How To Make Corrections In GST Returns? Can a Filed GST Return Be Revised or Amended Later?

How To Make Corrections In GST Returns. The Goods and Services Tax (GST) regime in India has significantly transformed how businesses file and report their indirect tax obligations. One of the critical aspects of GST compliance is the filing of returns, which requires businesses to report their sales, purchases, and tax liabilities accurately. However, despite best efforts, errors or omissions can occur during the return filing process, leading to the need for corrections or amendments.

In this article, we will explore the provisions and procedures related to revising or amending filed GST returns. We will delve into the various scenarios where corrections may be required, the methods to rectify errors, and the implications of making such amendments. By understanding these nuances, businesses can ensure compliance with GST regulations and avoid potential penalties or legal consequences.

Also Read-What is GST And Why Was It Introduced in India?

Can a Filed GST Return be Revised or Amended?

The short answer is, No – Once a GST return is filed, it cannot be revised or amended directly. The GST law does not provide a mechanism for revising or amending a return that has already been submitted.

However, the GST Council has been considering the introduction of a mechanism to allow revisions, and it is expected that such a facility may be implemented by April 2025. But, there are provisions in place to rectify errors or omissions through subsequent returns or other prescribed methods.

It is important to note that the inability to revise or amend a filed GST return is a deliberate design choice by the GST Council. This approach aims to maintain the integrity of the GST system and prevent potential misuse or manipulation of data after the fact.

How To Make Corrections In GST Returns: Methods to Rectify Errors or Omissions in Filed GST Returns.

While a direct revision or amendment of a filed GST return is not permitted, the GST law provides several methods to rectify errors or omissions.

These methods vary depending on the type of return, the nature of the error, and the time frame within which the correction needs to be made.

1. Corrections in Subsequent Returns.

One of the primary methods to rectify errors or omissions in a filed GST return is by making the necessary corrections in subsequent returns. This approach is applicable for returns such as GSTR-1 (Outward Supplies) and GSTR-3B (Monthly Summary Return).

a. How to Make Correction in GSTR-1 (Outward Supplies).

If you have made an error or omission in the details of outward supplies reported in GSTR-1, you can rectify it by making the necessary corrections in the GSTR-1 for the subsequent tax period. For example, if you missed reporting an invoice in the GSTR-1 for April, you can include it in the GSTR-1 for May.

However, it is important to note that there is a time limit for making such corrections. As per Section 37(3) of the CGST Act, no rectification of errors or omissions in GSTR-1 is allowed after the due date for filing the return for the month of September following the end of the financial year to which such details pertain, or the date of furnishing the relevant annual return, whichever is earlier.

Here Are Step-By-Step Instructions on How to Make Corrections or Amendments In GSTR-1:

Selecting the Filing Period.

• Select the GST return filing period in the month in which the amendment is being made.
• For example, if the amendment is made in April, the filing period will be April for monthly filing. For quarterly filing, the filing period will be May if amending for April (March-May quarter).
• The revised amended invoice date must be the last date of the original invoice tax period. For example, if an original invoice dated 12-03-2023 is amended in April, the amended invoice date should not be later than 31-03-2023.

Invoice Level Amendments.

The following can be amended at the invoice level in GSTR-1:

• B2B Invoices
• B2C Large Invoices
• Export Invoices
• Credit/Debit Notes (Registered)
• Credit/Debit Notes (Unregistered)

To amend invoices:

1. Login to the GST portal
2. Go to Services > Returns > Returns Dashboard
3. Select the Financial Year and Month for which amendment is required
4. Click on the “Amendment of GSTR-1” tile
5. On the Amendment of GSTR-1 page, make the required changes to the invoice details
6. Click Preview to view the updated details
7. Submit the amended GSTR-1

Summary Level Amendments.

The following can be amended at the summary level in GSTR-1:

• B2C Others
• Advances Received (Tax Liability)
• Adjustment of Advances

Details that Cannot be Amended.

• A tax invoice cannot be changed into a bill of supply
• Type of export (with/without payment) cannot be amended
• Credit/Debit notes cannot be amended
• Place of Supply, Customer GSTIN, Reverse Charge applicability etc. are based on the linked invoice, so these details must match the original invoice
• Invoices already accepted or modified by the recipient cannot be amended by the supplier

Time Limit for Amendments.

