Intimation of difference in liability reported in statement of outward supplies and reported in return

By:

Background:

Recently, the GST Council’s 48th meeting was held in Delhi on December 17, 2022 under the chairmanship of the Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman, in which it was recommended to intimate the taxpayer, by the common portal, about the difference between liability reported by the taxpayer in FORM GSTR-1 and in FORM GSTR-3B for a tax period, where such difference exceeds a specified amount and/ or percentage, for enabling the taxpayer to either pay the differential liability or explain the difference and to further restrict furnishing of FORM GSTR-1 for a subsequent tax period if the taxpayer has neither deposited the amount specified in the intimation nor has furnished a reply explaining the reasons for the amount remaining unpaid, in order to facilitate taxpayers to pay/ explain the reason for the difference in such liabilities reported by them, without the intervention of the tax officers.

The above-mentioned recommendation has been notified vide following notification:

Notification:

The CBIC vide Notification No. 26/2022 – (Central Tax) dated December 26, 2022 has issued ‘the Central Goods and Services Tax (Fifth Amendment) Rules, 2022’ to further amend the Central Goods and Services Tax, Rules, 2017 (“the CGST Rules”) in to order to align with recommendations of the 48th GST Council Meeting held on December 17, 2022, in a following manner:

  • New Rule 59(6)(d) of the CGST Rules has been inserted to prescribe that a registered person, to whom an intimation has been issued on the common portal in respect of a tax period, shall not be allowed to furnish the details of outward supplies of goods or services or both under Section 37 of the Central Goods and Services Tax Act, 2017 (“ the CGST Act”) in FORM GSTR-1 or using the invoice furnishing facility for a subsequent tax period, unless he has either deposited the amount specified in the said intimation or has furnished a reply explaining the reasons for any amount remaining unpaid.
  • New Rule 88C of the CGST Rules has been introduced to prescribe the manner of dealing with difference in liability reported in statement of outward supplies and that reported in return.
  • New FORM GST DRC-01B has been inserted w.r.t. intimation of difference in liability reported in statement of outward supplies and that reported in return.

The Notification can be accessed at: https://taxinformation.cbic.gov.in/view-pdf/1009584/ENG/Notifications

DISCLAIMER: The views expressed are strictly of the author and A2Z Taxcorp LLP. The contents of this article are solely for informational purpose and for the reader’s personal non-commercial use. It does not constitute professional advice or recommendation of firm. Neither the author nor firm and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any information in this article nor for any actions taken in reliance thereon. Further, no portion of our article or newsletter should be used for any purpose(s) unless authorized in writing and we reserve a legal right for any infringement on usage of our article or newsletter without prior permission.

 

Your Thoughts