CGST & SGST ITC claimed instead of IGST ITC in FY 2018-19

A new client came to me for GST Annual Return & GST Audit for FY 2018-19.

 I found a mistake that in the monthly GST 3B return filed by the accountant that CGST & SGST credit has been claimed instead of IGST.

 

Is it possible to rectify the mistake in the annual return?

 

I know that CA has to give observation/qualification in his audit report as turnover exceeds 10cr.

 

Mistaken GST Amount is near 5 lakh, but it is approx 6% of the total ITC claimed in the year.

 

What will be consequences if we rectify the amount in annual return and what if we not?

 

No GSTR-3B & 1 pending for FY 2018-19.

As only few days left, if possible please provide me a solution as soon as possible.

 

Replies (8)
Quick Summary
A user discovered an error in their client's FY 2018-19 GST filings where CGST & SGST input tax credit (ITC) was claimed instead of IGST. This mistake occurred in the last two quarters of the financial year and amounts to approximately £5 lakh. While GSTR-3B and GSTR-1 returns are filed, the user is seeking advice on rectifying this in the GSTR-9 annual return, given the approaching deadline and the fact that the period for amendments has passed.

Wrong claim can settled , but more good contact the accountant & CA , 1st identify what errors made

Errors has been identified.

Found some interstate purchase invoice in which instead of showing IGST ITC in GSTR-3b, CGST & SGST ITC has been shown in GSTR-3b. The mistake happened in last 2 quarters of FY 2018-19.

 

Is there any way to recitify such mistake in GSTR-9?

Cannot !

What can be the consequences?

No tax evasion / extra claims , so no consequenced attracted ...but ledger balances mistaken , you can correct in the suceeding months return , reverse the cgst & sgst mistakenly claimed and add back the igst

But it belongs to FY 2018-19. The last month to rectify such mistake was sep 2019. Am I right?

Yes .. Bylaw ...
But adjust the credit , this way only or adjust with coming months inputs ,ie .cgst ,sgst , igst

Ok thanks for the reply

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