GST RETURN - GSTR-1

[THYAGARAJAN KALYANASUNDARAM]

Dear Experts,

One of my client’s shown all the sales transactions during the FY 2017-18 in GSTR-3B under Intra state sales and discharged CGST & SGST within the stipulated time. While submitting GSTR-1 they have selected Deemed Sales instead of Intra Sales transactions inadvertently. Because of this, the buyers who purchased the goods from him are not getting the inputs in GSTR-2A.

Now, the buyers who purchased the goods stopped making payments to the sellers to the extent of the tax amount almost ₹ 40 Lakhs. My client’s working capital got blocked and unable to do further business.

My query is:

Since the rectification/modification time also expired(31.03.2019).

How do we rectify this? Is there any other remedy?

Thanks in advance.

AI Summary

Client Mislabels Sales in GSTR-1, Affecting Input Credits; Experts Advise Contacting GST Officer for Resolution A client mistakenly reported sales as 'Deemed Sales' instead of 'Intra Sales' in GSTR-1 for FY 2017-18, affecting buyers' input credits in GSTR-2A and resulting in withheld payments totaling 40 Lakhs. The rectification period has expired. Experts suggest contacting the jurisdictional GST Range Officer to rectify the error, emphasizing that input tax credit (ITC) should not be denied due to a technical error. They recommend explaining the situation to buyers and offering to reimburse denied credits. It is noted that GSTR-2A should not be used as a basis for denying credit.