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CA Ravi Kumar Somani
It is seen that industry, trade and professionals have been facing various issues in filing of GST Returns and transitional forms. Therefore, this article is written to provide as a ready reckoner to those involved in filing of GST returns to understand the issues and also solution to resolve the same. For ease of readers, the issues are provided in FAQ form and the same is also segregated in various sub-heads as given in table below.
General Issues faced:
| S. No. | Sub-Head | Issue | Resolution |
| 1 | General issues | Whether returns under GST needs to be filed only within the window of filing allotted or whether the same can also be filed later of prior to that? | No, The returns must be filed within the window allotted. If the return is not filed within the window allotted then the same can be later filed only once the filing window is again enabled for the said return. |
| 2 | General issues | Is it mandatory to file a GST Return even if it is Nil? | Yes, GST returns need to be filed every month even if it is Nil. Unlike service tax law there is no any waiver of late filing fee in case of nil returns in the GST law. |
| 3 | General issues | Whether returns can be filed for a subsequent period if the same is not filed for the previous period? | No, Returns cannot be filed for the subsequent period if the same is not filed for the previous period. |
| 4 | General issues | Can offline utility once downloaded be used for filing of GST returns for various months? | Yes, However GST law is new and the offline portal is getting updated more frequently. Therefore, it is suggested to ensure that returns filing. |
| 5 | General issues | Is submission of details of HSN summary mandatory? | Yes, since it is a part of return in GSTR 1 and GSTR 2, therefore submission of HSN summary is mandatory requirement. However, the return does not match details of total tax values as given in the HSN summary with that in the main part of the return. |
| 6 | General issues | Whether interest be applicable till the date of debit to the respective ledger or only till the date of deposit of cash in Electronic Cash ledger? | Interest shall be applicable till the date of debit to the respective ledger. In other words, interest needs to be paid till the balance deposited in cash ledger is actually off set against the actual liability. |
| 7 | General issues | Whether late filing fee is applicable for each return? | Yes, late filing fee is applicable for each return i.e. separately for GSTR 1, 2, 3 and for GSTR 3B. However, presently the late filing fee has been reduced to Rs.50 per return and Rs.20 per return in case of the Nil Return. |
| 8 | General issues | Amount deposited in electronic cash ledger as CGST/ SGST instead of IGST. Now the liability is that of IGST. Can we transfer this balance in Electronic cash ledger from CGST/ SGST to IGST? | No, we cannot transfer this amount. One option could be to pay the correct taxes and file the return and claim back the taxes while filing GSTR-3. Another option can be to pay the taxes as it is and correct the same while filing the actual GSTR 1, 2 and 3 and simultaneously claim the refund of wrong taxes paid in GSTR 3. Further, one can raise grievance in the GST portal and send mail to GST help desk who can do the appropriate changes at the back end. |
| 9 | General issues | What is the difference between xlsx file and CSV file? | There is no any difference, both are the offline tools to file the GST returns. However, it is seen that using CSV file is a better option in case of large data say more than 500 line items. |
| 10 | General issues | Can we file the returns even if registration is granted in August 2017 or later? | No, Returns cannot be filed in such a case. Returns can be filed only from the period for which Registration is effective. |
| 11 | General issues | In case registration is granted in the month of August 2017, then how to disclose the details of such invoices in respect of July 2017? | Return for the month of July 2017 cannot be filed when registration is granted in August 2017. However, July invoices can be included in the August Return and tax be paid. |
| 12 | General issues | If Cash is deposited under the minor head i.e. Tax/Interest/Fee/ Penalty/Others in the cash ledger then whether the amount deposited can be utilized only for payment of such Tax/Interest/ Fee/Penalty/Others liabilities or it can be utilised otherwise? | Any amount once deposited as tax, then can be utilised for payment of taxes only and the same cannot be utilised for payment of fee etc. Further, if amount is deposited as CGST, then the same can be utilised only for payment of CGST and not payment of SGST or IGST. |
| 13 | General issues | Amount is wrongly deposited as compensation cess instead of in the field of tax. Therefore, assessee is unable to file GSTR 3B. What is the course of action? | In this case, one can send an email to GSTN to make the changes in the back end. Government has recently enabled the revise option, wherein GSTRB submitted but not filed can be revised and such errors can be corrected before filing. Further, there is form PMT 04 which can be submitted to make this correction. Presently, form PMT 04 is not made online, therefore one can submit the same manually. |
