System based reconciliation of information furnished in Forms GSTR 1, GSTR 2 with form GSTR 3B

Some important notes/ areas (AUTHORS Notes) based on the circular no 7/2017 dated 1 Sep 2017

## Registered person who has opted to file TRAN 1 by 28 Aug 2017 will have a credit of such ITC in their Electronic Credit Ledger for utilising to pay tax liability further,

## After the return in FORM GSTR-3B has been furnished, the process of reconciliation between the information furnished in FORM GSTR-3B with that furnished in FORM GSTR-1 and FORM GSTR-2 would be carried out in accordance with the provisions of sub-rule (6) of rule 61 of the Rules,

• Furnishing of information in FORM GSTR- 1 & FORM GSTR-2:  

##  Firstly REG person files FORM GSTR- 3B > Then FORM GSTR -1 (used for outward supplies) > then all inwards supplies will be auto populated in FORM > based on the auto populated FORM 2 A the GSTR-2 will be filled as adding, deleting or modifying,

## Below are some details which would not replicate from GSTR-2A and need to be filled in GSTR-2 --

^ details of imports, details of supplies attracting reverse charge,
^ composition suppliers and exempt, nil-rated & non GST inward supplies,
^ advances paid on inward supplies attracting reverse charge, if any, along with adjustments,
^ reversal of ITC as per the provisions of rules 37, 39, 42 and 43 of the Rules,
^ providing HSN wise summary

• Correction of erroneous details furnished in FORM GSTR-3B:  

## If any amendment in the details filed in FORM GSTR 3 B then it can be amended in the GSTR -1 or 2 as the case may be and hence it will reflect in the revised output tax liability or eligible ITC, as the case may be > then all details which are being given in GSTR -1 & 2 will AUTO-POPULATE in GSTR 3,

• Action on the system-based reconciliation:

## The tax paid through the electronic cash ledger and electronic credit ledger in the return in FORM GSTR- 3B shall be displayed by the system in column (3) to (7) of the Table 12 of Part B of FORM GSTR-3,

## Where there is no difference between the details of output tax liability and eligible input tax credit furnished in FORM GSTR-3B and the details furnished in FORM GSTR-1 and FORM GSTR-2, the amount of tax payable and tax paid shall be the same in FORM GSTR-3B and FORM GSTR-3. The person can sign and submit FORM GSTR-3 without any additional payment of tax

• Additional payment of taxes:

##  If any additional arises then the additional amount of tax payable can be paid by debiting the electronic cash or credit ledger, and such delay in payment will start counting from 26 AUG 2017,

##  It may be noted that where the transitional credit as declared in FORM GST TRAN-1 is credited to the electronic credit ledger, the same can be utilized for the payment of the said additional tax liability

• Additional claim of eligible ITC:

## additional amount of ITC shall be credited to the electronic credit ledger of the registered person when he submits the return in FORM GSTR-3

##  if there is an increase in the output tax liability, the registered person can utilize this additional amount of ITC eligible as per the details furnished in FORM GSTR-2 along with the balance in the electronic cash ledger, if required, for the payment of the increased output tax liability and submit his return in FORM GSTR-3.

• Reduction in output tax liability:

##  Any additional tax liability so paid while filing GSTR 3B would be carried forward to the next month’s return to be offset against the output liability of the next month by the taxpayer when he signs and submits the return in FORM GSTR-3,

• Submission of GSTR-3B without payment of taxes: 

##  If payment of taxes were not made however GSTR 3B was filed on time then there is only a interest payment which will be liable from 26 August till the tax liability is paid and subjected to the filing of GSTR 1 & 2 & 3 and hence no LATE FEES is payable,

##  No late fee, however, would be levied for late filing of return in terms of section 47 of the Act, in accordance with the recommendation of the GST Council, as notified vide Notification No. 28/2017-Central tax dated 01.09.2017.

Please read full notification using link - Click here

• Processing of information furnished:

##  The return shall be considered to be a valid return when the tax payable as per FORM GSTR-3 has been paid in full after which the return shall be taken up for matching

For full text of CIRCULAR please refer Click here

The author can also be reached via agrawal.anuj@icai.org