composition/regular return in GST 2017 18

[FARIDUDDIN AHMAD]

During the period july 2017 to march 2018 a dealer paid its tax liability through GSTR 3B as regular tax payer. However from date-14/08/2017 to date-28/11/2017 tax payer opted composition u/s 10 but flied its GSTR 3B as a regular tax payer. now a department issued intimation u/s 61 for excess Av ailment of Input tax credit in GSTR 3B compared to reflected in GSTR 2A. Difference relates to the period sep to nov because 2A has not available on GSTIN Portal. my query is Input tax credit claimed in GSTR 3B of Sep to Nov can be allowed or not or the department reject GSTR 3B on the ground that the tax payer has opted for composition.

[FARIDUDDIN AHMAD]

difference relates to the period September to Nov because 2A has not been available on GSTIN portal due to composition opted by taxpayer

[Padmanathan KV]

From my limited understanding of your query, a person opted to pay tax under composition scheme cannot avail ITC.

You have mentioned that the dealer was composition dealer from 14-08-2017 to 28-11-2017. Therefore during this period he cannot avail ITC.

That being said, I do not understand how you have filed GSTR-3B when you had opted for composition scheme. How have you opted for composition scheme? Have you paid tax at normal rate from 14-08-2017 to 28-11-2017 or in composition rate of 1%/2%/5% etc? Also have you collected tax from customers during the said period? There seems to be many gray areas in the query.

[KASTURI SETHI]

It is a hotchpotch case. Section 10 (4) has been contravened. So as per Section 9 (1) of CGST Act, the offender would be treated as regular tax payer for the period of offence. Hence so many contraventions involved. The defaulter may get relief regarding ITC from Appellate Authority after producing tax-paid invoices coupled with genuineness of transactions. SCN cannot be avoided.

[Shilpi Jain]

The facts seem to be confusing. Rightly mentioned, no ITC for the period when under composition scheme.

If during the period the person was under regular scheme there is a difference between ITC claimed under 3B and that appearing in 2A, a stand can be taken no requirement to follow 2A during that period.

Also the procedure under recent circular can be checked where it requires filing of a declaration by the taxpayer/ producing CA certificate for ITC of 2017-18 and 2018-19.

[Shilpi Jain]

It is Circular 183/22- GST

[FARIDUDDIN AHMAD]

I would like to clarify that the dealer collected the tax as regular tax payer and filed its GSTR 3B.

[KASTURI SETHI]

"The dealer collected tax as regular tax payer". Has this happened during the period when he was registered as composition dealer ? Pl. confirm.

[FARIDUDDIN AHMAD]

yes sir tax has been collected as regular tax payer in the period opted for composition and the GSTR 3B return has also been accepted by the GSTIN portal

[KASTURI SETHI]

ITC cannot be denied. Penalty may be imposed for procedural/technical lapse.

[FARIDUDDIN AHMAD]

Thanks kasturi sir for your openion

[Padmanathan KV]

I agree with Kasthuri Sir and Shilpi maam. ITC cannot be denied here on procedural grounds. You can produce certificate prescribed in Circular 183

[Reddy Reddy]

Hello sir

I have received the Notice for the same exact reason. Could you please help me on how did you proceed with the Notice? It would be of great help to me

[Rohitha Rohitha]

I have also received notice regarding same issue. Can anyone please explain what should be done.

Thanks in advance

AI Summary

Dealer Mistakenly Filed GSTR 3B Under GST Composition Scheme; Discussing Remedies and Penalties Per Circular 183/22-GST A dealer, who was a regular taxpayer, mistakenly filed GSTR 3B returns during a period when they had opted for the GST composition scheme from August 14, 2017, to November 28, 2017. The tax department issued a notice for excess input tax credit (ITC) claimed in GSTR 3B compared to GSTR 2A, which was unavailable on the GSTIN portal. Participants in the forum discussed that ITC cannot be availed under the composition scheme and suggested procedural remedies, including producing tax-paid invoices and a CA certificate as per Circular 183/22-GST, to address the issue. Penalties may apply for procedural lapses.