Reconciliation of existing returns under GST – A dire need

Recent data from GST data analytics revealed that only 16% of the summary sales returns in Form GSTR-1 matched with the final returns in Form GSTR-3B for the period July to December 2017. On the recommendations of GST Council, the Revenue Dept. has started to analyse major gaps between self-declared liability and the taxes actually paid, with a view to check any possible tax evasion. Views on the issue as expressed by Mr. Puneet Agrawal (Partner, ALA Legal), Mr. Vipan Aggarwal (Director) and Ms. Venus Mehrotra (Associate), published on (Taxsutra) is shared here for your appraisal.

Summary: With no facility to amend Form GSTR-3B and the delay in filing of Form GSTR-1 after the submission of Form GSTR-3B for respective month, mutual disparity in the two returns is inevitable. Some inadvertent errors/ inaccuracies in calculations like the submission of supply details of one State in another; wrong uploading of input tax credit or tax figures, clerical errors etc. in this regard are highlighted. However, it is stated that in the event of genuinely erroneous submissions, even if the taxpayer intends to discharge the balance tax liability by payment of the differential amount, he would be unable to do so due to unavailability of any mechanism to revise or pay off such liability. Hence, it is urged that a reconciliation mechanism must be brought in which undoubtedly will be a win-win situation for both, the Department as well as the taxpayers.

A copy of Representation made to the FM is also attached here for perusal. REPRESENTATION TO FM

The complete article can be read here.

– Team ALA

GST Law India is a blog on GST and allied commercial laws managed by members of the law firm ALA Legal.