DIFFERENCE TAX LIABILITY BETWEEN GSTR 1 & GSTR 9

[BARUN MUKHERJEE]

Sir, When the Taxpayer has filed their GSTR 9 they had put up actual value of outward supply as per books by deleting the auto populated value which comes from GSTR 1 in column no. 4(A) and GSTR 9 was rectified accordingly. So no chance to reconcile GSTR 9C in column no. 9(R) as GSTR 9 was already rectified. Now my question is that at the time of audit whether Dept can further demand the tax after reconcilation/rectification of GSTR 9/GSTR 9C?

[Padmanathan KV]

If the difference between GSTR-1 and books has been admitted in GSTR-9, then there will not be any reconciliation difference between books and GSTR-9.

If the tax along with interest has been paid through DRC-03 on this differential turnover, then department cannot make further demand on this issue.

Needless to say, Department can raise demand on other issue such as supply not recorded in books, classification etc as these are not reconciliation differences.

[Shilpi Jain]

In case along with rectification in GSTR-9, the short paid taxes have been paid at the time of filing the annual returns.

If GSTR-9 has figures of tax which is not paid then there could be a dispute raised by the department.

AI Summary

GST reconciliation: admitted differences paid via appropriate payment prevent further demand, but unrecorded supplies remain liable. If differences between GSTR-1 and books are admitted in GSTR-9 and the resultant tax with interest is paid through the prescribed payment route, that reconciliation difference is treated as resolved and should not attract a further departmental demand; however, rectification without paying the short-paid tax can lead to departmental disputes, and the department may still raise demands on unrelated issues such as unrecorded supplies or incorrect classification.