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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 relation to inter-State supplies effected to unregistered person, registered person paying tax under section 10 of the Uttar Pradesh Goods and Services Tax Act, 2017 (composition taxable persons) and UIN holders. Also, there appears to be lack of clarity regarding reporting of information about reversal of input-tax credit (hereinafter referred to as the ITC ) as well as ineligible ITC in table 4 of Form GSTR-3B. 2. It is desirable that correct reporting of information is done by the registered person in Form GSTR-3B and Form GSTR-1 so as to ensure correct accountal and accurate settlement of funds between the Central and State Governments. Accordingly, in order to ensure uniformity in return filing, the Commissioner, in exercise of its powers conferred under section 168 of the Uttar Pradesh Goods and Services Tax Act, 2017 (hereinafter referred to as the UPSGST Act ), hereby clarifies various issues in succeeding paragraphs. 3. Furnishing of information regarding inter-State supplies made to unregistered persons, composition taxable persons and UIN holders : 3.1 It has been noticed that a number of registered persons are not reporting the correct details of inter-S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... GSTR-3B. 4. Furnishing of information regarding ITC availed, reversal thereof and ineligible ITC in table 4 of GSTR-3B. 4.1 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 rules 42 and 43 of the UPSGST 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. 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 UPSGST 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 Augus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nditions, such as on account of rule 37 of UPSGST Rules (non-payment of consideration to supplier within 180 days), section 16(2)(b) and section 16(2)(c) of the UPSGST Act in table 4(B)(2). Such ITC may be reclaimed in table 4(A)(5) on fulfilment of necessary conditions. Further, all such reclaimed ITC shall also be shown in table 4(D)(1). Table 4(B)(2) may also be used by registered person for reversal of any ITC availed in table 4(A) in previous tax periods because of some inadvertent mistake. D. 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 will be credited to the ECL of the registered person. E. As the details of ineligible ITC under section 17(5) are being provided in table 4(B), no further details of such ineligible ITC will be required to be provided in table 4(D)(1). F. ITC not available, on account of limitation of time period as delineated in sub-section (4) of section 16 of the UPSGST 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 t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1,50,000 1,50,000 5,00,000 Auto-populated in table 4(A)(5) 6. Total 4,00,000 1,75,000 1,75,000 7,50,000 Other relevant facts : Note 1 : Of the other inward supplies mentioned in row (5), M/s. ABC has received goods on which ITC is barred under section 17(5) of the UPSGST Act having integrated tax of Rs. 50,000 Note 2 : In terms of rules 42 and 43 of the UPSGST Rules, M/s. ABC is required to reverse ITC of Rs. 75,500 integrated tax, Rs. 52,000 Central tax and Rs. 52,000 State tax. Note 3 : M/s. ABC had not received the supply during April, 2022 in respect of an invoice for an inwards supply auto-populated in row (5) having integrated tax of Rs.10,000. Note 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 Cent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rs. 10,000, where supply is not received [Note 3] 3. Reversal of ITC of Rs 500 Central tax and Rs 500 State tax on account of rule 37 [Note 4] (C) Net ITC available (A)-(B) 2,64,500 1,22,500 1,22,500 C=A1+A2+A3+A4+A5-B1-B2 (D) Ineligible ITC 1. As per section 17(5) - - - 1. Refer para 4.3 (E) of circular 2. Reversals under section 17(5) are not required to be shown in this row. The same are to be shown under 4(B)(1) 2. Others 10,000 10,000 1. Refer para 4.3(F) of circular 2. Ineligible ITC on account of limitation of time period as delineated in sub-section (4) of section 16 of the UPSGST Act, which has not been auto-populated in table 4(A) of GSTR-3B - Circular - Trade Notice - Publ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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