Practical Way GSTR-1 and GSTR-3B FAQ Answer

Practical Way GSTR-1 and GSTR-3B FAQ Answer in One Article

The seller has to show his bills in GSTR-1. And the buyer will claim ITC in GSTR-3B. If the buyer does not have the GST number, then he will not be claiming ITC like a customer. All normal and casual registered taxpayers making outward supplies such as Goods and Services or both are required to file GSTR-1. Normal and casual registered taxpayers such as Manufacture, Traders, and services but other than Composition Taxpayers, Input Service Distributors. GSTR-1 given has two facilities for filling of GSTR-1. First is monthly return and second is IFF Facility I,e. called an invoice furnishing facility. If the turnover is 5 Crore in the preceding financial year, then have to do a monthly filing selection. If the turnover in the last financial year is below 5 crores, then can take the IFF facility but if want to take monthly then can also take monthly.

Monthly Return Vs IFF invoice furnishing facility (Quarterly Return)

In a monthly return, compulsory file every month before the due date i,e 11^th, and after can file but the buyer claim ITC in the next month, not this month, and will be paid tax liability before the 20^th. GSTR-3B has to be filed every month in the monthly return Before the due date 20^th. In a quarterly IFF return, 1^st month’s due date is the 13^th. Second-month due date is the 13^th otherwise if not filed M1 and M2 before the due date then the GSTR-1 filling option is blocked .and Quarter month M3’s due date is the 13^th but has to be filed after the 13^th, but the buyer does claim ITC in the next month, not this month because seller filling after due date 13^th.

 

All tabs are available in the monthly return like B2B, B2C, Export Invoice, Nil Rated, Credit and Debit Note, Tax Liability, Advanced Adjustment, Hsn Code, Document Tab, and All Amend Related Tab. But in IFF Quarterly GSTR-1 All Tab Available in only 3^rd Month like April-Jun if filed in Jun Month then all tabs are available but in 1^st and 2^nd Month, only 4 tabs are available like B2B Invoices, Credit/ Debit Notes (Registered), Amended B2B Invoices, Amended Credit/ Debit Notes (Registered).

GSTR-1 Vs GSTR-3B Vs GSTR-2A Vs GSTR-2B

The bill shown in GSTR-1 is visible in GSTR-2A and GSTR-2B. That is, if the seller shows the bill in GSTR-1, then the buyer will see the bill in GSTR-2A and in GSTR-2B. if the seller shows the bill in GSTR-1, then the seller will have to fill and pay the tax liability by showing it in GSTR-3B, or else he will adjust from the purchase, etc. The major difference between GSTR-2A and GSTR-2B is that GSTR-2B also shows the bills of the past months. This means the seller has shown the bills in GSTR-1 for the past months, then those bills are visible in GSTR-2B but will not be visible in GSTR-2A.

Due Dates of GSTR-1 and GSTR-3B

 

GSTR-1 monthly due date is the 11^TH. If filing for the month of April, then the due date will be 11th May. Can do even after the 11th date, the buyer can see it in GSTR-2A and GSTR-2B but will not be able to claim. Otherwise claim in next month. If the seller’s bill shows the will before the 11th, then the buyer will claim it in the current month.

GSTR-3B monthly due date is the 20^TH. If filing for the month of April, then the due date will be 20th May. If GSTR-3B is not filled before the due date, then interest and the late fee will have to be paid.

 

GSTR-1 Quarterly IFF due date is the 13^TH. If filing for the month of July, then the due date will be 13th August. If do not file before 13th August, then the portal of the GSTR-1 option will be blocked. Then have to file an August or September bill. If the file is for a quarter month, then there is no block after the 13th GSTR-1 option. Such as If you file in June, Sep, Dec, and March, then the GSTR-1 option will not block even after the 13th.

GSTR-3B Quarterly due date is the 22^nd of the Quarter Month. If filing for the month of July, August, and September then the due date will be 22nd October. 3 monthly summary has to be merged. If GSTR-3B Quarterly is not filled before the due date, then interest and the late fee will have to be paid.

GSTR-1 and GSTR-3B Late Fees and Interest

 
No Interest & Late Fee in GSTR-1. But late fee and interest on late filing of GSTR-3B. Interest is applicable when the return file is late, due to excess claim input tax credit, paying less tax liability. A late fee is applicable for delay in filing the GSTR-3B return.

How Much Late Fees Applicable for Taxpayers

If nil return is filed, no details like sales and purchases then 20 Rs per day. CGST-10RS, SGST-10RS. Per month Rs.500 cgst-250rs, sgst-250rs. one note the late fee does not come in IGST.

For example: if 3 months are not filled returns such as April, May, and Jun, months are not filed and no sales purchase is detailed then calculate late fees 1500rs. 500rs per month and cgst-750rs and sgst-750rs.
 
