What is Penalty for mismatch in GSTR-1 and GSTR-3B?
Nexa Consultancy | Startup & Finance Glossary
If the tax liability declared in GSTR-1 (sales) is higher than the tax paid in GSTR-3B, the GST department will issue a notice to recover the difference along with interest. This mismatch is a major red flag for tax authorities.
Startup Example: A startup reports sales of ₹10 Lakhs in GSTR-1 but, due to a calculation error, only pays tax on ₹9 Lakhs in GSTR-3B. They will receive a notice for the ₹1 Lakh shortfall plus interest.
Our reconciliation services prevent such mismatches.