The State Government of Rajasthan has issued a circular for the correct submission of the returns under the Goods and Services Tax (GST) regime.
The Section 53 of CGST Act/RGST Act and Section 17, 18 of the JOST Act read with the Goods and Services Tax Settlement of Funds Rules, 20 I 7 provides for the manner of cross utilization of IG ST or may be of SGST and apportionment of JOST between Centre, States and within State for the purpose of settlement or transfer of funds from the Centre to State or vice versa.
The transfer of funds as prescribed under the law rests upon lhe correct disclosure of Input Tax Credit (ITC) of JOST on the account of interstate inward supplies or import supplies of goods or services. The incorrect disclosure of the same may result in short settlement of transfer of funds to the state. The fund transfer and apportionment is mainly based on the information provided by the taxpayer in GSTR-3B returns on the GSTN Portal and therefore, the importance of correctness of information/data of GSTR-3B cannot be undermined.
The circular is issued in the light of instances came to notice of the department where the taxpayers have not disclosed ineligible ITC in GSTR-3B on account of IGST paid on inward interstate supply and import supplies which might have culminated in short transfer of IGST funds to the state.
“The taxpayers are required to declare the ITC correctly in the monthly return GSTR-3B. The eligible ITC is auto populated in Table 4 of GSTR-3B which can be edited by the taxpayer. In this context, attention is drawn towards the provisions of Rule 42 or as the case may be Rule 43 wherein the taxpayers have to report the reversal of ITC in Tahle 4(R)(l) and any other reversal or reversal as per the provisions of rule 37 shall be reported in Table 4(Il)(2). Moreover, the ineligible ITC as per the provisions of Section 17(5) has to be reported in Table 4(D)(l) whereas the Table 4(D)(2) shall include the ineligible/blocked credit as per the provisions of Section 17(4) of the CGST/RGST Act read with Rule 38 and shall also include other ineligible ITC like ITC availed wrongly in the previous period etc,” the circular said.
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