The GST Council decided in their 37th meeting to introduce the new return forms from April 2020 filing period.
The second aspect of transition concerns how to report old invoices, pay liability, or claim ITC on invoices issued prior to the introduction of the new return forms. The table below lists various scenarios where a tax payer could have missed reporting Invoices in their GSTR 1 or missed reporting liability in their GSTR 3B. The table explains how the tax payer shall remedy such instances.
Document Type | Document reported in GSTR-1 | Liability reported in GSTR-3B | Action to be taken |
---|---|---|---|
Invoice or Credit Note |
No | No |
Add Invoice to GST ANX-1. GST RET-1 Table 3A will automatically include the liability. GST RET-1 Table 6(1) will automatically include interest on the liability. |
Invoice | Yes | No |
Report liability in Table 3 A(8) of GST RET-1. Report interest in Table 6(4) of GST RET-1. |
Invoice | No | Yes |
Add Invoice to GST ANX-1. GST RET-1 Table 3A will automatically include the liability. Reduce liability in Table 3 C(5) of GST RET-1. GST RET-1 Table 6(1) will automatically include interest on the liability. Forgo the interest since there is no way to reduce it. |
Credit Note | Yes | No | Reduce liability in Table 3 C(5) of GST RET-1. |
Credit Note | No | Yes |
Add Credit Note to GST ANX-1. GST RET-1 Table 3C will automatically reduce the liability. Correspondingly increase liability in Table 3 A(8) of GST RET-1. |
A similar issue arises when
The table below shows what action the tax payer can take in such instances.
Document Type | Reporting of Document | ITC Claim Status | Action to be taken |
---|---|---|---|
Invoice | Seen in GSTR-2A | Not claimed in GSTR-3B | Claim ITC in Table 4 A(4) of GST RET-1. |
Credit Note | Seen in GSTR-2A | Not reversed in GSTR-3B |
Reduce ITC in Table 4 B(5) of GST RET-1. Report interest in Table 6(4) of GST RET-1. |
Invoice |
Not seen in GSTR-2A Seen in GST ANX-2 |
Not claimed in GSTR-3B |
Accept the Invoice in GST ANX-2. GST RET-1 Table 4 A(3) will automatically include the ITC. |
Credit Note |
Not seen in GSTR-2A Seen in GST ANX-2 |
Not reversed in GSTR-3B |
Accept the Credit Note in GST ANX-2. GST RET-1 Table 4 A(3) will automatically reduce the ITC. Report interest in Table 6(4) of GST RET-1. |
Invoice |
Not seen in GSTR-2A Seen in GST ANX-2 |
ITC claimed in GSTR-3B |
Accept the Invoice in GST ANX-2. GST RET-1 Table 4 A(3) will automatically include the ITC. Reduce ITC in Table 4 B(5) of GST RET-1. |
Credit Note |
Not seen in GSTR-2A Seen in GST ANX-2 |
ITC reversed in GSTR-3B |
Accept the Credit Note in GST ANX-2. GST RET-1 Table 4 A(3) will automatically reduce the ITC. Re-Claim ITC in Table 4 A(4) of GST RET-1. |