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Details of inter-State supplies made to unregistered persons to be mentioned in GSTR -3B & GSTR -1 (Circular No. 89/08/2019-GST)

In case of inter-State supplies to unregistered persons, composition taxable persons and UIN holders disclosure shall be made in

  • Table 3.2 of FORM GSTR-3B, and
  • Table 7B of FORM GSTR-1

along with details of place of supply. Non-mentioning of the information would give rise to the following issues:

  • Non-apportionment of the due amount of IGST to the State where such supply takes place;
  • Mismatch in quantum of goods/services supplied in a State vis-à-vis amount of IGST apportioned between Centre & that State.

Non-compliance of the said provision will attract penalty under sec 125 i.e. penalty up to Rs. 25,000/-.


Since table 3.2 of Form GSTR-3B does not trigger any additional tax liability and in order to avoid any allegation of non-disclosure, the assesses can consider disclosing the figures relating to the period July 2017 to March 2018 in one of the Form GSTR-3Bs which would be filed for the current financial year, and make a suitable intimation to the department in this regard. Any non-disclosure in Form GSTR-1 for 2018-19 (i.e. upto current return period) can be made in the return to be filed for the balance period of the current financial year.

Further, it is to be noted that the penalty mentioned in section 125 could still be attracted for each non-disclosure i.e. for each return where the disclosure has not been made.

Place of supply & State to be mentioned on all invoices in case of inter-State supply: (Circular No. 90/09/2019-GST)

All registered persons making supply of goods or services or both in the course of inter-State trade or commerce need to mandatorily specify the place of supply along with the name of the State in the tax invoice in terms of rule 46(n) of the CGST Rules, 2017.

Non-compliance of the said provision will attract penalty under sec 122 or 125 i.e. penalty up to Rs. 25,000/-.

TEAM HIREGANGE Comments: The non-disclosure of PoS in the invoices would attract penal action for the supplier and the recipient would not be eligible to credit in terms of proviso to rule 36(2) of the CGST Rules, 2017. In such cases the supplier can consider re-issuing the invoices with the details of PoS or can mention the PoS details in the already issued invoices with a counter signature.

Clarification regarding supply of warehoused goods during the period July, 2017 to March, 2018: (Circular No. 91/10/2019-GST)

Supply of warehoused goods while deposited in custom bonded warehouses had the character of inter-State supply as per section 7(2) of the IGST Act, 2017. But, due to non-availability of the facility on the common portal, suppliers have reported such supplies as intra-State supplies and discharged central tax and state tax on such supplies instead of integrated tax. It is now been clarified via this circular that as a one-time exception, suppliers who have paid central tax and state tax on such supplies, during the said period, would be deemed to have complied with the provisions of law provided that the amount paid equals to IGST amount due on such supplies.

TEAM HIREGANGE Comments: Though this circular regularizes the wrong tax paid (CGST+SGST) instead of IGST for the period from 01.07.2017 to 31.03.2018, the moot question that is to be answered is whether the said transaction (i.e. sale of warehoused goods before clearance for home consumption) is liable to IGST. In our view no liability exists.

Disclaimer: This material and the information contained herein prepared by Team Hiregange intended to provide updates under GST and is not an exhaustive treatment of such subject. We are not, by means of this material, rendering any professional advice or services. It should not be relied upon as the sole basis for any decision which may affect you or your business.


Published by

Madhukar N Hiregange
(Chartered Accountant)
Category GST   Report

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