Short payment of GST discharged through next year's GSTR3B

[Sudhir Kumar]

If a taxpayer has short paid GST liability in 3B for 2018 19 in comparison to the liability declared in GSTR-1 can discharge such short payment through excess payment of liability in 3B in comparison to the liability declared in GSTR-1 for 2019 20

[Shilpi Jain]

There is no bar under the law in paying short paid tax in GSTR-3B though it is suggested to pay through DRC-03 so that it is easily identifiable to be a liability of PY paid in CY.

Another option would be to pay through GSTR-3B and disclose the same in Part V of GSTR-9

[KASTURI SETHI]

It is another way of self adjustment which is related to your earlier query on this very issue. I also concur with the reply of Madam Shilpi Jain.

DRC-03 is the best mode of payment. It is safer than GSTR-3B. Avoid notice or letter from the department on any aspect or issue.

[Amit Agrawal]

Kindly refer to Section 39(9) of the CGST Act, 2017 as well as Circular No. 26/26/2017-GST.

[Keshew Aggarwal]

One of my client has short paid liability in GSTR-3B in 2017 august, however when mistake caught auditors attention, immediate action was taken to pay balance tax correctly in 2018 September. Now the GST department has issued scn u/s 73 for interest payment @18% pa on the tax amount paid for august 2017. do we have any relevant notification to reduce this liability. As tax is already paid correctly. We have balance equivalent to tax liability in ECL for 9 months, please guide.

AI Summary

Payment of short-paid GST: use DRC-03 to attribute earlier-period liability and reduce enforcement risk. A prior-year short payment of GST may be discharged by paying in a later GSTR-3B but payment via DRC-03 is the preferable method to ensure the liability is identified as relating to the earlier period; if paid through GSTR-3B the taxpayer should disclose the correction in Part V of GSTR-9. Using DRC-03 is advised to reduce risk of departmental notices and to address interest and demand issues arising from the original underpayment.