23 September 2020
Value of GST payable on transport charges by recipient under Reverse Charge Mechanism was not shown in GSTR 1 & 3B monthly returns for f y 18-19
Can it be shown now while filing annual return of f y 18-19 ?
27 July 2024
If you have not reported GST payable on transport charges under Reverse Charge Mechanism (RCM) in your GSTR-1 and GSTR-3B returns for the financial year 2018-19, you can still rectify this by addressing it in the Annual Return (GSTR-9) for that period. Here’s how you can handle this situation and what you need to consider:
### Rectification Through Annual Return (GSTR-9)
1. **Reporting in GSTR-9:** - **GSTR-9**: The annual return (GSTR-9) for FY 2018-19 allows you to make adjustments for any discrepancies or omissions in the monthly returns. You should report the GST payable on transport charges under RCM in the appropriate sections of GSTR-9. - **Table 4 (Liabilities)**: Include the details of the GST payable on transport charges under RCM that were not reported in the monthly returns. This section allows you to disclose additional tax liabilities.
2. **Corrective Actions:** - Ensure that you calculate the correct GST payable on transport charges and include this amount in the GSTR-9. Make sure to also check if you have any corresponding ITC (Input Tax Credit) that can be claimed for this.
3. **Filing the Return:** - After making the necessary corrections in GSTR-9, file the return for FY 2018-19.
### Consequences of Not Reporting
1. **Interest and Penalties:** - **Interest**: If GST payable under RCM is not reported and paid on time, interest is applicable on the delayed payment. Interest is calculated at the rate specified under GST laws, typically 18% per annum. - **Penalties**: Penalties may be imposed for non-compliance. Under Section 122 of the CGST Act, penalties can be levied for any failure to pay tax or for the incorrect furnishing of returns. The penalty amount can vary based on the nature and extent of non-compliance.
2. **Reconciliation and Audit:** - During audits or reconciliation processes, discrepancies in GST reporting can be identified. It is essential to address these discrepancies proactively to avoid legal issues.
3. **Legal Compliance:** - Ensuring compliance with GST laws is crucial to avoid legal complications and additional financial burdens. Make necessary adjustments promptly to minimize consequences.
### Steps to Rectify:
1. **Compute the GST Amount**: Calculate the GST payable on transport charges under RCM that was not reported.
2. **Update Records**: Ensure your records are updated to reflect this liability.
3. **File GSTR-9**: Include the additional GST liability in the annual return for FY 2018-19. Ensure to provide a clear explanation of the reason for the discrepancy if required.
4. **Pay the Liability**: Make the payment of GST along with interest for the delayed period if applicable. The payment should be made through the GST portal under the relevant tax period.
5. **Consult a Professional**: It is advisable to consult a GST professional or tax advisor to ensure accurate filing and to understand any potential penalties or legal implications.
### Summary
- **Reporting**: You can report the omitted GST payable on transport charges under RCM in GSTR-9 for FY 2018-19. - **Penalties and Interest**: Be prepared to pay interest and possibly penalties for the delay. - **Compliance**: Ensure timely and accurate compliance to avoid further complications.
Taking corrective actions and addressing the discrepancies proactively is essential to ensure compliance with GST regulations and to mitigate any potential penalties or interest.
CAclubindia
