With the completion of the filing of GSTR-3B returns last month, businesses are now preparing in full swing to file their GSTR-1 returns.
The recent decision by the GST Implementation Committee to extend the due dates for filing GSTR-1, GSTR-2 and GSTR-3 for the month of July, offers a much needed relief to the businesses. You will get additional time to prepare accurate returns. The revised dates are as follows.
|July,2017||10th October,2017||31st October,2017||10th November,2017|
*Due Dates for filing above mentioned returns for subsequent periods shall be notified at a later date.
You already know, GSTR-3B is an interim return which is required to be filed instead of regular returns GSTR-1, GSTR-2 and GSTR-3 for the months of July and August, 2017. In addition, the regular returns in GSTR-1, GSTR-2 and GSTR-3 for the mentioned period need to be filed as per the revised specified due dates. To know more on the Form GSTR-3B, please read How to File Form GSTR-3B.
GSTR-3B is a summary level return, in which the consolidated value of tax liability and eligible Input Tax Credit (ITC) have to be declared, whereas in the regular returns (?), you are required to declare invoice-wise and (?) rate-wise details. The thumb rule here is that summary declared in GSTR-3B should match with details furnished in regular returns. This means, the tax paid on the basis of GSTR-3B should match with the tax liability generated in GSTR-3 of July month.
Now, you might wonder, “How can I match GSTR-3B with GSTR-1 and GST-2? How does the GST system match GSTR-3B with GSTR-3?” Let us answer your questions in detail.
How to match GSTR-3B with GSTR-1 and GSTR-2
- All Outward Supplies summary declared in Table 3 of Form GSTR-3B except the Inward Supplies liable for reverse charge should be matched with the invoice-wise details of Outward Supplies declared in Form GSTR-1.
- Similarly, ITC details declared in Table 4 of form GSTR-3B including the tax liability on Inward Supplies liable for reverse charge should be matched with GSTR-2.The details of matching of GSTR-3B with GSTR-1 and GSTR-2 are shown in the table below:
|Details of GSTR-3B||Matched with GSTR-1 or GSTR-2||Remarks|
|Details of Outward Supplies declared in Table 3.1||GSTR-1||The details of Inward Supplies liable for reverse charge declared in Table 3.1 should be matched with GSTR-2.|
|Details of inter-state supplies made to unregistered persons, composition dealers and UIN holders declared in Table 3.2||GSTR-1||This should be matched with the Tables 4, 5, 7 and 8 of Form GSTR-1.|
|Details of eligible Input Tax Credit declared in Table 4 including Inward Supplies liable for reverse charge||GSTR-2||This should be matched with relevant table of GSTR-2.|
|Details of exempt, nil-rated and non-GST Inward Supplies.||GSTR-2||This should be matched with Table 7 of Form GSTR-2.|
How does the GST system match GSTR-3B with GSTR-3?
Based on the Outward Supplies submitted in GSTR-1 and Inward Supplies submitted in GSTR-2, the revised tax liability and eligible ITC gets be auto populated in Part-B of GSTR-3 as shown below.
From the details of GSTR-1 and GSTR-2, system would auto populate the correct figures of tax payable in column 2 of Table 12 of FORM GSTR-3.In column 2 to 7, the tax already paid through the electronic cash ledger and electronic credit ledger while filing GSTR-3B will be auto captured by the system. Ideally, if there is no difference between the details of output tax liability and eligible ITC furnished in GSTR-3B and the details furnished in GSTR-1 and GSTR-2, the amount of tax payable in Part B of GSTR-3 and tax paid in GSTR-3B will be the same. In such a case, you can sign and submit GSTR-3 without any additional payment of tax.
Suppose there are differences in tax payable and tax paid in the after you have filed the above mentioned forms. What will you do to regularize the gap? We will guide you on this in our next blog.
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