TaxTMI 
TaxTMI 
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??
Difference tax liability between GSTR 1 & GSTR 3B
10 Sep 2023 
9 Replies 
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Reconciliation of return discrepancies requires documentary proof; tax cannot rest solely on return mismatches.
Where periodic outward supply returns differ from tax paid but the taxpayer has rectified values in the annual consolidated return and audit reconciliation, the operative approach is to prepare a month wise reconciliation against books, identify reasons for differences, and submit documentary evidence. Departmental scrutiny under the statutory return scrutiny mechanism may generate queries or a show cause notice, but a demand cannot rest solely on return divergences; the department must prove that a taxable supply was unreported. Taxpayers should present reconciliations and proof of self rectification in assessment or audit proceedings. (AI Summary)
Where periodic outward supply returns differ from tax paid but the taxpayer has rectified values in the annual consolidated return and audit reconciliation, the operative approach is to prepare a month wise reconciliation against books, identify reasons for differences, and submit documentary evidence. Departmental scrutiny under the statutory return scrutiny mechanism may generate queries or a show cause notice, but a demand cannot rest solely on return divergences; the department must prove that a taxable supply was unreported. Taxpayers should present reconciliations and proof of self rectification in assessment or audit proceedings. (AI Summary)