Reconciliation between GSTR 3B and GSTR 1 is a very important step as it helps you to reconcile the mismatches between them. However, not performing reconciliation between GSTR 3B and GSTR 1 can result in a show-cause notice from the GST authorities. Moreover, you may not be able to file an accurate Annual GST Return due to the mismatches.
Here in this article we'll provide details of GSTR 3b and GSTR 1 mismatch solution, the difference between GSTR1 and GSTR 3b, GSTR 1 and GSTR 3b reconciliation, how to compare GSTR1 and GSTR 3b, and much more.
GSTR 3B is a summary return filed by a taxpayer on a monthly basis. Furthermore, GSTR 3B is to be filed by the 20th day of the next month.
GSTR 3B shows supplies during the month together with GST paid, Input Tax Credit availed, and reverse charge purchases etc.
On the other hand, GSTR 1 is a monthly/quarterly return that shall be filed by taxpayers. GSTR 1 helps in disclosing details of monthly/quarterly sales and tax liability.
Reconciling Form GSTR-1 and 3B plays an important role as it helps in the following manner:
GSTR 3B and GSTR 1 may mismatch on the following basis:
For Instance: Furnishing Zero-Rated Supplies under the Table 6A of GSTR 1, but furnishing the details wrongly under Table 3.1(a) in GSTR 3B.
For instance, CGST and SGST in place of IGST or vice- versa
On the above-mentioned mismatches, there can be chances that you may get notices to form GST authorities. Moreover, this can also lead to a penalty plus interest. Hence, it is necessary for you to reconcile GSTR 1 and GSTR 3B.
Considering the above-stated discrepancies between GSTR1 vs GSTR 3B resulting in a lesser amount of tax paid. Then in such a case, the GST authorities may give you a show cause notice. In addition to this, you may have to pay the deficit tax amount along with interest.
Every taxpayer must carry out a reconciliation between GSTR 3B vs GSTR 1 so as to know if there are any discrepancies. Since even a small mismatch between GSTR 3B and GSTR 1 can lead to a hefty amount of penalty that too along with interest. So, taking such a scenario into consideration Masters India created autoTax GST Software. This GST Software ensures that there is no room left for any mistake and mismatch by eliminating human intervention. Thus, ensuring you stay worry-free in terms of your business GST Compliance.