• Amendments can be made for the current tax period as well as previous tax periods
• However, the revised invoice date cannot be later than the last day of the tax period when the original invoice was uploaded

Error Messages.

You may encounter the following error messages while uploading amendments:

• GSTIN of receiver does not match original invoice
• Revised invoice date is invalid
• Original invoice details are invalid
• Supply type cannot be changed for saved credit/debit notes

By following the above steps and keeping the limitations in mind, you can make corrections to your GSTR-1 and ensure accurate GST compliance. It’s important to make amendments on time to avoid interest and penalties.

b. How make correction in GSTR-3B (Monthly Summary Return).

In the case of GSTR-3B, if you have made an error or omission in reporting your tax liabilities or input tax credit (ITC), you can rectify it in the subsequent month’s GSTR-3B. For example, if you have under-reported your output tax liability in the GSTR-3B for April, you can add the missed amount to the GSTR-3B for May and pay the applicable interest.

It is important to note that while making corrections in subsequent returns, you may need to pay interest on the delayed payment of tax, as applicable.

Here Are Step-By-Step Instructions on How to Make Corrections or Amendments In GSTR-3B:

Resetting GSTR-3B Before Filing.

If you have submitted GSTR-3B but not filed it by verifying with EVC or DSC, you can reset the return to make corrections:

1. Login to the GST portal
2. Go to Services > Returns > Returns Dashboard
3. Select the Financial Year and Month for which reset is required
4. Click on the GSTR-3B tile
5. Click on ‘Reset’ button to delete the saved details
6. Re-enter the correct details and submit the GSTR-3B again

Note: Resetting is allowed only once and the reset option will not be available after the return is filed.

Rectifying Errors After Filing GSTR-3B.

Once GSTR-3B is filed, it cannot be revised. However, you can make corrections in the subsequent month’s return:

1. Identify the type of error – under-reporting of liability, over-reporting of liability, incorrect ITC claims etc.
2. Make corrections while filing the next month’s GSTR-3B:

• For under-reported liability, add the liability along with interest in the next return
• For over-reported liability, reduce the liability to the extent of excess reporting
• For under-reported ITC, claim the missed credit in the next return
• For over-reported ITC, reverse the excess claimed ITC along with interest

3. If the error pertains to GSTR-1 as well, make suitable amendments in the next month’s GSTR-1.
4. Ensure to make the corrections before the due date for filing the annual return or before the due date of September return of next financial year, whichever is earlier.

Points to Remember.

• GSTR-3B cannot be revised once filed, only reset option is available before filing
• Corrections can be made in subsequent month’s GSTR-3B but within the prescribed timelines
• Interest is applicable for under-reported liabilities and over-claimed ITC
• Corresponding changes may be required in GSTR-1 as well
• Resetting will delete all saved data in GSTR-3B and also reverse the ITC claimed

So in summary, resetting allows corrections before GSTR-3B filing while rectification in subsequent returns allows corrections post filing, subject to interest payment where applicable. Careful review before filing and timely amendments can help avoid penal consequences.

2. Annual Return (GSTR-9) and Reconciliation Statement (GSTR-9C).

The GST law provides an opportunity to reconcile and report any errors or omissions during the filing of the Annual Return (GSTR-9) and the Reconciliation Statement (GSTR-9C). These returns are filed annually and serve as a comprehensive summary of all transactions and tax liabilities for the entire financial year.

During the preparation of GSTR-9 and GSTR-9C, businesses can identify and report any discrepancies or errors that may have occurred in the monthly or quarterly returns filed throughout the year. This process allows for a thorough reconciliation and correction of any outstanding issues before the annual returns are finalized and submitted.

It is important to note that while GSTR-9 and GSTR-9C provide an opportunity for reconciliation, they do not directly amend or revise the previously filed returns. Instead, they serve as a mechanism to report and reconcile the errors or omissions, ensuring that the final tax liability for the financial year is accurately reported.

3. Refund Claims.

In certain cases, businesses may have overpaid taxes due to errors or omissions in their filed GST returns. In such scenarios, they can claim a refund of the excess tax paid by filing a refund application along with the necessary supporting documents.

