
'342
AND
/2-
'342
IS
LESS
THAN
THE
OUTPUT
TAX
LIABILITY
AS
PER
THE
DETAILS
FURNISHED
IN
THE
/2-
'342
AND
THE
SAME
IS
NOT
OFFSET
BY
A
CORRESPONDING
REDUCTION
IN
THE
INPUT
TAX
CREDIT
TO
WHICH
HE
IS
ENTITLED

164. THE
excess shall be carried
forward to the next month’s return to be offset against the output liability
of the next month
BY
THE
TAXPAYER
WHEN
HE
SIGNS
AND
SUBMITS
THE
RETURN
IN
/2-
'342
(OWEVER

165. SIMULTANEOUSLY

166. IF
THERE
IS
A
DECREASE
IN
THE
ELIGIBLE
INPUT
TAX
CREDIT

167. THE
SAME
WILL
BE
ADJUSTED
AGAINST
THE
ABOVE
MENTIONED
REDUCTION
IN
OUTPUT
TAX
LIABILITY
AND
THE
BALANCE

168. IF
ANY

169. OF
THE
REDUCTION
IN
OUTPUT
TAX
LIABILITY
SHALL
BE
CARRIED
FORWARD
TO
THE
NEXT
MONTHS
RETURN
TO
BE
OFFSET
AGAINST
THE
OUTPUT
LIABILITY
OF
THE
NEXT
MONTH
Para 38.5 $)6
2%452.3 1088

170. Submission of GSTR-3B without payment of taxes - 7HERE

171. FOR
SOME
REA-
SONS

172. THE
REGISTERED
PERSON
HAS
ONLY
SUBMITTED
THE
RETURN
IN
/2-
'342
AND
HAS
not made the payment of taxes
BY
DEBITING
THE
SAME
FROM
HIS
ELECTRONIC
CASH
OR
CREDIT
LEDGER

173. the return shall still be subjected to the
reconciliation process as detailed above
3UCH
REGISTERED
PERSON
SHOULD
FURNISH
THE
DETAILS
IN
/2-
'342

174. /2-
'342
AND
SIGN
AND
SUBMIT
THE
RETURN
IN
/2-
'342
ALONG
WITH
THE
PAYMENT
OF
THE
DUE
TAXES
AS
PER
THE
PROVISIONS
OF
SECTION
OF
THE
!CT
(OWEVER

175. SINCE
THE
PAYMENT
WAS
NOT
MADE
ON
OR
BEFORE
THE
DUE
DATE

176. THE
REGISTERED
PERSON
SHALL
BE
LIABLE
FOR
PAYMENT
OF
INTEREST
ON
DELAYED
PAYMENT
OF
TAX
STARTING
FROM
TH
DAY
OF
!UGUST

177. TILL
THE
DATE
OF
DEBIT
IN
THE
ELECTRONIC
CASH
ANDOR
CREDIT
LEDGER
BUT
WILL
NOT
BE
LIABLE
TO
PAY
ANY
LATE
FEE
PROVIDED
THE
REQUISITE
RETURN
IN
/2-
'342
WAS
SUBMITTED
ON
OR
BEFORE
THE
DUE
DATE
7HERE
THE
REGISTERED
PERSON
HAS
NOT
SUBMITTED
THE
RETURN
IN
/2-
'342

178. HE
IS
REQUIRED
TO
FURNISH
THE
DETAILS
IN
/2-
'342
AND
/2-
'342
AND
SIGN
AND
SUBMIT
THE
RETURN
IN
/2-
'342
ALONG
WITH
THE
PAYMENT
OF
THE
DUE
TAXES
AS
PER
THE
PROVISIONS
OF
SECTION
OF
THE
!CT
(OWEVER

179. SINCE
THE
PAYMENT
WAS
NOT
MADE
ON
OR
BEFORE
THE
DUE
DATE

180. THE
REGISTERED
PERSON
SHALL
BE
LIABLE
FOR
PAYMENT
OF
INTEREST
ON
DELAYED
PAYMENT
OF
TAX
STARTING
FROM
TH
DAY
OF
!UGUST

181. TILL
THE
DATE
OF
DEBIT
IN
THE
ELECTRONIC
CASH
AND
OR
CREDIT
LEDGER
No late fee, however, would be levied for late filing of
return in terms of section 47 of the Act, in accordance with the recommen-
dation of the GST Council, as notified vide Notification No. 28/2017-Central
tax dated 01.09.2017
Processing of information furnished - !FTER
SUBMISSION
OF
THE
INFORMATION
IN
/2-
'342
AND
/2-
'342

182. THE
PROCESS
OF
MATCHING
AS
PER
SECTIONS

183. AND
OF
THE
!CT
READ
WITH
RULES
TO
OF
THE
2ULES
SHALL
BE
CARRIED
OUT
AS
IF
THESE
DETAILS
WERE
SUBMITTED
IN
THE
REGULAR
COURSE
!NY
AMENDMENT
IN
THE
DETAILS
FURNISHED
IN
/2-
'342
AND
'342
SHALL
BE
DONE
FOLLOWING
THE
PROCEDURE
LAID
DOWN
UNDER
SUB
SECTION
OF
SECTION
AND
SUB
SECTION
OF
SECTION
OF
THE
!CT
RESPECTIVELY
4HE
RETURN
SHALL
BE
CONSIDERED
TO
BE
A
VALID
RETURN
WHEN
THE
TAX
PAYABLE
AS
PER
/2-
'342
HAS
BEEN
PAID
IN
FULL
AFTER
WHICH
THE
RETURN
SHALL
BE
TAKEN
UP
FOR
MATCHING
1089 #(
-!4#().'
#/.#%04 Para 38.5

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