MATCHING OF ITC

1. The final credit is allowed only when details of supplies made by supplier match with the recipient's return of availing credit.
2. The matching has to be done in respect of GSTIN of supplier and GSTIN of recipient w.r.t. each supply and recipient, Invoice number, Debit Note number, Credit Note number; Taxable Value and Tax amount involved.
3. In case the details match or the return filed by supplier is accepted by recipient, the matter ends there. In such case an intimation of acceptance of credit would be sent to recipient in FORM GST MIS-1.
4. If details don't match and discrepancy is noticed, same would be communicated to both the supplier and recipient in case fault is that of supplier, or only to the recipient in case fault is that of recipient.
5. The discrepancies could be availing credit in excess of the tax declared by the supplier, or the outward supply is not declared by the supplier, or there is a duplication of claim of ITC by the recipient.
6. In case of difference of figures of amount of supplier and recipient or non-declaration of outward supply by supplier, the supplier would be asked to rectify the discrepancy in the return of month in which discrepancy is informed to him. In case of failure, such ITC would be added to the output tax liability of recipient next month.
7. Where ITC has been claimed in duplicate by recipient, same would be informed only to him and rectified in the month of communication. In case of failure, same would be added in the liability register of recipient.
8. Recipient is liable to pay an interest @ 18% on the amount added to the output tax liability from the date of availing the ITC till the discrepancy is reflected in returns.
9. In case the supplier rectifies the discrepancies after reversal of credit by recipient ITC can be reclaimed by recipient. In such a case, interest paid, if any would be refundable by crediting amount to the recipient's Electronic Cash Ledger.