typo error in 3B year 18-19

[DK AGGARWAL]

Dear Sir

In the sales figure of 3B in the month of December 2018, there is an typo error as Sales figure wrongly mentioned as 28829900/- whereas it should be 2829900/-. The Tax Liability is correctly mentioned and paid in 3B as per 2829900/- as due as per GSTR-1

In the year 18-19, there was no system of auto populated amount appearing in 3B and mistake is due to human error. The Form 9 and 9C were correctly filed and detailed note was also given.

Please help and provide us any Notification, Circular or case law in this regard.

Regards

[Shilpi Jain]

GST can be levied only if there is a supply. In the present case, there is an error due to which it is showing high turnover in GSTR-3B.

There is actually no supply in respect of this error.

Hence no tax can be levied.

Under the ST regime there are a number of cases which have held that mere difference between Form 26AS and ST returns cannot be a reason for levy of ST since the existence of provision of service is primary to levy ST.

Also under GST there have been some HC rulings which have held that errors in returns could not be rectified and that the taxpayer should be given the opportunity to revise them. So Courts have also not accepted liabilities due to erroneous disclosures in the returns.

[Shilpi Jain]

This is a relevant decision in this context

Instakart Services P Ltd. - 2023 (6) TMI 231 - DELHI HIGH COURT - Inadvertent typo error in the returns cannot lead to a liability in excess of what is otherwise liable.

[Padmanathan KV]

Assuming that the matter is now before the proper officer concerned, it would be important to explain the factual matrix along with documents such as sales register of that particular month, to show that the tax has been paid on the actual liability.

[PRAVEEN SHARMA]

Given that the error occurred due to a manual entry mistake and the correct tax liability was paid, the primary concern is ensuring that the records accurately reflect the actual transactions and tax payments. The detailed note provided in GSTR-9 and GSTR-9C, explaining the discrepancy, is a crucial step in maintaining transparency and compliance.

The GST framework allows for the correction of errors through subsequent returns, and the annual return (GSTR-9) along with the reconciliation statement (GSTR-9C) serves as a mechanism to highlight and rectify discrepancies from the monthly returns.

[Shilpi Jain]

This case could be relevant in the present scenario - 2024 5 TMI 400 MAdras HC

GST: Rejection of rectification petition - turnover of the petitioner was erroneously reported in the GSTR 1 return - The High Court acknowledges the petitioner's claim regarding the erroneous turnover reported in the GSTR 1 return. Since the petitioner did not file the annual return for the relevant assessment period, the error was not rectified. The High Court finds that the tax liability primarily arose due to the turnover reported in the GSTR 1 return. Considering the interest of justice, the High Court deems it necessary to provide the petitioner with an opportunity to establish the correct turnover amount.

[Ganeshan Kalyani]

In Bharati Airtel case, the Hon'ble Supreme Court said that the books of accounts is the final and the portal ledgers are only for facilitating the taxpayer to do compliance. In view of the same if the taxpayer justifies the turnover basis books of accounts the officer will accept the same.

AI Summary

Taxpayer Corrects Typo in GSTR-3B; No Extra Tax Due, Legal Precedents Support Rectification of Errors A taxpayer identified a typographical error in their GSTR-3B return for December 2018, where the sales figure was incorrectly reported as 28,829,900 instead of 2,829,900. Despite this error, the correct tax liability was paid. Various responses suggest that no additional tax should be levied due to this error, referencing legal precedents and court rulings that support rectification of such mistakes. Contributors emphasize the importance of maintaining accurate records and using annual returns to address discrepancies. They also suggest providing documentation to authorities to substantiate the correct figures and tax payments.