Resolve Errors GSTR-3B: Goods and Service Tax or GST is a form of indirect tax levied on the supply of goods and services in India. The different companies and businesses operating in India are supposed to pay the GST to the Government. The goods and services supplied by a company are taxed under four slabs in GST, and these slabs are 5%, 12%, 18%, and 28%. Apart from this, there are several types of GST that a business needs to pay as per its operations.
The different types of GST are GSTR-1, GSTR-2, GSTR-2A, GSTR-2B, GSTR-3, GSTR-3B, GSTR-4, GSTR-5, GSTR-5A, GSTR-6, GSTR-7, GSTR-8, GSTR-9, GSTR-9A, GSTR-9C, GSTR-10, and GSTR-11.
Out of all the types of Goods and Service Tax return, GSTR-3B is one such form that is comparatively easy to file than the others. This form has less scope of mistakes to be committed. But, one can make mistakes in the calculation of sales, purchases, input and output taxes. These simple calculation errors can result in mistakes in the GSTR-3B.
Here in this article, we will discuss in detail GSTR-3B, the possible mistakes that can occur in GSTR-3B, and how to correct GSRT-3B after filing.
What is GSTR-3B?
GSTR-3B is a type of Goods and Service Tax Return which contains a summary of the inward and outward supplies of good and services of a business. The Government introduced the GSTR-3B to ease GST return filing for businesses that have newly registered under GST.
The GSTR-3B form can be filed by the taxpayers either quarterly or monthly. If a person wants to file the GSTR-3B, it must be filed on or before the 20th of every month. As discussed above, the GSTR-3B is comparatively easy and invites fewer mistakes, but errors can be made in calculations.
If a taxpayer makes a mistake in filing the GSTR-3B, it makes them worried about the consequences of the mistake, as this form cannot be revised as per Government rules.
The forms such as GSTR-1 and GSTR-3B cannot be revised once they are filed. But any errors made in filing GSTR-3B can be rectified in the month in which such error is noticed. Most of the errors made in GSTR-3B can be rectified or corrected by filing GSTR-1, GSTR-2, and GSTR-3. However, an error made in GSTR-3B cannot be rectified after the due date of filing GST return for September of the next financial year. Once you have filed the annual return for the year, you cannot rectify the error.
Probable Errors In GSTR-3B And Their Solutions
Now we know the meaning of GSTR-3B and its importance, now let’s look at all the possible errors and their solutions.
Problem 1:What to do if you forget to enter some of your sales and purchase records?
Solution: In the case mentioned above, there can be two possible solutions:
In case you have not entered or forgot to enter any details about your sales or purchase, you can do the same by adding such details in the return of the month in which the error comes to your notice. For example, if you have not given details of sales or purchases in June, and you came to know about it in July. Now, you can add those details in the return of July in the form GSTR-3B.
The second solution to the problem is that if you have not given details of sales in GSTR-3B, you can file GSTR-1 to compensate for the error.
Similarly, if you have not given details of purchases in GSTR-3B, you can rectify it by filing GSTR-2.
Problem 2:What can be done if you have entered excess output GST or input GST?
Solution: The solution to this problem is quite simple and easy. If you have entered an excess amount of input or output GST, you can rectify it by making adjustments in the return statement for next month. All you need to do is show a lower amount of input or output GST in the return statement of the following month. But there is also a problem that might occur when the amount in the next month is insufficient to adjust the excess amount. For example, If you have claimed ₹ 40,000 as IGST in a month, you cannot adjust it in the next month as the next month’s GST is lesser than that or zero. There is also a solution to this problem. In case such a problem arises, you can enter the excess amount in “ITC Reversed – Any Other Reason”.
Problem 3:What to do when you made IGST payment instead of CGST and SGST or vice-versa?
Solution: Every taxpayer registered under GST should know that the balances of CGST, SGST, and IGST can never be adjusted among themselves. In simple words, the cash payment made for one type of GST cannot be adjusted or used for another type of GST. For example, the cash payment made for IGST can only be used for adjusting IGST balances.
The problem stated above arises only when a person purchases goods from one state and sells it in another. In such cases, the person calculates the total tax liability and divides it by two, i.e. CGST and SGST. He/She forgets about IGST, which is the first set off from CGST and later from SGST.
If an error of such type occurs, where the person has made excess payment of any kind of GST, he/she can adjust the amount in the next month’s statement. And if a taxpayer is unable to adjust such excess payment in the following month, he/she can opt for a refund.
Problem 4: What should you enter in table 3.2 when there is a sales return in a state, and the sales for that state are negative?
Solution: The problem state above arises in businesses that have inter-state sales operations. Here we can explain the following by taking an example. Suppose a person has an inter-state sales of ₹7,000. Out of this, sales to Mumbai is ₹8,000, and there is a sales return of ₹1,000 from West Bengal. In such a situation, he/she has to enter the number of sales as ₹7,000 in table 3.1. Now, in table 3.2, he/she has to enter ₹8,000 as sales to Mumbai but cannot enter a negative amount of sales to West Bengal. There is also a provision that the IGST amount entered in table 3.2 cannot be higher than the IGST sales in table 3.1. Therefore, the only way to adjust such an error is by entering sales of ₹8,000 in both tables 3.1 and 3.2, adjusting the negative amount in the following month.
In The End
It can be concluded that GST is a comprehensive and complex form of tax, and not all people are well-aware of the process of GST filing. However, if one has committed errors in calculation, he/she can take the help of professionals in rectifying the errors. In addition to this, Government has also set up GST Suvidha providers across the country, which helps taxpayers in the filing of GST.