Under GST regime, separate returns namely GSTR-1 & GSTR -2 respectively were designed for reporting of sale and purchase details. But due to teething problems under GST law, GSTR -2 did not materialised since its inception. Also,initially GST law makers had plan to introduce GSTR-3 which obviously could not be possible in the absence of GSTR-2.
Later, GSTR-3B was introduced by government, for monthly payment of tax. Simply, GSTR-3B requires a console level details of sale & ITC, on self- declaration basis.
GSTR-3B is monthly tax payment return for every class of registered person, on the other hand GSTR-1 filling is based on criteria of turnover. But it is deemed that outward supply mentioned in GSTR-3B & GSTR-1 shall be matched.
Along with other instructions, registered supplier is required to mention the details of inter -state supplies made to unregistered persons, composition taxable persons and UIN holders in Table 3.2 of GSTR-3B.Further, the details of all inter-state supplies made to unregistered persons where the invoice value is up to Rs 2.5 lakhs (rate-wise) are required to be reported in Table 7B of FORM GSTR-1.
Government observed that several registered persons have not reported the details of inter-state supplies made to unregistered persons in Table 3.2 of GSTR-3B. However, the said details have been mentioned in Table 7B of FORM GSTR-1.
In order to ensure uniformity in the implementation of the provisions of law, CBIC has issued new circular No. 89/08/2019-GST dated 18.02.2019, in which it is stated that apportionment of IGST collected on inter–state supplies made to unregistered persons in the State where such supply takes place is based on the information reported in Table 3.2 of FORM GSTR-3B by the registered person.
In other words, it is instructed that the registered persons making inter-state supplies to unregistered persons shall report the details of such supplies along with the place of supply in Table 3.2 of FORM GSTR-3B and Table 7B of FORM GSTR–1 as mandated by the law. Contravention of any of the provisions of the Act or the rules made there under attracts penal action under the provisions of section 125 of the CGST Act.
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CA Tarun Kapoor
AKGVG & Associates