CBIC has issued certain circular under GST law on 6th July 2022 clarification regarding amendments in form GSTR-3B. Article briefly explained step by step changes in form.
With regard to the return filing in Form GSTR-3B, the 47th GST Council Meeting recommended the following -
- In order to streamline the compliances under GST, it was proposed to undertake a comprehensive change in Form GSTR-3B; and
- In order to remove ambiguity, it was recommended to provide clarification on mandatory furnishing of proper and correct information of inter-State supplies and also the amount of blocked or ineligible input tax credit along with reversal thereof in the return in Form GSTR-3B.
Accordingly, the following two actions were taken by the Central Board of Indirect Taxes and Customs
- Introduced amendments in Form GSTR-3B vide notification no. 14/2022- Central Tax dated 5th July 2022; and
- Circular no. 170/02/2022-GST dated 6th July 2022 provided clarification on mandatory furnishing of proper and correct information of inter-State supplies and also the amount of ineligible or blocked input tax credit along with reversal thereof in the return in Form GSTR-3B.
The consequence of both the above actions i.e. issuance of notification no. 14/2022- Central Tax dated 5th July 2022 and Circular no. 170/02/2022-GST dated 6th July 2022 is briefly explained in the present article.
What are the amendments in Form GSTR-3B
Notification no. 14/2022- Central Tax dated 5th July 2022 came up with the amendments in Form GSTR-3B. Let us first list down the said amendments in Form GSTR-3B-
1. Heading of Table 3.1 amended
Earlier heading of Table 3.1 was ‘Details of outward supplies and inward supplies liable to reverse charge’.
Amended heading of Table 3.1 is ‘Details of outward supplies and inward supplies liable to reverse charge (other than those covered in 3.1.1)’
2. Insertion of new Table 3.1.1
Newly inserted table 3.1.1 in Form GSTR-3B is tabulated hereunder
Nature of Supplies | Total taxable values | Integrated Tax | Central Tax | State/ UT Tax | Cess |
|---|---|---|---|---|---|
Taxable supplies on which e-commerce operator pays tax under section 9(5). [details to be furnished by e- commerce operator] | - | - | - | - | - |
Taxable supplies made by the registered person through an e-commerce operator, which required to pay tax under section 9(5). [details to be furnished by the registered person who is engaged in making supplies through an e- commerce operator] | - | - | - | - | - |
3. Heading of Table 3.2 amended
Earlier heading of Table 3.1 was ‘Out of supplies in 3.1(a), details of inter-state supplies made to unregistered persons, composition taxable persons and UIN holders’.
Amended heading of Table 3.1 is ‘Out of supplies in 3.1(a) and 3.1.1(i) above, details of inter-state supplies made to unregistered persons, composition taxable persons and UIN holders’.
4. Amendments in Table 4 i.e. Eligible ITC
The following two columns i.e. column B. relating to ITC Reversed and column D. are amended. Earlier columns and amended columns are tabulated hereunder
Earlier columns | Amended columns |
|---|---|
(B) ITC Reversed | (B) ITC Reversed |
1. As per Rule 42 & 43 of CGST Rules | 1. As per Rule 38, 42 & 43 of CGST Rules and sub-section (5) of section 17 |
2. Others | 2. Others |
Earlier columns | Amended columns |
|---|---|
(D) Ineligible ITC | (D) Other Details |
1. As per Section 17(5) | 1. ITC reclaimed which was reversed under Table 4(B)(2) in the earlier tax period. |
2. Others | 2. Ineligible ITC under section 16(4) and ITC restricted due to PoS provisions. |
Amendments in Form GSTR-3B : Consequences
Referring the above amendments in Form GSTR-3B, the first and third amendments are self-explanatory. They have just undertaken change in the heading by incorporating the new table 3.1.1 within the same.
However, the second and the fourth amendment are two major amendments carried out in Form GSTR-3B i.e., insertion of Table 3.1.1 and reversal details in Table 4(B) and other details in Table 4(D). Let us understand both of them hereunder.
- Insertion of 3.1.1 – This amendment is applicable to the e-commerce operator and the registered person who is engaged in supplying through the e-commerce operator.
Under table 3.1.1 (i), the e-commerce operator needs to separately furnish the taxable supplies details on which GST is being paid by them.
Under table 3.1.1(ii), the registered person needs to separately furnish the taxable supplies details on which GST is being paid by the e-commerce operator. - Table 4(B) – The amendment is carried out only in Table 4(B)(1), however, there is no change in Table 4(B)(2).
Table 4(B)(1) – It is amended to include reversal of input tax credit as per provisions of rule 38 and section 17(5). - Table 4(D) – The entire Table 4(D) is substituted. Table 4(D)(1) – details of ITC reclaimed which was reversed under Table 4(B)(2) in earlier tax period is to be mentioned here.
Table 4(D)(2) – details of ineligible ITC u/s 16(4) and ITC restricted under PoS provisions are to be stated here.
Importantly, reversal of input tax credit as per section 17(5) is now to be reflected in table 4(B)(1) which was earlier reflected in table 4(D)(1).
Circular no. 170/02/2022-GST dated 6th July 2022
Important clarification as provided vide circular no. 170/02/2022-GST dated 6th July 2022 is covered hereunder
Clarifications to be noted by the registered person engaged in making inter-State supplies
Situation | Reflected in Form GSTR-3B |
|---|---|
Inter-State supply by the registered person to unregistered person |
Correspondingly, such details are also reflected in Table 7B or Table 5 or Table 9 or Table 10 of Form GSTR-1. |
Inter-State supply by registered person to composition taxable person (i.e. supply to person paying tax under section 10) |
Correspondingly, such details are also reflected in Table 4A or Table 4C or Table 9 of Form GSTR-1. |
Inter-State supply by registered person to UIN holders |
Correspondingly, such details are also reflected in Table 4A or Table 4C or Table 9 of Form GSTR-1. |
It is importantly clarified that any amendments done in Table 9 or Table 10 or Table 11 of Form GSTR-1 relating to above supplies should also be given effect at the time of reporting the supplies in Table 3.2 of Form GSTR-3B.
Clarification regarding ITC availment, reversal and ineligible ITC
For easy understanding, table 4 of Form GSTR-3B along with corresponding clarification is tabulated hereunder
Table 4 | Corresponding clarification |
|---|---|
Table 4(A) – ITC available (whether in full or part) | Total ITC (eligible + ineligible) will be auto-populated from Form GSTR-2B in respective sub-columns of Table 4(A) except the following
|
Table 4(B)(1) – ITC reversed as per rule 38, rule 42 and rule 43 of CGST Rules, 2017 and also under section 17(5) of CGST Act, 2017 | Registered person will have to mention the figures of reversal of ITC (which are absolute in nature and are not reclaimable) like –
|
Table 4(B)(2) – ITC reversed others | Registered person will have to mention the figures of reversal of ITC (which are not permanent in nature and, accordingly, can be reclaimed on fulfilment of specific conditions) like –
|
Table 4(C) – Net ITC available | This is auto-calculated as per formula {4(A) – [4(B)(1) + 4(B)(2)}. The said figure will be credited to Electronic Credit Ledger of the registered person. |
Table 4(D)(1) – ITC reclaimed which was reversed under Table 4(B)(2) in earlier tax period | Reversal of ITC of ineligible credit /s 17(5) or under any other provisions of the Central Goods and Services Tax Act and rules made thereunder is required to be reflected in Table 4(B) and not under Table 4(D). |
Table 4(D)(2) – ineligible ITC u/s 16(4) and ITC restricted due to PoS provisions |
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