GSTR3B can be revised or rectified!!

13/03/2021 11:09 PM By ROHIT GUPTA

Read this article till end. It unfolds the situation as per law, the judgements as well as amendment in Finance Bill 2021

You must be thinking that I am kidding. It is quite clear in GST law that GSTR3B can not be revised. So, how am I discussing this issue that GSTR3B can be revised or rectified?


To err is human. It is quite obvious that while filing GSTR3B or GSTR1 returns we may make errors and mistakes. For example, you may oversight the figures or consider an invoice twice or not consider any invoice at all. Whatever the situation might be the GST law doesn't provide any solution for the rectification or revision of the same.


GST Department came up with a circular in the year 2017, Circular No. 26/26/2017-GST dated 29th December 2017. Point No. 3 of the circular says about "Amendment / corrections / rectification of errors". The common errors while submitting FORM GSTR-3B and the steps needed to be taken to rectify the same are provided in the table annexed to the circular. The circular can be downloaded by clicking on this link


It is clarified in Para 4 of the Circular that as return in FORM GSTR-3B do not contain provisions for reporting of differential figures for past month(s), the said figures may be reported on net basis along with the values for current month itself in appropriate tables i.e. Table No. 3.1, 3.2, 4 and 5, as the case may be. It may be noted that while making adjustment in the output tax liability or input tax credit, there can be no negative entries in the FORM GSTR-3B. The amount remaining for adjustment, if any, may be adjusted in the return(s) in FORM GSTR3B of subsequent month(s) and, in cases where such adjustment is not feasible, refund may be claimed. Where adjustments have been made in FORM GSTR-3B of multiple months, corresponding adjustments in FORM GSTR-1 should also preferably be made in the corresponding months.


It can be seen from the above that no revision of GSTR3B can be done. Only rectification in the form of adjustments can be done in the subsequent months.


However, on 9th March 2021, division bench of Honorable Gujarat High Court in the case of M/s Deepak Print Vs Union of India directs GSTN to allow petitioner to rectify GSTR3B return.


Facts of the Case:

1. Proprietary concern engaged in the business of dress materials etc, inadvertently, wrongly uploaded entries in GSTR3B for May 2019.

2. The dealer wrongly uploaded the entries of sister concern instead of M/s Deepak Print.

3. The dealer made written representation to the Nodal Officer, SGST, Rajkot on 25th June 2019 but the the nodal officer did not even bother to respond to the representation.

Final judgement

1. Accordingly, we read down para 4 of the impugned Circular No. 26/26/2017-GST dated 29.12.2017 to the extent that it restricts the rectification of Form GSTR-3B in respect of the period in which the error has occurred.

2. The writ applicant should be permitted to rectify the Form GSTR-3B in respect of the relevant period.

3. The writ applicant has been dragged into unnecessary litigation only on account of the technicalities raised by the respondents, the writ applicant shall not be saddled with the liability of payment of late fees.


This is really a good judgement by the Honorable Gujarat High Court. It actually reminds the Government to not to interpret and impose the law vide Circulars. It is the court who can interpret the law as it is. Since, the GST return system has not been implemented as visualised in the GST Act, it is really draconian on the part of the Government to even not allow revision of a return which has to be filed on monthly basis. This judgement will really help you in your professional endeavors for handling the situation similar to M/s Deepak Print.

The provisions of the law have bound us to knock the doors of the court through Writ petitions even to revise a tax return. Thankfully, the judiciary has considered the issues faced by the taxpayers and given a favorable judgement. Honorable Gujarat High Court is really doing a good job. Similar view was taken by the Honorable Madras High Court in the case of Sun Dye Chem Vs The Assistant Commissioner (ST), judgement dated 6th October 2020 in which the Court permits re-submission of GSTR3B.

Finally, I would also like to draw your attention to Clause No. 105 of the Finance Bill 2021 which proposes to add an explanation to Section 75 sub-section 12 that "For the purposes of this sub-section, the expression "self-assessed tax" shall include the tax payable in respect of details of outward supplies furnished under section 37, but not included in the return furnished under section 39." What is the implication of this explanation?

The Government through this amendment says that if you have shown an invoice inadvertently in your GSTR1 as 1,00,000, however, while filing GSTR3B you find that actual taxable value is Rs. 50,000 and accordingly files correct GSTR3B. In this case, the Government will consider tax on Rs. 1,00,000 as self assessed tax and it can recover the same even without issuing a show cause notice to you.

This amendment does not show the intent of the Government to let businesses "make in India". The rise of India in the global ease of business ranking is going to fall dramatically in the coming days. For any queries or clarifications, feel free to contact us. We will be happy to help you.

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