Circular No.ES/54/2022-23 8th July, 2022
To: Members of the Council
Sub: Mandatory furnishing of correct and proper information of inter-State supplies and amount of ineligible/blocked ITC and reversal thereof in return in FORM GSTR-3B and statement in FORM GSTR-1
CBIC vide its Circular No. 170/02/2022-GST dated 6th July 2022 mandates furnishing of correct and proper information of inter-State supplies and amount of ineligible/blocked Input Tax Credit (ITC) and reversal thereof in return in FORM GSTR-3B and statement in FORM GSTR-1.
CBIC has observed that –
- There are still some infirmities in information being furnished by the registered person in relation to inter-State supplies effected to unregistered person, registered person paying tax under section 10 of the CGST Act, 2017 (composition taxable persons) and UIN holders.
- There is lack of clarity on reporting of information about reversal of ITC as well as ineligible ITC in Table 4 of FORM GSTR-3B.
It is desirable that correct reporting of information is done by the registered person in FORM GSTR-3B and FORM GSTR-1 to ensure correct accountal and accurate settlement of funds between the Central and State Govts. Accordingly, in order to ensure uniformity in return filing, CBIC has provided clarification in this regard.
For detailed information, members may kindly refer to Circular No. 170/02/2022-GST.
Members may kindly make a note of the above.