9911796707
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 ..... 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 Central 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 c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ders and E-commerce operators, leading to wrong declaration of place of supply (PoS) in both the invoices issued under section 31 of the CGST 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 unregistered persons, shall a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 GGST 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. The statement provides invoice-wise ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of time period as delineated in sub-section (4) of section 16 of the GGST 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 GGST Rules and for reporting ineligible ITC under section 17(5) of the GGST Act in table 4(B)(1). C. Registered person will report reversal of ITC, which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. Difficulty, if any, in the implementation of this circular may be brought to the notice of the Chief Commissioner of State Tax. (Milind Torawane) Chief Commissioner of State Tax, Gujarat State, Ahmedabad Annexure Illustration : 1. A Registered person M/s. ABC is a manufacturer (supplier) of goods. He supplies both taxable as well as exempted goods. In a specific month, say April, 2022, he has received input and input services as detailed in Table 1 below. The details of auto-population of Input Tax Credit on all inward supplies in various rows o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation of time period as delineated in sub-section (4) of section 16 of the GGST 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 Details IGST CGST GGST Explanation 1 2 3 4 (A) ITC available (whether in full or part) . . . . . . . . . 1. Import of goods 1,00,000 . . . . . . 2. Import of services 50,000 . . . . . . 3. Inward supplies liable to reverse charge (other than 1 and 2 above) . . . 25,000 25,000 4. Inward supplies from ISD 50,000 . . . . . . 5. All other ITC 2,00,000 1,50,000 1,50,000 (B) IT ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
