CBIC issued guidelines for recovery proceedings in case of mismatch in GSTR-1 & GSTR-3B

Instruction No. 01/2022-GST Dated January 7th, 2022

If tax payable in respect of details of outward supplies furnished by the registered person in GSTR-I, has not been paid through GSTR-3B return, either wholly or partly, or any amount of interest payable on such tax remains unpaid, then in such cases, the tax short paid on such self-assessed and thus self-admitted liability and the interest thereon, are liable to be recovered under the provisions of section 79.

CBIC noted that there may be a genuine reason for difference between the details of outward supplies declared in GSTR-1 and those declared in GSTR-3B. Therefore, it is provided that opportunity needs to be provided by the proper officer to explain differences between GSTR-I and GSTR-3B, if any, and for short payment or non-payment of tax before any action under section 79 for recovery of the said amount.

However, if the said registered person either fails to reply to the proper officer, or fails to make the payment of such amount short paid or not paid, within the time prescribed in the communication or such further period as may be permitted by the proper officer, then the proceedings for recovery of the said amount as per provisions of section 79 may be initiated by the proper officer.

Click Here To Read The Full Notification