13 March 2021
One of our supplier while filling of GSTR-1 return his uploaded 2 months bills one month bills missed out in filing of quarterly return,but payment made and declared liability in GSTR-3B return, in this regards he can upload current month GSTR-1 returns. Transaction related to FY 2017-18.
Please advise regarding this issue now GST audit team asking interest and penalty on irregular input availment.
07 July 2024
If the supplier has missed including invoices for a particular month in their GSTR-1 return for FY 2017-18, but has correctly reported and paid the liability in GSTR-3B for that period, here's what can be done:
1. **Rectification in GSTR-1**: - The supplier should rectify the omission by filing the missed invoices in the subsequent GSTR-1 returns for FY 2017-18. According to GST rules, GSTR-1 can be amended to include missed invoices up to the September of the following financial year or before filing the annual return, whichever is earlier.
2. **Payment and Liability Declaration in GSTR-3B**: - Since the supplier has correctly reported and paid the liability in GSTR-3B, this shows compliance with the GST payment requirements.
3. **Interest and Penalty**: - Interest and penalty under GST are typically levied on late payment of tax or delayed filing of returns. If the supplier has paid the tax liability on time through GSTR-3B, the interest and penalty should not apply for the missed invoices in GSTR-1, provided they are rectified in subsequent returns.
4. **Communication with GST Audit Team**: - The supplier should communicate the rectification process and submission of missed invoices in GSTR-1 to the GST audit team. - Provide documentary evidence such as proof of payment through GSTR-3B and submission of rectified GSTR-1 to support compliance.
5. **Consultation with a Tax Professional**: - It might be beneficial for the supplier to consult with a tax professional or GST expert who can review the specific details and provide guidance on handling the audit team's queries effectively.
By following these steps and providing necessary documentation, the supplier can address the issue of missed invoices in GSTR-1 for FY 2017-18 and demonstrate compliance with GST regulations, thereby potentially avoiding unnecessary interest and penalty charges.
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