With effect from 1 st January 2021, the registered person, filing Form GSTR-3B, can claim provisional input tax credit maximum up to 5% (earlier the same was 10%) of the eligible Input Tax Credit. CAs, experts and businesses can get GST ready with ClearTax GST software & certification course. The present return filing system (GSTR-1, 2A & 3B) will continue until September 2020. This amount is under 4(C). GSTR 3B contains the details of supplies made, input tax credit claimed, purchase on which reverse charge is applicable etc. If the GST rate difference for the FY 2017-18, can i issue a debit note in FY 2019-20. 15CA & Form 15CB – Lucidly Explained 18 FAQs, Freight Charged By Supplier On Goods Sold. LET’S make it clear that Only SUPPLIER ( I. E SELLER ) has to issue CREDIT NOTE / DEBIT NOTE when sales amount gets changed or sale return. As per Section 17(5) – Report credit which is entirely not available to you. These goods are exempt from GST. Just upload your form 16, claim your deductions and get your acknowledgment number online. 10. UIN holders mean those who have a Unique Identification Number instead of a GSTIN. Interest @ 24% will have to be paid for such excess amount wrongly claimed. This information must be broken down into ITC on: inward supplies on reverse charge (other than on import of goods and services reported above), inward supplies from your Input Service Distributor (ISD) basically your head office registered as an ISD under GST. Form GSTR-3B is an interim return form the GST dealers with regular registration should use, to file monthly returns. Many People Commit Mistake By Not Charging GST On Following Incomes. This is the detail required for input tax credit. You have to think Other way round, If you have made Purchases and thereafter any Price revision or Purchase Goods return happened. GSTR 3B does not require details to be filed on invoice-level or rate-wise. Is it mentioned in ( Eligible ITC ) All other ITC Coulmn by way Net of Purchase Value ( ie Purchase – Purchase Return ) Or Should mentioned separately in Reversal of ITC Column ( 4B Others ) 01.Mentioning ( Eligible ITC ) by way Net of Purchase Value is right. It must be provided separately for IGST, CGST, SGST, UTGST, and Cess. in GSTR 3B, SALE SIDE ( OUTWARD SIDE ) LIABLITY WILL Increase, in GSTR 1, show this in CDNR sheet – as credit note – Type “D”. Sale return shown as Purchase & Thereby claiming wrongly ITC on it – You cannot show this in GSTR 3B as “INWARD”. Under this head further, break up of ‘Outward taxable supplies’ in the above table must be provided. Nature of transaction, taxable value, rate of tax modified in voucher Displays count of transactions in which the Nature of transaction, taxable value or rate of tax defined in the ledger master has been changed in the transaction. SUCH PPL R HEADING FOR A BIG TROUBLE. Reverse Charge GST is normally charged on following. For e.g. Details of advances as well as adjustment of advances against invoices are not required to be shown separately. salt, puja samagri, curd, lassi, fresh milk. These are specialized agencies of the UNO (United Nations Organisation) or an embassy. Any invoice/debit note/credit note (including sales invoice) of FY 17-18 missed/ incorrectly reported in GSTR 1/3B can be reported in upcoming GSTR 1/3B till earlier of September 2018 or before filing of annual returns Note: GSTR1/3B once filed cannot be amended, but any invoice if missed/incorrectly reported can be added in upcoming GSTR 1 /3B Biggest mistake, People are making that For Sale side credit note ( i.e sale side reduction/ sales return ), You have claimed it in Purchase & thereby claiming ITC. In case we are issuing a revised invoice (in case of sales return), we will select first option. (you can use your provisional id as your GSTIN if you do not have a GSTIN), [this field is auto-populated after entering GSTIN]. Next, select PREVIEW DRAFT GSTR-3B to view the summary page of Form GSTR-3B before making any payments. Start a discussion Unanswered. This information must be broken down into inter-state and intra-state. REJECTING THE GOODS FROM THEIR FACTORY GATE.. ) THE CLIENT JUST PREPARE A SINGLE SIDE CREDIT NOTE AND REDUCE THE SALES.. It is a self-declaration return and the tax payer is not required to provide invoice level information in this form. For showing the credit note in the GSTR 3B, one can deduct or net-off the amount of credit note from total outward taxable supplies. These must be provided separately. 