Understanding GST ITC Mismatch During Conversion from Composition Dealer to Regular Dealer

This article demystifies Input Tax Credit (ITC) mismatches that arise when a taxpayer transitions from composition scheme to regular GST regime. It explains reconciliation challenges, like unclaimed credits or mismatched invoices, and advises taxpayers on proactive measures—filing amendments, seeking clarifications from suppliers, and using rectification schedules. Emphasizing documentation and technology tools, the piece aids businesses in navigating the transition without incurring undue penalties. (Word count: ~103)