GST Circular No 170/2022
It is hereby advised that the registered persons making inter-State
supplies –
(i) to the unregistered persons, shall report the details of such supplies, place of supply-wise, in Table 3.2 ofGSTR-3B and Table 7B or Table 5 or Table 9/10 of GSTR-1, as the case may be;
(ii) the registered persons paying tax u/s 10 of the SGST/CGST Act (composition taxable persons) and to UIN holders, shall also report the details of such supplies, place of supply-wise, in Table 3.2 of FORM GSTR-3B and Table 4A or 4C or 9 of GSTR-1, as the case may be, as mandated by the law.
(iii) shall update their customer database properly with correct State name and ensure that correct PoS is declared in the tax invoice and in Table 3.2 of GSTR-3B while filing their return, so that tax reaches the Consumption State as per the principles of destination-based taxation system.
It is further advised that any amendment carried out in Table 9 or Table 10 of GSTR-1 or any entry in Table 11 of GSTR-1 relating to such supplies should also be given effect to while reporting the figures in Table 3.2 of GSTR-3B.
Table 4(A) of GSTR-3B is getting auto-populated from various entries of GSTR-2B. However, various reversals of ITC on account of rule 42 and 43 of the CGST Rules or for any other reasons are required to be made by the registered person, on his own ascertainment, in Table 4(B) of the said FORM.
Any reversal of ITC or any ITC which is ineligible under any provision of the CGST Act should not be part of Net ITC Available in Table 4(C) and accordingly, should not get credited into the ECL of the registered person.
Ineligible ITC, which was earlier not part of calculation of eligible/available ITC, is now part of calculation
of eligible/available ITC in view of auto-population of Table 4(A) of GTSR-3B from various tables of GTSR-2B. Thereafter, the registered person is required to identify ineligible ITC as well as the reversal of ITC to arrive at the Net ITC available, which is to be credited to the ECL.
Formula for ITC Ineligible is specified in notification
It is clarified that the reversal of ITC of ineligible credit under section 17(5) or any other provisions of the CGST Act and rules thereunder is required to be made under Table 4(B) and not under Table 4(D) of GSTR3B
