ITC RECONCILE BETWEEN RETURN 3B AND GSTR 1 FOR 17-18

[nandankumar roy]

DEAR SIR,

WHILE GONG THROUGH RECONCILE BETWEEN RETURN 3B AND GSTR 1 FOR 17-18 FOLLOWING ITC MISMATCH FOUND IN TOTAL TILL FEBRUARY ARE AS UNDER:

IN GSTR1 LESS COMPARE TO 3 B RETURN IN IGST RS -11930 AND IN CGST AND SGST RS -5459 EACH NOW PL HELP TO HOW TO ADJUST IN MARCH'18 RETURN. IF ANY DISCRIPANCY WILL CREATE PROBLEM AT THE TIME OF AUDIT AND FOR THAT PL PROVIDE WHAT TO DO IN MARCH RETURN AS WELL AS MARCH HSN SUMMARY EFFECT ALSO.

REGARDS,

N K ROY

9427181604

[KASTURI SETHI]

(i) At present problem of audit is not a matter of concern. This may arise later on. This will take one or more years. Meanwhile you have sufficient time to take remedial steps either through jurisdictional Range Officer or through Grievances Redressal Cell (Help desk).

(ii) Mismatch of figures is a matter of serious concern. The Common Portal System will not allow to file the remaining GST returns in this chain until or unless figures are tallied.Figures may be of value, ITC , revenue etc. whatsoever. These must tally.

(iii) As you are well aware that GSTR 3B is provisional, the figures mentioned in GSTR 3B are to be finalized by way of filing correct figures in GSTR-1, 2, 3. If the Common Portal System allows to rectify in this way, it is O.K., if not, contact either jurisdictional GST Range Officer or grievances cell.. There is no other option.

These are my views.

 

[Ganeshan Kalyani]

GSTR 3B of March 2018 can ve filed on or before 20th Apr 2018. GSTR 1 of March is also yet to filed. Thus you can match rectify the error in March month return. In GSTR1 you have shown less amount of taxes. Means you have missed to include sales invoice of the value mentioned in your query. Include that invoice in March month GSTR1. Before filing return check the impact in excel working and after ensuring that the correction will make figures correct. Thanks

[Alkesh Jani]

Sir, In continuation to the views expressed by our experts, i Just wish to add that "Annual Return" is awaited you can also rectify the omission or addition.

[KASTURI SETHI]

Desr Alkesh Jani Ji, . Can every return is rectifiable without any condition or restriction before filing Annual Return ? Pl. Clarify.

[Alkesh Jani]

Sir, as on now, we have two returns for regular tax payer, GSTR-1 and GSTR-3B, rectification of any omission or addition or deletion, can be done in the subsequent month(s) or quarter(s), means till you file Annual returns, however, not without any restriction or condition. Here I wish to add that the concept of Annual return is taken from State VAT department and any omission or addition can be made in the Annual return, as you cannot amend after the subsequent month or quarter. This to protect revenue and also unwarranted litigation.

At present the amendment can be done in subsequent month(s) or quarter(s). However, the amendment is for subsequent month or quarter. As we know that the quarterly filing of return GSTR-1 or GSTR-3B was not the intention of the Govt. Therefore, if any omission or rectification required, which were not done in the subsequent month or quarter, due to any reason, the Annual Return, where such reconciliation can be made and tax if any to be paid is required to be paid along with interest. As you might have noticed that Govt. intention was change the Accounting year from January to December. In this regards, Section 44 may please be referred. When the designed structure of GST has been distorted due to various factor, many ambiguity has arises. Now it the duty of the intellectuals to bring to the notice of the Govt. the difficulties faced by the tax payers. Please correct me if mistaken.

[KASTURI SETHI]

Sh.Alkesh Jani Ji,. Thanks a lot for enrichment of my knowledge. You have laboured hard for me.

[DR.MARIAPPAN GOVINDARAJAN]

The accounts will be regularized only when GSTR -3 is going to be filed which will decide the actual liability, input tax credit. This will take time as said Shri Sethi.

AI Summary

ITC reconciliation: include omitted outward-supply invoices in later returns so portal validations permit finalisation of tax positions. The portal requires reconciliation of provisional GSTR-3B figures with detailed GSTR-1 entries; omitted outward supply invoices should be included in subsequent GSTR-1 and corresponding GSTR-3B corrections made so cumulative figures reconcile. If portal rectification is blocked, approach the jurisdictional officer or grievances cell. If not remedied in subsequent monthly filings, the Annual Return provides a further, albeit limited, opportunity to regularise omissions and pay any tax with interest; final liability and ITC entitlement will be determined when formal returns are filed.