1. Home

SGST Tribunal

GST - Demand on mismatch between GSTR-1 and GSTR-3B - Section 73 of CGST Act - SCN proposed demand on the basis that the tax liability shown in GSTR-1 for the financial year was higher than the tax discharged through GSTR-3B - Appellant explained that B2B supplies were inadvertently reported as B2C supplies in the monthly GSTR-1 returns. As the portal gave no option to correct them, the Appellant reported the same supplies again as B2B supplies in GSTR-1 for the last month of the financial year - Whether the discrepancy arose because B2B supplies were inadvertently reported as B2C supplies and reported again in GSTR-1, causing duplication and inflation of turnover and tax liability - HELD - It is not in dispute that the tax on the supplies of the earlier months was discharged through GSTR-3B of the respective months. GSTR-3B for the last month declared only the liability of the supplies of that month, whereas GSTR-1 for that month reported the supplies of the preceding months again along with the supplies of that month. The turnover and tax liability reflected in GSTR-1 were therefore inflated by duplication - The statement furnished by the Appellant contained the names of the recipients and their GSTINs, and the tax invoices showed that the recipients were registered persons. The State Representative also acknowledged this position during the verification. No doubt remains that the supplies were B2B supplies erroneously reported as B2C supplies. The Appellant is directed to furnish GSTR-1 for the entire financial year, a tabulated statement of the supplies erroneously reported as B2C, the tax invoices and GSTR-3B for the last month - The issue is decided in favour of the Appellant and the appeal is allowed - Rectification of errors in return in a subsequent month of the same financial year - Section 39(9) of CGST Act - The authorities below held that the Appellant ought to have rectified the errors in the returns of the subsequent financial year - Whether the Appellant was legally permitted to rectify the errors relating to the nature of outward supplies reported in earlier returns through GSTR-1 of a later month of the same financial year - HELD - Section 39(9), as it then stood, prescribes only two conditions for rectification. First, the rectification should not be on account of any scrutiny, audit, inspection or enforcement activity by the tax authorities. Second, it should be carried out on or before the last date of filing the return for the month of September of the subsequent financial year. There is no stipulation that the rectification can be carried out only in the returns of the subsequent financial year - An error noticed during the same financial year may also be rectified in the returns of the succeeding months of that year. The rectification by the Appellant was not occasioned by any scrutiny, audit, inspection or enforcement activity and was made within the outer time limit. The authorities below adopted an erroneous interpretation of the provision - Certain errors in carrying out the rectification do not go to the root of the actual tax liability and are merely procedural errors arising out of a lack of proper understanding of the procedure. The case is revenue-neutral, as the tax on the actual outward supplies had already been discharged - The Revenue ought not to penalise a bona fide taxpayer and should adopt a sympathetic and pragmatic approach - The Order-in-Original and the Order-in-Appeal are set aside and the demand is quashed. The appeal is allowed
Download File
show more Judgements  

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Tax Vista

Your Weekly Tax Recap

By Dr. G. Gokul Kishore

Weekly Summary

VIL Video

GST Adjudication & Appeals Reform
By CA Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Security-Code
New Code?

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Security-Code
New Code?

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?