1 Like saroj kumar singh (PROPRIETOR) 12 January 2019 It may be noted that while making adjustment in the output tax liability or input tax credit, there can be no negative entries in the FORM GSTR-3B. Issue of credit note/debit note is important to keep the system of invoicing transparent for both parties. You have to reduce sales in GSTR 3B. Only total values have to be reported and invoice level information is not required. If you have CLAIMED wrong ITC of “FMCG PE” ” FOOD & BEVERAGES | MOTOR CAR IF less THAN 13 PERSONS | construction | Goods Destroyed/lost | Personal Expenses | Exempted Goods Manufactured then you need to reverse it. Our experts suggest the best funds and you can get high returns by investing directly or through SIP. Is there is any time limit to issue Debit Note? Thanking you. Good Article & thank you for sharing your knowledge on GST. So we need to be extra – cautious in filling the GSTR 3-B Form so that the required Output Liability and the available Input Tax Credit is correctly reflected in the Electronic Credit Ledger. 3.1. Here is a list of the notified dates from February to August 2020: #Category A: Chhattisgarh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Telangana, Andhra Pradesh, the Union Territories of Daman and Diu and Dadra and Nagar Haveli, Puducherry, Andaman and Nicobar Islands and Lakshadweep. For eg, alcohol and petroleum products. The GSTR-3B for the month of September, 2020 is going to be a critical GST return in regard to Input Tax Credit. – Do not include supplies which are zero-rated, or have a nil rate of tax or are exempt from GST. Here you must mention the inter-state supplies which are made to. That leads to wrong reporting in GSTR 3B & then leads to wrong reporting in GSTR 9. GSTR 3-B is a summary form for making adjustments and payments of GST liability and Input Tax Credit for the month. View Profile | My Other Post. VERY BIG MISTAKE …. Resolving Incomplete/Mismatch in Information (GSTR-3B) File GSTR-3B. – These rules require that input credit must be reversed for goods and services, where they have been used partly for business and partly for other purposes, to the extent not used for business. ClearTax serves 2.5+ Million happy customers, 20000+ CAs & tax experts & 10000+ businesses across India. © 2021 ‐ Defmacro Software Pvt. The CBIC has notified the due dates applicable, with regard to interest and late fees for filing GSTR-3B. 3.2. ______________________________. Any invoice/debit note/credit note which is missed/under-reported/over-reported can be reported in GSTR 1 / Form GSTR-3B of the following month or before filing of annual returns Also, liability is determined from GSTR 3B and not from GSTR 1. Similarly, you need to increase the turnover if you raise a debit note (purchase return) in GSTR 3B. You have to reduce ITC in GSTR 3B. 54/2020 dated 24th Jun 2020. ^Thereafter, a reduced interest rate at 9% p.a. Value of Taxable Supplies = Value of invoices + value of Debit Notes – value of credit notes + value of advances received for which invoices have not been issued in the same month – value of advances adjusted against invoices. Bhavik Shah 06 October 2017. A credit note in GST, is a document issued by the supplier in the following cases: Supplies are returned or found to be deficient by the recipient – When goods supplied are returned by the recipient or goods/services supplied are found to be deficient by the recipient, the supplier should issue a Credit Note. These details are further broken down into the following. Since GSTR 3B is a summary return, you can adjust the turnover by deducting the credit note entries (sales Return). In GSTR-3B data has to be filed as net amount i.e. Or which have been kept exempt from GST. Hereby, I am writing detailed explanation once again for Credit note / Debit Note. What is right approach ?? will apply from the next day after 30th Sept 2020 up to the actual date of filing. Mind well, You are doing wrong. Hence, liability has to be paid through GSTR 3B While filing the GSTR-3B of September 2020, the taxpayers must cumulatively adjust ITC as per the above rule from February 2020. For the GST Rate difference in the invoices of FY 2017-18, can I issue a debit note in