one of my clients has providing works contract service to Reliance,
The accountant is regularly filing GSTR-3b and however, due to personal allegations between client & accountant, the accountant has not filed GSTR-1 for the Period July 2017 to Dec 20 for which the reliance company has deducted the GST amount and remit the balance taxable value as per invoice.
clients have already paid GST amount because he has filed GSTR-3b & Not GSTR-1, however, due to non Reflection Reliance details in GSTR-2A/ 2B
now the client has paid tax two times i.e. one time at the Filing of GSTR-3B & second Reliance co has deducted the tax amount due to non-filing of GSTR-1
how to proceed with the above transaction, both the reliance company & GST Dept are not responding after drafting many mails to both the parties,
as of day, the client has a tax liability of Rs 78,68,500 towards other works for which he has not filed GSTR-3B & GSTR-1
Now the client wants to set off current liability with the previous one, his version is that he had paid tax 2 times to Government only
please guide us ..how to proceed with the above situation
04 June 2021
Your statement client paid tax two times is not correct. Instead of collecting tax from Reliance and pay to government, you paid tax one time only. So set off of current liabilities not possible. Pay tax and file GSTR.
Avail the amensty scheme.
Latest Update 28th May 2021
“To provide relief to the taxpayers, late fee for non-furnishing FORM GSTR3B for the tax periods from July, 2017 to April, 2021 has been reduced / waived as under: -” “Late fee capped to a maximum of Rs 500/- (Rs. 250/- each for CGST & SGST) per return for taxpayers, who did not have any tax liability for the said tax periods” “Late fee capped to a maximum of Rs 1000/- (Rs. 500/- each for CGST & SGST) per return for other taxpayers.”
04 June 2021
He hasn't paid taxes twice. He paid only once when he filed Gstr-3b. The money not received from buyer is of contractual nature. Therefore the current liability will have to be paid afresh.
05 June 2021
Thank you for your clarification, however in the instant case client has filed GSTR-3B within time and pay the tax, he has not Filed GSTR-1, which Results of non-reflection of supplier bills in reliance GSTR-2B / 2B, Due to this Reliance co has to withhold the tax amount and pay the taxable value as per Invoice and the tax amount vide DRC-03 by reliance co as they utilised the ITC please guide us
05 June 2021
Reliance is right on its part that they are witholding the amount since the same was not reflected and it will be denied by the department. So this is a loss for you for not filing the returns on time.
05 June 2021
agreed with you, however, any suggestion to deal with this situation. as the Reliance has already withheld tax on behalf of the client and pay tax vide DRC-03 & and the client has paid the same tax at the time of filing Gstr-3B
05 June 2021
Its too late now for July 2017 to March 2020. However for FY 2020-21 you can still amend GSTR-1 and the ITC on invoices being shown for the period April 2020 to December 2020 can be claimed by Reliance. Therefore that amount can be collected from your customer. File all GSTR-1 and communicate with your customer to claim ITC for April 2020 to December 2020. Thereafter the tax amount can be collected by your customer.
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