GSTR-1 cannot be filed, if previous period GSTR-3B not filed

There is no scope for any error while filing GST return from 1st January 2022. If GSTR 3B for the previous period has not been filed, then GSTR 1 cannot be filed. Tax liability declared in GSTR 1 should be paid in GSTR 3B. The difference between the tax liability of GSTR 1 and GSTR 3B is considered as self-assessed tax.

The GST officer is not required to issue a show cause notice for recovery of tax. If required such amount can be collected by directly attaching the bank account. ITC (which is an option to reduce your tax payment in cash) as per GSTR 2B. If your supplier does not furnish GSTR 1 on time, you cannot avail the credit of ITC in GSTR 3B.

If you do not file GSTR 1 on time, your supplier cannot get ITC. If you do not file GSTR 3B for the previous period, then GSTR 1 cannot be filed. By mistake, you have declared excess tax liability in your GSTR 1, you have no option but to pay this additional liability. (See last paragraph below for some relief). By mistake, your supplier has mentioned wrong date, as GSTIN or B2C, you lose ITC and you have to pay cash while filing GSTR 3B.

Therefore, the only option is to streamline the system of maintenance of accounts and filing of GSTR returns completely. Due care should be taken to ensure correct accounting entries in the accounting system. There should be a proper review mechanism for cross checking of information. The GSTR return should ideally flow through the accounting system (after due review).Sufficient funds should be available to make timely payment of GST. There is no escape from the system. Not only must you ensure such compliance, but your supplier must also ensure such compliance. So, pass this message on to your supplier as well.

However if incorrect data entry in GSTR 1, then you need to write a letter to the Department informing the same to them to ensure that no action is taken. The same should be amended in the next GSTR 1.

Team Edu-Visor