Supply not reported correctly in GST3B and GSTR-1 return, Goods and Services Tax - GST

[Prakash Gupta]

Dear Expert,

Need your view on below mentioned issues:

Facts of the case

Say a Company namely ABC forgot to mention a supply as well as GST liability thereon in form GSTR-3B and GSTR-1 in the month of Aug 2017, the GST liability was ₹ 100,000/-. The Company has noticed this mistake only in the month of the November 2018, while finalizing the annual return for the FY 2017-18. Further, The Company has always input tax credit balance exceeding ₹ 150,000/- during the period July 2017 to November 2018.

Query

1. Now how to rectify this mistake?

2. Is there is any interest liability on the Company? Even, after considering the fact that the Company always has GST credit in its credit ledger during the period of the error.

Posts / Replies

[RAGHAVENDRARAO SVS]

According to my knowledge the dealer is always have an option to pay the dues with interest in CASH before he receives notice from the Department. No credit adjustments are allowed after the filing of September month retun.

[KASTURI SETHI]

You will have to pay interest. There is a news that new format of Annual Return is in progress. You may get chance to rectify and match your GSTR 3 B with GSTR-1 before finalising your Annual Return. You will be able to file your Annual Return only after match both returns. So wait for a new proforma for Annual Return on Common Portal.

[Prakash Gupta]

Kasturi Sir,

Thanks for your reply. But please further light on liability of Interest question, keeping the fact that assessee has already had excess credit on supply GST in books of the accounts as well as on portal from the date of its liability , even till date it has not been utilized.

There was a bonafide mistake by the accountant while filling GSTR-3B and GSTR-1 return. However, due to mistakes of the assessee , there was no loss to revenue.

If my logic is not correct, please quote provision of the GST law, which say that set off liability on portal is GST is payment.

[KASTURI SETHI]

Dear Querist,

(1) Read Section 50(3) of CGST Act, 2017.

(2) You have CLAIMED ITC which was not admissible to you.

(3) You are liable to pay interest irrespective of the situation whether you utilised or not.There is no one to one correlation. You are talking about the position existed in pre-GST era.

(4) Go through Notification No. 13/2017-CT, dated 28-6-2017 (parallel Notification No. 6/2017-IT, dated 28-6-2017), the Government had notified ‘24%’ as the rate of interest for the purpose of Section 50(3) of the Act.

(5) Setting off liability in Common Portal System means amount of tax stands debited.