TaxTMI 
TaxTMI 
Placing draft FORM GSTR-3B document in public domain for seeking inputs/ suggestions of the stakeholders
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....rs may furnish their views/comments/suggestions on the same latest by 15th September 2022 on email Id [email protected] so as to facilitate finalisation of the matter. Yours faithfully, (RAJEEV KUMAR MITAL) Commissioner of State Tax, Maharashtra State, Mumbai ============= Document 1CONCEPT PAPER Comprehensive changes in FORM GSTR-3B A comprehensive study has been done in respect of the return required to be filed under section 39 of the CGST Act by considering inter alia various representations and suggestions received over a period of time. Brief history of return filing under GST, amendments made in the Finance Act, 2022 in respect of the provisions related to Returns and elaborate proposal for changes in FORM GSTR-3B are discussed below. The proposed changes ensure that the GSTR1-GSTR2B linkage remains intact and as far as possible, the GSTR-3B should be auto-generated consequent to furnishing details in FORM GSTR-1. 1 A.Brief history of return filing under GST: 1. 2. 3. The original design of return involved an elaborate process of filing of GSTR-1, 2 & 3 in a sequence which also envisaged inter-linking with back....
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....tified in the return to be furnished for the month/ tax period during which such omission or mistake are noticed. Such rectifications/ adjustments can be made upto due date of filing return for September of the next year, or the date of filing annual return, whichever is earlier. In exceptional circumstances, sometimes value of credit notes issued by a supplier exceeds value of invoices and debit notes issued by him during a tax period. This leads to net negative value of supplies for the taxpayer in the said tax period. Presently, negative values are not allowed to be reported in any table of GSTR-3B. Similarly, recipient may have to report negative values in ITC table due to receipt of credit notes in a month whose value is more than the total ITC available for the month. Trade and industry have been asking the facility of reporting negative values since long. 4 of 14 44 iii. CONCEPT PAPER There is currently no clarity with respect to reporting of various kind of reversals of ITC in specific rows of FORM GSTR-3B. Ineligible ITC as per section 17(5) has to be reported in Table 4(D). However, while some taxpayers report it in Table 4(D), others just take net ITC....
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....ers as detailed above and the journey of return enhancements done till date, it is proposed to make changes in the format of GSTR-3B which would cover the following aspects: i. ii. Auto-population of values from GTSR-1 into GSTR-3B in specific rows: This would establish one-to-one correspondence to a large extent between rows of GSTR-1 & GSTR-3B, thereby providing clarity to the taxpayer and tax officers. Further, it would minimize requirement of user input in GSTR- 3B and ease GSTR-3B filing process. Provision for allowing amendment in GSTR-3B vide insertion of various amendment tables for outward supplies, input supplies liable to reverse charge and ITC: Since FORM GSTR-1 and FORM GSTR-2B have been linked with FORM GSTR-3B, it is recommended that amendment in FORM GSTR-3B, as far as feasible, should flow from amendment in FORM GSTR- 1, as far as outward liabilities are concerned. Even in the new return system which was envisaged, the amendment in RET-1(RET-1A) was proposed through amendment in details of outward supply (ANX-1/ANX-1A). Therefore, for giving more clarity to the taxpayers, separate amendment table (for liabilities) may be introduced in FORM GSTR-3....
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....lies (liable to reverse charge) (1) Import of services Manual> Manual> Manual> Manual> Manual> (2) Others (g) Supplies on which ECO is requiredAuto > Auto> to pay tax u/s 9(5) [To be furnished by ECO] (h) Supplies made through ECO on KNIL KNIL KNIL KNIL which ECO is required to pay tax u/s 9(5) [To be furnished by the supplier] (i) Other outward supplies (Nil rated, exempted) KNILS KNIL KNIL KNIL> (j) Non-GST outward supplies KNIL KNIL KNIL> 8 of 14 (k) Advances received/Advances Auto> Auto> Part B: Out of the supplies shown in Part-A above, details of inter-State supplies made to unregistered persons, composition taxable persons and UIN holders Nature of Supplies Place of Supply (State/UT) Total Amount of Taxable value Integrated Tax 2 3 4 (a)Supplies made to unregistered persons (b) Supplies made to composition taxable persons (c) Supplies made to UIN holders Part C: Amendment Table Nature of Supplies Tax Period to which it pertains Differential Differential Differential Differential Differential taxable Integrated Central Tax State/UT Cess value Tax Tax Place of Supply 2 6 7 (a) Amendment ma....
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....te Central State/UT Cess d Tax Tax Tax 1 3 4 5 6 Integrated Tax Central Tax State/UT Tax Cess Tax paid TDS/TCS Tax/Cess Interest Late Fee paid in cash 8 9 10 11 of 14 29 Annexure-B Instructions - 1. 2. Terms used: a. Auto: Auto-populated b. NE: Non-editable c. POS: Place of Supply Table 3 will capture information related to outward supplies and inward supplies liable to reverse charge: a. Part-A will contain details of outward supplies, inward supplies liable to reverse charge, supplies under section 9(5) and advances received/adjusted. Any debit/credit notes issued in the current tax period will not be declared here. Further, any amendment to an invoice, including amendment to debit/credit note, pertaining to earlier tax periods will not be reported here. Part-A will be auto- populated from Tables 4, 6, 8, 11 and proposed Table 14 of FORM GSTR-1 other than row (f) which will be partly auto-populated from FORM GSTR-2B and partly user entry. b. Part-B will contain details of inter-state outward supplies made to unregistered persons, composition taxable persons and UIN holders out of the supplies declared in Part-A. It will be auto-pop....
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....nd not in Table 3 Part-C. Table 4 will capture information related to details of ITC. All availment/reclaim in ITC are to be reported in 4(A) and all reversals in ITC are to be reported in 4(B). a. 4(A) will contain ITC available on account of import of goods, import of services, inward supplies liable to reverse charge (other than import of services), inward supplies from ISD, any other ITC on domestic inwards supplies and any reclaim of ITC. It is to be noted that row (6) i.e. "ITC reclaimed" will contain all reclaims other than the reclaims pertaining to rule 38, 42 & 43 and section 17(5). Details in 4(A) will be auto-populated from FORM GSTR-2B other than ITC pertaining to import of services[4(A)(2)] and ITC reclaimed [4(A)(6)] which will both be entered manually by the taxpayer. Details in 4(A)(3) will be auto-populated from FORM GSTR-2B in respect of invoices pertaining to supplies received from registered person only and the taxpayer would be required to manually enter the ITC, if any, pertaining to tax paid on supplies received from unregistered person. b. 4(B) will contain ITC reversed on account of rule 38, 42 & 43, section 17(5), credit notes and other re....