Question ID :
44763
Turnover of GSTR 1 is higher than GSTR 3B
Dear all,
GST dept has sent notice regarding mismatch of turnover shown in GSTR 1 and that of shown in GSTR 3B resulting in demand of additional tax and interest.
Turnover shown in GSTR 3B had been considered in GSTR 9 & 9C,properly reflected in 26AS /TIS and considered while submitting 3CB & 3CD.
Concerned GST officer is reluctant to consider all these things.He is demanding additional tax on differential amount with interest.
Please guide,how to go about it ??
Posted by
SUDIP KUMAR MUKHOPADHYAY
on
Dec 24, 2024
Filed Under
GST
File appeal within 90 days
Posted by
SIVADAS CHETTOOR on
Dec 24, 2024
Answer ID :
85666
Steps to Handle GST Notice for Turnover Mismatch (GSTR-1 vs. GSTR-3B)
Reconciliation of Data:
Prepare a detailed reconciliation statement between GSTR-1, GSTR-3B, GSTR-9, GSTR-9C, and 26AS.
Verify whether any inadvertent reporting errors exist, such as omissions, double reporting, or timing differences.
Justification with Supporting Documents:
Submit an explanation along with reconciliations showing that total tax liability has been duly paid.
Highlight that GSTR-3B is the basis for tax payment, and GSTR-9 reconciles the figures.
If GSTR-9C has been audited, emphasize its validity.
Legal Provisions & Arguments:
GST liability is determined based on GSTR-3B, not GSTR-1. Case laws have supported this view.
GST Circular No. 26/26/2017-GST states that errors in GSTR-1 should be rectified in future returns.
Reference Rule 88E (if applicable) regarding the correctness of tax payments.
Formal Representation:
Draft a written submission to the GST officer, citing relevant provisions and case laws supporting your claim.
If the officer is unwilling to accept the reconciliation, escalate the matter to the Joint/Additional Commissioner (Appeals).
Reply to the Notice in the GST Portal:
File a reply through DRC-06 on the GST portal, attaching all necessary documents.
If the officer proceeds with an adjudication order (DRC-07), you can file an appeal with GST Appellate Authority.
Next Steps:
If the demand is incorrect and unjustified, do not accept it without exhausting legal remedies.
If required, seek legal counsel or representation before higher authorities.
Posted by
CA. JHA SHANKAR KUMAR on
Feb 11, 2025