| 14 | General issues | Late fee for July & Aug is waived. Therefore, if an assessee has already paid any such late fee then whether it will be again be credited as late fees only? | As per the recent clarification issues, late fee will be credited back as tax so that asseessee can utilise these funds for payment of their tax liability. |
| 15 | General issues | Whether late filing fee will be also calculated for the days when the filing window is disabled by the GSTN? | Yes, late filing fee will be applicable and same will be calculated upto the date of actual filing of the GST returns. |
| 16 | General issues | In case of services, what shall be the unit of measurement to be given in HSN summary? | Ideally, there should not be any unit of measurement in case of services. However, reasonable measurement can be given based on type of service such as each no. of invoice can be one unit of measurement. |
| 17 | General issues | What precautions need to be taken while applying Digital Signature Certificate (DSC)? | 1. DSC should be Class II or Class III, PAN-based DSC
2. The DSC must not be expired 3. The DSC must be registered on the GST Portal 4. EM Signer version 2.6 must be installed on the computer 5. The DSC Dongle must be connected to the computer. |
Issues faced in filing GSTR 1
| 18 | Issues in GSTR 1 | Whether any changes pertaining to earlier return needs to be updated in subsequent GSTR 3B or in actual GSTR 1? | As per governments earlier circular, any aspect not covered in GSTR 3B i.e. missed invoices etc then the same needs to be considered in the final GSTR 1/ 2 and 3. However, since there is no any mechanism for filing of GSTR 2 and 3, therefore one can do the changes in subsequent GSTR 3B. It is expected that government will come up with a detailed clarification in this regard. |
| 19 | Issues in GSTR 1 | In case of supply of goods by SEZ, whether the details of supply of such goods needs to be disclosed in GSTR 1? | No, since the liability to pay is in the hands of the recipient. The recipient needs to file a Bill of entry and remove the goods from SEZ premises. Therefore, the recipient shall declare the details of such goods in its GST return as imports. |
| 20 | Issues in GSTR 1 | Where we need to disclose the details in respect of supply of services by SEZ? | In case of supply of services by SEZ, the same is covered under forward charge and the SEZ shall be collecting and paying GST on the same. Hence, it should be treated as an outward supply for the SEZ and accordingly disclosed in the returns. |
| 21 | Issues in GSTR 1 | Where to disclose the details in respect of supply of goods or services to SEZ? | Supplies amounting to deemed exports must be disclosed in sl no.4 and not under sl no. 6A i.e. exports. |
| 22 | Issues in GSTR 1 | Where to disclose the details in respect of supply of deemed exports? | Supply of goods/ services to SEZ amounts to Zero rated supply and it must be disclosed in sl no.4 and not under sl no. 6A i.e. exports. |
| 23 | Issues in GSTR 1 | How to disclose the details of credit note in case of B2C small supplies? | In case of supplies to consumers are to be reported in a consolidated manner (intra-state supplies to consumer and inter-state supplies of invoice value less than INR 2.5 lakhs), the credit/debit notes are not required to be reported separately. Such supplies have to be reported in a consolidated manner net off the values of credit and debit notes. |
| 24 | Issues in GSTR 1 | What if the GSTIN of customer is incorrect or if the same is not provided. How to upload the GST returns? | Such details can be submitted in B2C for the time being and once the recipient provides the proper GSTIN. The entries for the past entered in B2C can be revered and a contra entry be entered in B2B supplies and accordingly credit can be passed on. |
| 25 | Issues in GSTR 1 | How to enter the details in case where there are multiple tax rates for the same invoice? | In case where there are multiple tax rates for the same invoice, then GSTR 1 shall accept multiple tax rates only when the invoice value is kept same and not splitted to various tax rates. |
| 26 | Issues in GSTR 1 | In case where quantity discount is given by way of a single credit note against multiple invoices. How to disclose the same? | Presently, system is not accepting allowing a single credit note against multiple invoices. Therefore, one has to either issue multiple credit notes and match it with each invoice or as an temporary solution identify any invoice which can cover the entire discount/incentive, and raise the CN in relation to that invoice. Internal communication to be documented for computation of discount/ incentive. |
| 27 | Issues in GSTR 1 | What is the distinction between invoice value and taxable value? | The taxable value shall be the value as per the GST law in accordance with the GST valuation. The ‘Total Invoice Value’ means the invoice value inclusive of taxes. |
| 28 | Issues in GSTR 1 | If invoice and advances received both fall in the same month, then whether such details need to be disclosed under the head of advances or as invoice? | Such details need to be disclosed in invoices and details of advances are not required to be disclosed again. |
