05/09/2018
*GST Circular No. 12/GST/SSG/2018 dated 31st August 2018*
Important points to be considered before filing *GSTR-3B/GSTR-1* for the month of
*September 2018* :
*I. Pending Input Tax Credit to be availed before filing GSTR-3B of Sept ’18:*
Section 16 (4) of Central Goods and Services Tax Act, 2017 provides that the Input Tax
Credit (ITC) on the invoices raised during July 2017 to March 2018 can be availed by the
registered person on earliest of the following dates:
i. On or before the due date of furnishing the return for the month of September 2018
i.e. 20-10-2018 (unless extended),
OR
*ii. Before filing of annual return for July 2017 to March 2018.*
The format of annual return has not yet been prescribed and thus cannot be filed.
Therefore, the last date of availing the ITC on invoices pertaining to the period July 2017
to March 2018 shall be the due date of filing of GSTR-3B for September 2018 i.e. 20-10-
2018 (unless extended). Therefore, the company is advised to avail the pending ITC
pertaining to invoices raised in July 2017 to March 2018 by the vendor within the due date
of filing the return of September 2018. Therefore, all clients are advised that the return in
Form GSTR-3B for September 2018 should be filed within the due date i.e 20th October
2018 (for availment of credit on invoices / debit note of 2017-18) to avoid any action of
reversal of credit from the department.
The following activities has to be carried out by the company for each GST registration
before filing the GSTR-3B of September 2018 and avail the pending eligible ITC otherwise
the ITC on the same shall lapse.
*a. Reconciliation of ITC availed in GSTR-3B with the books:* Reconciliation of ITC
availed in books and that availed in GSTR-3B. There may be instances where due to
human/system error, the ITC has not been availed in GSTR-3B. Such invoices are
required to be traced so that the ITC can be availed within the time frame.
*b. Reconciliation of ITC availed in GSTR-3B with ITC available as per GSTR-2A:*
Presently, there is no requirement to file or verify GSTR 2A return. However, there
may be many reasons for difference between credit availed under GSTR-3B & credit
appearing under GSTR-2A. For example:
✔ There may be cases where vendor has sent the invoice which the company has
not received at all. In such cases, the company is required to follow up with the
vendor and get the invoices and then avail ITC within the time prescribed
above.
✔ In many cases, ITC on bank charges have not been taken as invoice may not be
received from Bank. In such cases, the company is required to follow up with the
bank and get the invoices and then avail ITC within the time prescribed above.
✔ There have been instances where GSTIN number was not provided to the
vendors initially resulting in issuance of invoice as B2C. In such cases, the
company must get the invoices amended from the vendor as B2B before availing
the ITC and assure that the vendor rectifies the same in his GSTR-1 not later than
GSTR-1 for the month of September’2018.
✔ There may be instances where the goods have been received in 2017-18 but the
same has not yet been cleared by the quality & inspection department and thus
the purchases have not yet been booked. In such case, the quality & inspection
department must take place immediately so that the ITC can be availed within
the time frame.
A reconciliation between ITC as per GSTR-2A and as per books will reveal such
differences (if any). Hence, such activity may be carried out to avail credit at the time
of filing September 2018 return within the due date.
*c. ITC available on distribution by ISD*: All the recipient units are required to avail
the ISD credit based on the invoices issued by ISD. It is advised that all such ITC
distributed on ISD invoices issued in July 2017 to March 2018, shall be availed on or
before due date of Sept 2018 return.
*d. Debit note issued during 2018-19 by vendor for invoices issued in 2017-18:*
As per section 16 (4) of Central Goods and Services Tax Act, ITC on debit note issued
by vendor during the current year i.e. 2018-19 which is pertaining to invoices raised
in 2017-18 has to be availed before due date of filing of annual return OR before due
date of filing GSTR-3B for the month of September’18, whichever is earlier. Therefore,
the company has to evaluate all the debit notes issued during the period 01-04-2018
to 30-09-2018 pertaining to the original invoices issued during the period 01-07-2017
to 31-03-2018. E.g. ITC on debit note issued by vendor in April’18 against the original
invoice pertaining to March’18 has to be availed on or before due date of Sept 2018
return.
*II. Other important points to be considered before filing GSTR-3B/GSTR-1 of Sept’18:*
a. Rectification of error or omission of invoices: In case of any errors made while
uploading Invoices in GSTR-1, the company can rectify the invoices in GSTR-1 in
subsequent months. However, as per section 37, rectification of such invoices can be
made before filing GSTR-1 for the month of September OR before filing annual
return, whichever is earlier. Similarly, the invoices which have been missed in GSTR-
1 for July’17 to March’18 can be uploaded in GSTR-1 of September 2018. Further
corrections in GSTR-3B should also be done till the return of September 2018. .
b. Credit Notes: The credit notes for the period 01-07-2017 to 31-03-2018 have to be
issued & uploaded in GSTR-1 before filing annual return OR before filing GSTR-1 for
the month of September, whichever is earlier. If such credit notes are not uploaded
on or before filing GSTR-1, then the liability cannot be reduced to that extent.
III. Other important points:
a. Cross-charging: The Head office provides administration/business support services
(Tax/HR/Legal/Finance Team) to other units/branches located in different states or
different registrations i.e. distinct persons which is considered as supply of services
and accordingly GST has to be charged on the same. Therefore, Head office has to cross charge and pay GST on the same (if not done) to all distinct persons at the
earliest.
b. Reverse charge liability paid under normal registration on behalf of ISD unit:
Reverse charge liability cannot be discharged under ISD and therefore the same has
to be paid under the normal registration in the state in which ISD is registered.
Thereafter, an invoice has to be raised on ISD as per rule 54 (1A) for common input
services so that the same can be distributed to distinct persons at the earliest. It is
advisable that the invoice shall be raised on ISD in the month in which ITC is availed
under the normal registration.
