Dear experts,
My case is that a CA of the client had inadvertently shown more tax payable in GSTR-3B as compared to GSTR-1 by Rs 18,00,000. This is evident by the report at the gst website. Ideally the that CA should adjust the amount in the sales column. However, in order to rectify the amount he showed the same as input tax credit in the third month. Now there is a difference of rs 18 lakhs in GSTR-2A and GSTR-3B since such amount will not appear in GSTR-2A. It is clearly a rectification of outward liability and not input tax credit taken. The department is demanding reversal of input tax credit along with interest. Is it a good case to argue? Are there any case laws to refer?
CA's Error in Tax Reporting Leads to Input Credit Dispute; Experts Suggest Refund or Error Correction, No Revenue Loss. A client's Chartered Accountant (CA) mistakenly reported an excess tax payable of Rs 18,00,000 in GSTR-3B compared to GSTR-1, later adjusting it as input tax credit in the third month, creating a discrepancy with GSTR-2A. The tax department demands reversal of this input tax credit with interest. Participants in the forum suggest that the excess payment should not be treated as input tax credit usage and recommend either claiming a refund or addressing the clerical error, emphasizing that no revenue loss occurred. They debate the applicability of penalties and the best approach to rectify the situation. (AI Summary)
Goods and Services Tax - GST
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