Q. How to rectify excess sales shown in Feb Month GSTR 3B?

Question

How to rectify excess sales shown in Feb Month GSTR 3B?

Actual Feb Month  Sale 1.6 Lakhs, Tax 28,800
Wrongly shown in Feb Month  Sale 16 Lakhs, Tax 2,88,000

Actual Mar Month  Sale 2 Lakhs, Tax 36,000

Answer 1

Given your situation, where the sales for February were incorrectly reported as 16 Lakhs with a tax of 2,88,000 instead of the actual 1.6 Lakhs with a tax of 28,800, and considering the actual sales for March are 2 Lakhs with a tax of 36,000, you should:

• Adjust in the subsequent month's GSTR-3B: The excess sales and tax reported in February can be adjusted in the GSTR-3B of the subsequent month(s), in this case, March or the month during which the error is identified. You should report the net taxable value and tax liability after accounting for the correction. This means reducing the taxable value and tax liability in the March GSTR-3B by the excess amount reported in February.

• Amendments in GSTR-1: If the incorrect details were also reflected in your GSTR-1 for February, you should use the GSTR-1 of the subsequent month(s) to amend the details of the outward supplies of February. The GST portal allows for such amendments, where you can correct the taxable value and associated tax.

It's important to note that any adjustment should be accompanied by a clear explanation in the records to justify the corrections made, ensuring compliance with the GST law and avoiding any potential issues with the tax authorities.

Regards, CA. Praveen Sharma

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