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TMI BlogMandatory 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-1X X X X Extracts X X X X X X X X Extracts X X X X ..... in return in FORM GSTR-3B and statement in FORM GSTR-1 reg. Ref : Circular No.170/02/2022-GST, dated 06-07-2022 issued by the Principal Commissioner (GST) Government of India, Ministry of Finance, Department of Revenue, Central Board of Indirect Taxes and Customs, GST Policy Wing. ***** The process of return filing has been simplified over a period of time. With effect from December 2020, FORM GSTR-3B is getting auto-generated on the portal by way of auto- population of input tax credit (ITC) from FORM GSTR-2B (auto-generated inward supply statement) and auto-population of liabilities from FORM GSTR-1 (Outward supply statement), with an editing facility to the registered person. However, it has been observed that there still ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the notion that the taxable value of the same along with tax payable has already been reported in Table 3.1 of the said FORM. In certain cases, it has also been noticed that the address of unregistered person are captured incorrectly by the supplier, especially those belonging to banking, insurance, finance, stock broking, telecom, digital payment facilitators, OTT platform services providers and E- commerce operators, leading to wrong declaration of Place of Supply (PoS) in both the invoices issued under section 31 of the APGST Act, as well as in Table 3.2 of FORM GSTR3B. In this context, it may be noted that the information sought in Table 3.2 of FORM GSTR-3B is required to be furnished, place of supply-wise, even though the details ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gible ITC in Table 4 of GSTR-3B Table 4(A) of the FORM GSTR-3B is getting auto-populated from various entries of FORM GSTR-2B. However, various reversals of ITC on account of rule 42 and 43 of the APGST Rules or for any other reasons are required to be made by the registered person, on his own ascertainment, in Table 4(B) of the said FORM. It has been observed that different practices are being followed to report ineligible ITC as well as various reversals of ITC in FORM GSTR-3B. It may be noted that the amount of Net ITC Available as per Table 4(C) of FORM GSTR-3B gets credited into the electronic credit ledger (ECL) of the registered person. Therefore, it is important that any reversal of ITC or any ITC which is ineligible under a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which is to be credited to the ECL. In light of the above, the procedure to be followed by registered person is being detailed hereunder for correct reporting of information in the return: A. 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 APGST Act or where the recipient of an intra-State supply is located in a different State / UT than that of place of supply). B. Registered person will report reversal of ITC, which are absolute in nature and are not reclaimable, such as on account of rule 38 (reversal of cre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... APGST Act or where the recipient of an intra- State supply is located in a diferent 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. Accordingly, it is clarified that the reversal of ITC of ineligible credit under section 17(5) or any other provisions of the APGST Act and rules thereunder is required to be made under Table 4(B) and not under Table 4(D) of FORM GSTR- 3B. For ease of understanding, the manner of reversals is being elucidated in the illustrations enclosed as Annexure to this Circular. 5. It is requested that suitable trade notices may be issued to publicize the contents of this Circular. 6. Difficulty if any, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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