While form GSTR-1 is an account of details of outward supplies, GSTR-3B is where the summaries of all transactions are declared and payments are made.
The Finance Ministry Wednesday said any mismatch in GST monthly sales return and outward supply details will have to be reported in annual return form and due taxes should be paid. In a clarification on annual returns and reconciliation statement, the ministry said it has received queries from businesses asking whether the primary source of data for filing of the annual return and the reconciliation statement should be GSTR-1, GSTR-3B or books of accounts. While form GSTR-1 is an account of details of outward supplies, GSTR-3B is where the summaries of all transactions are declared and payments are made.
The ministry said information in form GSTR-1, GSTR-3B and books of accounts should be synchronous and the values should match across different forms and the books of accounts. If the same does not match, there can be broadly two scenarios, either tax was not paid to the government or tax was paid in excess. “In the first case, the same shall be declared in the annual return and tax should be paid, and in the latter all information may be declared in the annual return and refund (if eligible) may be applied through Form GST RFD-01A,” the ministry said. Further, no input tax credit can be reversed or availed through the annual return. If taxpayers find themselves liable for reversing any ITC, they may do the same through Form GST DRC-03 separately, it added. It also said if a taxpayer has not paid, short paid or has erroneously obtained/ been granted refund or has wrongly availed or utilised ITC then before the service of a notice by any tax authority, the taxpayer may pay the amount of tax with interest. In such cases, no penalty will be levied on such tax payer.
“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,” it added. GSTR-9 is the annual return form for normal taxpayers, GSTR-9A is for composition taxpayers, while GSTR-9C is a reconciliation statement. The last date for filing annual return in August-end.
