MISMATCH REPORT

MISMATCH REPORT

As a law, GST has been structured on the fundamental principle of matching of invoices. The GST portal will do the matching and intimate both the parties with mismatch reports. One of the harshest provisions in the GST law is the one which states that if the mismatch that has not intimated is not rectified in the return for the next month, it will be added to the output tax liability. As a concept, when matching has not worked very well even for exciting areas like matrimony, one wonders how it would work with unexciting areas such as invoices. It is too early to slap the taxpayer with a tax liability within a month for the mistake of his counterparty. The GST Council would do well to retain the provisions for matching of invoices but defer the provision to add the mismatch to the tax liability of the supplier in the next month.

One look at the Mismatch report which form a part of the Rules is bound to put off anyone. This is how the complete form looks:

However, if we take a closer look at the form, we notice that it is broken up into four areas:

  • Finally Accepted Input Tax Credit
  • Mismatches/Duplicates that have led to increase of liability in the return for September filed by 20th October
  • Mismatches duplicates that will lead to increase of liability in the return for October filed by 20th November
  • Mismatches/Duplicates that may lead to increase of liability in the return for November to be filed by 20th December

The best part? It appears that all the columns will be autopopulated! Apart from this critical piece of information, everything else is mentioned in the format!
Considering the fact that GST is heavily dependent on forms, the CBEC should start providing detailed instructions on how to fill forms.

 
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