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GST: Suggestions on proposed changes to Form GSTR-3B
GST: Suggestions on proposed changes to Form GSTR-3B

September 13, 2022

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As you may be aware, the GST Council in the recently concluded 47th meeting, approved comprehensive procedural changes In Form GSTR-3B.

In this regard, the GST officials issued a notice requesting for feedback from stakeholders on comprehensive changes in FORM GSTR-3B. The proposed changes ensure that the GSTR1-GSTR2B linkage remains intact and as far as possible, the GSTR-3B should be auto-generated consequent to furnishing details in FORM GSTR-1.

Based on feedback from the industry, we have made a submission to GST officials highlighting the following points:

  1. One of the proposed changes in Form GSTR-3B is to bifurcate the Reverse Charge Mechanism (RCM) liability between import of services and Others. The details of "others" category (i.e., domestic reverse charge liability) is proposed to be auto-populated, basis Form GSTR-1 filed by supplier of services and as appearing in Form GSTR- 2B of the recipient of supplies. As a result, issues may arise on the basis for such auto-populated data. We have requested the government to issue a clarification that auto-populated data would only be an indicative number. Any change in the value of auto-populated number should not be a reason for initiating any enquiry / proceedings by the revenue authorities.
  2. Government should clarify that adjustment of excess credit notes under one head would be allowed to be adjusted against GST liability of another head. The inter-head adjustment of liability can be restricted with the tax type (i.e. IGST/CGST and SGST) under which liability is payable.
  3. There is a need for clarification as to how fields will be auto-populated in the proposed Form GSTR 3B. This would enable ECOs to build a process around filing returns that could ensure correct reflection of data in Form GSTR-3B.
  4. Amendments that have no effect on GST liability or turnover should not be auto-populated from Form GSTR-1. Only revisions that effect GST liability and turnover should be auto populated.
  5. Government should clarify that there would not be any auto-population of interest liability, since interest is payable only when tax availed is utilised for payment of output tax liability as per S. 50 of CGST Act.
  6. The GST provisions provides the flexibility to taxpayer to use IGST credit to set off CGST and SGST liability in any manner and proportion, once the liability under IGST is completely settled. The proposal of "utilisation of ITC" column being non-editable would restrict this benefit. The government should allow auto-population of data in the said table, with an option to edit the same.

Our detailed submission is attached for your reference. For more information, kindly write to tejasvi@nasscom.in


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20220913_NASSCOM_Submission_GSTR3B.pdf

Tejasvi

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