Rectification of GSTR-3B after Filing the GST Return

We already know that the GSTR 3B return cannot be amended because the current GST law does not allow for it.

However, the council devised new features and a new design for GSTR 3B that permitted taxpayers to reset their returns only in circumstances where they had been submitted but not filed, as determined by EVC or DSC. That is until the GSTR 3B is submitted, a taxpayer can change any of the information on the form.

All entries in the Electronic Liability Register will be removed once the return is reset, and the ITC of this return connected with the Electronic Credit Ledger will be reversed.

Now, taxpayers may complete their taxes with accurate information.

Analysis of case 1: As you can see, GSTR 3B revisions can be made even after the return has been filed and the tax has been paid by updating the cash wallet. Yes, GST allows for GSTR 3B rectification using the revision and resetting option.

Note: After the liability is offset with credits and cash placed into the e-cash wallet, GSTR 3B rectification is not feasible. Because the taxpayer is cautioned at this point that if he agrees to offset the liability, it implies he/she accepts the details filed by him to be correct, and the returns cannot be reset after that.

Is it Possible to Rectify GSTR-3B after Filing the GST Return? 

Using the same logic as in scenario 1, we can conclude that GSTR-3B correction after the filing of the return is not conceivable since a taxpayer can only reset the GSTR 3B data if he has not yet filed the return. 

As a result, once the return is filed after verification, the option to make modifications in GSTR 3B returns expires. 

Analysis of scenario 2: It is self-evident that, because GSTR 3B returns could not be revised in the first place, GSTR 3B correction after filing likewise implies return revision, which is currently not available under GST rules. 

Revision and Resetting the GST Returns – Difference 

The term “revision of return” refers to a previously filed return for which the taxpayer must file a corrected return with updated information. However, there are currently no such opportunities open under GST rules for the modification of GSTR 3B returns. 

Resetting the details of a GSTR 3B return, on the other hand, does not imply that the return is changed or that a revised return is submitted because of such resetting. It is simply an action that deletes the information you entered and returns the GSTR 3B return to you with a blank slate to fill in. 

Types of Mistakes in GSTR-3B and How to Rectify GSTR-3B? 

1st Mistake in GSTR-3B: Liability has been underreported and the return has been filed

How to Rectify Such Mistakes in GSTR-3B? 

1. Liability may be included in the later month(s)’ returns after interest has been paid. 
2. If such an obligation was not reported in the month’s or quarter’s Form GSTR-1, it may be disclosed in the subsequent month’s or quarter’s Form GSTR-1 in which payment was made. 

2nd Mistake in GSTR-3B: Over-reporting of liability and failure to file a return 

How to Rectify Such Mistakes in GSTR-3B? 

1. If adjustment is not possible, the liability may be adjusted in the following month(s). 
2. If such liability was similarly over-reported in the previous month’s/Form quarter’s GSTR-1, it may be adjusted using the modifications in Form GSTR-1. 

3rd Mistake in GSTR-3B: Incorrect reporting of Liability 

How to Rectify Such Mistakes in GSTR-3B? 

1. An unreported liability may be added to the next month’s return, along with any applicable interest. 
2. Accommodations can be made in the next month(s) can be requested if an adjustment is not possible. 
3. Taxpayers must file amendments by filling out Table 9 of the following month’s / quarter’s Form GSTR-1. 

4th Mistake in GSTR-3B: Over reporting of ITC after filing the GSTR-3B 

How to Rectify Such Mistakes in GSTR-3B? 

1. Pay (in cash) / Reverse any over-reported input tax credit with interest in the following month’s return (s). 
2. In GSTR-1, no action is required. 

5th Mistake in GSTR-3B: Under Reporting ITC 

How to Rectify Such Mistakes in GSTR-3B? 

1. In the following month’s return, pay (in cash) / reverse any incorrectly stated input tax credit (s). 
2. Any unreported input tax credit may be claimed in a subsequent month’s return (s). 
3. In GSTR-1, no action is required.