| 29 | Issues in GSTR 1 | Where to disclose the details of cross border transaction on which tax is paid as ‘intermediary’? | Although, it is a cross border transaction, still it is liable for GST as the place of supply is in taxable territory. It must be treated as a B2C transaction as the recipient is not having GST No. and accordingly details must be disclosed in the returns. |
| 30 | Issues in GSTR 1 | Upon entering GST No. of SEZ. System does not recognise the recipient as SEZ? | The respective SEZ while registering must not have updated the details properly. Therefore, we need to ask the recipient SEZ to update its GST registration and send a mail to GSTN to enable the flag of SEZ. |
| 31 | Issues in GSTR 1 | Whether all the details submitted in GSTR 1 amendable/ rectified, if wrongly submitted? | No, certain details are non-amendable and the same needs to be properly entered at the first time itself, such as – Aggregate Turnover for Preceding FY / First Quarter (Table 3) – Nil/Exempted /Non GST Outward Supplies (Table 8) – HSN Summary (Table 12) – Documents issued during the tax period (Table 13) |
| 32 | Issues in GSTR 1 | Whether liability to pay tax under RCM needs to be disclosed in GSTR 1 or in GSTR 2? | Liability of tax payment under RCM needs to be disclosed in GSTR 2 and do not use Table 4B of GSTR 1 to fill in Liability under RCM on Inward Supplies. |
| 33 | Issues in GSTR 1 | How to report the transactions through E-commerce operators | All supplies to be reported through “other than E-commerce” tab without E-Comm GSTIN since the provisions relating to TCS have been deferred for now. |
| 34 | Issues in GSTR 1 | Is shipping bill number mandatory while declaring export invoices in GSTR-1? | No, a taxpayer can furnish details of the export invoices in GSTR-1 and file the return without mentioning the shipping bill number and date, if the shipping bill details are not readily available with him. However, refund of tax paid on exports will be processed on the basis on shipping bill no. Therefore, person claiming rebate must enter the details of shipping bill. |
| 35 | Issues in GSTR 1 | Whether purchases from unregistered person, which are subject to reverse charge, for which the recipient issues a tax invoice, is required to be reported? | All the purchases from unregistered person, which are subject to reverse charge, for which the recipients issues a tax invoice are to be reported in GSTR-2 (and not in GSTR-1). Further, if a consolidated invoice is raised then the same must be raised separately for intra – state RCM and inter-state RCM since system will not accept otherwise. |
| 36 | Issues in GSTR 1 | We are unable to view the invoices uploaded and the same is not reflected on the summary tab? | Scroll down to the bottom of the GSTR-1, Details of outward supplies of goods or services page and click the GENERATE GSTR1 SUMMARY button. This will include the auto drafted details pending for action from recipients. Also the invoices you have added will start reflecting in the relevant section of the GSTR-1. |
| 37 | Issues in GSTR 1 | If assessee has opted for composition scheme in middle. Do they need to file GSTR 1,2, 3 or they have to file GSTR 4? | Taxpayers who have opted for composition from beginning will be able to file GSTR-4 on the portal. Those who have opted in for composition later and have to file GSTR-1,2,3 for part period may wait till the facility is enabled on the portal in some time. |
| 38 | Issues in GSTR 1 | In case tax is paid under under wrong head (i.e. CGST/ SGST instead of IGST). How to correct the same? | Any amount if it is lying excess in the cash ledger then by using Table 14 of GSTR 3 – Column 7. Once debit entry is filed the refund will be filed. Once GSTR 3 is filed it will get credited to the bank account given during registration. Further, one can raise grievance in the GST portal and send mail to GST help desk who can do the appropriate changes at the back end. |
| 39 | Issues in GSTR 1 | What are the available modes of preparing GSTR-1? | GSTR-1 can be prepared using the following modes through:
1. Online entry on the GST Portal 2. Uploading of invoice and other GSTR-1 data using Returns Offline Tool 3. Using third party application of Application Software Provider (ASPs) through GST Suvidha Providers (GSPs) |
| 40 | Issues in GSTR 1 | Who is not required to file the GSTR-1? | The following taxpayers are not required to file GSTR-1:
· Taxpayers under the Composition Scheme (Return to be filled by them in GSTR 4) · Non-resident foreign tax payers (Return to be filled by them in GSTR 5) · Online information database and access retrieval service provider (Return to be filled by them in GSTR 5A) · Input Service Distributors (ISD) (Return to be filled by them in GSTR-6) · Tax Deducted at Source (TDS) deductors (Return to be filled by them in GSTR 7) · E-commerce operators deducting TCS (Return to be filled by them in GSTR 8) |
| 41 | Issues in GSTR 1 | Whether DSC is mandatory for filing returns? | DSC is mandatory only in case of all Public & Private Limited Companies, Limited Liability Partnerships (LLPs), and Foreign Limited Liability Partnerships (FLLPs). |
