TaxTMI 
TaxTMI 
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.
CMP 08 and Annual return
03 May 2024 
3 Replies 
1102 Views Asked by
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. (AI Summary)
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. (AI Summary)