04 May 2021
sir, A gst registered composite dealer sales turnover declare Rs:15 lacs and tax paid Rs:15,000/- show in cmp-08 filed in f.y.19-20 .if a dealer mistake cmp-08 declare sales turnover not reported table 6 gstr4 annual return in f.y.19-20 .dealer recently gstr4 f.y.20-21 opened table 8 negative liablity rs .cgst 7500/- and sgst 7500/- show annual return in f.y.20-21. Question: Dealer mistake cmp-08 sales turnover not reported table 6 gstr4 f.y.19-20 show in next (two years f.y.19-20 and f.y.20-21) gstr4 20-21 table 6 adjustment allowed in gst act.
07 July 2024
If a GST registered composite dealer made a mistake in the CMP-08 for FY 2019-20 by not reporting sales turnover in Table 6 of GSTR-4 annual return, and subsequently, in FY 2020-21, they showed negative liability in Table 8 of GSTR-4, here's how adjustments can typically be handled under GST regulations:
1. **Adjustment for CMP-08 Mistake (FY 2019-20):** - Since the sales turnover was not reported correctly in CMP-08 for FY 2019-20, and assuming it was under-reported or incorrectly reported, adjustments can generally be made in the subsequent years' returns to correct the error. - As per GST rules, adjustments for any errors or omissions in previous returns can be rectified in the subsequent returns, provided they are within the prescribed time limits.
2. **Adjustment in GSTR-4 for FY 2020-21:** - In FY 2020-21, when filing GSTR-4, the dealer showed negative liability in Table 8 (refund claimed or excess paid), which suggests that adjustments were made to correct the tax liabilities or credits. - Adjustments related to under-reported turnover in FY 2019-20 can be corrected in FY 2020-21's GSTR-4 return. This adjustment would typically involve correcting the turnover figures and ensuring that the tax paid aligns correctly with the corrected turnover.
3. **Legal Provisions:** - The GST law allows for rectification of errors in returns through subsequent returns, provided the error is within a permissible timeframe and is not intentional tax evasion. - Section 37 of the CGST Act, 2017, provides for rectification of errors in monthly or quarterly returns, including adjustments for under-reported turnover or incorrect tax payments.
4. **Process:** - To adjust the mistake in CMP-08 for FY 2019-20, the dealer should ensure that the correct turnover figures are reported in the subsequent GSTR-4 for FY 2020-21. - The adjustment should reflect the correct sales turnover figures, and any additional tax liability or refund entitlement should be calculated based on the corrected data.
In conclusion, adjustments for under-reported turnover in CMP-08 for FY 2019-20 can be made in the subsequent years' GSTR-4 returns, such as FY 2020-21, following the provisions of the GST law regarding error rectification and adjustment of tax liabilities. It's advisable to consult with a GST expert or tax consultant to ensure compliance with GST regulations and to accurately rectify any errors in the GST filings.
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