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

Guidance on Addressing Short-Paid GST Liability: Use DRC-03 or GSTR-9; Consider Section 39(9) of CGST Act. A taxpayer inquired about addressing short-paid GST liability in GSTR-3B for 2018-19 by offsetting it with excess payments in 2019-20. Shilpi Jain suggested using DRC-03 for clarity or disclosing adjustments in GSTR-9. Kasturi Sethi agreed, emphasizing DRC-03 for safety. Amit Agrawal recommended consulting Section 39(9) of the CGST Act and a relevant circular. Keshew Aggarwal shared a client scenario involving a short payment in August 2017, later corrected, but facing interest demands from the GST department, seeking guidance on reducing this liability despite having sufficient balance in the Electronic Credit Ledger.