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How to Resolve errors in GSTR-3B and GSTR-1′
GSTR-3B is the first Return Form introduced after the GST implementation. CBEC introduced this simple Return Form, which every registered taxpayer has to file. Summary of information about sale and purchase, available input tax credit, tax payable, tax paid is to be furnished.
A lot of doubts are being raised about errors or mistakes made by the taxpayers in filling of GSTR-3B return. Since GSTR 3B cannot be revised, it makes the taxpayers worried about the possible consequences due to errors committed.
How to resolve errors in GSTR 3B
In case any person wants to resolve the errors in GSTR 3B return, it may be done by keeping the following points in mind.
- In any case if the person has not included any sales or purchases in a particular month, the only solution is to include such sales and purchase in GSTR-3B of the month in which it comes to your knowledge.
- If a person has entered excess input or output GST then he can adjust it in next month by showing a less amount of input or output GST. A problem may arise when you are unable to adjust in next months because the amount is not sufficient to adjust the excess amount. For example, you had claimed IGST of Rs. 50,000 in a month, you are unable to adjust in next month as the amount in next months is zero. In such a case you can enter the amount in “ITC Reversed – Any other reason”.
- In any case, if the payment of IGST is made instead of CGST and SGST or vice-versa, then the following points must be noted.
- Cash balances of IGST, CGST and SGST cannot be adjusted between themselves. In other words, cash payment made for one type of GST can be used only for liability of that type.
- This problem arises mainly in cases where a person is purchasing goods from outside state and selling within the state. In such cases sometimes person calculates its tax liability and divide it by two to calculate the amount payable for CGST and SGST. The person forgets that IGST is first set off from CGST and then from SGST. Therefore the amount of CGST payable may be less than the amount of SGST payable.
- If a person has made such excess payment of any type of GST then it is best to use that amount in next month. However, if he thinks that the amount excessively paid cannot be used in the near future and that it cannot be utilized, then the person can take a refund of the said amount.
GSTR-1 is a monthly or quarterly return that should be filed by every registered dealer. It contains details of all outward supplies i.e. sales.
How to resolve errors in GSTR-1
One of the important points to be noted here is that once filed, GSTR-1 cannot be revised. Any mistake made in the return can be rectified in the next periods (month/quarter) return.
For example : If you have already filed GSTR 1 for Jan and you realise in March that there was an error in Jan, then in the GSTR 1 of March, there is an option to amend the GSTR1 of Jan.
Both the returns, GSTR 1 and GSTR-3B cannot be revised. However, any errors occurred can be taken care by carefully studying the points mentioned above.