My client is a service provider. In fy 17/18 regularly received advances from customer & discharge liability of rs.12lac. When invoice prepared at that time adjusted the gst amount Rs.12 lac paid on advances.
His accountant by mistake while filling 3B increased purchase ITC (RCM) instead of reducing Sales Liability.
Same error come to know in Septemeber 18 & same 12 lacs been adjusted in period sept 18 to march 19 by reducing purchase ITC & reducing sales liability.
Actually no liability as per accounts. But wrong filling of 3b has created major issues.
While filling annual return 9 we can’t reduce sales liability & If we reverse purchase than interest will be applicable.
CAclubindia