If no nil return is filed, details like sales and purchases are available then Per month Rs.2000 cgst-1000rs, sgst-1000rs.no fixed amount per day average is 67rs. The previous financial year’s annual turnover is Rs. Less than 1.5 crores. one note the late fee does not come in IGST.

If no nil return is filed, details like sales and purchases are available. And the previous financial year’s annual turnover is Rs. 1.5 crores to 5 crores. then Per month Rs.5000 cgst-2500rs, sgst-2500rs.no fixed amount per day average is 167rs. one note the late fee does not come in IGST.

If no nil return is filed, details like sales and purchases are available and the previous financial year’s annual turnover is Rs. Above 5 crores. then Per month Rs.10000 cgst-5000rs, sgst-5000rs.no fixed amount per day average is 334. one note the late fee does not come in IGST.

How Much Interest Applicable for Taxpayers

Interest is charged on tax liability at 18% with a number of days late. If tax liability is 100000rs and 15 days late then interest will be calculated 100000*18/100*15/365 or 100000*18%*15/365 i, e.  739.72rs.

                       

                      

Note:

The current month’s interest and the late fee will be calculated in the next month.

If last month's bill is shown in GSTR-1, then interest is to be paid in GSTR-3B.

Many taxpayers file GSTR-1 along with the bill and when the tax is due, they do not pay the tax because the bill money is not received from the buyer. And that's why they zero filed. So will have to pay 18%*30/365 of the tax due in the next month.

If the previous month's bill is shown in GSTR-1, then in GSTR-3B tax liability breakup is an as applicable option, have to show how much tax is for the previous month. If classified here, the interest will be automatically calculated in the next month.

Amendments In GSTR-1 and GSTR-3B  

Amendment i.e. making changes in the bill. B2B Invoice, B2C Large Invoices, Export Invoice, Credit and Debit Note Register and Unregistered, B2C Others, Advanced Received, Adjustment of Advanced all this can be amended. If want to amend a bill, then the time remains 1 year. That Means cannot amend the bill of 1 year ago. When the bill wants to be amended, it will have to be amended in the next month. That is, if a taxpayer has filled out GSTR-1 in April, then the amendment will be done in the next month, the amendment cannot be done in the month of April. 

Party GST number, invoice number, date, rate of tax, and value can also be changed in the amendment. If want to amend the bill, go to GSTR-1, go to Amend record detailed, select the financial year, and put the invoice number for B2B Invoice otherwise if b2c then only select financial year and select state.

GSTR-1

B2B AMEND

B2C AMEND

Note:

Many taxpayers show bills in B2C due to the closure of the party's GST number or non-receipt of the party's GST number. And when the GST number comes. This is wrong Because B2B cannot be amended with B2C. So in this case B2C has to pass a credit note and a new B2B bill has to be passed. because b2c and b2b bill amounts cannot be zero in the amended bill. 

Que: Is it mandatory that after getting GST No one has to get registered in the post office too after opening a current account?  

Ans: For the opening of the current account in the firm name GST Number is mandatory.

 

Que: Can a private builder maintenance slip be used in GST registration?

Ans: Yes

 

Que: Is GST Number compulsory for availing of a loan?

Ans: No

 

Que: Who pays GST on an under-construction building an auction by the bank?

Ans: Successful builder

 

Que: Is GST applicable on the arbitration award to the contractor in the GST regime?

Ans: Yes, 18% GST on RCM Basis

 

Que: What is the rate of GST for homemade pickles?

Ans: 12%

 

Que: GST Query of 9c As per financials audited turnover say for example Rs 100 And for turnover of a branch whose 9c is filing Rs 20 only. Turnover belongs to a non-GST item Liquor. Where to show these amounts in 9C

Ans: In the taxable turnover table non-GST, exempt goods ll come as a balancing figure

 

Que: I am a transporter. The consignee in his invoice mentioned the wrong district. Now in transit, the roving squad officer is asking to pay a penalty for the same. As this is a clerical mistake how do I convince him to not charge any penalty Kindly Guide me?

Ans: If the e-way bill is generated by the consignee then the consignee will take care of the penalty Also, check and compare the validity of the e-way bill for both the right and wrong district there is a rule that if the e-way bill expiry date is not different for wrong and right pin codes then a small penalty will be charged only, not a full penalty.

 

Que: Is it mandatory to take GST for the export of services if turnover exceeded 20 lacs?

Ans: In case of interstate supply u take compulsory registration with any limits.

 

Que: There is one GST number in Delhi Two types of business nature of transactions One business is manufacturing and selling ICE Cream with 18% With Claim ITC Second business charge a Royalty fee from another company GST @12%. My question is can we take ITC off simultaneously and adjust with output tax liability.

Ans: Yes if it is furtherance businesses.

 

Que: Turnover criteria for annual return to be checked with previous year turnover or current year turnover?

Ans: Current year.

