Gst tran i vs vat audit
This query is : Resolved
07 January 2019
Dear Sir / Madam,
I had filed TRAN I in Nov 17 - Dec 17 & availed credit of Rs.4,00,000 to SGST A/c. Now during VAT Audit Credit have reduced to Rs.3,75,000 due to additional Sales Invoice in VAT period. That means I have claimed excess Rs.25,000 in TRAN I.
In this situation how to do I rectify this mistake?
- By paying Extra 25,000/- under VAT along with applicable interest
- By reversing Rs.25,000/- from SGST Credit Balance under GST along with applicable interest
- Any Other means
Please revert.
I had filed TRAN I in Nov 17 - Dec 17 & availed credit of Rs.4,00,000 to SGST A/c. Now during VAT Audit Credit have reduced to Rs.3,75,000 due to additional Sales Invoice in VAT period. That means I have claimed excess Rs.25,000 in TRAN I.
In this situation how to do I rectify this mistake?
- By paying Extra 25,000/- under VAT along with applicable interest
- By reversing Rs.25,000/- from SGST Credit Balance under GST along with applicable interest
- Any Other means
Please revert.
07 July 2024
In the situation where you have claimed excess input tax credit (ITC) of Rs.25,000 under SGST due to discrepancies found during VAT audit, here’s how you can rectify this mistake:
1. **Reversal of Excess ITC in GST:**
- You can reverse the excess ITC of Rs.25,000 from your SGST credit balance under GST. This involves adjusting your SGST liability in the subsequent GST returns.
2. **Process:**
- Calculate the exact amount to be reversed (Rs.25,000) and the applicable interest, if any, for the period during which the excess credit was claimed.
- Prepare a reversal entry in your GST returns to reduce the SGST credit balance by Rs.25,000. This adjustment should be reflected in the appropriate tables (e.g., Table 4 of GSTR-3B for SGST).
3. **Documentation:**
- Maintain documentation of the reversal entry and the reasons for it. This should include details from your VAT audit report or findings that led to the adjustment.
4. **Payment under VAT:**
- Simultaneously, you should pay the Rs.25,000 (along with applicable interest) under VAT. This ensures compliance with VAT regulations and rectifies the discrepancy noted during the audit.
5. **Consultation:**
- It’s advisable to consult with a GST expert or a chartered accountant to ensure compliance with both GST and VAT requirements. They can assist in accurately calculating the interest and guiding you through the reconciliation process.
By reversing the excess ITC in GST and paying the corresponding amount under VAT, you align your records with the correct tax liabilities and maintain compliance with both GST and VAT regulations. Remember to keep all documentation and communication related to this rectification process for future reference and audits.
1. **Reversal of Excess ITC in GST:**
- You can reverse the excess ITC of Rs.25,000 from your SGST credit balance under GST. This involves adjusting your SGST liability in the subsequent GST returns.
2. **Process:**
- Calculate the exact amount to be reversed (Rs.25,000) and the applicable interest, if any, for the period during which the excess credit was claimed.
- Prepare a reversal entry in your GST returns to reduce the SGST credit balance by Rs.25,000. This adjustment should be reflected in the appropriate tables (e.g., Table 4 of GSTR-3B for SGST).
3. **Documentation:**
- Maintain documentation of the reversal entry and the reasons for it. This should include details from your VAT audit report or findings that led to the adjustment.
4. **Payment under VAT:**
- Simultaneously, you should pay the Rs.25,000 (along with applicable interest) under VAT. This ensures compliance with VAT regulations and rectifies the discrepancy noted during the audit.
5. **Consultation:**
- It’s advisable to consult with a GST expert or a chartered accountant to ensure compliance with both GST and VAT requirements. They can assist in accurately calculating the interest and guiding you through the reconciliation process.
By reversing the excess ITC in GST and paying the corresponding amount under VAT, you align your records with the correct tax liabilities and maintain compliance with both GST and VAT regulations. Remember to keep all documentation and communication related to this rectification process for future reference and audits.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GST on reimbursement of expenses
- Due date for filing return for the partner in partnership subjected to Tax Audit
- Query on effect of registration of property
- Visiting card purchase
- Wrong CMPo8 file
- Additional trade name
- Number of years as per AS amortisation of Goodwill
- Goodwill transfer of deceased father’s firm – ICAI applying a 27.04.2026 cut-off to the 3 year limit
- Equity Share Sale and Purchase
- Whether output tax is taken credit by purchaser
- Foriegn assets disclosure
- Classification of income of P Ltd company as business or profession
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
