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

Wrongly claimed input tax credit requires reversal, disclosure to tax authorities and possible refund under statutory mechanism.
Intra-state branch transfers were miscoded as sales, producing excess sales in GSTR-3B with concurrent GST payment and ITC claim. The advised course is to disclose the error to the jurisdictional officer with reconciliations and CA certification, reverse the wrongly availed ITC in returns or annual reconciliation, and seek refund of tax wrongly paid where liabilities cannot be adjusted in current returns, while securing officer concurrence to limit interest and penalties.