How to rectify error in GSTR 3B

Amendment, Corrections and Rectifications of GSTR-3B returns

In this article about rectify error in GSTR 3B, we will understand following:

  1. Stages of returns
  2. Type of Error in GSTR-3B
  3. Rectification of error made while filling GSTR-3B

Earlier it has been clarified that error in GSTR-3B can be rectified while filing GSTR-1 and GSTR-2, however since the mechanisms are not implemented till now, this video provides detailed scope on how to rectify error in GSTR 3B.

1. Amendment, Corrections and to rectify error in GSTR 3B returns:

  1. FORM GSTR-3B do not contain provisions for reporting of differential figures for past month(s), the said figures may be reported on net basis along with the values for current month itself in appropriate tables
  2. While making adjustment in the output tax liability or input tax credit, there can be no negative entries in the FORM GSTR-3B. The amount remaining for adjustment, if any, may be adjusted in the return(s) in FORM GSTR-3B of subsequent month(s) and where such adjustment is not feasible, refund may be claimed.
  3. Where adjustments have been made in FORM GSTR-3B of multiple months, corresponding adjustments in FORM GSTR-1 should also preferably be made in the corresponding months.
  4. Where the taxpayer has committed an error in submitting the information in FORM GSTR-3B, a provision for editing the same has been provided. The facility to edit the information can be used only before offsetting the liability and editing will not be permitted after offsetting the liability.
  5. It is further clarified that the information furnished by the registered person in the return in FORM GSTR-3B would be reconciled by the departments system with the information furnished in FORM GSTR-1

2. Stages of Return filing:

Four stages have been identified for filing GSTR-3B. In the first two stages of rectify error in GSTR 3B, editing in GSTR-3B is possible, however in the next two stages editing in GSTR-3B is not possible.

S noStageRemark
1Confirmed and submittedEditing can be done
2Cash Ledger UpdatedEditing can be done
3Offset LiabilitiesNo Editing can be done
3Return FilledNo Editing can be done

3. Common Error in GSTR-3B

3.1 Case: Company A while filing their GSTR-3B, missed to provide detail of some sales invoices.

Error – 1: Under or wrong Reporting of Liabilities
Confirmed SubmissionEditing in return is possible.
Cash Ledger UpdatedEditing in return is possible, and company may deposit balance tax liabilities.
Offset LiabilitiesIn this case, they may report this additional liability in the return of next month and pay tax with interest.
Return filled

3.2 Case: Company A while filing their GSTR-3B, detail of some sales invoices has been provided twice.

Error – 2: Over or wrong reporting of Liabilities
Confirmed SubmissionEditing in return is possible.
Cash Ledger UpdatedIn this case, Company has the option to use the “edit” facility to reduce such liability. Once, this is done, they can partially debit their cash ledger to offset their tax liability. Further, remaining balance can either be claimed as refund or used to offset future liabilities. .
Offset LiabilitiesIn this case, they may reduce this liability in the return of subsequent months or claim refund of the same.
Return filled

3.3 Case: Company A, while filing their FORM GSTR – 3B for the month of July, inadvertently, misreported Input tax credit of Rs. 1,00,000/- as Rs. 10,000/-. They had confirmed and submitted their return. What can they do?

Error – 3: Under or Wrong reporting of ITC
Confirmed SubmissionThe company may use the edit facility to add more Input tax credit to their submitted FORM GSTR-3B. Once, this is done, such credit will be reflected in their Electronic Credit ledger and may be utilized to offset liabilities for this month or for subsequent months.
Cash Ledger UpdatedNo Action required
Offset LiabilitiesSince, the return has already been filed, Company may add such Input tax credit in their return for subsequent month(s).
Return filled

3.4 Case: Company A, while filing their FORM GSTR – 3B for the month of July, inadvertently, misreported Input tax credit of Rs. 10,000/- as Rs. 1,00,000/-. They had confirmed and submitted their return. What can they do?

Error – 4: Over or Wrong reporting of ITC
Confirmed SubmissionEditing can be done.
Cash Ledger UpdatedEditing can be done.
Offset LiabilitiesCompany will have to pay additional amount of tax equal to over reported ITC along with interest.
Return filled

3.5 Case: While filing their FORM GSTR-3B return, Company A while generating payment challan added Rs. 5,00,000/- under the Central Tax head, while they wanted to deposit Rs. 5,00,000/- under the integrated tax head. What can they do?

Error – 5: Cash Ledger wrongly reported
Confirmed SubmissionNo action required.
Cash Ledger UpdatedAdd cash under the right tax head and seek cash refund of the cash added under the wrong tax head.
Offset LiabilitiesNo action required.
Return filled

DISCLAIMER: The views expressed are strictly of the author and VJM & Associates LLP. The contents of this article are solely for informational purpose. It does not constitute professional advice or recommendation of firm. Neither the author nor firm and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any information in this article nor for any actions taken in reliance thereon.

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