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.

[Shilpi Jain]

Mere difference in CMP-08 and GSTR-4 should not lead to liability. You need to find out the reason for the difference and if it is due to any error in disclosure and there has actually been no supply on which GST has been missed to paid then mere difference should not lead to liability

[KASTURI SETHI]

The notice is  NOT FINAL as it is subject to your justification of difference with your books of account and other documentary evidence.  

[Padmanathan KV]

Dear Sudhir Kumar sir,

What was the reason for difference between GSTR-4 and CMP-08? was it a clerical error in GSTR-4? or was there actual short payment which was corrected in GSTR-4? also check whether any amounts have been paid via DRC-03. 

AI Summary

GST short payment discrepancy: reconcile CMP-08 and GSTR-4, justify variances to avoid recovery action. A discrepancy between CMP-08 and the annual GSTR-4 led to a notice alleging short payment; a mere difference does not automatically create recoverable tax under section 73. The taxpayer must reconcile the variance, demonstrate whether it stems from clerical error or actual omission, produce books and documentary evidence, and verify payment corrections such as via DRC-03 to resist recovery action.