The document discusses key aspects of input tax credit (ITC) matching and returns under the Goods and Services Tax (GST) regime in India. It outlines the common GST portal that will be used for registration, returns and other functions. Taxpayers must update contact details on existing registrations and enroll on the GST portal. There are five main returns due on monthly basis for outward supplies, inward supplies, payment of taxes, and an annual return. ITC is provisional until returns are filed and matched between taxpayers. Unmatched credits are communicated and must be rectified to avoid loss of credit or tax liabilities.

1. SRD Legal, Advocates & ConsultantsSRD Legal, Advocates & Consultants
ITC Matching & Returns
Organized By. :-
SG Institute ofTax & Exim Management
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FACULTY :-

2. SRD Legal, Advocates & Consultants
Common Portal
 www.gst.gov.in
 Common portal for C. Excise & SalesTax/
CommercialTax Officers
 Used for:
◦ Registration
◦ Filing Returns
◦ Payment ofTax
◦ Maintaining ledgers of ITC & Cash Payments
◦ Claiming Refunds
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3. SRD Legal, Advocates & Consultants
Immediate Requirement
 Update your email ID & mobile number in
the C. Excise & ServiceTax registrations
 Enroll with the gst portal (gst.gov.in)
 Registration process would be taken up
somewhere in February, 2017
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4. SRD Legal, Advocates & Consultants
Five Main Returns
Form Details Due Date
GSTR-1 Statement of Outward Supplies 10th
GSTR-2 Statement of Inward Supplies 15th
GSTR-3 Return 20th
GSTR-6 Input Service Distributor 20th
GSTR-8 Annual Return 31st Dec
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5. SRD Legal, Advocates & Consultants
Outward Supplies
 Invoice level details to be uploaded on the
portal
◦ All B2B supplies
◦ All Inter-state supplies
◦ B2C supplies more than 2.5 lakh
 Rectification of errors permissible until
return for next year’s “September” is filed
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6. SRD Legal, Advocates & Consultants
Outward Supplies
 Invoice level details
B2B supplies, interstate and intrastate,
interstate B2C supplies more than Rs. 2.5
lakh
◦ GSTIN of recipient
◦ Invoice details – Number, date,Value, HSN/SAC,
Taxable value
◦ Tax – IGST, CGST, SGST – Rate andTax amount
◦ Place of Supply (relevant for interstate supplies)
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7. SRD Legal, Advocates & Consultants
Outward Supplies
 Taxable
 Exempted
 Non-GST Supplies
 Zero-Rated Supplies,
 Inter-State Supplies,
 Return of Inward Supplies (Purchase
Rejection/ Return),
 Exports,
 Debit Notes, Credit Notes, and
 Supplementary Invoices
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8. SRD Legal, Advocates & Consultants
Inward Supplies
 Auto-populated:The portal would provide
the outward supply details to the receiver.
 The receiver to verify, validate, modify or, if
required, delete the above details
 Claim non-auto-populated receipts:The
receiver to add details of such supplies that
have not been declared by the supplier
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9. SRD Legal, Advocates & Consultants
Inward Supplies
 Services under Reverse Charge
 Import of Services
 Import of Goods
 ISD Credit Received
 TDS Credit received
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10. SRD Legal, Advocates & Consultants
Pay Tax
 PayTax by debiting
◦ Electronic Credit Ledger; and/ or
◦ Electronic Cash Ledger
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11. SRD Legal, Advocates & Consultants
Return (GSTR-3)
 Auto-populated (from GSTR-1 and GSTR-2)
 Summary of Outward & Inward Supplies
 Tax Liability
◦ Tax on outward supplies
◦ Correction of output tax liability of previous
periods
◦ Amount payable due to reversal of ITC
 Payment Details:
◦ Debit to Credit Ledger
◦ Debit Cash Ledger
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12. SRD Legal, Advocates & Consultants
Return (GSTR-3)
 Return Invalid if Tax not paid
 Subsequent returns cannot be filed
 No supplies: Nil return mandatory
 Rectification of error to be reflected in
the current return (previously filed return
is not to be revised)
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13. SRD Legal, Advocates & Consultants
Matching of Credits
 What is matched
◦ Invoices
◦ Credit Notes
◦ Debit Notes
 Initial credits are considered provisional
 Credits are matched when the return is
filed
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14. SRD Legal, Advocates & Consultants
Unmatched Credits
 Duplicate claims – communicated. Liability
added to next month.
 Unmatched claims - communicated
◦ Supplier rectifies in his next GSTR-1
◦ Supplier doesn’t rectify – credit is denied;
liability is added to next month. Interest is
also payable.
◦ If supplier corrects the information later, its
again available (auto-populated in the current
GSTR-2)
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15. SRD Legal, Advocates & Consultants
ITC Mismatch Reports
 GST ITC-1A: Report to the recipient
 GST ITC-1B
 GST ITC-1C
 Matching of HSN Code would create
problem: what if the receiver & supplier
do not agree on the code?
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16. SRD Legal, Advocates & Consultants
Returns & Matching Process
Outward supply
Detail
Auto-populated at
Receiver’s end
Receiver to check &
correct (by 15th)
If supplier accepts
changes (by 17th),
GSTR-1 gets
amended
PayTax
(Pass Debit Entries)
File Return (GSTR-
3) Matching of Credits
Unmatched credits
communicated
Supplier to correct,
or receiver to loose
credit
Re-credit available if
supplier corrects
later
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17. SRD Legal, Advocates & Consultants
Annual Return
 Annual Summary
 Profit and Loss A/c details
 Certificate by CA
 Reconciliation Statement
 Arrears of taxes
 Refunds
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18. SRD Legal, Advocates & Consultants
Late filing
 Failure to file return:The system will issue
notice
 Late filing – Late fees of Rs. 100 per day
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19. SRD Legal, Advocates & Consultants
SG Institute ofTax & Exim Management
Thanks :-
SANJAYA.SONAWANE
M.COM,G.D.C.And A, EXIM,DITM,PGDBA,
Cell No.+919004815061/+919869506261
Email: gst@swayambhugroup.com
Web http://swayambhugroup.com/
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