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Taxable Sales d in GSTR 1 but NIL gstr 3b filed for 2017-18

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sathya kumar s

Accountant

172 Points Posted on 09 April 2023

Greetings,

one of our client have declared taxable supplies in gstr 1 of 2017-18. Since gst was just introduced and without much awareness he not declared any taxable supplies in gstr 3B and did not set off the liabilities against Input tax credit. Now notice is received from department to pay whatever declared in GSTR 1 under section 73 of gst act. For good extent of output tax there is ITC available in gstr 2A of FY 2017-18 but it is not claimed in GSTR 3B of the FY. Now department is demanding full amount of Tax as declared in GSTR 1 with interest..... Any solutions...

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Quick Summary

A client declared taxable sales in their GSTR 1 for the 2017-18 financial year but mistakenly filed a NIL GSTR 3B, failing to utilise available Input Tax Credit (ITC). The tax department has issued a notice demanding payment of the full tax declared in GSTR 1, along with interest, under Section 73 of the GST Act. Despite having eligible ITC in GSTR 2A, it wasn't claimed in the GSTR 3B. The current advice suggests reconciliation and payment of the outstanding tax and interest, as retrospective claiming of ITC or waiver of interest for this period is unlikely.