Question 10 - What if the invoices do not match? Whether ITC given or denied? If denied, what action is taken against supplier? - FAQ on GST dated 21.9.2016 based on Draft Model GST

Q 10. What if the invoices do not match? Whether ITC given or denied? If denied, what action is taken against supplier? Ans. If invoices in GSTR-2 do not match with invoices in counter-party GSTR-1, the ITC will be reversed if the mismatch continues even after it is made known to both and still it is not rectified. Mismatch can be because of two reasons. First, it could be due to mistake at the side of the recipient, and in such a case, no further action is required. Secondly, it could be possible that the said invoice was issued by supplier but he did not upload it and pay tax on it. In such a case, recovery action shall be taken against the supplier. In short, all mismatches will lead to proceedings if the supplier has made a supply but not paid tax on it.