Difference tax liability between GSTR 1 & GSTR 3B

[BARUN MUKHERJEE]

A taxpayer has wrongly filed his GSTR 1 with excess liability...and the same has been rectified in GSTR 9 along with GSTR 9C..disbursed the actual liability as per books of accounts...bt department claim the liability as per GSTR 1 which was wrongly filed...now what is the proper solution??

AI Summary

Taxpayer Corrects GSTR-1 Errors in GSTR-9; Experts Advise Reconciliation and Documentation to Avoid Penalties A taxpayer mistakenly reported excess liability in GSTR-1, later corrected in GSTR-9 and GSTR-9C to reflect actual liabilities as per their books. The tax department insists on the GSTR-1 figures, prompting the taxpayer to seek advice on resolving the discrepancy. Experts suggest preparing a reconciliation of GSTR-1 with the books of accounts, providing supporting documents, and explaining the corrections in GSTR-9. They advise that the department cannot raise a demand solely based on discrepancies without proving a taxable supply. Proper documentation and reconciliation should prevent any tax demand or penalties.