regarding GSTR 1

[FARIDUDDIN AHMAD]

respected sit, tax payer(Supplier) in his GSTR 1 of the month Feb 2019 inadvertently punched 18% CGST tax and 18% SGST tax in some of the invoices issued to B/B instead of 9% CGST tax and 9% SGST tax. however original invoices issued to recepient of goods are charged with 9% CGST tax and 9% SGST tax and supplier of goods(Taxpayer) paid the tax through GSTR 3B as per the liability arises to tax charged on tax invoices. department issued the notice to tax payer u/s 61.my query is from whome the department should recover taxes supplier(taxpayer) or recepient of goods. can Taxpayer file revise GSTR 1 manually along with reply of notice u/s 61.

[Amit Agrawal]

I am surprised to know that GST portal allows filing of such Form GSTR-1 when there is no tax-rate @ 18% under CGST and SGST Act, 2017.

Anyway, being a mistake, there is no question of recovering differential taxes from either supplier or recipient.

If time-limit to amend subject Form GSTR-1 is not yet over, you can amend the same & put the same on record before officer issuing notice. If not, kindly submit your reply explaining the error happened along-with factual position duly backed by evidences to Dept., so as to get demand dropped.

These are ex facie views of mine and the same should not be construed as professional advice / suggestion.

[Amit Agrawal]

Kindly also go through Instruction No. 01/2022-GST dated 10th November, 2022, issued by CBEC, so as to have better perspective to deal with the issue on hand.

[Amit Agrawal]

As subject issue is w.r.t. Feb, 2019 (I missed this fact while sharing my views earlier), you cannot amend subject Form GSTR-1 now. Hence, you need to submit your reply explaining the error happened along-with factual position duly backed by evidences to Dept., so as to get demand dropped.

These are ex facie views of mine and the same should not be construed as professional advice / suggestion.

[FARIDUDDIN AHMAD]

ERROR HAS BEEN COMMITTED BY THE TAX PAYER IN THE MONTH OF FEB 2019 GSTR 1

[FARIDUDDIN AHMAD]

sir is correct to mention in the reply that supplier is only allowed to take credit in accordance with the provisions of sub section (2) of Section(16) of the act read with rule 36 during the relevant period

[Shilpi Jain]

Whether GSTR-1 allows 18% in CGST and SGST?

[Shilpi Jain]

Assuming error has happened, there is no short payment of taxes by assessee and it is settled -- as per article 265 of the Constitution of India - No taxes can be levied or collected without authority of law. So no way can the department demand the payment of taxes shown in GSTR-1 as that is not the rate as per the law.

You could just make a simple reply mentioning the error happened.

[Shilpi Jain]

Have you not filed GSTR-9 & 9C?

[Shilpi Jain]

Also if the recipient has availed credit of 18% CGST and 18% SGST, then obviously he would have to reverse the excess taxes availed. No doubt in that since he has not been charged with those taxes nor has be paid those taxes to the supplier.

[FARIDUDDIN AHMAD]

ys i have filed GSTR 9 but not 9C

[FARIDUDDIN AHMAD]

yes GSTR-1 allowed 18%

AI Summary

Incorrect tax-rate reporting may not create a recoverable tax liability if actual invoices and tax paid reflect correct rates. Incorrect tax-rate reporting in GSTR 1 for February 2019 showed higher CGST and SGST rates, while original invoices and tax paid via GSTR 3B reflected correct rates. A notice under section 61 was issued; because amendments to that GSTR 1 period are time-barred, the taxpayer should submit a factual reply with evidence explaining the portal entry error. The department should not recover additional tax if lawful tax was charged and paid, but any recipient who availed excess input tax credit must reverse it. Instruction No. 01/2022 is relevant for guidance.