Mistake in filing GSTR-1

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A security agency received a notice for a GSTR-1 filing error concerning reverse charge supplies for FY 2019-20. They mistakenly failed to mark the 'supply attract reverse charge' option in GSTR-1, although they correctly reported the taxable amount under the exempt column in GSTR-3B at the time. The department is now demanding tax, interest, and penalty. The advice is to contest the demand by explaining it was a procedural error and providing documentation, including the invoice and relevant notifications, to support the argument that no tax is payable.

pranab sarma

pranab sarma (Querist)
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05 June 2024 We got a notice in Form DRC-01 for the FY 2019-20. We are in security agency business where GST is applicable on RCM basis. At the time of filing our first return we submit all details in GSTR-1 as per the invoice I raised at that time ( there was only one invoice), but as we were new we missed to click supply attract reverse charge button on GSTR-1 and filed my GSTR-01 as such. But in our GSTR-3B we put the taxable amount on exempt column as there was no such specific column in GSTR-3B for reverse charge supply at that time. Now department is demand me the tax on that invoice along with interest and penalty, what to do? Is we have to pay for a procedural mistake. please suggest.

CA Altamush Zafar

CA Altamush Zafar (Expert)
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05 June 2024 No you don't have to pay although the department officer will most probably harass you to pay. Explain the situation and quote the notification along with certified copy of invoice

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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17 June 2024 You have to substantiate your case by arguing that it was just a procedural mistake and you being in security services, you are only providing services on which RCM is applicable.

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