GSTR 3B Correction

|Updated on: January 3, 2022

GSTR 3B Correction after Submission of Return Possible?

The first thing for us to know is that the GSTR 3B return cannot be revised as there are no provisions available in the present day GST law.

However, the council came up with new features and design of GSTR 3B which allowed the taxpayers to reset the return only in cases where the returns have been submitted but not filed by verifying with EVC or DSC as the case be. Meaning a taxpayer can alter any details filled in GSTR 3B until the submission stage.

Once the return is reset, all the entries posted in the Electronic Liability Register will be deleted and the ITC of this return integrated with the Electronic Credit Ledger will be reversed. And now the taxpayers can refill their returns with correct details.

Analysis to scenario 1: So it’s pretty clear that GSTR 3B correction could be made even after the return has been submitted and tax has been paid by you updating the cash wallet. So yes, GSTR 3B correction after submission of return is possible under GST.

Note: GSTR 3B correction is not possible after the liability is offset with credits and cash paid into e-cash wallet. Because at this stage the taxpayer is clearly warned by notifying that the once he is agreed for off setting the liability it means that he has accepted the details filed by him to be correct after which the returns can’t be reset.

GSTR 3B Correction after Filing of Return is it Possible?

Borrowing the concept from scenario 1, we can tell that GSTR-3B correction after the filing of return is not possible as a taxpayer is only allowed to reset the GSTR 3B data only and only if he has not filed the return.

Therefore, we can say that the opportunity to make changes in GSTR 3B return lapses once the return is filed after verification.

Analysis to scenario 2: It’s crystal clear that since GSTR 3B returns could not be revised in the first place, then GSTR 3B correction after filing also connotes to the revision of returns, which provision is not available in GST law today.

Revision of Returns and Resetting the Details in GSTR 3B - Both are Different Things

Revision of return means that the return has been filed in respect of which the taxpayer needs to file a rectified return with correct details. But in GST law there are no such windows opened yet for revision of returns with respect to GSTR 3B return.

Resetting the details of GSTR 3B return, on the other hand, does not entail that the return is revised or a revised return is filed after such resetting of details in the return. It’s just an action that erases the details filed by you and gives you back the GSTR 3B return with a clean slate for refilling.

Mistakes in GSTR 3B and How to Solve

Type of mistake in the return

How to rectify the mistakes in GSTR 3B

Underreporting of liability, and the return has been filed

  • Liability may be added in the return of subsequent month(s) after payment of interest.

  • Where in if such liability was not reported in FORM GSTR-1 of the month/quarter, then such liability may be declared in the subsequent month's/quarter's FORM GSTR-1 in which payment was made.

Over reporting of liability, return filed

  • Liability may be adjusted in return of subsequent month(s) or refund may be claimed where adjustment is not feasible.

  • If such liability was over-reported in the month's/ quarter's FORM GSTR-1 also, then such liability may be amended through amendments under Table 9 of FORM GSTR-1

Incorrect reporting of liability, after filing

  • Unreported liability may be added in the next month's return with interest, if applicable.

  • Accommodation may be made in return of subsequent month(s) or refund may be claimed where adjustment is not feasible.

  • The taxpayers will have to file for amendments by filling Table 9 of the subsequent month's / quarter's FORM GSTR-1

Underreporting of ITC after filing GSTR 3B

  • Input tax credit which was not reported may be availed while filing a return for the subsequent month(s).

  • No action required in GSTR-1.

Over – reporting of ITC (after filing the return)

  • Pay (through cash) / Reverse such over reported input tax credit with interest in the return of subsequent month (s).

  •  No action required in GSTR-1.

Incorrect reporting of ITC

  • Pay(through cash) / Reverse any wrongly reported input tax credit in return of subsequent month(s).

  • Any under-reported input tax credit, the same may be availed in return of subsequent month(s).

  • ·No action required in GSTR-1.

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