Any Chartered Accountant / GST Experts pls help.

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Rick

Shri

31 Points Joined October 2017

My uncle is a small Govt contractor who gets contract like repairing of potholes from the P.W.D Department. The said P.W.D Department has their GSTIN registered as TDS/TAX DEDUCTOR. So, my uncle have been filing his GSTR1 for the past 2 years under the B2C Category ( since the said govt deparment does have any out ward supply of good or service). But now someone told him he should have filed his GST returns under B2B category since the TDS Deductor provided their GSTIN even though they are registered as TAX DEDUCTOR and not as TAX PAYERS. So my questions is.

Should the GSTR1 filing have been under B2B Category?
If so, can it be amended from B2C to B2B for the past 2 years returns?.
What will happen if the returns are not amended and left as B2C? Will the concerned Dept who deducted TDS record as non filing of GST?

(The logic behind filing under B2C is since the concerned dept is registered as Tax Deductors and TDS deductors cannot file for ITC)

Please help we are in a lot of tension right now…

Replies (14)

Eswar Reddy S

CFO- at NHTF

58275 Points Joined August 2012

There is mis understanding in this issue.

For Deductor
GSTR-1 , 3B not applicable to GST Tds deductor.
GSTR-7 is applicable.

For Deductee/ Receipient
To claim ITC of GST Tds , the recipient must file Tds return under GST before filing GSTR-3B

Rick

Shri

31 Points Joined October 2017

So should i file B2B under GSTR1 or B2C?

Eswar Reddy S

CFO- at NHTF

58275 Points Joined August 2012

Are you deductor or receipient ?

Rick

Shri

31 Points Joined October 2017

Im receipeint i think. Its the govt dept who are registered as tax deductor.

Eswar Reddy S

CFO- at NHTF

58275 Points Joined August 2012

Government will be having two GST Registrations One for GST Tds and another for sales ( GST collection)

Rajendra Prasad

Employee Private

1913 Points Joined July 2017

In my knowledge, It has been clarified by Government in Oct 2020 it self, that any Invoices submitted to Government (B2G) has to be reported as B2B only.

However, as already declared invoices in previous periods, if possible, it is better to amend B2C to B2B. (For 2022-23 till October 2023 return can amend).

As you mentioned the logic, when clarification asked by your PWD department take GSTR 1 and GSTR 3B copies and computation details as proof of filing and payment.

As per the department concern no revenue loss, hence I think no any problem.

Further report the Invoices as B2B only.

Eswar Reddy S

CFO- at NHTF

58275 Points Joined August 2012

But being a deductor under GST, GSTR-7 is applicable and not GSTR-1 , 3B

Rick

Shri

31 Points Joined October 2017

I humbly beg you to help me. What will happen if i cannot amend from B2C to B2B for the years like 2021-22? Will i have to file and pay all the returns again? if so, i will honestly have to commit suicide.

Libissa

Accountant

333 Points Joined April 2018

Please refer the below file attached

Eswar Reddy S

CFO- at NHTF

58275 Points Joined August 2012

Visit GST department for rapid resolution of the issue through proper authority

CA Raj Doshi

Practising CA

8944 Points Joined December 2013

For earlier years amendment is not possible. So you will have to provide evidence and declarations that you have paid the gst as B2C instead of B2B. Going forward, amendment is a must for whichever years possible.

Very Important Advice - Stop doing work in this existing GST. Register and do work in another GST number. It is possible that PWD will hold your payments due to not getting GST credit.

Rick

Shri

31 Points Joined October 2017

Thank you so much for taking time to reply. As i understand, i should amend whatever i can amend and those that i cannot i will have to provide proof that i filed as B2C right?