How to calculate difference of tax value & taxable value from gsrt1 & gsrt3b
Answers
Answer:
Comparing GSTR-3B with GSTR-1 is a much-needed process to be undertaken by every taxpayer in order to ensure that there are no variations or gaps, which could, in turn, lead to a demand notice from the tax authorities or unwanted issues that may arise and hinder the accurate filing of the annual returns.
This article covers the following:
GSTR-3B vs GSTR-1
Importance for GSTR-3B vs GSTR-1
Reasons for mismatches in GSTR-3B vs GSTR-1
Action to be taken on reconciliation of GSTR-3B vs GSTR-1
How can ClearTax GST help you?
Advantages of GSTR-3B vs GSTR-1 Tax Comparison Report
How to use the GSTR-3B vs GSTR-1 Tax Comparison Report
1. GSTR-3B vs GSTR-1
GSTR – 3B is a monthly summary return filed by a taxpayer by the 20th of the next month. GSTR-3B discloses supplies made during the month along with GST to be paid, input tax credit claimed, purchases on which reverse charge is applicable, etc., and also makes a provision for the payment of taxes, if any, for the relevant month.
GSTR – 1 is a monthly or quarterly return filed by taxpayers to disclose details of their outward supplies for the month – along with their tax liability. Here, invoice-wise details are to be uploaded so that the Government can keep a check on every transaction.; this forms the basis for the recipient of supplies to accept the same and take the eligible input tax credit.
2. Importance for GSTR-3B vs GSTR-1
It is important to reconcile form GSTR – 3B and Form GSTR – 1 on account of the following reasons:
The total GST collections disclosed at the end of the year 2017-18 showed a mismatch of several thousand crores. GST authorities have issued show cause notices to a large number of taxpayers asking them to reconcile the total of sales disclosed in the GSTR-3B summary return and the detailed GSTR-1 return.
Reconciliation ensures that no invoice is omitted or recorded more than once in either of the returns.
This ensures a taxpayer to arrive at an accurate amount of output tax payable on the sales made in a period.
Any late declaration of GST liability can also attract interest.
Reconciliation would also help the Government to allocate the right share of tax revenue to the concerned states. This reconciliation is specifically useful to identify any errors that have been made when entering the details of integrated taxes while filing GSTR-3B.
GSTR-1 forms the base for the recipients of supplies to claim input tax credit while filing their returns. Hence, a timely and accurate declaration in both GSTR-1 and GSTR-3B is necessary, to avoid hassles with recipients at a later date, and also ensure that only genuine input tax credit can be claimed.