How To Correct GSTR 3B After Filing?

How To Correct GSTR 3B After Filing: GST refers to Goods and Services Tax charged on products sold for domestic consumption. Introduced by the Constitution Act in 2016, GST is a value-added tax, which will convert the country into one unified market. Taxpayers should file GSTR-3B every month till the 20th of the next month. GST return is a document that encompasses all the details of tax paid on purchases and sales. After filing the GST return, one becomes legally responsible to pay taxes on the income through business transactions.

Though there is less scope for mistakes, still the chances of error while calculating purchases, sales, input, and output taxes are common. Sometimes the taxpayer might miss considering the sale or some purchase. After the due date of filing returns for the next financial year, one cannot rectify the error in GSTR-3B. Check out each and every possible mistake and acknowledge how to correct GSTR-3B after filing.

Common Errors Found on GST Portal

  • Error in Validation After Submission of Amendment of Non-Core Application: This error shows the mistake in the provided basic information of the taxpayer. At the time of migrating, the portal permitted only the name of the PAN holder. Now, it is confirming the other data also, which involves address and date of birth. When this error is displayed, one should verify the entire data.
  • There is No Summary to Submit GSTR-1: When any invoice details under GSTR-1 have not mentioned then this error occurs. According to GST rules, taxpayers should add at least one line item with a null value. By putting in zero in all the fields, the system will not show any error and will let people file the return.
  • Processing Error: While requesting transitional credit of the returns in TRAN-I form, portals show this error. While saving the details of the existing registration in TRAN-I does not come out to be the same as mentioned in the Registration or Enrolment application, then this error is displayed.
  • System Error: While submitting TRAN-I through EVC, people can find system errors. This issue can be resolved by using GSTIN and DSC mode of filing while the EVC.
  • Invalid GSTIN: When the customer’s GSTIN entered is wrong then this error occurs. It can be resolved by checking the correct GSTIN on the government website and entering it.
  • Earlier Date Is Not Allowed for Invoice: When the date mentioned in the invoice is previous to the GST registration date, then this error occurs. The invoices should be transferred to the B2C section and the GSTIN numbers of customers should be deleted to resolve this error. It would be beneficial to recalculate the B2C summary and reupload it to the government portal.

What Issues Can Arise in GSTR-3B? How to Resolve Them?

GSTR-3B is the first Return Form presented after the implementation of GST. Introduced by CBEC, every registered taxpayer has to file this return form. It should involve a summary of information about the available input tax credit, sale and purchase, tax paid, and tax payable. There are numerous doubts raised about the mistakes while filing the GSTR-3B return. Many taxpayers want to know how to correct GSTR-3B after filing and the possible consequences due to errors made.

The situation I: Forget to include some of sales and purchase

If any person wants to amend the GSTR-3B, they can do it by filing the GSTR 1 or 2 return for the same month. For instance, if sales have been excess reported or less reported while filing GSTR-3B return, it can be corrected by filing return for outward supplies (GSTR-1). If any error occurs while providing claiming the eligible Input Tax Credit in GSTR-3B, it can be corrected while filing a return for inward details (GSTR-2).

It is not possible to revise GSTR-3B. The only option is to include them in GSTR-3B of the month in which one remembers it. However, it cannot be involved when the time period passes.

Situation II: Instead of CGST and SGST, payment of IGST is made

The cash balance of IGST payment cannot get adjusted against that for SGST and CGST. The only possible solution to resolve this problem is to claim the paid IGST refund later. However, the liability of CGST and SGST is to be paid in cash.

Situation III: Wrongly Filed Inward Details Under Reverse Charge Column and Return is Submitted

One might think of paying additional tax liability raised due to filing inward details wrongly under the reverse charge column. However, there is no need to pay any additional tax amount and know-how to correct GSTR-3B after filing. It is possible to correct the details in GSTR 1 and 2 return. After correcting these details, the additional tax liability shall be abandoned and updated automatically.

Situation IV: Forget to Claim or Claimed Less ITC in GSTR-3B

If a taxpayer forgets to claim ITC, then they can update all the details in GSTR 2. The additional ITC can be accredited to the electronic credit register after the submission of GSTR 2 and 3.

Situation V: Output Tax Becomes Less Than What Already Paid

The additional tax paid can be adjusted with the next month’s liability if the total GST liability of the registered taxpayer is less than the output tax liability stated in GSTR-3B.

Situation VI: Tax is Under Paid in GSTR-3B and Additional Tax Liability Arise After Changing GSTR-3B Details

The GST Portal will show the additional tax liability after changing the details of GSTR-3B through GSTR-1 and GSTR-2. This additional tax can be paid through an electronic cash record along with the late interest. If in case the total input tax credit claimed is wrong or less than what is claimed then it should be added to the output liability and can be paid by cash ledger.

Situation VII: Taxpayer Has Not Filed The GSTR-3B

If anyone has not filed the GSTR-3B then they can file GSTR 1, 2, and 3. After that, they can submit the form before the mentioned due dates. Once filed GSTR 1, 2, and 3 successfully along with taxes are paid, then there is no need to file the GSTR-3B.

Situation VIII: Payment for Submitted GSTR-3B Has Not Been Done

If a taxpayer has submitted the GSTR but payment is still pending then they can update and file accurate details in GSTR 1, 2, and 3.  After that, they should submit the form and then pay taxes. If late interest is imposed one should pay the same along with tax.

Is It Possible to Reset GSTR-3B?

GSTR-3B is a summary return of the total inward supplies and total outward supplies made during the month. Every business dealer registered under the GST regular scheme should file a GSTR-3B return. One should file a NIL GST return if there are no business transactions. There are no options to revise GSTR-3B; however, taxpayers can reset it.

‘Rest GSTR-3B’ announced by the GST Council enables taxpayers to change the status of submitted to ‘Yet to be Filed’. It allows the taxpayer to edit the filed details in the return. Moreover, one can use the choice to reset GSTR-3B only once. Following are the steps to Reset GSTR-3B:

  • Log in at GST Portal
  • Go to tab ‘Services’ and click on ‘Returns’. Now, visit Returns Dashboard
  • Choose the Financial Year and Filing Period. Under Monthly Return GSTR-3B, click on the option ‘Prepare Online’
  • Reset Activated GSTR-3B option
  • A warning message will appear on the screen, which involves an e-liability ledger will get deleted and Input Tax Credit will get reversed.
  • Success Message that shows that reset is successful will appear and the return status changes to ‘Yet to be filed’.
  • After making desired changes, a taxpayer should submit it again.

Conclusion

Once filed, GSTR 1 and GSTR-3B cannot revise and there is no concept of return revision in GST. However, any mistakes that occurred can be handled carefully by referring to the points mentioned above.

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