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#GST Guidelines for recovery under section 79 for Mismatch in GSTR 3B & GSTR 1

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Guidelines issued for Mismatch in GSTR 3B and GSTR 1 

Where the tax payable in respect of details of outward supplies furnished by the registered person in GSTR-1 , has not been paid through GSTR-3B return, either wholly or partly, or any amount of interest payable on such tax remains unpaid , then in such cases, the tax short paid on such self-assessed and thus self-admitted liability, and the interest thereon, are liable to be recovered under the provision s of section 79.

There may, however, be some cases where there may be a genuine reason for difference between the details of outward supplies declared in GSTR-1 and those declared in GSTR-3B.

For example, the person may have made a typographical error or may have wrongly reported any detail in GSTR-1 or GSTR-3B Such errors or omissions  can be  rectified by the said person in a subsequent GSTR-1/ GSTR-3B , as the case may be.

There may also be cases, where a supply could not be declared by the registered person in GSTR- 1 of an earlier tax period, though the tax on the same was paid by correctly reporting the said supply in GSTR-3B. The details of such supply may now be reported by the registered person in the GSTR- 1 of the current tax period. In such cases, there could be a mis-match between GSTR- 1 and GSTR-3B (liability reported in GSTR- 1> tax paid in GSTR-3B) in the current tax period.

What should officer Do/follow in this situation

An opportunity needs to be provided to the concerned  registered person to explain the differences between GSTR- 1 and GSTR-3B, if any, and for short payment or non-payment of the amount of self-assessed tax liability, and interest thereon, before any action under section 79 of the Act is taken for recovery of the said amount.

Accordingly, where ever any such amount of tax, self-assessed by the registered person in his outward supply statement GSTR-1 is found to be short paid or not paid by the said person through his GSTR-3B return , the proper officer may send a communication (with DIN) to the registered person to pay the amount short paid or not paid, or to explain the reasons for such short payment or non-payment of self-assessed tax, within a reasonable time, as prescribed in the communication.

If, the concerned person is able to justify the differences between GSTR-1 and GSTR-3B, or is able to explain the reasons of such short-payment or non-payment of tax, to the satisfaction of the proper officer, or pays the amount such short paid or not paid , then there may not be any requirement to initiate proceedings for recovery under section 79.

However, if the said registered person either fails to reply to the proper officer, or fails to make the payment of such amount short paid or not paid, within the time prescribed in the communication or such further period as may be permitted by the proper officer, then  the proceedings for recovery of the said amount as per provisions of section 79 may be initiated by the proper Further, where the said registered person fails to explain the reasons for such difference/ short payment of tax to the satisfaction of the proper officer, then the proper officer may proceed for recovery of the said amount as per provisions of section 79.

For Official Guidelines issued please click the below link

Official Guide Lines Link

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