Mis-match between ITC appearing in Form GSTR-2A and that claimed in Form GSTR-3B

Facts of the case

1. Show Cause Notice issued on 10th November 2020 asking for the reasons of mis-match.
2. OIO passed on 18th November 2020 confirming the demand.

Our Analysis

1. Show Cause Notice did not specify the date for which balance lying in Form GSTR-2A has been considered by the adjudication officer.
2. On 10th November 2020 i.e. the date of issue of SCN, there was adequate balance in Form GSTR-2A.
3. As per section 161 of the GST Act, authority who has passed the order can rectify the error apparent on the face of record.

Our Action

1. Application for rectification of error apparent on the face of record was submitted on 14th December 2020 and 08thJanuary 2021 asking to correct the error in mentioning the amount appearing in Form GSTR-2A as on 10th November 2020.

Department proceedings

1. Adjudication officer agreed to the presence of error and rectified / withdrawn the order by way of passing order in Form GST DRC-08.

Benefits to client

1. Client need not to file the appeal and hence saved themselves from the requirements to arrange funds to make pre-deposit of 10% of the disputed tax.
2. Saved the litigation cost as well as opportunity cost of funds to be blocked in pre-deposit.
3. No need to knock the doors of jurisdictional High Court by way of filing writ petition on the grounds of (a) issuance of OIO before 30 days, and (b) principles of natural justice.