Excess sales shown in 3B and excess GST Paid & ITC also taken for the same

[KumaraswamyReddy Alluganti]

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.

AI Summary

Company Misunderstands Branch Transactions as Sales, Reports in GSTR-3B, Claims ITC; Advised to Correct and Seek Refund. A company with a single GST registration in Telangana mistakenly treated intra-state branch transactions as sales and purchases, reporting them in GSTR-3B and claiming Input Tax Credit (ITC). This error was due to a misunderstanding of branch sales. Experts advised against remaining silent, suggesting communication with the GST department and possibly reversing the wrong ITC. They recommended seeking a refund for the incorrectly paid tax and consulting a jurisdictional officer to avoid penalties. The company was advised to document the error to demonstrate good faith and avoid interest or penalties.