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1. Proposed Changes or Disclosures in GST Returns

In order to increase taxpayer convenience, the CBIC has proposed to make certain changes or disclosures in the GST returns which are as below: –

New Table in GSTR 3B to report supplies made under Section 9(5)

A new Table 3.1.1 is being added as per Notification No.14/2022 -Central Tax dated 05th July, 2022 in GSTR-3B where both ECOs and registered persons can report supplies made under Section 9(5).

1. As per Section 9(5) of CGST Act, Electronic Commerce Operator (ECO) is required to pay tax on supply of services such as Passenger Transport Service, Accommodation services, Housekeeping Services & Restaurant Services, if such services are supplied through ECO.

2. An ECO is required to report supplies made u/s 9(5) in Table 3.1.1(i) of GSTR-3B and shall not include such supplies in Table 3.1(a) of GSTR-3B. The applicable tax on such supplies shall be paid by ECO in Table 3.1.1(i) of GSTR-3B in cash only and not by ITC.

3. A registered person who is making supplies of such services as specified u/s 9(5) through an ECO, shall report such supplies in Table 3.1.1(ii) and shall not include such supplies in Table 3.1(a) of GSTR-3B. The registered person is not required to pay tax on such supplies as the ECO is liable to pay tax on such supplies.

4. The Table 3.1.1, in GSTR-3B will be made available on GST Portal from 01st August 2022.

5. Under Table 3.1, in the heading, after the words “liable to reverse charge”, the brackets, words and figures “(other than those covered in 3.1.1)” shall be inserted.

“3.1 Details of Outward supplies and inward supplies liable to reverse charge (other than those covered in 3.1.1)”

2. Reporting of supplies made to unregistered person, composition dealers or UIN Holders

Earlier, taxpayers used to avoid reporting figures in Table 3.2 of GSTR-3B on account that the taxable value of those transactions are being shown under Table 3.1. But now, it is being made mandatory for taxpayers to report the supplies made to composition dealers, unregistered persons or UIN Holders under Table 3.2. This information will also be auto-populated from GSTR-1. As per Circular No.170-02-2022-GST dated 6th July 2022, it has been advised that the registered persons making inter-State supplies: –

1. to the unregistered persons, shall also report the details of such supplies, place of supply-wise, in Table 3.2 of FORM GSTR-3B and Table 7B or Table 5 or Table 9/10 of FORM GSTR-1, as the case may be.

2. to the registered persons paying tax under section 10 of the SGST/CGST Act (composition taxable persons) and to UIN holders, shall also report the details of such supplies, place of supply-wise, in Table 3.2 of FORM GSTR-3B and Table 4A or 4C or 9 of FORM GSTR-1, as the case may be, as mandated by the law.

3. shall update their customer database properly with correct State name and ensure that correct PoS is declared in the tax invoice and in Table 3.2 of FORM GSTR-3B while filing their return, so that tax reaches the Consumption State as per the principles of destination-based taxation system.

3. Implementation of mandatory mentioning of HSN codes in GSTR-1

Vide Notification No. 78/2020-Central Tax dated 15th October 2020, it is mandatory for the taxpayers to report minimum 4 digits or 6 digits of HSN code in Table 12 of GSTR 1 on the basis of their aggregate annual turnover (AATO) in the preceding financial year.

From 1st August, 2022, the taxpayers having ATTO of more than 5 crores would need to report HSN in table 12 of GSTR-1 as per below mentioned scheme.

1. Taxpayers would be required to mandatorily report 6-digit HSN code.

2. Manual user entry would be allowed for entering HSN or description and in case of a wrong HSN reported a warning or alert message will be shown. However, taxpayers will still be able to file GSTR.

3. Taxpayers would be expected to correct HSN where there is an error and a warning message shown.

4. Change in process of furnishing information regarding ITC and its reversal in GSTR 3B

Table 4(A) of the FORM GSTR 3B is getting auto populated from various entries of FORM GSTR 2B. However, most of the taxpayer are availing the same auto-populated ITC without reversal of any ineligible ITC. Accordingly, the Government vide Notification No. 14/2022 – Central Tax dated 05th July 2022 has notified few changes in Table 4 of Form GSTR 3B requiring taxpayers to report information on ITC correctly availed, reversal thereof and declaring ineligible ITC in Table 4 of GSTR 3B. Moreover, CBIC has also advised vide Circular No.170-02-2022-GST dated 6th July 2022 for mandatory disclosure of reversal of ITC as per the certain changes in the GSTR 3B.

Proposed format of Table 4 of GSTR-3B is as follows: –


4. Eligible ITC
A.      ITC Available (whether in full or part)
(1)    Import of goods
(2)    Import of services
(3)    Inward Supplies liable to reverse charge (other than 1 & 2 above)
(4)    Inward supplies from ISD
(5)    All other ITC
B.      ITC Reversed
(1)    As per rules 38, 42 and 43 of CGST Rules and sub-section (5) of section 17
(2)    Others
C.       Net ITC Available (A-B)
D.      Other Details
        (1) ITC reclaimed which was reversed under Table   4(B)(2) in earlier tax period
(2) Ineligible ITC under section 16(4) and ITC restricted due to PoS provisions.

Now, the taxpayer needs to mandatorily disclose the following reversal as per the proposed changes in Table 4 of GSTR 3B: –

  • Total ITC will be auto-populated from GSTR-2B into Form GSTR-3B except for ineligible ITC under section 16(4) of CGST Act,2017 and ineligible ITC where recipient of Inter-state Supply is located at a place other than place of supply. [This ineligible ITC will be reported under Table 4(D)(2)]
  • Reversal of ITC which is not re-claimable such as reversal under Rule 38, 42 and 43 of CGST Rules, 2017 and under section 17(5) of CGST Act, 2017. [ Now, the reversal under section 17(5) of CGST Act, 2017 is not to be made separately under Table 4D instead it is to be shown in Table 4(B)(1)]
  • Registered Person will also report the ITC reversed for now which will be reclaimed on fulfilment of certain conditions like ITC reversed because of non-payment of consideration to supplier within 180 days, can be re-claimed after making such payment. [Reclaimed ITC to be shown under Table 4(A)(5) on fulfilment 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 registered person for reversal of any ITC availed in Table 4(A) in previous tax periods because of some inadvertent mistake.

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