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INWARD SUPPLIES ON WHICH TAX IS TO BE PAID ON REVERSE CHARGE BASIS

1. Table 4G in GSTR 9 contains details of inward supplies in respect of which registered person is liable to pay tax on reverse charge basis .

2. Salient points in Table 4G

(a) Amount reported in this table includes supplies received from registered person and unregistered person on which tax is levied on reverse charge basis .and aggregate value of all import of services .

(b) Nature of supplies will be both intra state & inter state

(c) Source of information in this table is Table 3.1(d) & Table of GSTR 3B . However , this need to be reconciled with Table 4A(3) of GSTR 3B for ITC availed .

3. Important Notes:

(a) Amount rectified in 2018-19 is to be reported

Total amount to be reported in Table 4G will be the aggregate amount of supplies under RCM pertains to 2017-18 . Amount rectified in 2018-19 pertains to 2017-18 in GSTR 3.1 (d) will also be added to the amount reported in this table .However , tax paid on such rectified amount should not be reported in 4G The same will be shown in Table 10 & 14 of GSTR 9 respectively .

Illustration:

An invoice amounting to Rs 4,00,000 for inward supplies liable to reverse charge , wrongly entered in table 3.1(d) as Rs 2,50,000/- in the month of October 2017 . .The accountant realised the mistake in May 2018 and rectified the same while filing GSTR 3B for the month of May 2018 (2018-19 )

Solution:  Total amount to be reported in Table 4G will be Rs 4,00,000/- . However , Tax paid on rectified amount Rs 1,50,000( 4,00,000 – 2,50,000) shall be reported in Table 10 & 14 respectively .

(b) Supplies not covered under RCM should not be reported in Table 4G of GSTR 9

Illustration:

Inward supply worth Rs 1,00,000/- received from GTA in the month of Feb 2018 , on which he charged GST @ 12% . This was reported in table 3.1(d) of GSTR 3B Later , in the month of July 2018 , the accountant came to know that invoice from GTA with GST @ 12% is not subject to RCM . He has rectified the error in return for the month of July 2018 .

Solution: Since this amount of Rs 1,00,000/- was inadvertently provided in GSTR 3B , it may be auto populated in Table 4G of GSTR 9 . It need to be manually corrected . Amount in GSTR 9 need to be reduced by Rs 100000/- in Table 4G

(c) Tax Payment under incorrect Head ( CGST+ SGST vs. IGST )

Illustration:

Interstate supply of Rs 30000/- liable to Reverse Charge ,has been reported as intra state supply and entered as CGST + SGST in Table 3.1.(d) in March 2018 . However , this was rectified in May 2018

Solution:

Table 4G will report tax paid as CGST + SGST instead of IGST . However, rectification made in May 2018 shall be disclosed in table 10 & 11 of GSTR 9 by disclosing Rs 30000/- in IGST coloum to increase the liability and Rs 15000 each in CGST & SGST column of table 11 to decrease the liability .

(d) ITC availed in Table 4A(3) of GSTR 3B not shown in Table 3.1(d) as inward supply under RCM

Illustration:

Forgot to report Inward supply under RCM amounting to Rs 75000/- in table 3.1.(d) of GSTR 3B but ITC availed in Table 4A(3) in Jan 2018. This has not been rectified till date

Solution:

Since the error has not been rectified till date , such inward supplies liable to RCM shall reported in this Table (4G ) and tax needs to be paid through DRC 03 in the annual return .

4. validation of the amount reported

(a) The tax paid on inward supplies under RCM and the ITC claimed on the same as disclosed in GSTR 3B should be reconciled . Difference may arise due to blocked credit under 17(5) only.

(b) Reverse charge payments under sec 9(4) would be applicable if the supply took place before 13th Oct 2017 . Subsequently , there should not be any disclosure of reverse charge under section 9(4)

Source of Information: Handbook by ICAI

The author can also be reached at caanitabhadra@gmail.com


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Category GST, Other Articles by - CA Anita Bhadra 



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