Notice has been issued for wrong filling of place of supply in GSTR-1 return.

This query is : Resolved

dalip (Querist)
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26 August 2025 We purchased goods from some Haryana party in 2020, but while filing the GSTR-1 return the party
filled the pleace of supply incorrectly, now in 2025 we have received notice of 74, what do
we do and what steps can we take.Do we have to pay taxes to the government again?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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26 August 2025 Respond to the Notice: Review the show-cause notice carefully and prepare a reply explaining that the error was clerical and not due to any fraudulent intent. Provide all invoice copies, payment proofs, and supporting documentation showing that tax was paid.

Check Amendment Options: Amendments to GSTR-1 can normally be made in later returns, but there is a time limit. For 2020 invoices, this window has long passed, so the error cannot now be self-corrected through GSTR-1.

Submit Evidence: Document that GST on the transaction was actually paid—either by your firm or the Haryana party. Emphasize that no revenue loss occurred since GST was deposited, albeit with a reporting mistake.

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Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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26 August 2025 If GST has already been paid on the goods, double taxation is generally not warranted, even if the place of supply was wrongly mentioned, provided the government has not suffered a revenue loss.

However, if authorities conclude otherwise, sometimes the recipient or supplier is asked to deposit the correct IGST and claim refund of wrongly paid CGST/SGST. Interest and penalties may also be proposed if they allege fraud or suppression, but strong representation can help mitigate this.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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26 August 2025 To prove that the place-of-supply error was a filing mistake and not a wilful misstatement, the key is to demonstrate the absence of intent or deliberate action to evade tax as per GST laws:

Unintentional Error: Provide evidence that the error was a genuine clerical or data entry mistake. For example, if the mistake was due to an employee or data entry operator error, explain the process followed and show that it was inadvertent with no attempt to mislead tax authorities.

Consistent Records: Present all supporting documents such as purchase orders, invoices, delivery challans, and payment proofs that show the transaction details were consistent and taxes were paid according to the actual supply, even though the place of supply was reported incorrectly.

No Tax Evasion Intent: Stress that there was no intention to evade tax or claim wrongful Input Tax Credit. Show that the error did not result in any loss of revenue to the government and that all GST dues were paid timely on the transaction as per records.

Corrective Actions: If any corrective steps were taken after noticing the mistake (e.g., communications with the vendor or attempts to rectify the returns in permissible periods), document these efforts to reflect good faith.

Compare with GST Circulars: Refer to relevant GST circulars or rulings that provide leniency for genuine mistakes without any fraudulent intent, emphasizing the distinction between clerical errors and wilful suppression of facts.

In essence, the GST officer needs to be convinced that the error was accidental—such as a typographical or procedural mistake—and that the taxpayer exercised due diligence and transparency in reporting and paying tax.

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