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

Input tax credit entitlement preserved despite GSTR-1 misclassification; rectify via portal through jurisdictional officer or provide undertaking.
Supplier misclassification in GSTR-1 caused buyers' GSTR-2A omissions despite correct tax payment in GSTR-3B. Payment in GSTR-3B preserves the recipient's input tax credit entitlement; technical errors in GSTR-1 are rectifiable by requesting Common Portal System correction through the jurisdictional GST Range Officer or Deputy Commissioner. Suppliers should explain to recipients that GSTR-2A alone should not justify denial of credit or, if necessary, provide an undertaking to reimburse any credit denied due to the disclosure error.