> Circular No. 170/02/2022-GST
> Furnishing of information regarding inter-State supplies made to unregistered persons, composition taxable persons and UIN holder
Summary
- Earlier it is noticed that registered person are not reporting the details of interstate supplies made to unregistered persons, composition dealer and UIN holder In table 3.2 of FORM GSTR-3B on a notion that same has been already reported in table 3.1 of FORM GSTR-3B. Also it has been noticed that address of unregistered person incorrectly captured by supplier especially those belonging to banking , insurance, finance, stockbroker, telecom etc.
- Now, clarification is issued that every registered person who are making interstate supply to unregistered person, composition dealer and UIN Holder, is required to report the details with POS in table 3.2 of FORM GSTR-3B even though the details of said supply already reported in 3.1 of FORM GSTR-3B. For ease of registered person the details of said supply is being auto-populate from Form GSTR-1.
> Circular No. 170/02/2022-GST
> Furnishing of information regarding ITC availed, reversal thereof and ineligible ITC in Table 4 of GSTR-3B.
| Particulars | Earlier | Now |
| 4A. ITC Available (whether in full of Part). | Total ITC (eligible as well as ineligible) is being auto-populated from GSTR-2B. (Except ineligible ITC due to time barred and POS of intra state supply is different from the recipient state). | Total ITC (eligible as well as ineligible) is being auto-populated from GSTR-2B. (Except ineligible ITC due to time barred and POS of intra state supply is different from the recipient state). |
| 4B.(1) ITC Reversed | Reversal of ITC as per rule 42 &43 of CGST rules. | ITC which are absolute in nature and are not reclaimable (Note:-1) |
| 4B.(2) ITC Reversed | Others ITC | ITC which are not permanent in nature and can be reclaimed in future. (Note:- 2) |
Note1:- ITC which are absolute in nature and not reclaimable are such as rule 38(reversal of credit by banking company), rule 42(reversal of ITC on input and input services on account of exempt supply),rule 43 (reversal of ITC on capital goods on account of exempt supply) and reversal of ineligible ITC under section 17(5).
Note 2:- ITC which are not permanent in nature and can be reclaimable in future are such as rule 37(reversal of credit due to non- payment within 180 days), reversal due to invoice received earlier but goods and service received later on account of section 16(2)(b)&(c).
| Particulars | Earlier | Now |
| 4C. Net ITC Available | 4C=4A-(4B(1)+4B(2)) | 4C=4A-(4B(1)+4B(2)) |
| 4D.(1)
Ineligible ITC |
TC ineligible as per section 17(5) | ITC which was reversed in 4B(2)and now reclaiming the same ,shall also report here. |
| 4D.(2) Ineligible ITC | Ineligible ITC due to time barred and POS of intra state supply is different from the recipient state | Ineligible ITC due to time barred and POS of intra state supply is different from the recipient state |
1. If a registered person issue a tax invoice without supplying goods and services to recipient then he shall be liable for penalty under section 122(1)(ii) i.e amount of tax involved and 10,000 whichever is higher.
No penal action against such person under section 73 and 74.
2. If a registered person availed ITC on the basis of above mentioned transaction i.e without underlying supply of goods and service ,in contravention of section 16(2),then he shall be labile for penal action under section 74 along with 24% interest .
Also if penal action for above fraudulent availment taken against such person under section 74 then no penalty under this act can be imposed including section 122.
3. If a registered person who has claimed ITC on the base of fraud invoice issued by supplier in case 1 and the said registered person further issue a tax invoice without supply of actual goods and service to another person then he shall be liable for penalty under section 122(1)(ii) &(Vii) i.e amount of tax involved and 10000 which ever is higher.
No penal action against such person under section 73 and 74.
1. Proviso after clause (iii)of section 17(5)(b) applicable to entire section 17(5)(b) of CGST Act. i.e if it is obligatory for employer under any law to provide food& beverage, heath services, cosmetic and plastic surgery, leasing, renting or hiring of motor vehicles, membership of club, health and fitness centre, insurance & health insurance ,travel benefit etc as mentioned in section 17(5)(b) to the employees , then ITC is available to the employer.
2. Perquisite provided by employer to employee are not subject to GST as same are provided in terms of the contract between the employer and employee. As per sch. III of CGST act, “services by employee to the employer in the course of or in relation to his employment” will not be considered as supply.
3. Balance of electronic credit ledger can only be used for making payment of output tax on taxable supply made by registered person also it can only be use for making payment of output tax on taxable supply made by RP not for interest, penalty and late fee.
Whereas electronic cash ledger can be used for making payment of any liability under this act including input supply received on which RCM is appliable.
4. Condition of section17(5) are not applicable on ITC claimed for refund of tax paid on deemed exports supplies, because ITC on tax paid allowed only for claiming refund, hence is not ITC in terms of chapter V . Which was clarified under circular 147/03/2021.
Also the said ITC is not to be included in net ITC for computation of refund of unutilised ITC under rule 89(4) & (5).
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