Missing invoice concept in new GST return
Hemlata Khandenwal / 2020-05-25 10:28:41

To understand Missing Invoice Concept, we’ll be looking at three things

1. Meaning of missing invoice

2. Action to be taken by the recipient

3. Liability on supplier

While discussing the missing invoice we are going to deal with three different forms under the New GST return system.

1. Form GST Anx-1: 

In this form details of outdoor supplies and import, and inward supplies attracting reverse challan uploaded by the supplier.

2. Form GST Anx-2: 

It is for furnishing details of inward supplies

3. Form GST RET-1:

It is the main return that is to be file under the new GST return and most of the details in this return will be auto-populated from Form GST Anx-1 and Anx-2 of the registered person.

It can be a file on a monthly and quarterly basis depending on the turnover. Having understood this now, look at the meaning of missing Invoice

What is the meaning of the missing invoice?

Under this new system, the supplier is required to upload the invoice of the supplies made by him during the month in form GST Anx-1 up to the 10th of next month. This invoice will be posted continuously in the recipient’s viewing facility. And basis this invoice recipient can avail of an input tax credit. However, there may be circumstances where invoices and debit notes are not uploaded by suppliers.

Whether the recipient can still avail the credit on such invoices and debit notes?

At this point concept of missing invoices comes into play, that recipient can still avail the credit on such invoices and debit notes, which are not uploaded by the supplier, and such invoices and debit notes under this new system are called missing invoices.

  • However, one point which is to be noted is credit can be availed on the missing invoice only such credit eligible under the GST law. If credit is ineligible, then it cannot be avail. After looking at the meaning now we’ll see the various aspects of Missing invoice:

1. Action to be taken by the recipient:-

As discuss earlier recipient can avail credit on the missing invoice but for the purpose of avail credit, he has to disclose the amount of such credit in serial no.10 of table 4(a) of GST RET-1 while filing of GST RET-1 you can see in this form the Serial no. 10 is availing for a provisional input tax credit on documents not uploaded by the suppliers. Along with the claiming of this credit, the recipient is given time to follow-up with the supplier and get the missing invoice uploaded from the suppliers in Form-GST Anx-1. The time given to the recipient for follow up is two tax periods.

We will understand it by taking an example:-

1. Save purchase invoice is received by the recipient in October 2020, the suppliers not uploaded the invoice but the recipient is avail input tax credit in the month of October only.

2. So now the recipient has time to follow up with the supplier up to two tax periods that is November 2020 and December 2020. Now, two things can happen during this tax period.

  • Either supplier may upload the invoice 
  • He may not upload the invoice

So we’ll discuss the treatment in both the scenarios.

A. Let’s see what if the supplier uploads the invoice within 2 tax period- 

1. If the supplier uploads the invoice then the recipient has to reverse such credit in serial no. 3 of table 4(b) of form GST RET-1.

2. The recipient is requiring reversing the credit because the invoice uploaded by the suppliers will be available to the recipient for the purpose of taking credit in his form GST Anx-2.

3. As the recipient is already availed credit in October 2020 in the example he cannot take the credit for the same invoice twice and therefore the reversal has to be done.

4. I would like to highlight that earlier as a credit claim on the missing invoice was after excluding ineligible credit so values in serial no. 3 of table 4 (b) should also be reported as net of ineligible credit only.

Note: the supplier and the recipient must have GST registration to avail of the credit.

B. Now look at the second possibility, if the supplier does not upload the invoice within 2 tax periods-

1. Let’s, continue with our example where concern supplier has not uploaded the invoice in his form GST Anx-1 of October, November, December 2020 then the recipient has to report the same in table 3L of his Form GST Anx-1 of December. 2020. The details to be given document wise in table 3L.

2. The details of documents uploaded by the recipient will be communicated to the suppliers. Here is one important point which is to be noted is missing invoice shown in table 3L will not get the edit to the liability of recipient only information to be sent to the supplier.

3. The only liability of the recipient is to reverse the credit as in when the supplier uploads the invoice in the future since credit cannot be avail twice on the same invoice.

4. The reversal has to be done in serial 3 of table 4(b) of Form GST RET-1 as discussed earlier. 

5. If the recipient has opted to file form GST RET-1 quarterly then such missing invoice has to be reported in the quarter immediately subside in the quarter in which credit was claimed.

2. Now we look at the second Aspect of the missing invoice that is Liability of supplier-

The supplier has to report the missing invoice as form GST Anx-1 in the relevant table he is also liable to pay interest because of delay payment of tax. 

Currently, the rate of interest on delayed payment of taxes is 18%. So, all these things are kept in mind relating to the missing invoice as per the latest update of government this facility of availing input tax credit in the missing invoice will be available for the period of six months after the system of new GST return filing is being implemented.

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