Page 74 - Chemexcil NEWS August - September 2017 for web

NOTICE 10

To,
ALL THE MEMBERS OFTHE COUNCIL

EPC/LIC/GSTR_Reconciliation 7th Sept 2017

SUBJECT :-( GSTR) System based reconciliation of information furnished in FORM GSTR-1 and FORM
GSTR-2 with FORM GSTR-3B

Dear Members,

As you are aware, GST Rules require every registered person to furnish details of outward supplies
made in a month in FORM GSTR-1, details of inward supplies received in a month in FORM GSTR-2
and a return in FORM GSTR-3 by the 10th, 15th and 20th of the next month respectively. Since taxpayers
may face certain issues in the initial days after the introduction of GST, the GST Council had extended
the date for filing of FORM GSTR-1 and FORM GSTR-2 for the months of July and August, 2017 and
approved the filing of a simplified return in FORM GSTR-3B for these two months by the notified due
dates after making the due payment of tax.

Since GSTR-3B for July 2017 have been filed, CBEC has now issued Circular No. 7/7/2017-Central Tax
dated September 1, 2017 on reconciliation of information furnished in FORM GSTR-1 and FORM GSTR-2
with FORM GSTR-3B.

Key Provisions as per above-Circular are as follows:

• Correction of erroneous details furnished in FORM GSTR-3B:

In case the registered person intends to amend any details furnished in FORM GSTR- 3B, it may be
done in the FORM GSTR-1 or FORM GSTR-2, as the case may be. For example, while preparing and
furnishing the details in FORM GSTR-1, if the outward supplies have been under reported or excess
reported in FORM GSTR-3B, the same maybe correctly reported in the FORM GSTR-1. Similarly, if
the details of inward supplies or the eligible ITC have been reported less or more than what they
should have been, the same maybe reported correctly in the FORM GSTR-2. This will get reflected
in the revised output tax liability or eligible ITC, as the case may be, of the registered person. The
details furnished in FORM GSTR-1 and FORM GSTR-2 will be auto-populated and reflected in the
return in FORM GSTR-3 for that particular month.

• Additional payment of taxes:

Where Form GSTR-3 reflects additional tax payable in line of Form GSTR-3B, same shall be paid
along with interest starting from August 26 till date of debit in cash / credit ledger, whereas in case
of excess ITC claimed in Form GSTR-3B, same would be added to output tax liability.

• Additional claim of eligible ITC:

In case of reduction in output tax liability, which is not offset by corresponding reduction in eligible
ITC, excess shall be carried forward to next month’s Form GSTR-3 to be offset against output tax
liability.

• Submission of GSTR-3B without payment of taxes:

Where, for some reasons, the registered person has only submitted the return in FORM GSTR-3B
and has not made the payment of taxes by debiting the same from his electronic cash or credit
ledger, the return shall still be subjected to the reconciliation process as detailed above. Return

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