Supply not reported correctly in GST3B and GSTR-1 return

[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.

AI Summary

Interest on unpaid GST applies where input tax credit was wrongly claimed, even if the credit remained unutilised.
Failure to report a supply and related tax creates a tax liability and interest obligation even if excess input tax credit remained unutilised; voluntary cash payment before notice can discharge dues, portal set-off debits the tax liability for accounting purposes, and taxpayers must reconcile monthly returns with the annual return within the portal's adjustment limitations.