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Regarding GST return 2017-18

RUDRA (Income & Corporate Tax Lawyer) (381 Points)

14 October 2020

I'm a owner of proprietorship firm whose nature of work is service.
in the beginning of 17-18 and in 18-19 I forgot some invoices to show in both GSTR 3b and GSTR 1 too.
Due to which the company withheld the money for my further work.
The amount is near about 22 Laks.
I forgot to show the invoice because of that party is not getting his ITC.
There is any process to solve this.
I want to pay the money ...but how because any how we can revise this.
please suggest me. I request.

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7 Replies

Shivam RC (Student) (23683 Points)
Replied 14 October 2020

It's too late Sir. The time limit for correction of any mistakes for both the Financial Years ( 2017-18 & 2018-19 ) is now over.

My personal suggestion to you would be to contact your jurisdictional office once regarding this matter. Write a letter to them regarding this problem that you are now willing to pay the taxes now and attach the physical copies of the Invoices which you have missed to report in your GSTR-1 / GSTR-3B.

You can also consult with other members of the forum and take their valuable suggestions too.

Best Wishes...

RAJA P M ("Do the Right Thing...!!!") (127177 Points)
Replied 14 October 2020

Yes... I agreed with above said reply by Mr Shivam...

@ Mr Rudra.,

Better to pay the tax through DRC-03 with interest and keep details as per payment. In case Gst official ask about then You can submit the documents.

It's going with less Compliances in future...

Pankaj Rawat (GST Practitioner) (55032 Points)
Replied 15 October 2020

No nothing can be done now & it's better to contact to your Recepeint & request him pay the balance amount after deducting the GST AMOUNT.

Note : Receptient can ask for Interest on the same .

RUDRA (Income & Corporate Tax Lawyer) (381 Points)
Replied 15 October 2020

@ Shivam RC @ Raja P M @ Pankaj Rawat
First of all I would like to thanks for discussing the above given matter.
I'm agree with you Mr. Shivam and Raja PM that filing dates are over.
As I'm a Corporate Lawyer..so my point is here..that if we scrutiny the particular period return u/s 61 read with u/s 73.
In these sections a officer has a power to scrutinize the return and he can raise demand. At this my question is that...is this possible that after paying the demand, the party which has claimed the ITC will get that or not?
Second one ...from mentioned question
That if we scrutinize the return then in this case we had already paid a amount of 22laks in tax head and 8.5 Laks as interest through preceding month of July 2020 GSTR 3B and interest through DRC. Can we take refund of that Tax.
because if we pay through demand then which tax we had through 3B will copy. And it will be excess of Tax. So can we get refund of that?
Plz Revert.

Pankaj Rawat (GST Practitioner) (55032 Points)
Replied 15 October 2020

Yes you are correct As per Section 61(1) r/w rule 99(1) serve notice in form ASMT 10 & quantify the amount tax, Interest therein & as per section 61(2) r/w rule 99(2) if the registered person accepts the mentioned discrepancy & pay the tax & furnish form ASMT 11 , no further action is taken by proper officer.
Note : above tax, interest which is paid in cash ledger , cannot be credited to govt account unless it is set-off.
Hence the officer can ask you file DRC for the same . So in that case you cannot claim ITC for the same.

Now come to initiatation of Section 73:
In term of Section 61(3) if no statisfactory explanation is furnished against notice served in ASMT 10 , then only the provision of Section 66,67,73,74 is invoked.

Now come to you 2nd part of query , that you have already paid the tax of Rs.22 lac against invoices not being declared by you in your return. assuming that tax is lying in your cash ledger & only Interest amount rs.8.5 lac being paid & set-off by filing DRC 03. So any demand u/s 61 or 73 issued , the same can be setoff against the balance lying in your cash ledger . or if you have set-off the tax amount of 22 lac in your GSTR 3B , can be bring to notice of proper officer that it's already being paid & as per Section 73(5) No notice/statement under sec 73(1)(3) is issued when tax along with interest is paid before serving of Notice.

Now come to the point whether your Receptient can claim ITC when any tax with interest is paid by you against any demand or notice , the answer is NO, because :
1. claiming/availing of ITC is prescribed in Section 16 & there is no such conditions prescribed therein.

2. As per Section 36(3) of CGST Act : if the registered person who made the tax payment in pursuance of any demand order has collected from the Recepeint by issuing debit note then the recipient shall avail credit for the same . (Demand shall not be related to any fraud )

So none above conditions are satisfied in your case hence in any case the ITC is not available to Recepeint.