FILING OF RETURNS UNDER GST – CLARIFICATION BY ‘CBEC’

[Mr. M. GOVINDARAJAN]

Every registered person under GST is to file the required returns within the time stipulated.  The following returns are required to be filed by the registered person-

• GSTR – 1 – Details of outward supplies of goods or services;
• GSTR- 2 – Details of inward supplies of goods or services;
• GSTR -3 – Monthly return.
• GSTR – 3B – in lieu of GSTR  3.

The registered persons are facing many problems in filing the returns in GST regime due to the glitches in GST net work.  The due date for filing returns are extended by the Board.  The Board has recently come with a circular clarifying the matters in filing return vide Circular No. 26/26/2017-GST, dated 29.12.2017.

The clarification has been issued since various representations have been received seeking clarifications on various aspects of return filing such as return filing dates, applicability and quantum of late fee, amendment of errors in submitting/filing of GSTR – 3B and other related queries.

Return filing dates

GSTR – 3B

In respect of return GSTR – 3B it is to be filed by all registered persons  on monthly basis.  The due dates for filing return GSTR – 3B for the months from December 2017 to April 2018 are given as detailed below by all registered persons-

• December  2017 return  - 20.01.2018;
• January 2018 return – 20.02.2018;
• February 2018 return – 20.03.2018;
• March 2018 return – 20.04.2018;
• April 2018 return – 20.05.2018.

GSTR -1

This return is meant for outward supply of registered person.   There are two types of registered persons viz., whose turnover is up to ₹ 1.5 crores and whose turnover is more than ₹ 1.5 crores.    The registered person whose turnover is up to ₹ 1.5 crores, he is required to file GSTR -1 on quarterly basis and the rest to file on monthly basis.

The registered person will assess his aggregate turnover in terms of section 2(6) of the CGST Act, 2017 for the previous financial year or the current financial year, in case of new registrants and file the return according to the due date.  The registered person whose turnover is up to ₹ 1.5 crores may opt to file the return on monthly basis if he so wishes even though his aggregate turnover is up to ₹ 1.5 crore.   Once he opts for this he will not have the option to change the return filing periodicity for the entire financial year.  If the registered person wrongly reports his aggregate turnover and opts to file the return on quarterly basis he may be liable to penalties under the Act.

The calendar for filing GSTR -1 is provided in the circular as detailed below-

• For aggregate turnover up to ₹ 1.5 crore

• July 2017 to September 2017 – 10.01.2018;
• October 2017 to December 2017 – 15.02.2018;
• January 2018 to March 2018 – 30.04.2018;

• For aggregate turnover more than ₹ 1.5 crore

• July to November 2017 – 10.01.2018;
• December 2017 – 10.02.2018;
• January 2018 – 10.03.2018;
• February 2018 – 10.04.2018;
• March 2018 – 10.05.2018.

It is further clarified that since the option of quarterly filing was not available earlier, many taxpayers have already filed their returns for the month of July.  Such tax payers shall not file these details again and shall one file details for the  month of August and September 2017.  Those who have not filed their return for the month of July 2017, they shall file their GSTR – 1 return separately and then file the GSTR – 1 return on quarterly basis for the month August and September 2017.

GSTR – 2 and GSTR – 3

It is clarified that the time period of filing of Form GSTR – 2 and Form GSTR – 3 for the months from July 2017 to March 2018 would be worked out by a Committee of officers and the same will be communicated later.

GSTR – 4

The registered persons opting for Composition scheme are required to file their returns quarterly in Form GSTR – 4.  The due date for filing this return for the quarter ending September 2017 has been extended to 24.12.2017.  For the remaining quarters the last date for filing this return within 18 days after the end of such quarter.  For the quarter from October 2017 to December 2017 is to be filed on or before 18.01.2018.

Late fee

The late fee for belated filing of return ₹ 200/- per day if the tax liability if NIL for that month.  The late fee for belated filing of return in other cases is ₹ 200/- per day. 

The late fee for the months of July, August and September for late filing  of GSTR – 3B has been waived off.  For subsequent months, the late fee rate is reduced.  In respect of a taxpayer whose tax liability for that month was NIL, the late fee will be ₹ 20/- per day and in respect of others, the late fee will be ₹ 50/- per day.

Amendment/corrections/rectification of errors

The procedure for rectification of errors made while filing Form GSTR – 3B was issued vide Circular No. 7/7/2017-GST, dated 01.09.2017.  The said circular clarified that-

• errors committed while filing GSTR – 3B may be rectified while filing Form GSTR – 1 and GSTR – 2 of the same month;
• the system will automatically reconcile the data submitted in Form GSTR -3B with Form GSTR – 1 and Form GSTR – 2;
• If there is any variation, it will be offset against the output tax liability or added to the output tax liability of the subsequent month.

The circular indicated the system based reconciliation prescribed as above can only be operationalized after the relevant notification issued for GSTR – 2 and Form GSTR – 3 which has been worked out by a Committee of officers.

It is clarified that as return in Form GSTR – 3B do not contain provisions for reporting of differential figures for the past month and said figures may be report on net basis along with the values for current month itself in appropriate tables i.e., Table No. 3.1, 3.2, 4 and 5 as the case may be.  While making adjustment in the output tax liability or input tax credit, there can be no negative entries in Form GSTR – 3B.  If the adjustment is not feasible refund may be claimed.  Where adjustments have been made in Form GSTR – 3B of multiple months, corresponding adjustments in Form GSTR – 1 should also preferably be made in the corresponding months.