| 42 | Issues in GSTR 1 | When are Credit Notes to be reported in the return? | Credit Notes are to be reported in the return of the month in which they are issued but not later than the return of the September month following the end of the financial year in which such supply was made, or the date of furnishing of the relevant annual return, whichever is earlier. |
| 43 | Issues in GSTR 1 | How is the tax paid on advance payments adjusted against the invoice(s) issued in the subsequent tax period(s)? | The taxpayer has to declare the advance that has to be adjusted in the tax period in which advance is received. Subsequently when invoice is issued, then taxpayer can
adjust the tax liability of the invoice issued of that tax period, in the GSTR-1 of that period. This can be shown in the advance adjustment table of GSTR-1. |
| 44 | Issues in GSTR 1 | Can a registered taxpayer have multiple series of tax invoices? | Yes, a tax payer can have multiple series of tax invoices in a financial year. There is no limit on the number of series of tax invoices that one can have in a financial year. |
| 45 | Issues in GSTR 1 | Up to how many decimal digits do different values need to be declared in GSTR-1? | Values like invoice value, taxable value and tax amounts are to be declared up to 2 decimal digits. The rounding off of the self-declared tax liability to the nearest rupee will be done in GSTR-3. |
| 46 | Issues in GSTR 1 | If a taxpayer is unable to view the invoices, then what should be done? | Scroll down to the bottom of the GSTR-1 – Details of outward supplies of goods or services page and click the GENERATE GSTR1 SUMMARY button. This will include the auto drafted details pending for action from recipients. Also the invoices you have added will start reflecting in the relevant section of the GSTR-1. In case you want to see the summary instantly, after you have added the invoices, you can also generate the summary by clicking the GENERATE GSTR1 SUMMARY button. However, summary can be generated only at interval of 10 minutes. In case you attempt to generate summary again (within 10 minutes of earlier generated summary), you may get an error message on top of the page.
The summary is generated by the GST Portal automatically at an interval of every <30 minutes>. You can also check if any error file has been generated on upload of JSON generated from Offline Tool. If any error file is generated, you can download the error report and rectify the issues using the Offline Tool. |
| 47 | Issues in GSTR 1 | What are different Return application status types? | 1. TO BE FILED : Return due but not filed
2. SUBMITTED BUT NOT FILED: Return Validated but pending filing 3. FILED – VALID: Return Filed 4. FILED – INVALID: Return Filed but tax not paid or short paid |
| 48 | Issues in GSTR 1 | What is the cut-off date for entry of invoices in GSTR-1 in case a normal taxpayer opts for composition scheme? | In cases where a taxpayer opts for composition scheme, GSTR-1 will be available for filing only for the period during which the taxpayer was registered as normal taxpayer. The taxpayer would be able to file GSTR-1 for the said period, even if filed with delay, for the period prior to opting to composition scheme. |
Issues Faced in filing GSTR 2
| 49 | Issues – GSTR 2 | Whether GSTR 2 needs to be filed for the period July 2017 to March 2018? | Presently, there is no clarity as to filing of GSTR 2 for the period July 2017 to March 2018. However, it is important to note that the same is also not suspended. Government has formed a committee of officers who shall look into it and suggest the action in future. Therefore, until the committee gives its report, it can be assumed that the returns need to be filed as the same has not been explicitly suspended. |
| 50 | Issues – GSTR 2 | How to disclose the reversal of credit in respect of inputs and input services? | Details of reversal of credit will not be automatically calculated and the same needs to be manually calculated and updated in GSTR 2. |
| 51 | Issues – GSTR 2 | How to disclose the reversal of credit in respect of Capital Goods? | Details of reversal of credit will not be automatically calculated and the same needs to be manually calculated and updated in GSTR 2. Further, in case of capital goods, if assessee has both taxable and exempt supply, then credit can be initially availed in full and the same needs to be reversed on monthly basis along with interest. |
| 52 | Issues – GSTR 2 | Whether action needs to be taken on every outward supply mentioned in my GSTR 2/2A? | Yes, Action needs to be taken on every outward supply mentioned by the supplier for the purpose of filing Form GSTR-2. The taxpayer can take the action of keeping pending an invoice which has not been received by the recipient in the concerned tax period. The invoices kept pending are rolled over to the next tax period GSTR-2A/2. |
| 53 | Issues – GSTR 2 | For how long one can keep the invoices as pending? | It can be kept as pending upto September of next financial year of filing of Annual return, whichever is earlier? |
| 54 | Issues – GSTR 2 | Whether invoice need to be accepted one by one or whether the same can be accepted at once in bulk? | Invoice-wise approval of inward supplies in GSTR-2 is a time-consuming process. Currently, there is no any alternate mechanism provided. However, all invoices of one vendor can be selected and accepted together. |