The refund application process allows businesses to rectify errors or omissions that have resulted in overpayment of taxes. However, it is important to note that refund claims are subject to scrutiny by the tax authorities, and businesses must provide sufficient evidence and justification for the claimed refund amount.

4. Departmental Audit or Scrutiny.

In some instances, errors or omissions in filed GST returns may come to light during a departmental audit or scrutiny by the tax authorities. In such cases, the tax authorities may issue a notice or demand for rectification, and businesses will need to comply with the prescribed procedures to make the necessary corrections.

It is crucial for businesses to maintain accurate records and documentation to support their GST filings, as these will be required during audits or scrutiny processes.

Implications of Making Corrections or Amendments.

While rectifying errors or omissions in filed GST returns is essential for compliance, it is important to be aware of the potential implications of making such corrections:

1. Interest and Late Fees.

If the correction or amendment results in an increase in tax liability, businesses may be required to pay interest on the delayed payment of taxes. The interest rate is currently set at 18% per annum, calculated from the due date of payment until the actual date of payment.

Additionally, late fees may be applicable if the correction or amendment is made after the due date for filing the respective return. The late fee is currently set at ₹100 per day (₹50 each under CGST and SGST), subject to a maximum of ₹5,000.

2. Penalties.

In cases where the errors or omissions are deemed to be deliberate or fraudulent, businesses may face penalties under the GST law. The penalties can range from a fixed amount to a percentage of the tax amount involved, depending on the nature and severity of the offense.

3. Legal Consequences.

In extreme cases of tax evasion or deliberate misrepresentation, businesses may face legal consequences, including prosecution and potential imprisonment, as prescribed under the GST law.

Best Practices for Accurate GST Return Filing.

To minimize the need for corrections or amendments and ensure compliance with GST regulations, businesses should adopt the following best practices:

1. Maintain Accurate Records. Maintaining accurate and up-to-date records of all transactions, invoices, and supporting documents is crucial for accurate GST return filing. This includes keeping track of sales, purchases, input tax credit, and tax payments.
2. Use GST-Compliant Software or Tools. Investing in GST-compliant software or tools can significantly reduce the chances of errors or omissions in return filing. These tools can automate the calculation of tax liabilities, generate returns, and provide real-time reconciliation capabilities.
3. Conduct Regular Reconciliations. Regularly reconciling your books of accounts with the GST returns filed can help identify and rectify errors or omissions in a timely manner. This practice can prevent the accumulation of errors and minimize the need for extensive corrections later.
4. Train and Educate Staff. Ensuring that your staff responsible for GST compliance is well-trained and up-to-date with the latest regulations and procedures is essential. Regular training and education can help minimize human errors and improve the overall accuracy of GST return filing.
5. Seek Professional Assistance. If you encounter complex scenarios or have doubts regarding GST compliance, it is advisable to seek professional assistance from qualified tax experts or chartered accountants. Their expertise can help you navigate the intricacies of GST regulations and ensure accurate return filing.

Wrapping Up.

While the GST law does not permit the direct revision or amendment of filed returns, it provides mechanisms to rectify errors or omissions through subsequent returns, annual filings, refund claims, and departmental audits or scrutiny. By understanding these processes and following best practices for accurate record-keeping and return filing, businesses can ensure compliance with GST regulations and avoid potential penalties or legal consequences.

It is crucial for businesses to prioritize GST compliance and stay vigilant in identifying and rectifying any errors or omissions promptly. By adopting a proactive approach and seeking professional assistance when needed, businesses can navigate the complexities of GST return filing with confidence and minimize the need for corrections or amendments.

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C.K. Gupta

Hello, I am C.K. Gupta Founder of Taxgst.in, a seasoned finance professional with a Master of Commerce degree and over 20 years of experience in accounting and finance. My extensive career has been dedicated to mastering the intricacies of financial management, tax consultancy, and strategic planning. Throughout my professional journey, I have honed my skills in financial analysis, tax planning, and compliance, ensuring that all practices adhere to the latest financial regulations. My expertise also extends to auditing, where I focus on maintaining accuracy and integrity in financial reporting. I am passionate about using my knowledge to provide insightful and reliable financial advice, helping businesses optimize their financial strategies and achieve their economic goals. At Taxgst.in, I aim to share valuable insights that assist our readers in navigating the complex world of taxes and finance with ease.