We apprised you on changes proposed in 42^nd GST Council meeting regarding auto-population of GST liability and Input Tax Credit (‘ITC’) in GSTR-3B.

We wish to inform you that requisite changes have been made on GST Common Portal and will be applicable for GSTR-3B of November 2020. Highlights of key changes are as under:

• GST liability in Table 3.1 and 3.2 (except reverse charge) will be auto-populated basis GSTR-1 of supplier; and

• Details of ITC and inward supplies liable to reverse charge will be auto-populated via Form GSTR-2B. 

Note:    PDF format of GSTR-3B will also be available for download

Salient features

• Auto-populated values are merely to assist taxpayers for filing GSTR-3B. Taxpayers can edit value and will have to ensure correctness of reported values. 

• Portal will highlight variance in ITC in ‘red’ when ITC claim is more than 110 percent or liability disclosed is less than GSTR-1. Taxpayers can file GSTR-3B if variance is justified.

• ITC claimed in GSTR-3B may be higher than 110 percent of values declared in GSTR-3B in following cases: 

– Goods in transit at beginning of month received in current month

– ITC on invoices of previous months received in current month

– 110 percent ITC will be computed based on details available on 12^th of month while supplier may have filed GSTR-1 belatedly

NITYA Comments: While changes made on portal merely provide mechanism to assist taxpayers, the authorities are expected to initiate enquiries in case of variation. Taxpayers need to have proper reconciliation in place before filing GSTR-3B.

Hope you find this an interesting read. Please feel free to share your comments / feedback on the same. 

For instant updates, visit our Twitter handle at https://twitter.com/tax_nitya