| 55 | Issues – GSTR 2 | What happens to an invoice if we reject it in my Form GSTR-2? Does it flow to the GSTR-1A of the supplier? | The rejected invoices are auto-populated to the related supplier and will be available to him for acceptance of Rejection / amendment in his GSTR-1A/GSTR-1/5. |
| 56 | Issues – GSTR 2 | Can a previously accepted invoice received from a supplier be modified or rejected after filing Form GSTR-2? | No, it is not possible to modify or reject (delete) an invoice once it is accepted and filed in Form GSTR-2. As per the formats given in Rules, Amendments can be made in the following month’s return in Table – 6A. Online mechanism of the same should be available from Aug’17. |
| 57 | Issues – GSTR 2 | If any invoice is accidently rejected, then what is the recourse action to accept the invoice now? | As a recipient, a request must be made to the supplier to either accept the rejection or amend the invoices rejected. In case of acceptance of rejection, the invoice can be added by supplier as a new invoice or by the recipient as missing invoice. In case of amendment of invoices, it will be populated to the recipient as modified invoices to accept/ reject the amendment. |
| 58 | Issues – GSTR 2 | Can input tax credit claimed in my form GSTR-2 even if supplier has not filed its Form GSTR-1? | Yes, input tax credit can be claimed in form GSTR-2 to discharge the liabilities. However, it is important to note that in the event of any reversal of ITC in future due to mismatch resulting from the fact that return is not filed or tax is not paid by the supplier, interest will be levied on the excess ITC claimed by a receiver taxpayer from the date of filing of GSTR-3 to the day the receiver taxpayer discharges the excess liability along with interest. |
| 59 | Issues – GSTR 2 | Can the status be changed from modify, accept, reject any number of times till submission? | Yes, until the return is submitted the status of the invoice can be changed from modify, accept, reject any number of times. However, once the invoice has been modified and if we wish to revert to original details, then it needs to first Reject the modified invoice. Once the status is changed to rejected with original details then the same can be later accepted. |
| 60 | Issues – GSTR 2 | Can we file GSTR 2 before filing of GSTR 1? | Yes, GSTR 2 can be filed before filing of GSTR 1. In such a scenario, the details declared in GSTR-2 gets auto populated to GSTR-1 and the supplier is expected to take action. (Accept/Reject/Pending for action) on such details before filing of his GSTR-1. |
| 61 | Issues – GSTR 2 | How the calculation of reversal of ITC be done if there is no any turnover in the current tax period. | In such a case, reversal needs to be calculated based on the turnover reported in the previous tax period. |
| 62 | Issues – GSTR 2 | What are the different matching differences noted in GSTR 2 reconciliation with books of accounts? | 1. Records Fully Matched & but in a different Tax Period (Pending) 2. Records in Books of Accounts but NOT in GSTR 2A (Missing) 3. Records in GSTR 2A, but NOT in Books of Accounts (Additional / Reject) 4. Partly Matched and there could be difference in Invoice Date, Invoice Number, Taxable Value, Tax Amount, Place of Supply. |
| 63 | Issues – GSTR 2 | In case assessee is not eligible to avail the input tax credit, then whether the action as ‘rejected’ must be taken? | No, the action of ‘rejection’ must be taken only in a scenario where the invoice does not belong to the assessee. If it is a valid purchase, then such invoice must be initially accepted and later the same must be flagged as ‘ineligible’. |
| 64 | Issues – GSTR 2 | What if credit is deemed ineligible because supplier has entered wrong PoS and invoice is having a location of supplier and place of supply in a different state, as it is a credit of CGST/ SGST of another state. How one can avail this credit? | Such invoice must be rejected and add the same invoice as missing invoice with correct POS. |
| 65 | Issues – GSTR 2 | Registration for GST is taken on July 25, 2017. However, invoice pertains to the date July 13, 2017. Whether credit in respect of such pre-registration dated invoice be taken? | No, Such credit will not be available. Although, law allows the pre-registration credit if registration is done within 30 days but the system is configured in a way that the credit is not being made available. However, we can ask supplier to post such details in B2C and reverse the same by way of a credit note and issue a new invoice dated registration period. Such new invoice details can be entered in B2B by the supplier with our valid GST No. |
| 66 | Issues – GSTR 2 | Supplier has registered in the month of August 2017 and issued invoice in respect of July 2017 in the month of august 2017. Can recipient claim this credit in July or does he mandatorily claim only in august as supplier will be filing the return in august? | Since, supplier cannot file the July 2017 return and it can be filed only for the month of august, therefore credit will be available to the recipient only in the month of august. |
