Q. Table 14 of GSTR1 not filled

Question

Please help with two queries:

For FY 2023-24
1) Implications of not declaring sales in Table 14 (Seller is selling only through e-commerce platforms)

For FY 2020-21
2) Excess ITC claimed in 3B of 2020-21, to adjust/surrender lesser ITC claimed in 3B of 2021-22 (Nothing mentioned in reversal fields etc.)
Is this treatment is correct, if not how to justify the same during assessment.

Thanks in Advance

Answer 1

Implications of Not Declaring Sales in Table 14:

Mismatch in GSTR-1 and GSTR-8: The e-commerce operator will declare the collected TCS in GSTR-8. If the sales are not reported in Table 14 of GSTR-1, it will lead to a mismatch between the sales reported by the seller and the TCS collected and reported by the e-commerce operator. This mismatch can trigger notices and inquiries from the GST authorities.

Delayed or Denied Input Tax Credit (ITC) for Buyers: The mismatch in reported sales can also affect the buyers who have purchased goods or services through the e-commerce platform, as it may delay or deny their eligibility to claim input tax credit on such purchases.

Penalties and Interest: Under Section 125 of the CGST Act, 2017, any person who fails to furnish information or furnishes incorrect information is liable to a penalty. Additionally, under Section 50, interest may be applicable for the delay in payment of tax due to underreporting of sales.

Audit and Scrutiny: Regular discrepancies or non-compliance can flag the seller for audit or scrutiny under sections 65 and 61 of the CGST Act, respectively, which can lead to further investigation and compliance demands.

Reconciliation Issues: Not declaring sales in Table 14 can lead to reconciliation issues at the end of the financial year, making it difficult for the seller to reconcile their books with the GST returns filed.

Regards, CA. Praveen Sharma

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