Office of the:
Commissioner of State Tax,
Maharashtra State, Mumbai
8th Floor, GST Bhavan, Mazgaon, Mumbai-
400 010.
INTERNAL CIRCULAR
(Restricted circular for office use only)
To,
No. CST /JC (HQ-5)/Scrutiny/Issues/File No- /B-1
Internal Circular No. 02A of 2022 Date. 25.02.2022
Sub : Guidelines with respect to legal issues pertaining to return scrutiny for tax periods 2017-18 and 2018-19.
Ref. : (1) Internal Circular 6A of 2021 dated 11-6-2021.
(2) Internal Circular 1A of 2022 dated 17-1-2022.
Background:
The guidelines with respect to technical issues pertaining to return scrutiny have been issued vide Internal Circular referred at Sr. No. 02. However, there are certain legal issues which have arisen in the course of the work of return scrutiny. From an examination of the issues, it is seen that the issues have cropped up due to the bonafide errors committed by the taxpayers in their compliances. Such errors are largely due to lack of understanding of the provisions of law and issues of GSTN system in the initial stage (FY 17-18 and 18-19) of implementation of GST.
Hence, in order to clarify the doubts of field officers, the following guidelines are issued. It must be kept in mind that clarifications given hereunder are case specific and based on facts and circumstances of each case. This circular applies to return scrutiny of tax periods 2017-18 and 2018-19.
| Sr. No.
|
Issue description
|
Clarification
|
| Issues arising from incorrect reporting of GSTR 1 | ||
| In GSTR-1, the taxpayer under scrutiny has mistakenly reported B2B outward supply transactions in the Table 7 as a B2C transactions. Upon request from their recipients, said taxpayer has re-reported such B2C transactions as B2B transactions in later period GSTR-l. However, while re-reporting they have not reduced B to C supply. These mistake led to excess liability in GSTR-1 as compared to GSTR-3B. How to deal this issue?
|
The proper officers may-
|
|
| 2. | Some of the taxpayers while furnishing details of outward supplies had committed typographical errors in reporting details of outward supplies in Table 4, 5, 6, 7 or 11. The figures reported are in excess of actual supply figures. These errors led to excess liability in GSTR-1 as compared to GSTR-3B. How to deal with this issue?
|
The proper officers may-
|
| Issues arising from ITC claim | ||
| 3. | Difference in ITC claim of GSTR-3B and ITC available in GSTR-2A of taxpayer under scrutiny on account of:
(a) Supplier has reported B2B supplies as B2C supplies in GSTR-1 and they could not amend it till expiry of time limit. So, these transactions have not appeared in GSTR-2A of the actual recipients to whom notices served. (b) Few suppliers have reported B2B supplies against GSTIN of some other taxpayer instead of actual recipient. (c) Supplier had missed reporting of 13 to B transactions in his GSTR-1. Supplier had reported B to B transactions taxable under forward charge in Table 4B of his GSTR-1 instead of Table 4A. However, in above scenarios ITC conditions u/s 16 are met. How to deal with this issue? |
The proper officer may
|
| 4. | The proviso to section 16(4) inserted vide RoD dated 31/12/2018 for FY 2017-18. In most of the cases, recipients are referring to strict interpretation and contending that this pre-requisite is applicable to recipients who have claimed ITC (by filing of GSTR-3B) after the specified date (after due date of September, 2018 return till due date of March, 2019 return). How to deal with this issue |
|
| 5. | B2B transactions in GSTR-1, mistakenly reported as transactions liable to tax under RCM i.e., they were reported by the supplier in Table 4B instead of Table 4A. This data entry error is the sole cause of mis-match of liability of recipient taxpayer under scrutiny. How to deal with this issue? |
|
| In some of the cases replies are received that the ineligible ITC, which has been pointed out in ASMT-10 was already reversed by taxpayer in the return of subsequent period. However, the format of GSTR-3B is not so exhaustive and no separate column is provided for such reversal. Hence the amount of ITC reversed for previous period is not legible from the return form itself. How to deal with this issue? |
|
|
These guidelines are clarificatory in nature and be applied as per the facts and circumstances of the cases. These guidelines shall not be used in the interpretation of the provisions of law. The difficulties in the implementation of this circular shall be brought to the notice of this office.
(Rajeev Kumar Mital)
Commissioner o State Tax,
Maharashtra State, Mumbai.
No. CST/JC (HQ-5)/Scrutiny/Issues/File No- /B-1
Mumbai. Date. 25/02/2022
Internal Circular No 02A of 2022.
Copy forwarded for information to-
(1) The Joint Commissioner of State Tax, (MAHAVIKAS) with a request to upload this Internal Circular on MGSTD web-site.
(2) Deputy Secretary, Finance Department, Mantralaya, Mumbai.
(3) Under Secretary, Finance Department, Mantralaya, Mumbai.
(4) Accounts Officer, Sales Tax Revenue Audit, Mumbai and Nagpur.
(Vishakha Borse)
Joint Commissioner of State Tax (HQ-5),
Mumbai.
Download Guidelines for GST return scrutiny for tax periods 2017-18 & 2018-19 PDF
Does this circular for return scrutiny by Commissioner of State Tax, maharashtra will Apply over other states or not?