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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 ..... 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 are some infirmities in information being furnished by the registered person in relation to inter-State supplies effected to unregistered person, registered person paying tax under section 10 of the Assam Goods and Services Tax Act, 2017 (composition taxable persons) and UIN holders. Also, there appears to be lack of clarity regarding reporting of informa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rm 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 Assam GST Act, as well as in table 3.2 of Form GSTR-3B. 3.2 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 of said supplies are already part of the supplies declared in table 3.1 of the said Form. For assisting the registered persons, table 3.2 of Form GSTR-3B is being auto-populated on the portal based on the details furnished by them in their Form GSTR-1. 3.3 Accordingly, it is hereby advised that the registered persons making inter-State supplies-- (i) to the unregis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... served that different practices are being followed to report ineligible ITC as well as various reversals of ITC in Form GSTR-3B. 4.2 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 any provision of the Assam GST Act should not be part of net ITC Available in table 4(C) and accordingly, should not get credited into the ECL of the registered person. 4.3 In this context, it is pertinent to mention that the facility of static month-wise auto-drafted statement in Form GSTR-2B for all registered persons has been introduced from August, 2020 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the ineligible ITC on account of limitation of time period as delineated in sub-section (4) of section 16 of the Assam GST 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 credit by a banking company or a financial institution), rule 42 (reversal on input 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 Assam GST Rules and for reporting ineligible ITC under section 17(5) of the Assam GST Act in table 4(B)(1). ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sions of the Assam GST Act and rules thereunder is required to be made under table 4(B) and not under table 4(D) of Form GSTR-3B. 4.5 For ease of understanding, the manner of reversals is being elucidated in the illustrations enclosed as annexure to this circular. 5. This circular is clarificatory in nature and not meant for any interpretation of provisions of the Act and rules. 6. Difficulties, if any, in implementation of the above instructions may be brought to the notice of the Principal Commissioner at an early date. 7. This circular shall be deemed to have been issued on 6th July, 2022. Rakesh Agarwala, IAS Principal Commissioner of State Tax, Assam Annexure Illustration : 1. A Registered person M/s. ABC is a manufacturer (su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ote 4 : M/s ABC has reversed ITC of Rs. 500 Central tax and Rs. 500 State tax on account of rule 37, i. e., where consideration was not paid to the supplier within 180 days. Note 5 : An amount of ITC of Rs. 10,000 Central tax and Rs. 10,000 State tax, ineligible on account of limitation of time period as delineated in sub-section (4) of section 16 of the Assam GST Act, has not been auto-populated in table 4(A) of Form GSTR-3B from GSTR-2B. 2. Based on the facts mentioned in table 1 above, M/s. ABC is required to avail ITC after making necessary reversals in table 4 of Form GSTR-3B as detailed in table 2 below : Table 2 4. Eligible ITC Details IGST CGST SGST Explanation 1 2 3 4 (A) ITC available (whether in full or part) . . ..... X X X X Extracts X X X X X X X X Extracts X X X X
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