GSTR 3B vs GSTR 1 Mismatch due to GST Calculation at 36% for Certain Items: Madras HC Remands for Reconsideration [Read Order]

In a recent ruling, the Madras High Court remanded the matter of GSTR 3B and GSTR 1 mismatch, initially calculated at 36% GST for specific items, for reconsideration. Jinvar Trading, the petitioner, claimed unawareness of the proceedings until Rs. 68,677 was debited from their electronic credit ledger. \r

They cited negligence by their part-time accountant in checking the GST portal's "View Additional Notices and Orders" tab. The petitioner sought to contest the tax demand based on discrepancies between their GSTR 3B and GSTR 1 filings, despite a significant recovery from their credit ledger. \r

Justice Senthilkumar Ramamoorthy's bench noted the disparity and set aside the October 30, 2023 order, granting the petitioner two weeks to respond to the show cause notice. The court directed the respondent to allow a personal hearing and issue a fresh order within three months.