Kerala Government has released Circular dated 16th June 2020 to clarify on disclosure of ‘ineligible credit’ and ‘reversal of credit’ in GSTR-3B return. It has been clarified as follows-
Ineligible credit should be shown only under Column 4(D)(1) of GSTR-3B;
Common ITC reversed under Rule 42 & 43 shall be reported under both Column 4(A) and 4(B)(1);
Reversal on account of non-payment within 180 days and any other reversal shall be reported under Column 4(B)(2).
Assessee’s who have not followed the above disclosure requirements are directed to rectify the same using annual returns, amendment in GSTR-1, taking net effect in subsequent GSTR-3B. Government has clarified that incorrect information of ITC in periodic returns may result in selection of cases of such taxpayers for scrutiny.
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