Mandatory information to be furnished while filing GSTR-1 & GSTR-3B

1. MANDATORYINFORMATIONTOBEFURNISHEDWHILE FILINGGSTR-1 & GSTR-3B AUTHOR:AJAY1998 https://taxguru.in/goods-and-service-tax/mandatory-information-furnished-filing-gstr-1-gstr-3b.html The CBIC has issued Circular No. 170/02/2022 – GST dated 06.07.2022mandating the furnishing of correct and proper information of inter-State supplies and amount of ineligible/blocked Input Tax Credit and reversal thereof in return in FORM GSTR-3B and statement in FORM GSTR-1a. In this article an attempt is made to understandthe crux of the circular issued. Furnishingofinformationregardinginter-Statesuppliesmadetounregisteredpersons,composition taxablepersons and UIN holdersin table 3.2 of GSTR-3B. Thegovernmentvidethiscircularhasadvisedthattheregisteredpersonsmakinginter-Statesupplies– to the unregistered persons, shall also report the details of such supplies, place of supply-wise, in Table 3.2 of FORMGSTR-3B andTable 7Bor Table5 orTable 9/10 ofFORM GSTR-1,asthe casemay be; to the registered persons paying tax under section 10 of the SGST/CGST Act (composition taxable persons) and to UIN holders, shall also report the details of such supplies, place of supply-wise, in Table 3.2 of FORM GSTR-3Band Table 4Aor 4C or 9of FORM GSTR-1,as thecase may be; shallupdatetheircustomerdatabaseproperlywithcorrectStatenameandensurethatcorrectPoSis declared in the tax invoice and in Table 3.2 of FORM GSTR-3B while filing their return, so that tax reaches the ConsumptionState as perthe principles ofdestination-based taxation system; FurtheritwasadvisedthatanyamendmentcarriedoutinTable9orTable10ofFORMGSTR-1oranyentry in Table 11 of FORM GSTR-1 relating to such supplies should also be given effect to while reporting the figures inTable 3.2 of FORM GSTR-3B. Furnishing of information regarding ITC availed, reversal thereof and ineligible ITC in Table 4 of GSTR- 3B The major impact of this circular is made on the availment of ITC. In this article an attempt is made to understandas to how theITC claimed to bedisclosed in GSTR-3B Total ITC (eligible as well as ineligible) is being auto-populated from statement in FORM GSTR-2B in different fields of Table 4A of FORM GSTR-3B (except for the ineligible ITC on account of limitation of time period as delineated in sub-section (4) of section 16 of the CGST Act or where the recipient of an intra-State supplyis located in adifferent State / UTthan that of placeof supply). Registered person will report reversal of ITC, which are absolute in nature and are not reclaimable, such as on accountofrule38(reversalofcreditbyabankingcompanyorafinancialinstitution),rule42(reversaloninput

2. and input services on account of supply of exempted goods or services), rule 43 (reversal on capital goods on account of supply of exempted goods or services)of the CGST Rules and for reporting ineligible ITC under section17(5) of the CGST Actin Table 4 (B) (1). Registered person will report reversal of ITC, which are not permanent in nature and can be reclaimed in future subject to fulfilment of specific conditions, such as on account of rule 37 of CGST Rules (non-payment of considerationtosupplierwithin180days),section16(2)(b)andsection16(2)(c)oftheCGSTActinTable4(B) SuchITCmaybereclaimedinTable4(A)(5)onfulfilmentofnecessaryconditions. Table 4(B)(2) may also be used by registered person for reversal of any ITC availed in Table 4(A) in previous taxperiods because of some inadvertentmistake. Therefore, the net ITC Available will be calculated in Table 4 (C) which is as per the formula (4A -[4B (1) + 4B(2)]) and same willbe credited to theECL of the registeredperson. AsthedetailsofineligibleITCundersection17(5)arebeingprovidedinTable4(B),nofurtherdetailsofsuch ineligibleITC will be requiredto be provided in Table4(D)(1). ITC not available, on account of limitation of time period as delineated in sub-section (4) of section 16 of the CGST Act or where the recipient of an intra-State supply is located in a different State/UT than that of place of supply, may be reported by the registered person in Table 4D(2). Such details are available in Table 4 of FORM GSTR-2B. Thesummaryoftheabovedisclosureismadeasunder • 4.EligibleITC Details • ITCAvailable(whetherinfullorpart) • Importofgoods • Importofservices IntegratedTax CentralTax State/UTTax ThesaiddetailsareautopopulatedfromGSTR-3Bexceptforth (3)Inwardsuppliesliabletoreversecharge(otherthanITConaccountof limitationoftimeperiodasdelineatedinsub- • 1&2above) • InwardsuppliesfromISD • AllotherITC • ITCReversed • Asperrules42&43ofCGSTRules section16oftheCGSTActorwheretherecipientofanintra-St locatedinadifferentState/UTthanthatofplaceof(+)ITC ReportreversalofITC,whichareabsoluteinnatureandareno ReportreversalofITC,whicharenotpermanentinnaturea reclaimedin future a.Rule37(non-paymentofconsiderationtosupplierwithin18 (2)Others b.Section16(2)(b)–Notreceivedgoodsorservices.c.Section Taxhasnotbeenpaid.d.forreversalofanyITCavailedinTab previoustaxperiodsbecauseofsomeinadvertentmistakee.Inel perSection 17(5) ThesaidamountwillbecreditedtotheECL NetITCAvailable(A)–(B) IneligibleITC

3. Noamounthastobereportedhereaswehavereversedthesam (1)Aspersection17(5) 4(B)(2) ITCnotavailable,onaccountoflimitationoftimeperiodasdel sub-section (4) of section 16 of the CGST Act or where thereci intra-StatesupplyislocatedinadifferentState/UTthanthato supply, maybereportedbytheregisteredpersoninTable detailsareavailable inTable4of FORMGSTR-2B (2)Others

4. Now filing of GSTR-3B is not at all an easy job as 1st we have correct report the taxes to be paid under reverse charge mechanism then the bifurcation of the supplies made state wise in the GSTR-3B to the unregistered personsandthen theITC portion.It isadvised tofollow theabove stepsto avoidlitigation infuture. CAAjayKumarMundada–ajay@mundadaandco.com