In this informative video, we delve into the provisions of Section 88C of the Goods and Services Tax (GST) Act, which addresses the manner of dealing with differences in liability reported in the statement of outward supplies and the return filed by a registered person.
When the tax payable by a registered person, as per their statement of outward supplies (FORM GSTR-1) or using the Invoice Furnishing Facility, exceeds the amount of tax payable according to their return (FORM GSTR-3B), the person is intimated about the difference electronically on the common portal. They are also sent a copy of the intimation via email. The registered person is then directed to either pay the differential tax liability, along with interest, through FORM GST DRC-03 or explain the difference on the common portal within seven days.
Once the intimation is received, the registered person has two options. They can either pay the differential tax liability, fully or partially, along with interest through FORM GST DRC-03 and provide the details on the common portal, or they can furnish a reply on the portal explaining the reasons for any unpaid portion of the differential tax liability.
If the registered person fails to pay the specified amount within the given period or if their explanation is deemed unacceptable by the proper officer, the unpaid amount becomes recoverable under the provisions of section 79.
Stay informed about the regulations and procedures governing GST compliance by watching this video. Ensure you understand the implications of the difference in liability reported in your statement of outward supplies and your return, as it plays a crucial role in maintaining compliance with GST laws.
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