Common errors in GSTR – 3B

The following are the common errors that are made while filing GSTR – 3B-

• Liability was under reported;
• Liability over reported;
• Liability wrongly reported;
• Input tax credit was under reported;
• Input tax credit was over reported;
• Input tax credit of the wrong tax was taken;
• Cash ledger wrongly updated.

There are four stages in filing return GSTR – 3B-

• Stage 1 – Confirmed submission;
• Stage 2 – Cash Ledger updated;
• Stage 3 – Offset liability;
• Stage 4 – Return filed.

The registered person needs to decide at which stage of filing of Form GSTR – 3B he is currently at and also the error committed by him. 

Under Stage – 1- Confirmed submission

• Use ‘Edit’ facility to –

• add in case of under reported liability;
• in case of over reported liability;
• the wrongly reported liability.
• add un-availed input tax credit- input tax credit will be added to the credit ledger and may be used for offsetting this month or subsequent month’s liability;
• the over reported input tax credit;
• the wrong credit was taken –

• new input tax credit will be added to the credit ledger;
• input tax credit reduced will be adjusted in the credit ledger without the any additional liability

• No action.

Under Stage – 2 – Cash Ledger updated

• Use ‘Edit’ facility to-

• add such liability and additional cash, if required i.e., where sufficient balances are not available in the credit or cash ledgers, may be deposited in the cash ledger by creating Challan in form  GST PMT – 06.
• over reported liability and cash ledger may be partially debited to offset such liability.  Remaining balance may either be claimed as refund or used to offset future liabilities.
• wrong reported liability and cash ledger may be debited to offset new liability, where sufficient balances are not available in the credit ledger.  Remaining balance, if any may be either claimed as refund or used to offset;
• no action is required in case of input tax credit was under reported;
• deposit additional cash, if required in the cash ledger by creating challan in Form GST PMT – 06, if input tax credit was over reported;
• deposit additional cash, if required, in the cash ledger by creating challan in Form GST PMT – 06, if input tax credit of wrong tax was taken.
• In case of wrongly updated- add cash under the right tax head and seek cash refund of the cash added under the wrong tax head.

Under Stage – 3 – Off set liability

• In case of liability under reported – Liability may be added in the return of subsequent month(s) after payment of interest;
• In case ofliability was over reported – liability may be adjusted in return of subsequent month(s) or refund may be claimed where adjustment is not feasible.
• In case of was wrongly reported – unreported liability may be added in the next month’s return with interest, if applicable.Also adjustment may be made in return may be claimed where adjustment is not feasible.
• In case of input tax credit was under reported – input tax credit which was not reported may be availed while filing return for subsequent month(s).
• Input tax credit was over reported- pay through cash/Reverse such over reported input tax credit with interest in return of subsequent month(s);
• Input tax credit of the wrong tax was taken – Pay through cash/Reverse any wrongly reported input tax credit in return of subsequent month(s); For under reported input tax credit, the same may be availed in return of subsequent month(s).
• In cash ledger wrongly updated – No action.

Where the taxpayer has committed an error in submitting (before offsetting and filing) the information in Form GSTR – 3B, a provision for editing the same has been provided as discussed above.  This facility can be used only before offsetting the liability and editing will not be permitted after offsetting the liability.   Therefore it is advised that every care should be taken to ensure the accuracy of the figures before processing to offset the liabilities.

It is further clarified in the circular that the information furnished by the registered person in the return in Form GSTR – 3B would be reconciled by the department’s system with the information furnished in Form GSTR – 1  and discrepancies, if any, shall be dealt with in accordance with the relevant provisions of the Act and the rules made thereunder.

Discussions to this article

[KASTURI SETHI]

Sir,

Very useful and timely article. It has solved problems of so many assessees.

[Avinash Gopalakrishnan]

Dear Sir

i must laud you for the detailed explanation that you have given , I would like to clarify the following with regard to errors in filing

with regard to the same ,

Scenario 1

Buyer Y and Supplier X

Buyer Y is a merchant exporter

Supplier X is a Manufacturer

in the case of Y having purchased material from entity X , and having paid the relevant GST , on purchase , exports the material and also files the due returns , But, Seller X, while filing his returns has wrongly entered the GST number of Buyer Y for 2 particular supplies , how does Y claim refund of the input tax paid

[Harish Kohli]

Sir,

The error we have committed in filling GSTR 3B is putting differential figures in wrong columns, there is no difference in sale, tax liability or claiming of input tax credit.

We have put by mistake the export sales on payment of IGST, in the column 3.1 A instead of 3.1B. Thus the return shows no tax paid on export in column 3.1B and the system does not grant us the refunds of IGST paid on export which are listed in 3.1A.

We cannot add IGST paid exports of August, September and October 2017 in December’s GSTR 3B because the system will again demand TAX from us on the basis of this declaration only, the result will be that instead of getting refunds we will have to pay IGST.

We have filed GSTR 1 of July, August, September, October 2017.

We seek clarification and rectification of the above mentioned errors.

Thanking you in advance.

[MARIAPPAN GOVINDARAJAN]

In respect of the query of Shri Avinash, it is to inform at the time of filing GSTR -2, this discrepancy may be raised in the network to X who will in turn correct the discrimination pointed out. This is as per the provisions of GST Act and rules. However this stage has not yet received in the network. It is my view. Opinion of other experts are solicited.

[MARIAPPAN GOVINDARAJAN]

The facility of amending the return has already been over. You may point out the discrepancy to the GSTN and GST council who may provide solution to you.