Fiscal information

Do you know how to correct an uncollected or claimed GST/QST amount on a previously filed GST/QST return?

June 22, 2023

The ETA and the QTA do not provide for the correction in the current reporting period of an amount of GST/QST collectible in a previous reporting period. In addition, certain GST/QST adjustments are required to be made within a reporting period specified in the Act. 

There are 3 examples of specific retroactive corrections in the table to my right. 

Examples of specific retroactive GST/QST adjustments

  1. GST/QST not collected in a previous reporting period

For example, if you forget to collect GST and QST on taxable income invoiced in March that should have been remitted on the March GST/QST return, you cannot remit it on the December GST/QST return.  

  1. GST/QST adjustment for a credit note issued in a reporting period.

GST/QST credits must be claimed in the reporting period in which the credit note is issued. 

  1. GST/QST overpayments on income in a previous reporting

An application for a refund of tax paid or remitted in error under section 261 of the ETA may be made within 2 years after the amount was paid. 

There are various options available to make the necessary corrections to minimize interest and penalties and comply with the Act.

For the first 2 examples, you can file amended GST/QST returns for the reporting period in question. 

In some situations, it may be advantageous to use the voluntary disclosure program to avoid penalties and limit interest. 

NEWS & EVENTS

Read also

New CRA bulletins on places of supply after more than 12 years of waiting

Are you familiar with the various exemptions and refunds for the federal fuel tax (carbon tax)?

Temporary extension of the deadline for refunding QST paid in error to suppliers

Are you familiar with the different types of Quebec fuel tax refunds available to taxpayers ?

Do you know how to correct an uncollected or claimed GST/QST amount on a previously filed GST/QST return?