 

Que: I have purchased an invoice worth Rs. 100000/- however material received Rs. 80000/- What is the accounting treatment of short material received? From which amount invoice is accounted for in the books?

Ans: Full Purchase booked and after Issued Debit Note.

 

Que: Can we generate an E-way bill for purchase Returns?

Ans: No we Cannot

 

Que: Please advise, If A registered company allows their employee to take GST training from a registered LLP and received a tax invoice (from the company name) will the receiver company be eligible to take input credit?

Ans: It can be employees' skill development. Hence ITC is allowed.

 

Que: I have a sale bill for the month of Jun 2020, I couldn't show that bill in GSTR1 but know the supplier saying it is not showing in 2A so therefore how do show this bill in the current period?

Ans: Have you shown liability in GTR3B Have you filed GSTR 9, considering this bill You cannot show it now as the due date for rectification was September 2021.

 

Que: Sales as per GSTR-1 is 100 As per books 95 As per GSTR-3B 90, ₹5 sales is shown on October 21 GSTR-3B ok Now doubt is what Amount to be shown in table 4 Is this difference because of any last year adjustments?

Ans: We Maybe needed to check it We can ignore it also right because GSTR 3B prevails over GSTR-1.

 

Que: In Table 8 is not auto-populated correctly, Then the difference in the GSTR-9C portal for the respective Financial Year between Monthly GSTR-2A total for the said F.Y. difference is more than lacs of amount. In auto-populated data in GSTR-9. To fill the difference amount. And issued DRC Give solution?

Ans: Generally in such cases we do a recalculation of table 8 with correct figures and make It an annexure in pdf format and upload it separately as an attachment while filing GSTR-9C.If it results in genuinely payable means excess ITC is mistakenly claimed in GSTR-3B then pay else don't pay. If not paid then Department will issue a notice and ask for the reason for non-payment.

 

Que: What is GST Audit?

Ans: GST audit is just to check whether you have paid the correct tax on your sales and reported the same in your books of account and file your income tax return, simply whatever income you showing in your profit and loss you should pay GST on that if it is a taxable supply of good or services so both profit and loss income and GST turnover should match and if there is no match then the same will be reconciled in GSTR-9c.in GSTR-9 you will show GST turnover by consolidating all the GST returns you filed in the year. whereas profit and loss turnover is the one you reported in your Income Tax return.

 

Que: One of my clients purchases goods from Dubai and direct sells them to South Africa.

1. Can is this possible in GST? 2. Is this case of a High sea sale? 3. How to make a book entry for it?

 Ans: As per schedule 3 Supply of goods from a place in the non-taxable territory* to another place in the non-taxable territory without such goods entering India is out of the scope of supply under GST. These are also known as Third–Country exports. Accordingly, GST gets attracted only if the condition of goods “entering India” is fulfilled for a supply from a non-taxable territory

 

Que: Whether The following points are correct for GTA under GST payment. GTA pays 5 % of GST without claiming ITC or GTA pays 12% of GST with ITC. Or the service recipient has to pay under RCM 5% with claiming ITC

Ans: the option is given to GTA to choose at the financial year beginning either 5% without ITC or 12% with ITC. based on that the rate will be applicable to the recipient while raising invoice under RCM. But the 12% is for GTA alone not for RCM.

 

Que: Related to Rule 86 B, my previous financial year 2020-2021 t.o is less than 4.50 crore, and my January 2022 taxable supplies are more than 50 lakhs, then the said rule 86b is applicable? Kindly guide?

Ans: yes, because the rule needs to be checked on a monthly turnover basis. you need to pay 1%of tax liability in cash.

 

Que: One person registered in GST Who provides service of auto job work. He purchases auto parts for scooters and motorcycles etc While providing job work service on vehicle repairs, and also changing auto parts. Can he get ITC on purchased auto parts with outward job work supply?

Ans: if it is in the same line of business he can claim ITC on inputs for paying tax liability of outward job work otherwise no, but make sure before claiming.

 

Que: Can we claim ITC for clearance of Imported Goods? How to claim the input in GSTR-3B?

Ans: In the eligible input tab, the input value has to be entered in the very first column ‘Import of goods

 

Que: Can we claim ITC for clearance of Imported Goods? Will IGST paid on imports be reflected in GSTR-2A?

 Ans: Yes, but not in the B2B invoice section. There is a separate section for the import of goods. Input will be shown in the second last tab ‘Import of goods from overseas from bill of entry’. This section gets auto-populated from the ice gate portal.

 

Que: GST was deducted for accommodation so is it on my part as a government entity do I have to deduct TDS from my bill?

 Ans: Yes Deduction of TDS is a liability on the part of the government if TDS is required to deduct.

 

Que: I am a wholesale dealer and I have a GST number can I buy mobile phones with the same GST number if I buy are there any problems?

 Ans: if yes then only use for business purposes, NO don't buy you don't use mobile phones for business purposes.