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Invoice mismatching

Presented by
The krishna District Accountants and Tax Consultants Association

Purchase mismatch reports


Case 1
 Input Tax Credit disallowed if seller has not paid tax
 Ex: Purchaser claimed Rs: 1 lakh Input Tax Credit, but
seller has not paid tax. Then Input Tax Credit will be
disallowed

Case 2
 Input Tax Credit disallowed if purchaser has delayed
taking Input Tax Credit beyond 3 months
 Ex: Purchaser has Rs: 1 laksh Input Tax Credit worth
purchases in March, He has to take Input Tax Credit
within 3 months. Otherwise the balance Input Tax
Credit will be disallowed

Case 3
 Purchaser invoices are matching seller invoices. Then
Total Input Tax Credit claimed by the purchaser will be
allowed
 Ex: Purchaser uploaded invoices for Rs: 10 lakhs. Seller
also uploaded invoices for Rs:10 lakhs. Then total Input
Tax Credit will be allowed

Case 4
 Purchaser uploaded less invoices, but seller has
uploaded more invoices. Then Input Tax Credit will be
restricted upto purchaser uploading
 Ex: Purchaser uploaded Rs: 1 lakh turnover, Seller
uploaded 2 lakhs turnover. Input Tax Credit on 1 lakh
only.

Case 5
 Purchaser uploaded more invoices, but seller
uploaded less invoices, then Input Tax Credit will be
restricted upto seller uploading.
 Ex: Purchaser uploaded Rs: 1 lakh, Seller uploaded
50,000. Input Tax Credit on 50,000 only will be allowed.

Case 6
 Purchaser claimed more Input Tax Credit in VAT 200
returns but uploaded less invoices. Input Tax Credit will
be restricted to invoices only.
 Ex: Input Tax Credit as per return is 1 lakh. Input Tax
Credit as per invoices 90,000. Then Input Tax Credit
eligibility is Rs: 90,000 only

Seller Mismatch report


Case 1
 Seller uploaded less invoices, purchaser more invoices.
Then it is treated as sales suppression by the seller
 Ex: Seller uploaded Rs: 1 lakh Invoices
Purchaser uploaded Rs: 2 lakh Invoices
Sales suppression Rs: 1 lakh

Case 2
 Seller reported less in VAT 200 returns, but uploaded
more invoices. Then also it is treated as sales
suppression by the seller.
 Ex: Seller return turnover Rs: 1 lakh
Invoices turnover

Rs: 2 lakhs

Sales suppression

Rs: 1 lakh

Purchaser Mismatch report


Illustration with examples
VAT 200

Purchaser
invoices

Seller invoices

ITC

Reasons

Case1

1,00,000

1,00,000

NIL

Seller not
paid tax

Case 2

1,00,000

1,00,000

Restricted
beyond 3
months

ITC
restricted for
delay
claiming

Case 3

1,00,000

1,00,000

1,00,000

Total ITC
allowed

Case 4

1,00,000

2,00,000

1,00,000

ITC
restricted to
purchaser

Case 5

1,00,000

50,000

50,000

ITC
restricted to
seller

Case 6

1,00,000

1,00,000

1,00,000

ITC
restricted to
invoices

Seller Mismatch report


VAT 200 Purchaser Seller
invoices
invoices
Case 1

Case 2

Result

2,00,000 1,00,000 Sales


suppress
ion of
1,00,000
1,00,000
2,00,000 Sales
suppress
ion of
1,00,000

Dealers obligations
 To check your invoice mismatch reports
immediately.
 To upload all invoices by June 30.
 To ensure that your seller dealer also uploads
all invoices.
 To ensure that your seller dealer pay tax.
 To utilise edit option to rectify mistakes in
invoices that are uploaded.
 To utilise web services incase of bulk dealers
for auto copying in invoices, waybills, for
uploading invoices etc.

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