Issues faced in filing GSTR 3 and 3B
| 67 | Issues in GSTR 3 | In case tax is paid under under wrong head (i.e. CGST/ SGST instead of IGST). How to correct the same? | Use Table 14 of GSTR 3 – Column 7 – Debit Entry No’s to claim refund of it. Once GSTR 3 is filed it will get credited to the bank account given during registration. Further, one can raise grievance in the GST portal and send mail to GST help desk who can do the appropriate changes at the back end. |
| 68 | Issues in GSTR 3B | Do we need to disclose the details of purchases from unregistered dealers as exempt inward supplies? | Yes, details of URD purchases needs to be disclosed in the exempt inward supplies tab as the same is exempted by way of an exemption notification. |
| 69 | Issues in GSTR 3B | While filing GSTR 3B, assessee has missed to include any details or have entered the details wrongly. For ex: Non submission of details of certain invoices Non inclusion of Debit Notes (DNs) & Credit Notes (CNs) Same invoices/DNs/CNs considered more than once Treating Exports as Nil rated instead of Zero rated. |
As per governments earlier circular, any aspect not covered in GSTR 3B i.e. missed invoices etc and then the same needs to be be considered in the final GSTR 1/ 2 and 3. However, since there is no any mechanism for filing of GSTR 2 and 3, therefore one can do the changes in subsequent GSTR 3B. It is expected that government will come up with a detailed clarification in this regard. |
| 70 | Issues in GSTR 3B | Is there any order of utilisation in case where CGST and SGST Credit is available and same is to be utilised for the payment of IGST liability? | No, there is no such utilisation sequence given in law in this regard. However, design of portal is not in accordance with the law. Writ petition has been filed in this regard and interim relief is granted to the assessee. |
| 71 | Issues in GSTR 3B | Does GSTR 3B automatically applies the set-off mechanism as per law or do we need to manually apply the set-off sequence as per the law? | System applies the set-off mechanism automatically and allows off-set only in the manner prescribed in the law. However, if funds are deposited as wrong tax then fund to such extent gets blocked and additional funds needs to be deposited as correct tax to ensure off-set and filing of returns thereon. |
| 72 | Issues in GSTR 3B | GSTR 3B is wrongly filled and the same is submitted for the month of July 2017 but not filed. What is the recourse available? | The option is given i.e. reset the submitted returns to those who has submitted the return but could not be filed for the month of July 2017. Further, government has recently also come up with the option to edit the submitted returns. |
| 73 | Issues in GSTR 3B | Inability to file GSTR 3B if TRAN 1 is submitted but not filed? | This is the peculiar problem being faced wherein if the TRAN 1 is submitted but not filed then tax payers were not able to file the GSTR 3B unless the TRAN 1 is filed. |
| 74 | Issues in GSTR 3B | Will there be any invoice matching in GSTR-3B? | No, all the details in GSTR-3B will be self declared in summary manner and the taxes will be paid based on the table 6 of GSTR-3B (refer to the Rules as available on the GST Council or CBEC website, applicable for GSTR-3B Form). |
| 75 | Issues in GSTR 3B | Whether we need to give the details of inward taxable supplies? | No, we are not required to enter all details of inward taxable supply in GSTR 3B. Only details of Eligible and Ineligible ITC need to be declared in table 4. |
Issues faced in filing TRAN Forms
| 76 | Issues – TRAN Form | Can bulk data for filing of Form TRAN 1 be uploaded through any offline utility? | The offline utility upload to enter the bulk data in form TRAN 1 is available only in case of submission of details of statutory forms received. However, recently GST portal has also enabled the bulk data submission through csv file for the following functionalities i.e. Capital goods credit, job work challans and details of goods/ services in transit. However, offline data filing is not available for availing invoice wise credit u/s 142(11)(c). |
| 77 | Issues – TRAN Form | Whether form TRAN 1 filed can be revised? | Yes, the same can be revised and refiled upto Nov 30, 2017. |
| 78 | Issues – TRAN Form | In serial No. 11 while taking credit u/s 142(11)(c), system does not take invoice date for the period later than one year. How to submit the said information? | This is a flaw in the design of portal. The restriction is placed although there is no any such restriction in the law. In case the invoice/ document date is prior to 1 year (this is general restriction provided for Credit on Stock), we may update the information under the field July 1, 2016 and submit the same. A letter intimating the same can be submitted to the department. |
| 79 | Issues – TRAN Form | Invoice no. and date is required to be submitted in case of claiming credit u/s 142(11)(c). However, builders never issued any invoices. In such scenario, what details must be submitted to avail credit u/s 142(11)(c)? | Demand letter number, if any can be considered as invoice and accordingly such details can be submitted. If no number is assigned to a demand letter, then a unique number can be now assigned for each demand letter and accordingly the details can be submitted. |
