Process for a Recovery Towards the Mismatch in GSTR 1 & 3B
The Central Government presented modification to Section 75 (12) of the CGST Rules, 2017 through inserting an illustration so as to retrieve self-assessed tax without having to resort to proceedings u/s 73 or Sec 74 of the CGST Act, 2017.
The illustration describes the self-assessed tax to engage the tax applicable with respect to the information of the outward supplies in Form GSTR-1 but does not engage in GSTR- 3B.
There was a doubt about the recovery proceedings for self-assessed tax on the outward supplies that is mentioned in Form GSTR-1 however not in the context in Form GSTR-3B has executed under Section 79 that is via different modes such as detaining or selling of goods which belongs to defaulter that are beneath the departments regulation, proceedings, distaining and selling of movable or immovable property belonging to the defaulting person, and others excluding any pillar for proceedings under Section 73 or Section 74 of the CGST Act.
The trade and the field formations urge with the queries towards the work for the executions of the recovery proceedings under section 79 of the Act. For recovery, CBIC has given the directions on 7th January 2022. The above-mentioned directions are provided for the recovery under section 79 of the act in these cases.
Cases in Which the Recovery Proceedings Might be Executed
- A. In which the tax applicable under GSTR-1 has not furnished via GSTR-3B return – wholly or partly
- B. Any unpaid interest thereon
Real Cases of the Variation in the Return Filed
In some of the genuine reasons for the difference towards the details of outward supplies declared in GSTR-1 and those shown in GSTR-3B:
Towards the case of the typographical error or false reporting of any fact in GSTR-1 or GSTR-3B under GST. These errors or omissions can be corrected in the next GSTR-1/ GSTR-3B.
A supply is not been shown in GSTR-1 of the former tax duration even when the tax was furnished effectively in GSTR-3B. The information of these supplies might be reported via enrolled individuals in GSTR-1 of the current tax period. In these cases, there would be a mismatch amid the GSTR-1 and GSTR-3B (liability reported in GSTR-1> tax paid in GSTR-3B) in the existing tax period.
Thus in these cases, the need is to give the chance to the related enrolled person to elaborate the difference between GSTR-1 and GSTR-3B.
Process Towards the Recovery Through the Department
- The proper officer might provide the communication through DIN under GST to the enrolled individual to furnish the amount short paid or not paid or to elaborate the cause for these short payments or non-payment of the self-assessed tax.
- Much time would be permitted for the payment.
- If the assessee is capable to explain the differences or is allowed to elaborate the cause of the same short payment or non-payment of tax to the satisfaction of the proper officer, or pays the amount such short paid or not paid, there will be any need to initiate proceedings for recovery under section 79.
- If provided enrolled individual is either unable to answer or refuses to make the payment in the mentioned time or the same next period as permitted then the proceedings to recover might be executed via a proper officer.
- Subsequently in which the mentioned enrolled individual is unable to elaborate the cause for these differences/ short payment of tax towards the satisfaction of the proper officer, might be actioned towards the recovery of the mentioned amount as per provisions of section 79.
