GSTR-3B was introduced as a stop-gap measure since the Government Portal was not ready with the actual monthly return GSTR-3. Various time limits such as last date to claim ITC, last date to correct and amend invoices were linked to the filing of monthly return. The Gujarat High Court had ruled that GSTR-3B is not a tax return but merely a form to pay taxes. On 9th October, 2019, the Central Government through CGST Notification 49/2019 nullified the High Court ruling. The notification amended CGST Rule 61 – Form and manner of submission of monthly return and declared that GSTR-3B is a replacement for GSTR-3. This rule change take retrospective effect from July 1, 2017.
Rule 36 – Documentary requirements and conditions for claiming input tax credit limits taxpayers from availing Input Tax Credit in their GSTR-3B if their Suppliers have not uploaded details of Invoices in their GSTR-1. Recipient can take credit only upto 20% above ITC reflecting in GSTR-2A. If for example, credit reflecting in GSTR-2A is Rs. 100, the total credit that can be claimed is Rs. 120.
CGST Notification 49/2019 amended other rules as well:
Through CGST Notification 47/2019, the Central Government announced the following:
The Government announced due dates for GSTR-1 and GSTR-3B returns for filing periods October 2019 through March 2020. Refer to GSTZen’s Due Date calendar for up-to-date information.
The last dates for filing Transition return forms GST TRAN-1 and GST TRAN-2 are extended to 31, December 2019 and 31, January 2020 respectively.