1. Liability has been under-reported, and the return has been filed:

When you have mistakenly filed your tax liability and have under-reported it, there can be some condition either a taxpayer failed to report an invoice or some amount ( liability) in the GSTR 1 and GSTR 3B in a particular month or quarter, then that liability has to be paid through GSTR 3B in the subsequent month/quarter with appropriate interest amount as stated before.

Solution: – The liability needs to be added in the return of the subsequent month and you also must pay the appropriate interest amount as stated before.

2. Liability has been over-reported, and failure to file a return

In such a scenario, if a taxpayer over-reported a bill or reported a bill twice then in form GSTR 3B, the over-reported sales amount needs to be deducted from the total sales amount (if possible) from outward supplies and inward supplies on reverse charge.

Solution: – When the taxpayer’s tax liability has been over-reported mistakenly, the taxpayer can adjust their over-reported amount in the next month/quarter. It may be adjusted using the modifications in Form GSTR-1.

3. Incorrect reporting of Liability

In this case when the taxpayer’s liability has been wrongly/incorrect reported, a taxpayer’s unreported liability may be added to the upcoming month/quarter’s return, along with the applicable interest.

Solution: – Taxpayers must file amendments by filling out Table 9 of the following month’s / quarter’s Form GSTR-1.

4. under-reported ITC (Input Tax Credit):

If Taxpayer has mistakenly not considered a few of his purchases in a month then he can do so in the subsequent month’s purchases and along with it, the ITC can be availed.

Solution: – If a taxpayer has under-reported his ITC for a month/quarter and wants to claim it, he/she can avail it in the return of the subsequent month/quarter. Only GSTR 3B’s needs to be changed and in that the required ITC can be added, in the subsequent month. No action is required in GSTR 1.

5. Over reporting of ITC after filing the GSTR-3B

In this scenario, when the taxpayer has been over-claimed the Input Tax Credit and is also used the same then, the taxpayer needs to adjust or pay the same along with the appropriate interest duly in GSTR 3B in the subsequent month/quarter.

Solution: – in this situation, the taxpayer must pay (in cash) /reverse any over-reported input tax credit with interest in the subsequent month’s /quarter’s return. No action is required in GSTR 1.