QUESTION

WE HAD NIL RATED SUPPLY IN FY 2018-19, BUT WRONGLY IT IS BOOKED IN B2B OF GSTR 1 AS TAXABLE SUPPLY. NOW WE HAVE TO DELETE THE INVOICE FROM B2B AND BOOK IT AS NILL RATED SUPPLY. PLEASE LET US KNOW THE PROCEDURE FOR THE SAME.

ANSWER

Facts of the case: NIL rated supply declared as taxable B2B supply in GSTR-1 in FY 2018-19.

Law Applicable:SECTION 37 OF CGST ACT
(3) Any registered person, who has furnished the details under sub-section (1) for any tax period and which have remained unmatched under section 42 or section 43, shall, upon discovery of any error or omission therein, rectify such error or omission in such manner as may be prescribed, and shall pay the tax and interest, if any, in case there is a short payment of tax on account of such error or omission, in the return to be furnished for such tax period:

Provided that no rectification of error or omission in respect of the details furnished under sub-section (1) shall be allowed after furnishing of the return under section 39 for the month of September following the end of the financial year to which such details pertain, or furnishing of the relevant annual return, whichever is earlier.

Interpretation:As per Section 37 of CGST Act any error omission can be rectified till filing of GSTR-3B of September following the end of the financial year to which such details pertain, or furnishing of the relevant annual return, whichever is earlier.

Conclusion:In the present case time period for rectifying error related to FY 2018-19 has already expired i.e. due date of September 2019 return. Now this can be rectified while filing Annual return i.e. GSTR-9 of FY 2018-19. In GSTR-9 deduct the amount of NIL rated supply from B2B in Table 4 and show in Table 5.(Reply dt.6/3/2020)