Finance Ministry has allowed companies and businesses to adjust their monthly returns under GST. Every companies has to rectify mistakes in their monthly returns GSTR-3B and adjust tax liability will help them to move correct returns file without fear of penalty.
Rules for improving mistakes in ‘GST’ returns
Ministry of Finance has given traders chance to improve their mistakes under GST. Government has given chance to correct their monthly returns in GSTR-3B to companies and businessmen. This will allow traders to submit right returns without fear of penalization. Check How GST is charged on under construction Properties
With this discount, companies will get opportunity to claim tax credit after fixing mistake. In the beginning there were many mistakes during calculation of GST liability. Also Read Centre Extends Deadline to Link Aadhaar with Bank Accounts, Financial Services to March 31.
Problems in companies review
In country, after GST implementation from July 1, 2017, companies were having difficulty in assessing tax liability in right way. Industries were demanding relaxation in rules and to make things easier compliance rules. Let us tell you that after GST has been implemented, companies are facing difficulty in assessing tax.
In such situation, traders have demanded relaxation in rules. They have also demanded to simplify rules for filing online tax returns. This relaxation will give an opportunity to company to claim correct tax credit by set right mistakes made initially while work out GST liability. Every trade have finding difficult to assess tax liability correctly after India moved to Goods and Services Tax (GST) Regime.
Data Not Reporting
This will make to adapt to new system of tax filing companies through online. Central Board of Trade and Customs (CBEC) recently said to field officer that returns in form GSTR-3B has no provision to report different figures for before months.
Relief for firms in claiming tax credit
This circular will provide relief to those traders who were facing trouble in making changes in their GST return form. With this freedom given by GST on behalf of ministry of finance, industry will get opportunity to present their tax credits as well as recover your tax related mistakes.
These figures can put on net basis along with current month value. It said that there are no negative entries in GST-3B while making adjustments in output tax liability or input tax credits. If any, amount remaining for adjustment may be in adjusted in returns in form GSTR-3B of following month. Read E-Way Bill under GST Rules and Compliance
Traders must be filed GSTR-3B on 20th of every month
In case, such adjustment is not feasible refund may be claimed, CBEC said. Let us know that GSTR-3B necessary to enter by traders by 20th day of every month for 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 also preferable made in corresponding months.
In this GSTR-3B, traders give full details of their taxes. But you have to face difficulties while filling tax. In view of this, government has given another chance to traders to improve the mistake made during their GST. Where taxpayer has committed an error in submitting information in Form GSTR-3B has provision for editing same has been provided. As per new circular all rectifications can be made in same month’s GSTR-3B and GSTR-1.