Departmental investigations basis mismatch of tax liabilities in E-Way Bill and GSTR-3B

by | Jun 25, 2021 | Outlook

This Outlook intends to update you on recently initiated departmental investigations seeking reconciliation between turnover and tax declared in E-Way Bill (‘EWB’) vis-à-vis GSTR-3B. This move has casted an additional responsibility on taxpayers to reconcile such differences which practically arise in every business for reasons like supply of goods valuing less than Rs.50,000/- where EWB is not required to be issued, supply not involving movement of goods, sales return, transportation undertaken by other registered persons (like suppliers, customers) etc.

Pertinently, GST law does not mandate furnishing of information relating to E-Way Bill in any return or statement (GSTR-1, GSTR-3B or Annual Return). Accordingly, taxpayers can legally contest need of such reconciliation and need not submit this to department. To avoid litigation, taxpayers can consider undertaking such reconciliation and keep it in their records for submission to department if need arises.

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