CMP 08 and Annual return

[Sudhir Kumar]

The department has issued a notice to my client for short payment of GST in CMP-08 in comparison to the GST liability declared in annual return GSTR-4 for the period 2019-20. My query is whether declaring excess liability in annual return GSTR-4 that of the CMP-08 is liable for any action for recovery under section 73. Have there any short payment at the end of the taxpayer? Please.

AI Summary

Client Faces GST Discrepancy Issue: Investigate Causes Before Recovery Action Under Section 73 for Short Payment. A notice was issued to a client for short payment of GST in CMP-08 compared to the declared liability in the annual return GSTR-4 for 2019-20. The query is whether this discrepancy could lead to recovery action under section 73. Responses suggest that a mere difference does not automatically result in liability unless it stems from an error. It is advised to investigate the cause of the discrepancy, whether it was a clerical mistake or an actual short payment, and to substantiate the difference with documentary evidence. Additionally, checking if any payments were made via DRC-03 is recommended.