adjustment of GST

In spite of complete digitization, the possibility of human errors cannot be completely wiped off. However, interestingly, there are no provisions relating to the filing of revised returns under Goods and Services Tax (GST) law. In the present article, we will look into the manner in which the adjustments of GST omission/ incorrect particulars can be done under GST; the time limit prescribed thereof along with recent amendments in the time limit; trade confusion prevalent and clarification thereof.

Adjustment of GST : Omission/ incorrect particulars

incorrect particular

As the facility to rectify the GST returns is not available, the manner to carry out the adjustments of any omission/ incorrect particulars is provided under section 39(9)/ section 37(3)/ section 52(6) of the Central Goods and Services Tax Act, 2017. The said provisions are summarized in the table below

Particulars

Details

Manner to carry out the adjustments of any omission/ incorrect particulars

As and when the registered person discovers any omission/ incorrect particulars after furnishing respective GST returns. Then, such omission/ incorrect particulars can be adjusted while filing subsequent GST returns.

Circumstances when such adjustments cannot be undertaken

As and when the registered person discovers any omission/ incorrect particulars as a result of any GST audit or scrutiny or enforcement activity by the tax authorities or inspection.

It is important to note that the registered person cannot carry out such omission/ incorrect particulars after the prescribed time limit. The said prescribed time limit is explained hereunder.

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Adjustment of GST : Time limit to carry out the adjustments

Adjustment of GST time limits

The provisions covering the time limit for carrying out the adjustments of omission/ incorrect particulars along with the type of adjustment are tabulated hereunder

Provisions

Type of adjustment

Section 16(4) of the Central Goods and Services Tax Act, 2017

Adjustments relating to availment of input tax credit in respect of any invoice/ debit note.

First proviso to section 37(3) of the Central Goods and Services Tax Act, 2017

Adjustments relating to details of outward supplies furnished via return in Form GSTR-1.

First proviso to section 39(9) of the Central Goods and Services Tax Act, 2017

Adjustments relating to details furnished via return in Form GSTR-3B.

First proviso to section 52(6) of the Central Goods and Services Tax Act, 2017

Adjustments relating to details furnished via statement furnished by a TCS in GST.

Recently, vide Finance Act, 2022, the time limit prescribed under all the above provisions are amended. Accordingly, the earlier time limit and the amended time limit of all the provisions are summarized hereunder

Read more articles:

Differences Between The Debit Note and Credit Note in GST

Provisions

Earlier time limit

Amended time limit

Section 16(4) of the Central Goods and Services Tax Act, 2017

Earlier of the following

  • Due date of furnishing return under section 39 (i.e. Form GSTR-3B) for the month of September following the end of the Financial Year for which the invoice/ debit note pertains; or
  • Furnishing of relevant annual return.

Earlier of the following

  • 30th November following the end of the Financial Year for which the invoice/ debit note pertains; or
  • Furnishing of relevant annual return.

First proviso to section 37(3) of the Central Goods and Services Tax Act, 2017

Earlier of the following

  • Due date of furnishing return under section 39 for the month of September following the end of the Financial Year for which the details pertains;
  • Furnishing of relevant annual return.

Earlier of the following

  • 30th November following the end of the Financial Year for which details pertains; or
  • Furnishing of relevant annual return.

First proviso to section 39(9) of the Central Goods and Services Tax Act, 2017

Earlier of the following

  • Due date of furnishing return under section 39 (i.e. Form GSTR-3B) for the month or second quarter following the end of the Financial Year; or
  • The actual date of furnishing of the relevant annual return.

Earlier of the following

  • 30th November following the end of the Financial Year; or
  • The actual date of furnishing of the relevant annual return.

First proviso to section 52(6) of the Central Goods and Services Tax Act, 2017

Earlier of the following

  • Due date of furnishing of the statement (Form GSTR-8) for the month of September following the end of the Financial Year; or
  • The actual date of furnishing of the relevant annual statement.

Earlier of the following

  • 30th November following the end of the Financial Year; or
  • The actual date of furnishing of the relevant GST annual return.

It is important to note that all the above amendments were introduced vide the Finance Act, 2022. However, the said amendments are made effective only from 1st October 2022 vide notification no. 18/2022- Central Tax dated 28th September 2022.


CA Poonam Gandhi

About the author

Poonam Gandhi is a Chartered Accountant and a Lawyer. She is a Professional Freelance Content Writer/ Editor and an Educator.

She masters in creating result-oriented as well as Search Engine Oriented Content. Currently, she is associated with some of the topmost leading sites of India.

She holds more than 3 years of experience in the content field. Before entering the content writing field, she possessed a wide practice experience of more than 9 years, specifically, in the field of Indirect Taxation.

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