MISMATCH BETWEEN GSTR 1 AND GSTR 3B

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04 February 2021 During FY 2018-19 Taxable Turnover as per GSTR 3B was Rs 100, while as per accounts & GSTR 1 was Rs 80 this error was rectified during FY 2019-20 and taxable turnover for FY 2019-20 is as per GSTR 3B is Rs 80 while as per Accounts and GSTR 1 is Rs 100, now my question is at the time of filing annual return of FY 2019-20 tax payable as per table 4 is greater than tax paid shown in table 9 how to deal with such situation? We have not filed annual return for FY 2018-19 as Turnover was below 2cr

Aashok Kumar Sharma online

Aashok Kumar Sharma

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09 July 2024 In the situation described, where there is a discrepancy between the taxable turnover as per GSTR 3B and as per accounts/GSTR 1 for FY 2018-19 and FY 2019-20, and you are preparing to file the annual return for FY 2019-20, here’s how you can approach the issue:

### Steps to Address the Discrepancy:

1. **Understand the Nature of Discrepancy**:
- For FY 2018-19: Taxable turnover as per GSTR 3B was Rs 100, while as per accounts and GSTR 1 it was Rs 80.
- For FY 2019-20: Taxable turnover as per GSTR 3B was Rs 80, while as per accounts and GSTR 1 it was Rs 100.

2. **Determine Correct Tax Liability**:
- Calculate the tax liability based on the correct taxable turnover as per your accounts and GSTR 1 for both FY 2018-19 and FY 2019-20.
- Identify the tax payable for each period based on the corrected turnover figures.

3. **Comparison with Tax Paid (Table 9 of GSTR 9)**:
- Check the tax paid as per your records and GSTR 3B (Table 4 of GSTR 9) against the tax liability calculated based on corrected turnover figures.
- It seems you've noted that tax payable (based on corrected figures) is greater than tax paid (as per Table 9 of GSTR 9).

4. **Disclose Discrepancies in GSTR 9**:
- In Table 9 (Reconciliation of tax paid and tax payable), you need to disclose discrepancies where tax payable exceeds tax paid.
- Provide explanations for the discrepancies, detailing the reasons for the differences between tax paid and tax payable.

**Pay the Additional Tax Due**:
- If there is a shortfall in tax paid compared to tax payable, you will need to pay the additional tax along with applicable interest (if any) before filing the annual return for FY 2019-20.
- Use the appropriate challan to make the payment through the GST portal.

**Document Supporting Evidence**:
- Maintain documentation supporting your corrected turnover figures, calculations of tax liability, and payments made (challans, bank statements, etc.).

**Consult with a Tax Professional**:
- If you are unsure about the calculations or how to handle the discrepancies, consider seeking advice from a tax professional who can provide guidance specific to your situation and ensure compliance with GST regulations.

### Conclusion:

Addressing discrepancies between taxable turnover as per GSTR 3B, accounts, and GSTR 1 requires careful reconciliation and adjustment of tax liability. Ensure that you rectify any errors in reporting for previous periods and accurately report and pay the correct tax amount before filing the annual return for FY 2019-20. Transparency in disclosing discrepancies and timely payment of any additional tax due will help maintain compliance with GST regulations.

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