amendment of GSTR 1

[FARIDUDDIN AHMAD]

What procedure the tax payer has to follow for rectifying the discrepancies in the GSTR 1 compared to the figures reported in GSTR 3B if tax payer again committed mistake in amending GSTR 1 in Subsiquent month and no more opportunity to amend GSTR 1 is available to tax payer.

[Ashika Agarwal]

Amendment can be done ONCE only. There is no other procedure to rectify the mistake. However, you can raise the credit note against the wrong invoice and thereafter raised a new invoice with correct details.

OR

You can write the letter intimating about the discrepancies with supporting documents.

Care should be taken while filing GSTR-9/9C.

[FARIDUDDIN AHMAD]

let me clearify that mistake is in the B/C

[Shilpi Jain]

What is B/C?

Also there are cases of High Courts holding that the portal not allowing something cannot put the assessee into trouble.

So proceed to make an intimation to the dept if the portal functionality does not support.

[Padmanathan KV]

I respectfully disagree with the view of expert that credit note can be raised. Credit note can be raised only in situation envisaged in Act and not otherwise i.e., to correct mistake in GSTR-1.

Regarding solution to your issue with regard to wrong reporting of B2C in GSTR-1,

1. Kindly elaborate what was the mistake committed in originally in GSTR-1 and which month?

2. what was mistake committed while amending and in which month?

based on these inputs, we can discuss a possible solution.

[FARIDUDDIN AHMAD]

with respect to padmanathan sir query

1- originally mistake has been committed in the month of jan 23 where the tax payer inadvertently punched Rs-100 in B2C coloum of GSTR 1 instead of punching Rs-10/-.

2-realising the mistake tax payer amended B2C with Rs-90 in Feb 23 GSTR 1.

[Padmanathan KV]

Dear FARIDUDDIN AHMAD,

This error can be corrected in GSTR-9. In the meanwhile, out of abundant caution you may intimate this error to the jurisdictional Proper officer about this error in detail because as per the recent amendment, the difference between GSTR-1 and GSTR-3B is considered as self-assessed tax not paid and the Dept can initiate recovery proceedings under section 79.

Section 75(12) is reproduced for easy reference:-

(12) Notwithstanding anything contained in section 73 or section 74, where any amount of self-assessed tax in accordance with a return furnished under section 39 remains unpaid, either wholly or partly, or any amount of interest payable on such tax remains unpaid, the same shall be recovered under the provisions of section 79.

¹[Explanation.––For the purposes of this sub-section, the expression “self-assessed tax" shall include the tax payable in respect of details of outward supplies furnished under section 37, but not included in the return furnished under section 39.]

[FARIDUDDIN AHMAD]

thanks for your openion

[Amit Agrawal]

I agree with views of my learned colleague Shri Padmanathan Ji.

Kindly also refer to 'Guidelines for recovery proceedings under the provisions of section 79 of the CGST Act, 2017 in cases covered under explanation to sub-section (12) of section 75 of the CGST Act, 2017- Reg.' as per Instruction No. 01/2022-GST (CBEC-20/16/05/2021-GST/23) dated 07.01.2022, specially its Para 3.3 & 3.4 which reads as follows:

"3.3 Accordingly, where ever any such amount of tax, self-assessed by the registered person in his outward supply statement GSTR-1 is found to be short paid or not paid by the said person through his GSTR-3B return in terms of the provisions of sub-section (12) of section 75 of the Act, the proper officer may send a communication (with DIN, in terms of guidelines issued vide Circular No. 122/41/2019-GST dated 5^th November 2019) to the registered person to pay the amount short paid or not paid, or to explain the reasons for such short payment or non-payment of self-assessed tax, within a reasonable time, as prescribed in the communication. If, the concerned person is able to justify the differences between GSTR-1 and GSTR-3B, or is able to explain the reasons of such short-payment or non-payment of tax, to the satisfaction of the proper officer, or pays the amount such short paid or not paid, then there may not be any requirement to initiate proceedings for recovery under section 79.

3.4 However, if the said registered person either fails to reply to the proper officer, or fails to make the payment of such amount short paid or not paid, within the time prescribed in the communication or such further period as may be permitted by the proper officer, then the proceedings for recovery of the said amount as per provisions of section 79 may be initiated by the proper officer. Further, where the said registered person fails to explain the reasons for such difference/ short payment of tax to the satisfaction of the proper officer, then the proper officer may proceed for recovery of the said amount as per provisions of section 79."

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

[Ganeshan Kalyani]

Practical solution is to show as a credit note and thereby net of the tax invoice amount in subsequent month's GSTR-1.

[Padmanathan KV]

Dear Ganesh Ji,

I respectfully disagree with your views. Mistake in GSTR-1 is not a situation envisaged for issuance of credit note. Further, declaring credit note without actual issuance of credit note would tantamount to furnishing incorrect particulars.

AI Summary

Taxpayer Seeks Solutions for GSTR-1 Amendment Errors; Experts Debate Use of Credit Notes and GSTR-9 Corrections A taxpayer inquired about rectifying discrepancies in GSTR-1 after mistakenly amending it, with no further amendment opportunities. One response suggested raising a credit note against the wrong invoice and issuing a new one, or notifying the discrepancies to the authorities with supporting documents. Another participant disagreed, noting credit notes are not for correcting GSTR-1 errors, and suggested correcting the error in GSTR-9 and informing the jurisdictional officer to prevent recovery proceedings. The discussion highlighted differing opinions on handling such errors, emphasizing the need for careful filing and communication with tax authorities.