FY 2018-19? details of any supplies made by you kept wholly out of GST. Read in detail. You have to pay this in cash & you can claim ITC of RCM in majority case, (i) Transpiration / Freight ( Whether On Inward Or Outward ). ClearTax is a product by Defmacro Software Pvt. GSTR-3B is a monthly return to be filed by regular dealers for the period July 2017 to March 2020. Exposure Draft of Guidance Note on Audit of Banks (Revised 2021) 855 year and the amount determined at the end of the financial year) and any excess credit availed needs to be reversed with interest while short credit, if any, needs to be re-availed within 6 months from end of the financial year. A debit note in GST, is a document issued by the supplier in the following cases: The issuance of a debit note or a supplementary invoice creates additional tax liability. Our Goods & Services Tax course includes tutorial videos, guides and expert assistance to help you in mastering Goods and Services Tax. 1. Under this section, you have to report the final tax payable by you on taxable supplies made by you, which will match with 3.1. If you have forgot to collect GST on these incomes in FY 17-18, 18-19, 19-20 THEN PLEASE PAY GST TO GOVT. EVEN FOR SALES RELATED GOODS RETURN ( SOME BIG. (whenever there change (+/-) in Sales invoice). The facility of auto-population of details in Form GSTR-3B is available from November 2020. Input tax credit on the closing stock is not required to be reported here, as this input tax credit must be first reported by filling up. In that case, a late fee will apply from the due date until the actual date of filing. In case of excess ITC claim in GSTR 3B as determined after the filing of corresponding GSTR 2,the excess amount claimed will be reversed from the ITC ledger OR added to the liability ledger. When we click on MAKE PAYMENT/POST CREDIT TO LEDGER, the GST Portal will check the available Cash ledger balance. I would like to get latest GST & Tax updates on, GSTR-3B: Return Filing, Format, Eligibility & Rules, Guide to file GSTR-3B on ClearTax GST Software, How to file NIL returns on gst.gov.in portal, How to Change the Profile Under the QRMP Scheme, Steps to Make Tax Payments Under the QRMP Scheme, Communication between Taxpayers on GST Portal, Step-by-Step Process For Uploading Invoices Using the Invoice Furnishing Facility (IFF), Blocking of GSTR-1 if GSTR-3B is not filed, This page is best viewed in Chrome, Firefox or IE 11, 50+ in-built validations to ensure early error correction and 100% accurate returns filing. ^^The due date was extended via CGST notification no. debit note credit note in gstr 3b. In GSTR 3B we don’t have a separate tile for disclosing the details of a credit note issued. For each of these you must provide, the total taxable value (total which has been invoiced). In case other party is issuing, we will select second option. Please help me. ##Category B: Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand, Odisha, the Union Territories of Jammu and Kashmir, Ladakh, Chandigarh and Delhi. -Supplies are returned or found to be deficient by the recipient – When goods supplied are returned by the recipient or goods/services supplied are found to be deficient by … Include only those supplies on which GST has been charged by you. In the same manner, input credit related to capital goods used for business and other purposes, for taxable, exempt, nil rated supplies must also be reversed to the extent not used for business. Details formulae have been prescribed on how to go about doing this. These are issued in cases like Sales Return, Sales Adjustment, Price Difference, Bad Debts etcIn GSTR1, there are 2 types of Credit Note Debit NoteCredit Note Debit Note RegisteredIt is issued in case of Sales Return etc from Registered Parties (B2B Sales)Credit Note Debit Note … **The due date was extended via CGST notification no. GSTR 3B is a summary level return of all outward and inward supplies that all GST registered businesses have to file on a monthly basis by the 20th. How to determine. Supplier who is issuing credit note/Debit Note will declare the details of credit note/Debit Note issued under GSTR-1 of that month or later but not later than September following the end of the financial year in which such supply was made, or the date of furnishing of the relevant annual return, whichever is earlier.