REVERSE CHARGE REGARDING 3B GSTR RETURN

[nandankumar roy]

PL CLARIFY IN SHORT REGARDING 3B GSTR RETURN EARLIER SHOWN AT POINT 3 (D) FIGURE REVERSE CHARGE OF GTA AND URD PUR GST AMT CAN BE TAKEN AS ELIGIBLE ITC AT POINT 4(3) IN CASE OF MFG UNIT AND GST WHETHER IT WILL BE ONLY ON CGST AND SGST OR CAN BE BE SHOWN IN IGST. REGARDS, N K ROY

[Vamsi Krishna]

RCM can be availed for both Intra & Inter state supplies.

Liability of GST payable under reverse charge must be calculated as under:
Identify the purchases made from unregistered persons to determine the reverse charge liability
a) Segregating the above purchases into inter-state and intra state supplies;
b) Remove the intra-state purchases of a state where there is no registration obtained;
c) Remove the intra-state or inter-state purchases which are not exempted or are nil rated
for ex: Purchase of milk, books etc.;
d) Remove the intra-state or inter-state purchases which are not leviable to GST For ex:
Petrol, diesel, electricity etc.;
e) Remove the intra-state or inter-state purchases which are purchased from a person who
is not in any business i.e. not being a supplier.
f) Segregate the intra state purchases portion on day wise;

g) Remove the ones below ₹ 5,000/- per day;
h) Identifying Place of supply in case of inter-state purchases from unregistered persons;
i) Identifying the classification code for such supplies
j) Apply the appropriate rate of tax and compute GST payable on purchases from
unregistered persons;

k) Identify supplies notified to be taxable under reverse charge. For ex: advocates, GTA,
sponsorships;
l) Identifying the classification code for such supplies;
m) Apply the appropriate rate of tax and compute GST payable on notified supplies under
reverse charge;
n) In case of e-commerce operator the above calculation needs to be done for shifting of
charge also.
o) Raise a consolidated monthly invoice mentioning all the taxable supplies subject to
reverse charge as per the mandatory requirement of a tax invoice.

Once the above calculation is performed, total taxable value and tax on inward supplies liable
under reverse charge must be disclosed in Form GSTR 3B.

AI Summary

Reverse charge mechanism requires calculation of GST on inward supplies from unregistered and notified suppliers and disclosure in GSTR 3B.
The reverse charge requires recipients to compute GST on inward supplies from unregistered persons and notified services by segregating purchases into intra state and inter state, excluding exempt, nil rated, non leviable, and non business supplies, applying day wise segregation and excluding below threshold transactions, identifying place of supply and classification codes, applying applicable tax rates, aggregating liabilities (including notified services like transport and legal/sponsorship), raising a consolidated monthly invoice, and disclosing total taxable value and tax payable under reverse charge in Form GSTR 3B.