GST is a complex law and it is thus common that taxpayers commit mistakes in GSTR 3B and GSTR 1 while filing the GST Return. However, once filed revisions aren’t allowed in these returns, the government has set out some rules to make rectify the mistakes in GSTR 3B and GSTR 1 for the ease and convenience of the taxpayers.

Off the GSTR 3B preparation process listed below, not all stages can be edited

Stage 1 – Confirm Submission,
Stage 2 – Cash Ledger Update
Stage 3 – Offset Liability,
Stage 4 – Return filed.

• Stage 1 and 2: Editing option is available
• Stage 3 and 4: Editing option is not available

If the errors are known before offsetting and filing then the same can be corrected by editing the respective liability side/input side etc. but on the other side if the errors are known after the offsetting and filing of return then in that case we need to follow the below:

General Rule of Rectifying Mistake after filing of GSTR 1 and 3B is done

Any invoice/debit note/credit note which is missed/under-reported/over-reported can be reported in GSTR 1 /Form GSTR-3B of the following month or before filing of annual returns

Also, liability is determined from GSTR 3B and not from GSTR 1. Hence, liability has to be paid through GSTR 3B

Here is a compendium of a few questions we have been repeatedly receiving around mistakes in GSTR 3B and GSTR 1 and our answers on how to rectify them:

1. I have under-reported tax liability in my GST returns:

When you have erroneously filed your tax liability and have under-reported it

The liability needs to be added in the return of the subsequent month and you also have to pay the appropriate interest amount as stated before.

If a taxpayer failed to report an invoice or some amount (liability) in the Form GSTR 1 and GSTR 3B in a certain month or quarter, then that liability needs to be reported and paid in the subsequent month’s/quarter’s FORM GSTR-1 and GSTR 3B with interest.

If a taxpayer has reported and paid the liability in GSTR 3B but has missed reporting the same in GSTR 1. The taxpayer can report the same in succeeding month GSTR 1, no liability and interest is required to be reported and paid through GSTR 3B

2. I have over-reported tax liability in my GST Returns:

When the tax liability has been over-reported mistakenly, then in such a scenario, the taxpayer can adjust the exceeding amount in the next month/quarter’s return. If this is not possible then GST refund may be claimed.

For example: if a taxpayer over-reported a bill or reported a bill twice then in form GSTR 3B, the over-reported sales amount needs to be deducted from the total sales amount (if possible) from outward supplies and inward supplies on reverse charge.

If a taxpayer over-reported a bill or reported a bill twice in form GSTR 1 then it can be revised in amendments under Table 9 of GSTR 1.

Liability, if any, is adjusted only through GSTR 3B, even in case there is over-reporting in GSTR1

3. I have used wrong tax rate in my GST Return
or
I have used wrong state while declaring intrastate or interstate liability:

Other probable mistakes can be – tax liability shown with low tax rate/high tax rate. Another case can be an interstate liability is shown as intrastate liability.

In such scenarios, the taxpayers must carefully calculate the liability or the balance tax liability and pay it rightly.

Excess paid tax liability can be adjusted or claimed as GST Refund. And lower-paid liability can be paid with interest.

To make these GST amendments, the taxpayers must file amendments Table 9 of the following  month/quarter’s Form GSTR 1.

Kindly refer our blog on GST Amendments

4. I have under-reported ITC (Input Tax Credit):

If a taxpayer has under-reported his ITC for a month/quarter and wants to claim it, he/she can avail it in the return of the following period i.e. month/quarter. Only GSTR 3B’s needs to be changed and in that the required ITC can be added, in the following month.

For example: If A has mistakenly not considered a few of his purchases in a month then he can do so in the following month’s purchases and along with it, the ITC can be availed.

No actions required in GSTR 1 or 2

5. I have over-reported ITC (Input Tax Credit):

When ITC has been over-reported then the taxpayers need to reverse such excess ITC with interest in the following month/quarter. No need to change anything in GSTR 1.

Another situation can be if a taxpayer has over-claimed the Input Tax Credit and is also used the same then, the taxpayer needs to adjust or pay the same along with the appropriate interest duly in GSTR 3B in the following month/quarter

6. The cash ledger has been reported wrongly (only Stage 2 is affected):

Any mistake in cash ledger can be corrected through Challan PMT-09. Supposedly, you have paid cash in IGST instead of CGST same can be transferred from IGST head to CGST head through PMT-09

Kindly read our article on PMT-09 to know more on how to correct wrong reporting in Cash ledger:

Form PMT-09: A GST form to transfer Electronic Cash Ledger balance

So these were the mistakes in GSTR 3B and GSTR 1 and how we can resolve them in detail. You can also check out our other article which talks about Amendments in GSTR 1 and GSTR 3B in detail. The article helps you to amend GSTR 1 and Reset GSTR 3B step by step.

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