Can a GST Return be Revised and How to Correct Mistakes

Introduction

As a taxpayer, you might wonder if it is possible to revise a GST return if an error or omission was made. This article addresses the process of amending a GST return and provides clarity on when and how it can be done.

Amending a GST Return

As of now, there is no specific facility for filing a revised GST return directly. However, any mistakes made can be corrected in the subsequent tax returns. It is important to note that these corrections are subject to certain time limitations and conditions.

Time Limitations and Procedures

For fiscal years (FY) 2021-22 and 2022-23, registered individuals were allowed to amend their GST returns until October of the following year, provided they filed their returns by November 30th of the current fiscal year. This window helps taxpayers correct any errors promptly without incurring penalties.

To illustrate, consider a registered person filing GST returns for FY 2021-22. Amendments can be made until October 2022, provided the original returns were filed by November 30, 2022. Similarly, for FY 2022-23, the amendment period extends until October 2023, with the same filing deadline of November 30, 2023.

Rectifying Errors and Filing Revised Returns

Once a mistake or omission is found in a filed return, rectifying it involves filling a revised return under section 139(5) of the GST Act. A revised return will nullify the original return.

A revised return can be filed before the completion of the relevant assessment year or before the completion of the assessment, whichever is earlier. The assessment order passed under section 143(1) is not considered as completion for the revision of the return. Instead, an assessment order under sections 143(3) or 144 is the definitive completion of the assessment.

Frequency and Conditions for Revisions

There is no restriction on the number of times a return can be revised, but it must be done within the prescribed time period, i.e., before the completion of the relevant assessment year or before the completion of the assessment, whichever is earlier. This means that if a tax period expires, the corresponding assessment period begins, and any further amendments must be made before then.

For example, Mr. X filed his income tax return for the financial year 2017-18 before the due date of June 25, 2018. After filling it, he realized a mistake. Since he filed the return before the due date, he could rectify it before the relevant assessment year of 2018-19 or before the completion of the assessment, whichever was earlier. Completion of the assessment refers to when the assessment order under section 143(1) is passed, which is different from the assessment order under sections 143(3) or 144.

Procedure for Filing Revised Returns

Belated returns filed under section 139(4) can be revised under section 139(5) if any omissions or incorrect statements are discovered. This revision must be done before the completion of the assessment year or before the completion of the assessment, whichever is earlier. The provision of section 139(5) applies only to "omission or wrong statement" and not to "concealment or false statement." A return cannot be revised if the mistake is fraudulent or due to intentional concealment or false statement.

When filing a revised return, it is mandatory to mention the date of filing and the acknowledgement number of the original return. This ensures that the revised return is processed correctly and any discrepancies are addressed.