Draft Letter to Avoid Dispute over Incorrect GSTN in GSTR 1

How to safeguard us via Incorrect GSTN reporting in GSTR 1?

Under GST, a return that has been submitted can not be modified. Any mistake in the return can be fixed in the GSTR-1 that is submitted for the upcoming period (month or quarter). This implies that any errors found in the GSTR-1 of March 2024 can be corrected in the GSTR-1 of April 2024 or in later months.

Now as day we used to find that Incorrect GSTN reporting in GSTR 1 has occasionally been noticed, and this has led to disputes between Goods and Services tax Registered suppliers and customers. It is advised that, in order to prevent this and other potential disputes in the future, the Goods and Services tax registered Supplier deliver this correspondence to his customer of compliance as made in GSTR 1:

Draft email/Letter to Avoid “Dispute” over Incorrect GSTN in GSTR 1

Rajput Jain and Associates recommended format:

It is strongly advised that GST Taxpayer mail 👆🏻 👇🏻 to customer indicating that –

Subject: Confirmation of GST Details for FY 2023-24

Dear Sir 

In our GSTR 3B and GSTR 1 Return, we have submitted and paid GST on all supplies we made to you on the GST Portal during FY 2023–2024. Please verify this in your GSTR 2A/2B on the GST Portal, and within two weeks, let us know “in writing as reply to this mail” if there are any problems or discrepancies.

This is be informed that the GST Law places a deadline on rectifying supplies that have been uploaded as GSTR 1 on the GST Portal. As a result, it is crucial that any necessary corrections are completed by the deadline prescribed by law.  As a result, we kindly ask that you evaluate that the supplies we provided to you are correctly disclosed in your GSTR 2A/2B against your GST .

Please take note that, should we not hear back from you within two weeks, we will presume that everything is fine and that our supplies have been accurately disclosed in your GSTR 2A/2B on the GST Portal. As a result, we will not be held accountable for any future errors or omissions that you may find, nor will we entertain any claims related to this subject matter.

Best regards,

Your Name

Position

Your Company

Mobile no and Email Id

Rajput Jain and Associates recommended Sample letter to be share to Customers

It is highly recommended that the GST Taxpayer send the consumer a letter 👆🏻 👇🏻 mentioning that

To 

…………..

Address ………………

…………………..

Subject: Confirmation of GST Details for FY 2023-24

Dear….

We hope this email finds you well. We would like to inform you that we have disclosed and paid GST on all supplies made to you during the financial year 2023-24 in our GSTR 3B and GSTR 1 Returns. We kindly request you to verify the details of these transactions in your GSTR 2A/2B on the GST Portal.

Please inform us in writing as a reply to this email if you notice any issues or discrepancies within two weeks.

It is important to note that there is a time limit in GST Law for making corrections to the supplies uploaded in GSTR 1 on the GST Portal. Therefore, it is crucial that any necessary corrections are made within the stipulated time frame. Please ensure that the supplies made by us are correctly disclosed against your GSTIN in your GSTR 2A/2B.

If we do not receive any response or communication regarding discrepancies within two weeks, we will assume that there are no errors or mistakes, and that our supplies are correctly disclosed in your GSTR 2A/2B on the GST Portal. Consequently, we will not be liable for any errors or omissions observed by you in the future, and we will not entertain any claims in this regard if no response is received within the specified period.

Thank you for your attention to this matter.

Best regards,

Your Name

Position

Your Company

Mobile no and Email Id

In absence of a valid bank account details in GST registration, then GSTR -1 is not allowed

From the August-2024 return period, in absence of a valid bank account details in GST registration, taxpayers will not be able to file GSTR-1 or IFF as the case may be.

GST Return Filing—Late GSTR-1 Impact

XYZ Ltd. is required to file GSTR-1 for February 2025 by 11th March 2025. However, they mistakenly file it on 20th March 2025. What will be the consequences?

A) No impact; GSTR-1 can be filed late without penalties.
B) Late fee of ₹100 per day (CGST+SGST) and buyer’s ITC claim will be delayed.
C) The buyer can still claim ITC in GSTR-3B without any issue.
D) The supplier can rectify the delay in the next tax period without penalties.

✅ Correct Answer: B: Late fee of ₹100 per day (CGST+SGST) and buyer’s ITC claim will be delayed.
Explanation: Late filing of GSTR-1 results in a penalty of ₹50 per day under CGST + ₹50 per day under SGST. Additionally, the buyer cannot claim ITC until the invoice appears in GSTR-2B, which depends on timely filing of GSTR-

E-Way Bill Validity – Distance-Based Rules

ABC Ltd. is transporting goods worth ₹5 lakh from Mumbai to Delhi (1,400 km) on 1st April 2025. The E-Way Bill was generated at 9 AM. By when should the consignment reach its destination before the E-Way Bill expires?

A) 3rd April 2025, 9 AM
B) 4th April 2025, 9 AM
C) 5th April 2025, 9 AM
D) 6th April 2025, 9 AM

Correct Answer: C – 5th April 2025, 9 AM
Explanation: E-Way Bill validity is 1 day for every 200 km., For 1,400 km, validity = 7 days. Since generated on 1st April at 9 AM, it expires on 5th April at 9 AM.

ITC Reversal for Non-Payment to Vendor

A business claims ITC of ₹2 lakh on invoices received from a supplier in April 2025. However, the payment to the supplier is delayed beyond 180 days. What happens next?

A) ITC is permanently disallowed.
B) ITC reversal is required with interest, and ITC can be reclaimed upon payment.
C) ITC remains valid; no reversal needed.
D) Only a penalty applies, but ITC can still be claimed.

Correct Answer: B – ITC reversal is required with interest, and ITC can be reclaimed upon payment.
Explanation: Under Rule 37 of CGST Rules, ITC must be reversed if payment is not made within 180 days. and The taxpayer must pay interest on ITC reversal but can reclaim ITC upon payment to the supplier.