WOULD REVISION OF GOODS AND SERVICES TAX RETURNS BE PERMITTED?

EVEN after a few years of introduction, many people are still making errors while filling their GST forms. To avoid trouble down the line, it's very important to keep careful records when filing GST returns.

- RAJAT MOHAN

The incorrect filing of GST returns could result in substantial penalties and accrued interest. It was crucial to verify your returns before submission since there was no opportunity to make alterations afterward. Unlike the previous system of service tax and VAT, which allowed for revising returns in error cases, GST did not possess such a provision at that time.

There used to be a VAT system before the GST came about in which cases of mistaken billing could be amended. Though the GST law has been in effect for six years, if you are registered with it, you must file your returns accurately to avoid departmental harrasment.

As per experts, a substantial number of GST-registered individuals and dealers frequently encounter inadvertent errors, including computational discrepancies and inaccuracies in tallying. The provision of revised returns alongside prefilled return options could offer a viable solution to rectify such natural human errors.

Five types of errors and issues commonly encountered by taxpayer:

1. Common Filing Mistakes: A variety of mistakes are commonly made while filing GST returns. These include incorrect claims of Input Tax Credit (ITC), non-payment of GST under the Reverse Charge Mechanism (RCM), not mentioning exempted turnover in GST returns, and errors in categorizing supplies as zero-rated or nil-rated. Additionally, errors in uploading invoice-wise data in GSTR-1.

2. Reconciliation Issues: Taxpayers often face problems in reconciling GSTR 3B & GSTR 1 returns. For instance, if there's a mismatch between the declared sales in these returns, it could lead to unnecessary litigation with the GST department.