It is to inform you that from 1st January 2022, there is no scope for any errors while filing GST Returns.
1. Notification of provisions on recovery of "Self-Assessed Tax".
-The GSTR-1 cannot be filed, if the previous period GSTR-3B is not filed.
-The Tax Liability declared in GSTR-1 should be paid in GSTR-3B.
-The difference between the tax liability of GSTR-1 and GSTR-3B is considered as self assessed tax.
-The GST officer need not issue show cause notice for recovery of the taxes.
-Such amount can be collected directly by attaching the bank account if required.
-If you do not file GSTR-3B of the previous period the GSTR-1 also can't be filed.
-By mistake if you have declared more tax liability in your GSTR-1 , you have no choice but to pay this extra liability, (See last para below for some relief).
2. GST ITC Credit available when reflected in GSTR-2B
-The ITC (which is the option to reduce your tax payment by cash) is as per GSTR-2B.
-If your supplier does not furnish GSTR-1 on time you cannot avail the credit of ITC in GSTR - 3B.
-If you do not file the GSTR-1 on time your supplier cannot get the ITC.
-By mistake, your supplier has mentioned the wrong date, GSTIN or wrongly mentioned as B2C instead B2B, you lose the ITC and you have to pay cash while filing GSTR-3B.
3.Suggestions to Accounts Department.
-The only option is to streamline the system of maintaining of Accounts and filing of GST returns perfectly and in time.
-Proper care should be taken to ensure correct Accounting Entries are done in the accounting system.
-There should be a proper review mechanism for cross checking the information.
-The GST return should flow ideally from the accounting system (after proper review).
-Sufficient funds should be available to make timely payment of GST.
-There is no escape from the system.
-Not only you should ensure such compliance, but your supplier should also ensure such compliance.
-Hence pass on this message to your supplier as well,
Note - However, if there is incorrect data entry in GSTR-1, I think then you need to write a letter to the Department informing the same to them to ensure that no action is taken. The same should be amended in the next GSTR-1.
Note - However, if there is incorrect data entry in GSTR-1, I think then you need to write a letter to the Department informing the same to them to ensure that no action is taken. The same should be amended in the next GSTR-1.
