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.

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.