Whether to show in annual return or gst 3b

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HARISH BHATIA (Querist)
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25 June 2019 Dear Sir, one of client is a builder , he sell normally each flat for RS 17,50,000, how ever in one case he sale the flat for rs 17,50,000 flat sale value, how ever he collected Rs 21,00,000 by way of account payment to her bank account i.e. my firm current account the excess amount is for interior designs & other works. previous accountant shows Rs 17,50,000 in GSTR-1 & GSTR-3B, kindly confirm how to proceed in the annual return OR I can show excess amount in June 2019 month GSTR-3B & GSTR-1,

Transaction related 2017-18 fY, SO WHICH ONE IS BETTER WHETHER TO SHOW IN ANNUAL RETURN OR TO SHOW IN FUTURE 3B PERIOD .
which one is better and safe, kindly please guide us in a brief manner

CA Anita Bhadra

CA Anita Bhadra (Expert)
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25 June 2019 You need to show extra amount in Annual Return ( Table 4 ) and pay additional tax liability thru DRC 03 .

Payment received for supply in 2017-18 is not advisable to show in GSTR 3B / GSTR 1 in June 2019

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HARISH BHATIA

HARISH BHATIA (Querist)
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25 June 2019 can i use itc amount which already exist in my credit ledger or i have to pay only from cash ledger and please confirm , any interest or penalty applicable or not. I have not received any notice till date.

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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03 August 2025 Let's break down your situation clearly and suggest the best way to handle it:

Scenario:
Client (builder) sold a flat in FY 2017-18 for Rs. 17,50,000 (shown in GSTR-1 & GSTR-3B)

Received extra amount Rs. 3,50,000 (total Rs. 21,00,000) for interior designs and other works (not shown in original return)

You want to know:

Whether to show the excess amount now in Annual Return or in a future month’s GSTR-3B/GSTR-1?

How to pay tax on this extra amount — using ITC or cash?

Whether interest or penalty applies?

No notice received till date.

What to do?
1. Showing the excess amount in returns:
Since this relates to supply in FY 2017-18, the excess amount should be declared in the Annual Return for FY 2017-18 (Table 4, amendments).

It is not advisable to show this in a future month’s GSTR-1 or GSTR-3B for FY 2019-20, as it relates to an earlier period.

GST law allows you to amend returns through Annual Return for past financial years to correct such errors.

2. Paying the additional tax:
Additional tax liability on the extra Rs. 3,50,000 must be paid.

Input Tax Credit (ITC) cannot be used to pay this additional tax since this is a liability arising due to omission.

Payment should be made from cash ledger.

You can pay this through Form DRC-03 (self-assessment and payment of tax).

3. Interest and penalty:
Interest is applicable on the delayed payment of tax from the due date of original return till date of payment.

Since no notice has been received yet, voluntary compliance and payment may help avoid penalty.

Interest is calculated at 18% per annum on the additional tax.

Summary Table:
Aspect Action/Note
Reporting excess amount Show in Annual Return (FY 2017-18, Table 4)
Amending GSTR-1/GSTR-3B Not recommended for future periods
Tax payment Pay additional tax from cash ledger via DRC-03
Use of ITC Not allowed for additional tax payment
Interest Pay interest from due date till payment date (18%)
Penalty Avoid by voluntary disclosure; no notice till date

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