Order of Rectification under GST

Updated on : March 20, 2023 - 5 p.m. 17 min read.

Rectification under GST:

Goods and Services Tax (GST) is an indirect tax that has revolutionized the Indian tax system. With the introduction of GST, businesses need to file regular returns, which are an important source of revenue for the government. However, sometimes errors or omissions may occur while filing these returns. In such cases, the process of rectification under GST comes into play. This blog post explains the types of rectification under GST, the process of rectification, and the consequences of incorrect rectification.

Types of Rectification under GST

Rectification of Errors

Errors can occur in GST returns due to various reasons such as incorrect data entry, calculation mistakes, or confusion over tax rates. The GST law allows taxpayers to rectify such errors within a period of two years from the date of filing of the original return. The process of rectification of errors involves filing a revised return, which will be treated as the final return for that tax period.

Rectification of Omissions

Omissions are different from errors as they are a result of something that was missed while filing the original return. For example, if a taxpayer forgot to include a particular transaction in the original return, it would be considered an omission. In such cases, the GST law allows taxpayers to rectify the omission within a period of one month from the date of discovery of the omission. The process of rectification of omissions also involves filing a revised return, which will be treated as the final return for that tax period.

Process for Rectification

The process of rectification under GST is quite simple and can be done online on the GST portal. Here is a step-by-step guide to rectifying errors or omissions in GST returns:

Step 1: Log in to the GST portal using your credentials.

Step 2: Navigate to the 'Returns Dashboard' and select the return that needs to be rectified.

Step 3: Click on the 'Prepare Offline' button to download the return in an excel format.

Step 4: Make the necessary corrections or additions in the downloaded excel file.

Step 5: Generate the JSON file using the 'Generate JSON File' button and save it to your computer.

Step 6: Upload the JSON file on the GST portal using the 'Upload Generated JSON File' button.

Step 7: Preview and submit the revised return.

It is important to note that the revised return will overwrite the original return, and any subsequent changes to the return cannot be made after submission.

Consequences of Incorrect Rectification

Incorrect rectification can lead to penalties and other consequences. For example, if an error in the return is not rectified within the stipulated time frame, the taxpayer may be liable to pay a penalty of Rs. 10,000 or 10% of the tax amount due, whichever is higher. Similarly, incorrect rectification of an omission can also lead to penalties and other consequences.

It is, therefore, important to ensure that the rectification process is done carefully, and professional advice should be sought in case of doubts or errors.

Conclusion

Rectification under GST is an important process that helps taxpayers correct errors or omissions in their returns. The GST law allows taxpayers to rectify errors within a period of two years and omissions within a period of one month from the date of discovery. The process of rectification is simple and can be done online on the GST portal. However, incorrect rectification can lead to penalties and other consequences. Therefore, it is important to ensure that the rectification process is done carefully, and professional advice should be sought in case of doubts or errors.

By Esha Arora

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