| 80 | Issues – TRAN Form | In serial no. 7(c), while availing VAT credit on stocks, what details need to be entered in the number field? Does that mean invoice no? | No, it is not invoice number as stock details are not required to be given invoice wise. It can be merely the serial no. and not invoice number. Stock details need to be submitted Description-wise. |
| 81 | Issues – TRAN Form | Do we need to mandatorily submit the details of all pending statutory forms? | No, details of pending statutory forms need to be submitted only in those cases where after adjusting the pending forms, the VAT credit is still carried forward. However, if the position is that of payable after adjusting the balance credit then the details of statutory forms received is not required to be submitted. If details of all pending statutory forms is entered even if no carry forward of credit is there, then the credit would be negative and display as tax payable in electronic liability ledger. |
| 82 | Issues – TRAN Form | GSTR 3B is wrongly filled and the same is submitted for the month of July 2017 but not filed. What is the recourse available? | The option is given i.e. reset the submit to all the assesses who has submitted the return but could not be filed for the month of July 2017. |
| 83 | Issues – TRAN Form | In case of centralised registration, what shall be the calculation basis for computing and transferring of ITC to other locations? | As per section 140(8), the same would be prescribed but as of date nothing has been prescribed in this regard. Therefore, since no mechanism is prescribed in law, distribution can be on reasonable basis. |
| 84 | Issues – TRAN Form | Transfer of credit through centralised registration number asks for invoice/ document no. and date. What details need to be entered since no invoice is issued in this regard? | This is not a distribution by virtue of ISD and therefore there is no requirement to raise invoice in first place in such cases. However, since it is a mandatory field to be entered, one can create a manual invoice / document for such transfer and submit the details. |
| 85 | Issues – TRAN Form | In case of TRAN 1, certain invoice does not get processed and an error message as “Invoices processed with error”. How to tackle this error. | The form should not be submitted till such error is rectified & remark of processed invoices is displayed. This error is mainly due to non-submission of the earlier registration number (such as CE/ST/VAT) from where the credits are transferred. This error can be rectified by amending the non-core fields to that extent and updating the earlier existing registration numbers. Once updated, this error should not be displayed. |
| 86 | Issues – TRAN Form | Whether credit in respect of RCM paid after June 30, 2017 can be disclosed in form TRAN 1 and transferred? | If return for the earlier law is not filed then such credit must be disclosed in the earlier law returns. However, if the returns under earlier law is already filed then the date for revising the return is also lapsed. The assessee has the option to claim the credit in Trans-1. Dept may raise a query on this therefore another option would be to apply for refund under earlier law. |
| 87 | Issues – TRAN Form | In case where credit reversed under earlier law due to payment not made within 3 months. Whether such credit can be taken in TRAN forms? | No, such credit cannot be taken in TRAN 1 form as no specific field/ functionality is provided for the same. One has to avail such credit directly in the GSTR 2 in the GST regime. |
| 88 | Issues – TRAN Form | Whether credit in respect of Capital goods in transit can be availed in Form TRAN 1? | The same can be availed under the tile for Capital goods u/s 140(2). It is suggested that the same is also intimated to the department. |
| 89 | Issues – TRAN Form | Whether credit of stocks can be availed based on the value of semi-finished goods/ finished goods? | No, Credit not allowed on the value of semi-finished goods/ finished goods. It is merely available on the inputs portion involved in such value. Credit not available on conversion charges. |
| 90 | Issues – TRAN Form | If the product is unconditionally exempt from excise or nil rated in excise then whether benefit of deemed credit scheme is available for traders? | No, in such a case a trader cannot claim the benefit of standard credit @ 40%/ 60%. However, benefit can be availed even if product covered under concessional rate of excise duty – 1%/ 2%/ 6%. |
| 91 | Issues – TRAN Form | How to avail the balance of advance service tax paid, PLA balance, security deposit etc? | The same cannot be availed by virtue of TRAN form. Refund needs to be applied for the same. |
| 92 | Issues – TRAN Form | Will Electronic Credit Ledger get updated based on information filled in my Form GST TRAN – 3? | No, ledgers will not be updated with ITC based on Form GST TRAN – 3 filed. It may be updated post-verification process. |
| 93 | Issues – TRAN Form | Credit is not appearing in electronic credit ledger even after filing of Form TRAN 1? | Assessee has successfully filed Trans-1 but the ITC is not appearing in the electronic credit ledger. The same can be resolved by following up with GST help desk to make updation at the back end and sorted. |
