GST update on mismatch of invoice numbers

[Pradeep Jain]

Many steps have been taken by the Government for the smooth implementation of GST. But there are some problems being faced by the assesses especially the exporters relating to the Refund of IGST paid and unutilized credit. A set of Representations have already been sent by us requesting for solving the issue and providing relief. Among various issues faced the principal issue is that there is no proper mechanism for the purpose of verification of invoice numbers quoted under GST and custom. Exporters are required to generate a proforma invoice vis a vis a commercial invoice for the purpose of booking an export consignment on the port. This is the main document which is required by the buyer as well as required for filing of shipping bill. However, under GST a separate invoice is required to be generated for every single consignment of export and accordingly the payment of tax is made. Thus, the custom's site and the shipping bills normally have the details of commercial invoice while the GSTR-1 has the details of GST invoice which is issued at the time of each supply of goods to the port. Circular No. 42/2017 of customs dated 07.11.2017 has been issued giving clarification on the problems.

For the above stated issue, Clarification has been issued as follows:- “Analysis of data revealed that exporters have quoted different invoice numbers for GST and Customs purposes. Also, IGST paid amount indicated in GSTR-1 is not tallying with IGST paid amount indicated in shipping bill. As the same transaction is being reported under GST Act and Customs Act, the exporters may take care to ensure the details of invoice, such as invoice number, IGST paid etc, under GSTR 1 and Shipping bill match with each other.” It is worthwhile to mention here that this clarification only highlights the problem but does not provide any remedial measure; thus, the practical difficulties faced by the exporters remain intact even after issuing the clarification.