On Wednesday, the Finance Ministry announced if there is any imparity in details of GST monthly sales return and outward supply, it has to be mentioned in the annual return form. Also, the payment of due taxes should be done.
Further, clearing businesses’ doubts on considering the primary source of data for filing the annual return and the reconciliation statement, the Finance Ministry suggested whether they can gaze at GSTR-1, GSTR-3B or books of accounts.
Wherein, the GSTR-1 consists of details of outward supply while the GSTR-3B maintains summarized details of all the transactions and payments made.
As the ministry instructed, the data and the values should be synchronized across all platforms including Form GSTR-1, GSTR-3B and the books of accounts.
In case there is any mismatch in data, there can be broadly two situations whether the tax was not paid to the Government or it was paid in excess.
In the first situation, the businesses need to report tax in annual return and paid the same while considering the second scenario, all the information regarding paid tax should be mentioned in the annual form and the taxpayer is eligible for any refund, may apply for it via Form GST RFD-01A.
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Further, the Ministry added, there is no provision of reversing or availing any input credit through the annual return. Still, any taxpayer finds himself liable for the reversal of any ITC, he/she can apply for it separately through Form GST DRC-03.
Moreover, the Finance Ministry facilitates taxpayers with the liberty of paying tax with interest, in case he/she has not paid, short paid or has mistakenly obtained/ been awarded refund or has erroneously availed or utilised ITC. However, it is applicable only before no notice is issued by any tax authority. Also, the taxpayer did not need to pay any penalty in such a scenario.
“Therefore, in cases where some information has not been furnished in the statement of outward supplies in Form GSTR-1 or in the regular returns in Form GSTR-3B, such taxpayers may pay the tax with interest through Form GST DRC-03 at any time. In fact, the annual return provides an additional opportunity for such taxpayers to declare the summary of supply against which payment of tax is made,” further added.
It is to be noted that the normal taxpayers to file GSTR-9 for annual return, composition taxpayer goes for the GSTR-9A for the same while the GSTR-9C is a reconciliation statement for the taxpayers. The due date for filing an annual return is at the end of August month.
