Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

Mis report in gstr 3b

11 May 2021

for Aug 17 of gstr 1m amount of rs 280000 in terms of taxabke value has been shown whereas for same month while filing 3b it was reported as 0. however after 1 yr the same amount has been included in gstr 3b. however in Aug 17 i also did not have enough it available. now my client has received a show cause for disalliwance of its claimed after 1 year and also interest penalty was charged. what to do now

Reply
Follow
Share

11 Replies

CA Altamush Zafar (GST Consultant) (15971 Points)
Replied 12 May 2021

Pay interest challenge penalty and liability provided that itc is valid

Upgrade to CAclubindia Pro. Subscribe Now!

saurabh mahto (30 Points)
Replied 12 May 2021

They are saying that for the disputed month as itc was not available in that month i had to pay tax in cash.

debora M (BUSINESS DEVELOPMENT MANAGER) (1697 Points)
Replied 12 May 2021

Pay interest penality that was charged provided that itc is valid

CMA Poornima Madhava (CMA) (13112 Points)
Replied 12 May 2021

If there is no ITC during the month, then tax needs to be paid in cash. So interest and penalty too would be payable.

CA Altamush Zafar (GST Consultant) (15971 Points)
Replied 12 May 2021

@ cma poornima any specific provision

Upgrade to CAclubindia Pro. Subscribe Now!

saurabh mahto (30 Points)
Replied 12 May 2021

The main contention is that as nil return was filed in 3b for that month leading to mismatch between 1m and 3b. however, in 1 m liability was declared, also for the disputed month itc available was very less than tax liability.

CMA Poornima Madhava (CMA) (13112 Points)
Replied 12 May 2021

Did I misread the query? I think the query is about declaring liability in GSTR1 (not in GSR3B) and paying after 1 year. No ITC was available so tax has to be paid in cash along with interest & penalty. Anything wrong here?

saurabh mahto (30 Points)
Replied 12 May 2021

@ cma poornima u got in right. declared taxable value in 1m in August but shown 0 liability in 3b of august due to clerical mistake. however I have invoices of items purchased in month of August. but itc available at end of August was nil.
the thing is as i did not declare liability in 3b hence itc available was not reflected in itc ledger

CMA Poornima Madhava (CMA) (13112 Points)
Replied 12 May 2021

Oh! Is this all about disallowance of ITC for the customer?

Also are you referring to ITC ledger of your client? If yes, because you have declared liability in GSTR1, the same should appear in GSTR2A for the customer. So there is no reason for disallowance of ITC in that case.

Am I missing anything again?