CBIC Mandates Furnishing of Correct Information and ITC Reversal in GSTR-3B and GSTR-1

The Central Board of Indirect Taxes & Custom (CBIC) vide Circular No. 170/02/2022-GST dated 06th July 2022 mandates furnishing of correct and proper information of inter-State supplies and amount of ineligible/blocked Input Tax Credit (“ITC”) and reversal thereof in return in FORM GSTR-3B and statement in FORM GSTR-1.

According to a circular released by the Board, it is preferable that registered persons complete Forms GSTR-3B and GSTR-1 correctly in order to maintain precise accounts and appropriate settlement of money between the Central and State Governments. So, in the circular, the Board has clarified a few points.

The Relevant Text of the Circular is Given Below:

Accordingly, it is hereby advised that the registered persons making inter-State supplies –

(i) to the unregistered persons, shall also report the details of such supplies, place of supply-wise, in Table 3.2 of FORM GSTR-3B and Table 7B or Table 5 or Table 9/10 of FORM GSTR-1, as the case may be;

(ii) to the registered persons paying tax under section 10 of the SGST/CGST Act (composition taxable persons) and to UIN holders, shall also report the details of such supplies, place of supply-wise, in Table 3.2 of FORM GSTR-3B and Table 4A or 4C or 9 of FORM GSTR-1, as the case may be, as mandated by the law.

(iii) shall update their customer database properly with correct State name and ensure that correct PoS is declared in the tax invoice and in Table 3.2 of FORM GSTR-3B while filing their return, so that tax reaches the Consumption State as per the principles of destination-based taxation system.

It is further advised that any amendment carried out in Table 9 or Table 10 of FORM GSTR-1 or any entry in Table 11 of FORM GSTR-1 relating to such supplies should also be given effect to while reporting the figures in Table 3.2 of FORM GSTR-3B.

To Read Full Circular Download PDF Given Below: