Goods and Services Tax (GST) has been against indirect tax structure reform designed to support and enhance the economic growth of our country. It has replaced multiple indirect taxes, which were existing under the previous tax regime. The tax payers registered under GST have to file returns monthly or quarterly and annually, based on the aggregate turn over of the business, through the?GST portal. The taxpayers are required to provide the details of the sales and purchases of goods and services made along with the tax collected and paid during a particular tax period.
It has been a constant endeavor by the CBIC to improve the user experience in filing?GST?returns and hence significant improvements have been recently made to the GST portal, so let’s have a look at the same:
- Furnishing of information regarding ITC availed, reversal thereof, and ineligible ITC in Table 4 of GSTR-3B
A new format of Table 4 of GSTR-3B is as follows:
The process to be followed by the registered person while filing the above Table:
- Total ITC (eligible as well as ineligible) is being auto-populated from FORM GSTR-2B in different fields of?Table 4A?of FORM GSTR-3B (except for the ineligible ITC on account of the limitation of the period as per section 16(4) of the CGST Act or where the recipient of an intra-State supply is located in a different State / UT than that of POS).
- Registered person will report reversal of ITC, which are?absolute and are not reclaimable, such as on account of?rule 38?(reversal of credit by a banking company or a financial institution),?rule 42?(reversal on input and input services on account of supply of exempted goods or services),?rule 43?(reversal on capital goods on account of supply of exempted goods or services) of the CGST Rules and for reporting?ineligible ITC under section 17(5)?of the CGST Act in?Table 4(B)(1).
- Registered person will report reversal of ITC, which are?not permanent and can be reclaimed in the future?subject to fulfillment of specific conditions, such as on account of?rule 37?of CGST Rules (non-payment of consideration to the supplier within 180 days),?section 16(2)(b)?and?section 16(2)(c)?of the CGST Act in?Table 4(B)(2). Such ITC may be?reclaimed?in?Table 4(A)(5) on fulfillment of necessary conditions. Further, all such reclaimed ITC shall also be shown in?Table 4(D)(1).?Table 4(B)(2)?may also be used by a registered person for reversal of any ITC availed in Table 4(A) in previous tax periods because of some inadvertent mistake.
- Therefore, the net ITC available will be calculated in Table 4(C) which is as per the formula (4A -[4B(1) + 4B(2)]) and the same will be credited to the ECL of the registered person.
- As the details of ineligible ITC under section 17(5) are being provided in Table 4(B), no further details of such ineligible ITC will be required to be provided in Table 4(D)(1) due to change in the format of GSTR-3B.
- ITC not available on account of the limitation of the period as per section 16(4) of the CGST Act or where the recipient of an intra-State supply is located in a different State / UT than that of POS, may be reported by the registered person in Table 4D(2).
This content is meant for information only and should not be considered as an advice or legal opinion, or otherwise.?AKGVG & Associates?does not intend to advertise its services through this.
