Communication and rectification of discrepancy in reduction in output tax liability and reversal of claim of reduction in respect of credit note :
Any discrepancy in claim of reduction in output tax liability, specified in section 43(3) and the details of output tax liability to be added under section 43(5) of CGST Act on account of continuation of such discrepancy shall be made available to the registered person making such claim electronically in form GST MIS – 3 and the recipient electronically in form GST MIS – 4 through the Common Portal on or before the last date of the month in which the matching has been carried out – rule 16(1) of CGST Rules.
A supplier to whom any discrepancy is made available under rule 16(1) may make suitable rectifications in the statement of outward supplies to be furnished for the month in which the discrepancy is made available – rule 16(2) of CGST Rules.
A recipient to whom any discrepancy is made available under sub-rule 16(1) may make suitable rectifications in the statement of inward supplies to be furnished for the month in which the discrepancy is made available – rule 16(3) of CGST Rules.
Where the discrepancy is not rectified under rule 16(2) or rule 16(3), an amount to the extent of discrepancy shall be added to the output tax liability of the supplier and debited to tax liability register and also shown in his return in form GSTR-3 for the month succeeding the month in which the discrepancy is made available – rule 16(4) of CGST Rules.
Rectification by a supplier means deleting or correcting the details of an outward supply in his valid return so as to match the details of corresponding inward supply declared by the recipient.
Rectification by the recipient means adding or correcting the details of an inward supply so as to match the details of corresponding outward supply declared by the supplier.