Concept of Missing Invoices under New GST Return

Now a question arises can recipient take credit of invoice that was not uploaded by the supplier in his GST return. 

As we all know that according to GST returns, suppliers are required to upload invoices of outward supplies, imports and inward supplies attracting reverse charge in Form GST Annex 1 up to 10th of the next month.

But in case of missing invoices first all we must understand what are “Missing Invoices”

We all know that the invoice will be posted continuously in the viewing facility of the recipient for the purpose of availing credit. However, many a times situation arise either due to some reason or other, invoices or debit notes are not uploaded by the supplier on the GST portal they are called as “missing invoices”

But according to a new return system, the recipient can avail credit of invoices or debit notes, and Credit can be availed on missing invoices provided such credit is not blocked as per Section 17 of the CGST Act, 2017.

By disclosing such missing invoices in table 4A(10) of Form GST RET-1. 

However, the recipient is not able to avail of the credit of invoices which is blocked under section 17 of the CGST Act. If Provisional input tax credit on documents not uploaded by the suppliers Also, the recipient is required to follow up with the supplier and get the missing invoice uploaded from him in Form GST ANX 1 within 2 tax period. 

For example Procurement made by recipients in May 2020. The supplier has not uploaded the same information in form GST Anx-1. In the present case, the tax period available for follow-up is June 2020 and July 2020.  

Following belongings can happen during these tax periods:

  •  Supplier uploads such an invoice within 2 tax periods If the supplier uploads the invoice then the recipient has to reverse such credit in table 4B(3) of Form GST RET-1 because the recipient has already availed credit and thus he cannot take credit of the same invoice twice.
  • If the Supplier does not upload the following Missing invoice within 2 tax period In this case recipient has to upload document wise details in table 3L of Form GST Anx -1. 

Information about missing invoice uploaded by the recipient then he must intimated to the supplier.

However, missing invoice shown in table 3L will not get added to the liability of recipient.   It is relevant to note that the liability of recipient is to reverse the credit when the supplier will upload the invoice in the future since credit cannot be availed twice on the same invoice. If the recipient has opted to file Form RET-1 on a quarterly basis then such missing invoices have to be reported in the quarter immediately succeeding the quarter in which credit was claimed.

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