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

Taxpayer Challenges Additional Tax Demand Post-Reconciliation of GSTR-1 and GSTR-9; Clarification on DRC-03 Payments Provided. A taxpayer questioned whether the tax department can demand additional tax after reconciling and rectifying discrepancies between GSTR-1 and GSTR-9 during an audit. The first response clarified that if differences are admitted in GSTR-9 and taxes with interest are paid via DRC-03, no further demand should arise. However, demands can be raised for other issues not related to reconciliation. The second response emphasized that if taxes were short-paid and not corrected in the annual returns, the department might dispute those figures.