The GST Council updates taxpayers and took certain decisions for filing GST returns and to improve GST compliances and remove certain anomalies.
While filing the monthly return in Form GSTR-3B, the major problem arising for a taxpayers was that when total sale returns in a particular month are more than the total sales then it was very difficult to report such a scenario in the return. There was no such provision in GSTR-3B earlier. To overcome this problem some methods used by taxpayers were as follows:
Market Sentiment 1 (action being taken)
Generally, businesses used to show outward supplies as nil in that month and went on to deduct the remaining tax amount from the next month outward supplies For example: Sales in the month of July-20 are Rs.200000/- and sales return in the month of July-20 are Rs.234000/-, then taxpayer reported outward supplies in GSTR 3B in the month of July-20 as zero or nil and deducted the remaining Rs.34000/- from the August outward supplies.
Market Sentiment 2 (action being taken)
If the taxpayer is having sale return in a month more than sales, taxpayer will file the GSTR-1 in normal way. But will not show this negative amount in GSTR-3B for that month. By doing so taxpayer will end up paying more tax for that month. In subsequent month(s) taxpayer will show less amount by this differential amount in GSTR-3B compared to GSTR-1 of that month and will pay less. Though there is no option to fix this in the portal, the cumulative balance of GST liability in the ledger will get nullified.
Market Sentiment 3 (action being taken)
Raising a credit/debit note to rectify this error is a temporary solution because this CDN will also make effect in GSTR 3B. As we know GSTR 3B summaries our inward and outward supplies So, taxpayers took take this action manually and had to check that against of which state, the interstate supply is showing a negative value. Then the return period of the CDN issued to the particular state was changed from the current month to the next month. Ultimate effect: - The negative value got disappear, auto adjustment of CDN in the next month.
To overcome this problem and to bring uniformity in filing of GST return By way of this amendment the Government has allowed fillip up of negative figures in GSTR-3B with effect from the month of September-2020. Negative figures now can be updated in table 3.1 of GSTR-3B. This shall result in overall correct treatment of GST output liability and input tax credit availed. Also, there would be no deferment of reporting of credit and debit notes just to avoid negative figures. A sample image released by GST council of GSTR-3B has been attached below depicting as to how negative figures will appear in GSTR-3B.
Comments