how to claim refund on the wrongly declared amount in GSTR 3B

[Hariharan Sundaram]

Dear experts while filing the GSTR 3B, the taxpayer filled the details of zero rated supply in the column 'taxable outward supply' . Now the taxpayer filed the refund on accumulated ITC on account of zero rated supply and the tax authorities issued deficiency memo that there is no zero rated supply in GSTR 3B. Since the GSTR 3B is filed, there is a double loss one is GST is paid on zero rated supply and another thing we are unable to claim refund of accumulated ITC on account of zero rated supply. Kindly give your valuable opinion as to whether refund can be claimed for both?

[Ganeshan Kalyani]

Sir, the below public notice was issued recently to enable the taxpayer to rectify such errors.

PUBLIC NOTICE NO. 100/2020 Dated: - 14-8-2020

[Hariharan Sundaram]

Sir thank you very much for your reply. However in our case, export is NOT done on payment of duty but on the basis of LUT. Further in our case, zero rated supply is entered in the taxable outward supply in the GSTR 3B. So we have to pay GST for zero rated supply. Sir kindly clarify whether the above clarification is applicable to our case. Further kindly provide the solution for the issue since there is double loss. Firstly, the department is allowing refund for the accumulated ITC voting GSTR 3B. Secondly we have already paid gst for the zero rated supply due to wrong reporting

[Shilpi Jain]

Adjust the tax paid mistakenly in 3B in the subsequent period and rectify the disclosure in Form GSTR-3B. Explain the same to the officer and also have a look at circular 125/2019 in this regard.

[YAGAY andSUN]

Mistakes occurred in GST Returns can be rectified in subsequent period's statutory returns which is a great facility in GST Regime, which was missing if Excise/VAT/CST Regime.

[Bhavika Chothani]

Adjust the amount in GSTR-3B of subsequent month

AI Summary

Taxpayer Error in GSTR 3B Leads to GST on Zero-Rated Supplies; Experts Advise Future Filing Adjustments per Circular 125/2019. A taxpayer mistakenly reported zero-rated supplies as taxable outward supplies in their GSTR 3B, resulting in GST payment on zero-rated supplies and an inability to claim a refund for accumulated ITC. Experts advised that errors can be rectified in subsequent GSTR-3B filings. They suggested adjusting the tax paid in future returns and rectifying the disclosure. It was also recommended to consult circular 125/2019 and communicate the situation to the tax officer. The discussion highlighted the flexibility of the GST regime in correcting such errors compared to previous tax systems.