GSTR 3B AND GSTR 9C

[FARIDUDDIN AHMAD]

My client received notice u/s 73 regarding short payment of tax Rs-1,72,990/- comprising of CGST and UPSGST. later reply has also been filed but it has not been considered and final order has been passed fixing demand of tax Rs-1,72,990 along with interest and penalty. the facts of the case is during the period 2017 18 GSTR-1 of Feb 2018 was filed by declaring O/S(outward supply) of Rs-10,19,398 and tax of Rs-1,72,990.00/- but due to technical glinch in GSTIN Portal GSTR-3B of Feb 2018 is filed with NIL, without claiming the ITC for the month of Feb 2018. later it has been rectified in GSTR-9 filied on 30/11/2018. these facts has been mention in the reply to notice u/s 73 but it has not been considered by the A.O. kindly advise to take grounds in the appeal.

[KASTURI SETHI]

Take shelter of the following case laws

2023 (10) TMI 1331 - BOMBAY HIGH COURT - IMS SHIP MANAGEMENTS PVT. LTD. Versus STATE OF MAHARASHTRA

2023 (10) TMI 864 - TELANGANA HIGH COURT - BHUMANA RAMACHANDRA REDDY Versus UNION OF INDIA

2022 (5) TMI 635 - BOMBAY HIGH COURT  - MERCEDES BENZ INDIA PVT. LTD. Versus UNION OF INDIA

[FARIDUDDIN AHMAD]

Let me clarify that the notice has been issued u/s 73 for the month of feb 2018 on 25/07/2023 and the order is passed on 28/12/2023 therefore limitation to file appeal has not been expired. What i need to know is that rectification done in GSTR-9 is sustanable or not.

[KASTURI SETHI]

Appeal is the best recourse.

See Section 161 and Rule 142 (7) for rectification.

Every error is not rectifiable.

[FARIDUDDIN AHMAD]

What I mean to say is that ITC and outward supply of Feb 2018 left to claim and report due to technical Glinch in GSTIN Portal, while filing the GSTR 3B. however it has been claimed and reported in GSTR 9 30/11/2018. My Question is that if the mistake has been rectified in GSTR 9 then ITC is allowed or not.

[KALLESHAMURTHY MURTHY K.N.]

Dear Sir,

Regarding GSTR-3B and GSTR-9C

It is not stated whether tax has been paid while filing GSTR-9 or 9C. Just because it is entered in GSTR-9 or 9C does not mean the tax was paid. In case of non-payment of tax in GSTR-3B, unpaid tax should be paid with interest while correcting in GSTR-9. No interest shall be payable if proper proof of technical fault is provided. If input tax is not claimed in GSTR-3B you may not get the benefit as per section 16(4). So you are liable to pay tax. For interest payable and ITC benefit your client has to get the remedy in the appeal only

[Shilpi Jain]

GSTR-9 is an annual return which is more for reporting the transactions of the FY.

Any tax liability to be paid (which was missed) identified at the time of preparing for annual return, has to be paid through DRC-03. No ITC can be claimed in GSTR-9 or GSTR-9C.

If the amount is considerable seek to file a writ to bring out clearly the technical glitch due to which you could not file the returns and the fact that GST was a new law and at that time taxpayers were not aware of the nitty gritties of GSTR-9, etc.

Facts and arguments would play a very important role in this case to know if there is a possibiity to get a relief.

AI Summary

Input tax credit eligibility: rectifying omissions in annual return does not validate ITC; pursue appeal and prescribed payment.
Reporting omitted outward supplies and input tax in the annual return does not automatically validate input tax credit or extinguish a demand; unpaid tax identified on reconciliation must be paid via the prescribed correction mechanism and interest may apply unless robust proof of a portal technical fault is produced. Rectification is governed by statutory rectification provisions and rules, not all errors are curable, and appeal is the primary remedy to challenge the demand and seek relief.