Goods and Services Tax – GST – By: – Ravi Kumar Somani – Dated:- 18-8-2017 Last Replied Date:- 19-8-2017 – Filing of GSTR-3B return is the first formal communication of business transactions with the government machinery in the GST era. It holds lot of importance especially in the current scenario where many businesses are still struggling with the basics of this new law i.e. obtaining provisional id s, issues in logins, interpretation issues in law, dealing with the procedural aspects and many more… The list can just go on. Amidst all these barriers, the show has to still go on and one has to act upon the mandate of the law and file an error free GSTR 3B return. Since, there is lot of confusion among industry and trade on this filing requirement of form GSTR-3B, therefore this article is written to provide conceptual clarity on filing of this form along with data requirement and calculation mechanics for detailed field wise submission in this form. Before we understand the for
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would first take a look at few important points in this regard: GSTR 3B needs to be separately filed for each GST registration number. It needs to be filed online only in the common portal i.e. www.gst.gov.in, there is no any offline utility provided which can be filled and uploaded into the system. In the post login mode, one can access it by going to Services > Returns > Returns Dashboard. After selecting the financial year and tax period, GSTR 3B, (if applicable), in the given period will be displayed. It is needed to be filed even if it is a nil return. Once filed, the form shall be final and there is no provision for revision of the return once filed. Any revision has to be done through while filing of GSTR -1, GSTR -2, GSTR -3. Upon generation of GSTR 3, if actual liabilities are different from those declared in GSTR 3B, the system will update the delta (difference) between GSTR 3B and GSTR 3 automatically. In case of an upward revision of liabilities, one will be liable t
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tax is mandatory for filing of form GSTR-3B. In other words, GSTR-3B return cannot be filed without full payment of the tax due. Having understood the basics and the requirement of the form, we shall now understand the form in detail with field-wise reporting requirement along with how data/ information must be identified, computed and assimilated by the business to ensure error free filing of this form. Below is the format of the form for quick glance. Field No. 3.1 – Details of Outward Supplies and inward supplies liable to reverse charge A) Outward taxable supplies (other than zero rated, nil rated and exempted supplies) Details of all the taxable outward supplies must be entered here. Therefore, details of zero rated supply, nil rated supply and exempted supply must be excluded. By entering the details here we would be able to calculate the total GST payable on outward supplies. Once we arrive at the value of total GST payable on the outward supplies, then the tax element needs to
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but invoice is issued in the month of July 17, then the transaction shall be liable for service tax to the extent of advances received before July 17 and detail of such invoice to the extent of liability under service tax law should not be included here. Details of invoices raised for stock transfer of goods or cross billing for services to the another registered person of the same entity must be entered here. In other words, it shall contain the details of internal as well as external invoicing. If both taxable and exempted goods or services are covered in the same invoice then only details of the taxable portion of such invoice must be entered here. The exempted portion must be separated and entered below in field (c) even though the same are covered under same invoice number. As the heading clearly states only details of the outward supplies must be entered here. Therefore, if any tax is payable under reverse charge such as services from advocates or purchases from unregistered per
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y filing bond or LUT. Both the categories of zero rated supplies must be mentioned here only. Calculation of tax payable on Zero rated supplies must be done in the same manner as provided in (A) above. Tax columns would be filled when the assessee is opted to pay GST for making exports/SEZ supplies. A supply which is both Nil rated and also Zero rated, then details of such supplies must be mentioned in the category of zero rated supply. For ex: Export of books would be a zero rated and also nil rated supply. Details of this supply must be entered in zero rated supply as in such a case assessee would still be able to claim the refund of the input taxes credit. Putting the details in Nil rated supply may lead to unnecessary consequences from the department and denial of credit thereon. C) Other outward supplies (Nil rated, exempted): Nil rated supplies are the ones where although the supply is taxable but the rate of tax has been kept as Nil whereas exempted supplies are the ones that ar
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plied through an electronic commerce operator, then such electronic commerce operator shall be liable for GST. 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 Segregating the above purchases into inter-state and intra state supplies; Remove the intra-state purchases of a state where there is no registration obtained; Remove the intra-state or inter-state purchases which are not exempted or are nil rated for ex: Purchase of milk, books etc.; Remove the intra-state or inter-state purchases which are not leviable to GST For ex: Petrol, diesel, electricity etc.; 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. Segregate the intra state purchases portion on day wise; Remove the ones below ₹ 5,000/- per day; Identifying Place of supply in case of inter-state purchases from unregi
