Guidelines with respect to legal issues pertaining to return scrutiny for tax periods 2017-18 and 2018-19

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....6A of 2021 dated 11-6-2021. (2) Internal Circular 1A of 2022 dated 17-1-2022. Background: The guidelines with respect to technical issues pertaining to return scrutiny have been issued vide Internal Circular referred at Sr. No. 02. However, there are certain legal issues which have arisen in the course.of the work of return scrutiny. From an examination of the issues, it is seen that the issues have cropped up due to the bonafide errors committed by the taxpayers in their compliances. Such errors are largely due to lack of understanding of the provisions of law and issues of GSTN system in the initial stage (FY 17-18 and 18-19) of implementation of GST. Hence, in order to clarify the doubts of field officers, the ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ility in GSTR-1 as compared to GSTR-3B. How to deal with this issue? • Clarification Figure out the transactions which have been shifted to B to B from its original B to C. Take on record the details of GSTR-1 in which such shifting had been done. The proper officers may- • Obtain the transaction wise details of outward supplies from taxpayer for period under scrutiny and reconcile it with category wise outward supplies reported in GSTR-1 of the corresponding period. • Identify the category of difference eg. B to B, B to C, Exports or adjustment to advances. • In case of B to B transactions, take undertaking of recipient that he had not availed excess ITC on accou....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....eported B to B transactions taxable under forward charge in Table 4B of his GSTR-1 instead of Table 4A. However, in above scenarios ITC conditions u/s 16 are met. How to deal with this issue? The proviso to section 16(4) inserted vide RoD dated 31/12/2018 for FY 2017-18. In most of the cases, recipients are referring to strict interpretation and contending that this pre-requisite is applicable to recipients who have claimed ITC (by filing of GSTR-3B) after the specified date (after due date of September, 2018 return till due date of March, 2019 return). How to deal with this issue? B2B transactions in GSTR-1, mistakenly reported as transactions liable to tax under RCM i.e., they we....