Showing GSTR-3B Turnover In 26AS – An Opinion

Recently, one of the major changes implemented in the Income Tax system. Now in Form 26AS, the Turnover as per GSTR-3B will be reported. Now, let’s discuss the implication of the same by going through some logical sequence.

JOURNEY OF GSTR – 3B

Originally, GSTR-3B was introduced as temporary replacement of GSTR–3. It was not a return as per GST Act. Further, the famous judgement of Gujarat High court in which it was stated that GSTR-3B is not a return. Thus, to reverse the effect of the judgement, the retrospective amendment was made to the GST act, making GSTR–3B as a return w.e.f 01.07.2017.

REVISION OF GSTR -3B

To err is a human tendency. But Revision of GSTR 3B is not available since the inception. We can revise Income tax returns, TDS returns and so on. In earlier regime also, the provision of the revised returns were there. But, no revision of GSTR–3B allowed.

RECTIFICATION OF GSTR – 3B

As the revision facility is not available, the rectification concept is in place in the GSTR-3B. thus, any error omission identified in the previous GSTR-3B, can be rectified in the next return. The rectification of the previous returns can be done upto 6 months from the end of the financial year.

IMPLICATION OF RECTIFICATION OF GSTR – 3B

Thus, if the GSTR-3B contains some error or omission we can rectify it till the month of filing return of September month of the subsequent financial year. Thus, if any error of march 2019 is identified in the subsequent month, it can be rectified upto filing the return of September 2019.

Thus, it may be possible that the turnover of GSTR 3B of FY 2019-20 may contain the adjustments of FY 2018-19, and the any error omission of FY 2019-20 identified later on may have been adjusted in GSTR 3B of FY 20-21.

So technically it contains the turnover of Fy 18-19 and some turnover of FY 19-20 has effect in FY 20-21.

IS GSTR – 3B IS FINAL?

No, GSTR -3B is not final. The dealer has to file GSTR 9 (Annual Return) and if turnover is above the prescribed limit, GSTR 9C (GST Audit – Reconciliation Statement) has to be filed. The turnover reported in the GSTR-9 and 9C is final, which shows the actual reconciled turnover with books for the particular financial year.

RESULT OF SHOWING TURNOVER AS PER GSTR -3B IN 26AS:

When, the GSTR -3B is not the final return, the turnover reported in GSTR 3B is not final, then what is the meaning of showing it in 26AS. This will result in nothing but the unwanted and uncalled litigation.

Showing of GSTR -3B turnover in form 26AS is nothing but like eating Raw or Half cooked Khichadi which is sure going to give you a very bad stomach ache. It’s nothing but launching the faulty rocket in the Space which by sure is going to be burst in flames.