Mistake in filling 3B

[Murari Agrawal]

For the financial year 2017-18 we have wrongly entered the IGST ITC as Import from Overseas. Now we have received notice stating that excess ITC has been availed on that account. The IGST ITC shows unavailed of equal amount. Kindly guide how to reply. Thanks

[Shilpi Jain]

Pls reply the department giving details of the factual background along with documents.... As per the facts I understand that the ITC has been taken but taken in the wrong column.

I hope it is not a case of missed ITC

[Ganeshan Kalyani]

Pls elaborate your query.

[Murari Agrawal]

Its not a case of missed ITC but taken in wrong column. While filing 3B returns, wrongly entered as import of goods in Integrated tax column instead of all other ITC in ITC available under heading Eligible ITC.

[KASTURI SETHI]

It is a trivial typographical mistake.It is rectifiable. It is bona fide mistake.Produce original records before the officer who has issued notice/letter. I think it is not a Show Cause Notice but a simple letter. Mere wrong entry cannot force you to reverse ITC with interest as per GST laws. You have not caused any revenue loss. Hence no question of interest and penalty.

SECTION 126. General disciplines related to penalty. - (1) No officer under this Act shall impose any penalty for minor breaches of tax regulations or procedural requirements and in particular, any omission or mistake in documentation which is easily rectifiable and made without fraudulent intent or gross negligence.

Explanation. –– For the purpose of this sub-section, ––

(a) a breach shall be considered a ‘minor breach’ if the amount of tax involved is less than five thousand rupees;

(b) an omission or mistake in documentation shall be considered to be easily rectifiable if the same is an error apparent on the face of record.

AI Summary

Input tax credit misclassification can be corrected by documentary explanation; minor bona fide errors typically avoid penalty or interest.
An IGST input tax credit was incorrectly entered in the import column of GSTR 3B instead of under eligible ITC; the advised course is to supply a factual explanation and original documents to the issuing officer showing a bona fide typographical mistake, not a missed ITC, so it can be rectified. If the error is minor, rectifiable, and made without fraudulent intent or gross negligence, and has not caused revenue loss, penalty or interest is generally inappropriate under the principle disallowing penalties for minor breaches and errors apparent on the record.