Excess sales shown in 3B and excess GST Paid & ITC also taken for the same, Goods and Services Tax - GST

[AKReddy andCO]

Dear Sir,

We have a single GST registration for Telangana. But from July 2017 to July 2018 we have treated the supply from Hyderabad to Warangal (Both are in the same state) and vice versa as sales and purchase and accordingly shown in the GSTR-3B as sales and paid GST for same. Also we have taken ITC for same by treating sale from once station as purchase to other and vice versa.

This is happened purely due to the error of judgment from our side (as we confused for branch sales). This transaction is a revenue neutral to the government. Can we keep silent or do we need to up date this to the department.

Kindly advise and help us in taking proper course

Thanks in advance.

Posts / Replies

[SESHU KUMAR]

Dear sir,

Definitely you can't upload GSTR-1 by putting same GST number as it is self. Hence you will have difference between GSTR-1 vs 3B.

Since it is betalen same enti ty related branches in same state....Below are the remedies.

1. Communicate in detailed with monthly workings possible with a CA certificate...To department about the total return methodology.

2. As we have manual return for 2017-18 due by 30th june, 2019....The same can be detailed in the de confirmation and reporters so that there will not be any concern while assessment.

It all depends on how your consultant can present before your jurisdictional officer.

[Spudarjunan S]

The legal re-course which you can take is as follows:-

1. In regard to availment of wrong ITC ( Complex and Dubiety)

Reverse such wrongly availed ITC. (Issue concerned in this action is the interest u/s 50 chargeable or not) Further, now the complexity is been intensified due to dubiety of such(reversal of ITC) disclosure has to be made in GSTR-9 or monthly returns for the transactions during the period July 2017 to March 2018.

2. In regard to wrong payment of tax (Direct and Coherent)

Go for refund of wrongly paid tax u/s 54 (8) of CGST Act.

Summary:-

Before taking any decision in this case(on ITC part) have a detailed study on the provisions of the law and the course of action provided. Further research for case laws in the previous regime of the same nature(reversal on availment of wrong credit) if any.

In case of wrong payment of tax you can go for refund under section 54(8) - you can also refer circular no. 26/2017 where it says if you can't adjust the liabilities in subsequent returns you can go for refund.(Since 17-18 liabilities can't be adjusted in current monthly 3B returns you need to go for refund)

[KASTURI SETHI]

You cannot keep silence in such a grave situation. Silence means acceptance and your involvement. Since it is your bona fide mistake, you will save yourself from interest and penalty, if you bring everything to the notice of jurisdictional GST Range Officer . Give in writing to the department as it will prove your bona fides.

Remedies suggested by both learned experts are full of logical and legal force.Get the verbal approval of Range Officer before submission in writing. Thus you will be tension free. Correct and proper line of action will be finalised by the jurisdictional GST Range Officer.

[AKReddy andCO]

Thanks very much for your kind advise & guidance sir(s)