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estaurants. There is a possibility that such restaurant is registered under the composition scheme of the act. Therefore, while identifying vendors under reverse charge a precaution to that extent must be taken. In earlier tax regime, service tax was payable under reverse charge only when payment was made to the vendor. In case of GST, tax under reverse charge needs to be paid at earliest of the following dates: Receipt of goods/ from vendor; Payment entry in books of accounts or debit in bank; or Date immediately following 30 days (60 days in case of services) from the date of issue of invoice by the vendor. Therefore, if any of the above event has taken place, then assessee needs to pay GST under reverse charge. For ex: If a payment is made to an advocate in the month of July 2017, then reverse charge would apply and one needs to identify and disclose these details in Form GSTR-3B and accordingly tax needs to be calculated. Further, in case of certain services that were liable for ta
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ld get covered here are as under: Sale of flats after issuance of the completion certificate; Sale of land; Provision of electricity; Sale of Petrol and petroleum products; Sale of alcoholic liquor for human consumption; Dealings in securities and transactions in money; Actionable claims, other than lottery, betting and gambling. In case any of the above category of supplies are made then details of the same must be reflected in this field. Field No. 3.2: Details of inter-State supplies made to unregistered persons, composition taxable persons and UIN holders Details of following supplies must be disclosed in this field: Inter-state supplies made to unregistered persons; Inter-state supplies made to composition taxable person; Inter-state supplies made to UIN holder. It is important to note that details in this field are required to be filled only in case of inter-state supplies. Therefore, if any supplies are made to an unregistered person etc. within the same state then such details
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be an offence as it is merely a disclosure part and no transactions being escaped from tax net. Field No. 4: Details of eligible Input Tax Credit Amount of inward supply not to be furnished. Only the amount of tax paid on inward supplies, whether creditable or not, is required to be furnished here. These should be net off credit and debit notes. Firstly, details of all inward supplies in the month of July 2017 on which vendors have charged GST must be identified. Add: Tax payable under reverse charge for which credit is provisionally available in the month of July 2017 itself. Add: Supplies on which credit is distributed by other unit by way of ISD; Less: Above input tax credit must be proportionately reversed to the extent used for exempt supplies, non-business purpose etc as per the formula prescribed in rule 42, 43 of GST rules; Less: In case of capital goods commonly used for both taxable as well as exempted supply, credit needs to be segregated in 60 months and only the credit at
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d and non-GST inward supplies Apart from the details of inward supplies on which credit is taken, details of inward supplies on which no GST is charged by vendors must also be submitted. Such supplies can be categorized as under: Exempt/ Nil rated inward supplies: In case of supplies on which vendor has not charged any GST as the said supply is exempt or is nil rated. For example purchase of books, milk etc. Non-GST outward supplies: Certain supplies are treated as non-GST supplies meaning thereby they are neither exempt or nil rated or zero rated. This is the most toughest aspect in the entire preparation process of Form GSTR 3B since even the smallest of the inward supply details needs to be submitted by virtue of this requirement. For ex: Electricity, fuel expenses, purchase of groceries/ utilities from a small kirana store etc needs to be identified and disclosed. Further, these inward supplies must be bifurcated into inter-state supplies and intra-state supplies and reported accor
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ount remaining, if any, may be utilised towards the payment of IGST; Input tax credit of SGST shall first be utilised towards payment of SGST and the amount remaining, if any, may be utilised towards payment of IGST; Input tax credit of UTGST shall first be utilised towards payment of UTGST and the amount remaining, if any, may be utilised towards payment of IGST; CGST shall not be utilised towards payment of SGST or UTGST; and SGST or UTGST shall not be utilised towards payment of CGST. Interest, penalty, fee or any other amount payable under this Act or the rules made thereunder shall be paid in cash and not by utilizing Input tax credit. Input cess can be used only against payment of output cess and the same cannot be used for paying tax or interest or penalties etc. Interest and Late Fee: The due date for payment of tax for the month of July 2017 is by August 20, 2017. Therefore, if the tax is not paid within the due date prescribed, then interest needs to be paid calculated @ 18%
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any incorrect payment of taxes have larger consequences in the GST regime. Since, the law is nascent and the interpretations are developing, therefore principles would take its own time to get settled. Until then one has to be more vigilant and take due care to avoid erroneous application of the law and disputes arising thereon. – CA Ravi Kumar Somani CA Nagendra Hegde (Article written on 16th August 2017. For any feedback or queries write to ravikumar@hiregange.com or nagendra@hiregange.com ) – Reply By Mohammed Lakkadsha – The Reply = Dear Expert , In my humble opinion the Applicability of GST on services Provided in Jun-2017 for which bill raised in July-17 ( as same can be raised within 30 days as per Service tax Rules )and payment recd in Jul-17 or latter on will be for Service Tax and not under GST . Pls clarify – Reply By KASTURI SETHI – The Reply = In my view,i if service is not covered under RCM, Service Tax is applicable as per Rule 3 of POTRs. – Articles – Knowledge Sharing
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