The Finance Ministry has permitted businesses to rectify mistakes in their monthly returns - GSTR-3B - and adjust tax liability, a move that will help them file correct returns without fear of penalty. This relaxation will give an opportunity to businesses to claim tax credit correctly by rectifying the mistakes made initially while computing GST liability.
Businesses have been finding it difficult to assess tax liability correctly after India moved to Goods and Services Tax (GST) regime with effect from July 1.
Industry bodies have been demanding relaxation of norms and easier compliance provisions to help businesses adapt to the new system of filing tax returns online.
The CBEC in a recent communication to field officer has said "as return in Form GSTR-3B does not contain provisions for reporting of differential figures for past month(s), the said figures may be reported on net basis along with the values for current month itself in appropriate tables...".
It said while making adjustments in the output tax liability or input tax credit, there can be no negative entries in GSTR-3B.
The amount remaining for adjustment, if any, may be adjusted in the returns in Form GSTR-3B of subsequent months and, in cases where such adjustment is not feasible, refund may be claimed, CBEC said.
GSTR-3B, initial summarised return, has to be filed by businesses by 20th day of every month for the previous month showing details of taxes paid.
"Where adjustments have been made in Form GSTR-3B of multiple months, corresponding adjustments in Form GSTR-1 should also preferably be made in the corresponding months," it added. #casansaar (Source - PTI, Economic Times)