Why March GST Return is the Most Crucial One

The GST Returns for the month of March could be the most important returns for you for the financial year 2017-18. March and April being the most hectic months for tax professionals, many of the assesses would think of filing the March GST returns a little late so as to get enough time to assess the liabilities , amend the invoices/debit Notes/ Credit Notes , avail the missing credits and for matching the GSTR-2A. If you are thinking the same then this article is certainly for you.

HOW MUCH DELAY IS POSSIBLE IN FILING GSTR-1 AND GSTR-3B FOR THE MONTH OF MARCH 2019?

On 31^st December 2018, CBIC issued removal of difficulties order 02/2018-Central Tax as per which the registered person shall  be entitled to take the input tax credit after the due date of furnishing the return under section 39 for the month of September, 2018 till the due date of furnishing the return under the said section for the month of March, 2019 in respect of invoices relating to the financial year 2017-18, the details of which have been uploaded by the supplier under sub-section of (1) of section 37 till the  date of furnishing the details under section 37 (1) for the month of March, 2019.

In sub section (3) of Section 37, after the existing proviso, the following proviso shall be inserted, namely:-

“Provided further that the rectification of error or omission in respect of the details furnished under sub-section (1) shall be allowed after furnishing of the return under section 39 for the month of September, 2018 till the due date for furnishing the details under sub-section (1) for the month of March, 2019 or for the quarter January, 2019 to March, 2019.”.

The order clearly states that you need to file the GSTR-3B on or before the due date which is April 20, 2019, otherwise you will not be entitled to take the input tax credit in respect of invoices pertaining to financial year 2017-18. If one files the GSTR-3B after 20^th April then he will not be able to get the input tax credit.

Similarly, one needs to file the GSTR-1 on or before due date of filing it (11^th April, 2019 or 30^th April , 2019 as the case may be) failing of which one would not be able to amend the details in respect of invoices relating to financial year 2017-18 in GSTR-1 on GST Portal from next day onwards.

IS IT MANDATORY THAT THE DETAILS OF INVOICES MUST SHOW IN GSTR-2A FOR AVAILING THE CREDIT?

As per a tweet, the ministry of finance had clarified that furnishing of outward details in FORM GSTR-1 by the corresponding supplier(s) & facility to view the same in FORM GSTR-2A by the recipient is in nature of taxpayer facilitation & does not impact the ability of taxpayer to avail ITC on self-assessment basis.

At the same time, the ministry of finance again tweeted and said that the matching of GSTR-2A and GSTR-3B can be exercised later also.

Mere tweets are not of course above the law but It came as a big relief for taxpayers across the country and many started taking the credit on self-assessment basis. Now, when the removal of difficulties order has been issued to take the credits and amend the invoices and other details, it has put a strict condition of reflection of purchase data in GSTR-2A.

So, if you are availing any input tax credit for financial year 2017-18 on self-assessment basis then the same should also be reflected in GSTR-2A, otherwise get ready with some solid set of proofs for litigation in future.