CBIC has vide Notification No 14/2022-Central Tax dated 5th July, 2022 has notified CGST ( Amendment) Rules, 2022 vide which CGST Rules, 2017 have been amended. Amongst the various amendments one of the amendment is relating to Form GSTR-3B which is being discussed in this article:
1. New Table 3.1.1 inserted
A new table 3.1.1 for disclosing details of supplies notified under section 9(5) of the CGST Act, 2017 and corresponding provisions in IGST/UTGST/SGST Acts. It may be noted that Section 9(5) deals with taxability of supply of services, output tax of which shall be paid by e-commerce operator even though ecommerce operator is not the actual supplier. Currently passenger transport services, accomodation services, housekeeping services and restaurent ( cloud kitchen) services are notified under above section.
The new table inserted is as under:
Due to said insertion the heading of Table 3.1 viz ‘Details of outward supplies and inward supplies liable to reverse charge’ is changed to ‘Details of outward supplies and inward supplies liable to reverse charge (other than those covered in 3.1.1.)’
Further due to above insertion following two Instructions have been added in the GSTR-3B form after paragarph (3):
(4) An Electronic Commerce Operator (ECO) shall not include in 3.1(a) above, the supplies on which the ECO is required to pay tax under section 9(5) of the CGST Act, 2017 and shall report such supplies in 3.1.1(i) above.
(5) A registered person making supplies through an Electronic Commerce Operator (ECO) shall not include in 3.1(a) above, the supplies on which the ECO is required to pay tax under section 9(5) of the CGST Act, 2017 and shall report such supplies in 3.1.1(ii) above.
From above it is evident that supplies to be disclosed in newly inserted table 3.1.1 shall not be included in table 3.1 (a) viz outward taxable supplies.
2. Table 3.2 to cover supplies notified u/s 9(5) to URD, Composition suppliers and UIN Holders
The details of inter-State supplies (i.e. place of supply, total taxable value and amount of integrated tax), made to unregistered persons, composition taxable person and UIN holders out of details of supplies notified u/s 9(5) (as shown in table 3.1.1.) will also be disclosed in table 3.2.
3. Modification of Table 4 Eligible Credit
Major changes has been made in disclosures of ITC Reversal, ineleigible ITC and reclaiming of ITC which are stated as under:
Item (B) (1) which earlier used to cover ITC reversed as per Rule 42 and 43 of CGST Rules will now also cover Rule 38 (ITC reversal @50% by Bank/NBFC/ FI) and blocked credit u/s 17(5).
Item (D) which used to have heading of Inelegible Credit is now substituted by “Other Details”. Further sub-item (1) which was ” As per Section 17(5)” is substituted as ” ITC reclaimed which was reversed under Table 4(B)(2) in the earlier tax period”. Also sub-item (2) which was “Others” has been substituted to “Inelegible ITC under section 1694) and ITC restricted due to PoS provisions.
For practical implementation of above changes CLICK HERE
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Frah Saeed is a law graduate specializing in the core field of indirect taxes and is the Co-founder of taxwallah.com. She has authored many publications on GST and is into full-time consultancy on GST to big corporates. She as a part of taxwallah.com heads a team comprising of Chartered Accountants and Advocates and plays a key role in our mission to disseminate GST knowledge to all.
