Companies pay GST twice as suppliers err in filings Genuine buyers, due to data mismatch, have to reverse their ITC claims - the sum involved for a large company could run into crores of rupees.

Genuine enterprises suffer even as taxmen bust networks of fake entities and bogus ITC claims running into hundreds of crores of rupees. GST data mismatch between the filings of the buyer and the seller debar the former from claiming ITC.

The problem arises when there is a mismatch between the GST data filed by the buyer and the seller. This can happen for a variety of reasons, such as:

-> The seller has not filed their GST returns correctly. -> The buyer has not entered the invoice details correctly in their GST return. -> There is a genuine error in the invoice.

When there is a data mismatch, the buyer is not allowed to claim ITC for the amount in question. This means that they have effectively paid GST twice, once to the supplier and then again to the government.

This problem is particularly acute for large companies, which may have to reverse ITC claims worth crores of rupees. This can have a significant impact on their cash flow and profitability.