Forgot Purchase Invoice Entry in Last Quarter GSTR 3B filing

[Bill Bohm]

I forgot Purchase Invoice Entry in Last Quarter GSTR-3B filing.

Now, in this quarter, when I try to file GSTR-3B with previous invoice included (of course the ITC increases more than 5% of total) - GSTR-3B @portal says:

'For table 4 - The information entered by you in tiles which are highlighted in red is in variance with the auto-populated data in table 4A and 4B. The input tax credit has been auto-populated based on the GSTR-2B generated for you. Also, please note that any variance above 5% of the input tax credit is in contravention to Rule 36(4) of the CGST Rules, 2017. Kindly recheck and proceed.'

Should i go ahead and file OR is there a way out?

[KASTURI SETHI]

Sh.Bill Bohm Ji,

You should go ahead. After all missed invoice has to be mentioned. It cannot be kept pending for the whole financial year. You should upload the missed invoice in the current return. Red mark means the department will monitor the difference or mismatch etc. You are not causing loss to Govt. revenue. Nothing to worry.

I am of the view that you will not find any problem.

[Bill Bohm]

Dear Sethi Sir,

Thank you so much for your proper & sound advice. I'm totally convinced with your thought process.

Also, million thanks for your immediate response - as tomo is the last day for 3B quaterly filing. You are a saviour!!

Kind Rgds.

[Shilpi Jain]

This is also one of the provisions which is challenged in the Courts. However until finality is reached the department will want to make most out of it by restricting credit of the taxpayers. In today's times looks like no business should shun away from filing a writ if the need arises to save their hard earned money.

[KASTURI SETHI]

Agreed with Madam Shilpi Jain. Everybody cannot afford the cost of such litigation. There is disharmony between Common Portal System and GST Acts. The assessee cannot be penalised on account of such 'disharmony' The validity of Rule 36(4) already stands challenged. At the time of filing Annual Return, reconciliation is assessee's legal right.

[Bill Bohm]

Dear Shilpi Ma'am,

Thank you for your valuable insight. Noted.

Kind Rgds.

[Ganeshan Kalyani]

I agree with the views of Sri Kasturi Sir. The Common Portal is not in sync with GST laws. Also, GST 2B is a static report facilitated to the taxpayer and taxman. The taxpayer has to finally depend on reconciliation to substantiate his claim of ITC.

AI Summary

Input tax credit variance under Rule 36(4) triggers portal mismatch warnings; declare missed invoice and reconcile records. A taxpayer omitted a purchase invoice in a prior quarter GSTR-3B; adding it now raises input tax credit above the GSTR-2B auto-populated figure and triggers a portal warning under Rule 36(4). Advisers recommend declaring the missed invoice in the current return, noting a mismatch between the Common Portal auto-population and the statutory reconciliation process and that the validity of Rule 36(4) is contested, with annual-return reconciliation remaining the taxpayer's means to substantiate ITC.