TURNOVER MISMATCH, Goods and Services Tax - GST

[vignesh VSACCOUNTOPRIVATELIMITED]

SIR. In the month of march 2021 sale of ₹ 20.00 lakhs reported in GSTR-1, but by mistake Turnover was reported in GSTR-3B as 2.00 Crores but Tax amount correctly given for 20.00 lakhs ONLY, how to rectify this error! Reporting the same in Annual Returns is Sufficient?

Posts / Replies

[Shilpi Jain]

Yes. reporting in annual return will suffice.

[KASTURI SETHI]

Yes. Reporting the same in Annual Return is sufficient.Actually Annual return is reconciliation statement. Treat filing the annual return an opportunity to detect your mistake and rectify on your own.

[Ganeshan Kalyani]

I agree with the views of both the experts.

[RAMASWAMY Advocate]

In my view correcting the details of outward supply return filed by the supplier must duly match the details of inward supply declared by the recipient in his return. Form GST MIS-1 and 2 respectively to be filed in this regard.

[KASTURI SETHI]

In my view, since GSTR-1 has been filed correctly, ITC has been passed correctly. The buyer/receiver will take ITC on the basis of tax paid on the transaction value of ₹ 20 lakhs and NOT on the basis of value of ₹ 2 crores shown wrongly in GSTR 3 B. It is typographical error. So rectification via Form GST MIS-1 and Form GST MIS-2 mentioned under Rules 70 and 71 of CGST Rules is not required. Hence I am of the view that reporting the same in Annual Return is sufficient.

[Shilpi Jain]

Agree. One should not complicate things in this virtual environment. If required a physical intimation letter can be made to the department if considered necessary. Else a disclosure in annual returns would be sufficient.

[KASTURI SETHI]

Disclosure of error/rectification in the Annual Return is itself an intimation to the department de jure.

[Palak Shah]

@vignesh VSACCOUNTOPRIVATELIMITED

Sir, I'm having the same issue as mentioned by you. During FY 2021-22, Actual Taxable Sales for Q2 was Rs 10,98,673.4 but while filing GSTR-3B due to some typo error, turnover got filed at incorrect amount of Rs 109,86,734. While saving GSTR-3B it didn't consider the decimal point or whatever else the reason might be, the turnover drastically increased from 10 lakhs to 1Crore which is incorrect.

But GSTR-1 has been filed correctly n even the taxes as paid in GSTR-3B were on the basis of the 10 lakhs amount. This came to our notice just now

Kindly guide me on how to rectify the error. N since you have experienced this in actual, was the reporting for the error in only Annual Return sufficient? And what were the consequences faced by you, if any.

[vignesh VSACCOUNTOPRIVATELIMITED]

sir kindly intimate to the respective office about the error by submitting a letter and do make qualification in 9C which will be helpful @ time of scrutiny

[Palak Shah]

But sir, the ongoing issue is faced by a small taxpayer who's turnover has not even exceeded 50 lakhs limit in any previous year n they have never filed GSTR-9 & 9C

So just because of this error, will it become mandatory to file GSTR-9C as well?

[vignesh VSACCOUNTOPRIVATELIMITED]

Palak Shah Sir. Then kindly add in ur statement to dept the above fact, that the client is not covered under GST Audit and no remarks for the same be made.