GSTN has issued a clarification for taxpayers regarding how to handle invoices, debit notes, and credit notes that were wrongly rejected by recipients in the Invoice Matching System (IMS), even though GSTR-3B was already filed. The update primarily addresses how ITC (Input Tax Credit) can still be availed or reversed by both recipients and suppliers under such scenarios through corrections in GSTR-1A or amendment tables in GSTR-1/IFF within the allowed timelines.

Question 1: How can a recipient avail ITC of wrongly rejected Invoices/ Debit notes/ECO-Documents in IMS as corresponding GSTR-3B of same tax period was also filed by recipient?

Answers: If a recipient mistakenly rejects an invoice, debit note, or ECO document in IMS, and has already filed GSTR-3B for the same period, they can still avail ITC. This is possible if the supplier re-reports the same record (unchanged) either in GSTR-1A of the same period or through the amendment table of a subsequent GSTR-1/IFF. The recipient must then accept this record on IMS and recompute GSTR-2B. Full ITC of the amended record can then be claimed in the tax period in which the amendment is reflected.

Question 2: If any original record is rejected by the recipient and supplier furnishes the same record in GSTR-1A of same tax period or in the amendment table of GSTR-1/IFF of subsequent period, till the specified time limit, then what impact it will have on supplier’s liability?

Answers: Where a supplier re-reports the same record (already rejected by the recipient) in GSTR-1A or in a later GSTR-1/IFF via the amendment table, there will be no increase in liability for the supplier, since amendment tables only carry delta values. If no change is made to the original value, the differential tax impact remains zero.

Question 3: As a recipient taxpayer, how to reverse ITC of wrongly rejected Credit note in IMS as the corresponding GSTR-3B has already been filed?

Answer: In cases where a recipient wrongly rejects a credit note and has already filed GSTR-3B, the supplier should furnish the same credit note again in GSTR-1A or the amendment table of a future period. The recipient can then reverse the ITC by accepting the amended record and recomputing GSTR-2B. The reversal will be equal to the value of the original rejected credit note.

Question 4: If any original Credit note was rejected by the recipient and supplier furnishes the same credit note in GSTR-1A of same tax period or in the amendment table of GSTR-1/IFF of any future tax-period, till the specified time limit, then what impact it will have on supplier’s liability?

Answer: Initially, the supplier’s liability increases when a credit note is rejected by the recipient. But once the supplier re-reports the same credit note in GSTR-1A or amendment tables, their liability is reduced by the same amount. Therefore, the net tax liability impact remains neutral for the supplier.