Mandatory furnishing of correct details in Form GSTR-1, GSTR-3B & GSTR-9

Arjuna (Fictional Character): Krishna,what circular has been passed on 6th July, 2022 for GSTR-1, GSTR-3B and GSTR-9?

Krishna (Fictional Character): Arjuna, Circular No. 170/02/2022-GST on 6th July 2022 was passed for furnishing correct and proper information about inter state supplies and supplies and amount of ineligible/ blocked Input Tax Credit and reversal thereof in GSTR-1 &3B. Circular No.14/2022-GST on 5th July 2022 stated about GSTR-9 & 9C

Arjuna (Fictional Character): Krishna, what information is to be provided regarding inter state supplies in form GSTR-1 & GSTR-3B?

Krishna (Fictional Character): Arjuna, it has been noticed that several registered persons are not Furnishing the correct details about the address of unregistered person, composition taxable persons and UIN holders.So, correct information of person making interstate supply i.e. place of supply wise is to be provided:

1. In Table 3.2 of GSTR-3B that has already been reported in Table 3.1 in the same form and Table no.7B/5 or Table 9/10 of GSTR-1 in case of Unregistered Recipient.
2. In table 3.2 of GST-3B and Table 4A or 4C or 9 of Form GSTR-1 in case of Composition Dealer or UIN holders.
3. Further if any amendments are made in GSTR 1 then also they are required to be shown in Table 3.2.

Arjuna (Fictional Character): Krishna, what circular says about amount of ineligible / blocked Input Tax Credit and reversal thereof in GSTR- 3B?

Krishna (Fictional Character): Arjuna, FORM GSTR-2B for all registered persons has been introduced from August 2020 it is auto-drafted which provides invoice-wise total details of ITC and of ITC of import of goods. Because of which following clarifications were given and asked by the department to adhere:

1. Earlier ineligible ITC,block credit u/s 17(5) was not a part of calculation of eligible ITC, but now it is auto populated in Table 4(A). Hence, it is important to identify ineligible ITC and show it in Table 4(D) And any reversal thereof should not be part of Net ITC Available in Table 4(C) and should not get credited into the ECL. In simple words now in GSTR 3B we have mention total ITC (including ineligible ITC) and then reverse the ineligible ITC alongwith reversals of Rule 42 and 43.
2. Registered person will have to reverse the ITC for non payment of consideration to supplier within 180 days – this reversal is required to be mentioned in GSTR 3B in Table No. 4B(2) i.e. other reversal. Further after fulfilment of necessary conditions this ITC can be reclaimed so this is required to be mentioned in Table 4A i.e. in column all other ITC.

Arjuna (Fictional Character): What are the new changes for GSTR-9 & 9C as per the recent circular?

Krishna (Fictional Character): Arjuna, GSTR-9 is applicable to assessee if turnover exceeds 2 crore and GSTR-9 and 9C is applicable when the turnover exceeds 5 crores.Following are the change in Form GSTR-9 for FY 2021-2022:

1. It is now mandatory to furnish Credit & Debit notes, Amendment separately for taxable B2B supply, zero-rated supply/SEZ supply on payment of tax and nil-rate supply, separately.
2. In preceding financial year, taxpayers having annual turnover upto 5 cr is mandatory to provide 4-digit HSN Code for all B2B supplies and to provide 6-digit HSN code if annual turnover exceeds 5cr.

Arjuna (Fictional Character): What one should learn from these changes?

Krishna (Fictional Character): Arjuna, some taxpayers were filing returns on the basis of auto populated details. Through these circular government has given clarifications for submitting information in GSTR 3B, GSTR 1 and GSTR 9.Further detailed information were asked by the department in the returns. So department may take actions on the basis of information called for. All taxpayers must file returns after considering provisions and notifications and circulars.