| 94 | Issues – TRAN Form | In case of same C-form having different rates i.e. 5%, 13.5 etc. then system is not accepting and throwing the error as ‘different rate not accepted’. | In this scenario, one can prefix ‘zero’ to the c form and submit in which case system should accept the same. |
| 95 | Issues – TRAN Form | In TRAN 2 credit can be availed based on the stock supplied. However, if such stock supplied is retuned back, whether standard credit availed also needs to be reversed? | Presently, no such obligation is placed in law to reverse the credit in case the stock supplied is returned back. |
| 96 | Issues – TRAN Form | Whether Transitional credit in respect of stocks can be availed for the stocks beyond one year? | No, as per the condition prescribed in the said section, the credit is not available. However, a writ petition challenging such claim has been filed in the Delhi High court which is accepted for hearing, interim order is not passed yet. |
| 97 | Issues – TRAN Form | Whether traders can avail credit more than 40%/ 60%? | No, as per the condition prescribed in the said section, the additional credit is not available. However, a writ petition challenging such claim has been filed in the High court which is accepted for hearing. However, the interim order is not passed yet. |
| 98 | Issues – TRAN Form | Do we need to attach any document along with transition Form GST TRAN – 1? | There is no requirement for uploading any documents as an attachment along with transition Form GST TRAN – 1. Wherever details are beyond a limit the same will be uploaded to the portal through an Offline Utility tool. |
| 99 | Issues – TRAN Form | Why do we need to file Transition Form GST TRAN – 3? | Every registered person who was registered under Central Excise Act’ 1944 and has issued Credit Transfer Document (CTD) and every registered person who is making use of ‘Credit Transfer Document’ to avail transitional credit is required to file ‘Form GST TRAN – 3’ within 60 days of the appointed date. |
| 100 | Issues – TRAN Form | Can we modify the details once submitted in the Form GST TRAN – 3? | No, Once the details are submitted in Form GST TRAN – 3, the details cannot be modified. |
CA Ravi Kumar Somani
(Article was written on 22.11.2017. For any feedback or queries please write to [email protected]
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Sir
I have prepared SEZ invoice with IGST when i submitted GSTR 1 these invoice are not uploading how to submit these sez sales.
GSTR 1 returns filed in Feb2018 because HSN summary is not mentioned.What is Solution ?.
what is change to reopen window to modify trans-1 related credit
Dear sir one input entry missing in sap month already submitt gtr3b. How testify missing entry pls explain
Sir,
can we file Tran-1 for Construction Business.
If yes, can we claim both VAT and Excise duty paid on the purchases.
very useful in GST regime
Sir, please explain issue no:68, if i purchased for unregistered dealer details mention in GSTR-3B at excempt column. In ca club app mr.P.M.RAJA sir told not necessory to mention in 3b.
Very nice article for all peoples who are dealing with GST returns..
Very useful, Knowledgeable & Important information..
But still the date my Tran 1 shows Msg. while submission ” Processed With Error”
How to resolve the same….
Kindly help me
[email protected]
Dear CA Ravi,
I am a CA retired from service and started practice since March 2016.
I have been appointed as Examiner by ICAI for which I was asked to register under GST law. Accordingly I got the GST no. and furnished to ICAI on 15th October 2017. I am not having any taxable services income at present. Subsequently the ICAI examination committee informed that there is no need of GST no. for acting as Examiner as services fees outside the state upto Rs 20 lakh is exempted.
In this situation, I do not need the GST registration as my monthly returns will be Nil. Please advise me on How to cancell the Registration?
Best Regards
CA M. Rajamani
M.No. 024424
Very useful . Reckoner
A very good attempt by CA.Ravi Kumar Somani. Congratulations
Dear Sir,
we have deposited Service Tax under reverse charge for the month of June 2017 on 06.07.2017. please advise where to claim the same in Tran 1. The same was not shown in the service tax return for the period ending June 2017.
1. How to utilize Credit of IGST/CGST/SGST of Capital Goods Purchased. In One time or in Installments & if so for how many years?.
2. Guide me about Job Work and alos how to take its Credit of GST?
KINDLY ELABORATE ON GST1, GST2 GST3 AND GST3B ONCE AGAIN I HAVE SOME ISSUES ON THAT
Regarding Gst Tran-1 form.
The said form can be filed and revised upto 31-12-17
The notification for it has also been issued
Ravi
Really your compilation is valauable & very helpful for all and sundries. Keep it up. Thanks.
Dear Sir
I would like to know that while making payment of IGST wrongly I have made payment in CGST
Can it be adjusted against IGST and if NO what are the options available with me
Nice Article,, thank you sir
It is very informative and useful
DEAR RAVI,
COMMENDABLE TASK AND VERY USEFUL TO TAX PAYERS IN CURRENT SCENARIO