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GST: Kerala Govt. issues Guidelines to file periodic Return in GSTR-3B to avoid Incorrect Disclosure of ITC

GST: Kerala Govt. issues Guidelines to file periodic Return in GSTR-3B to avoid Incorrect Disclosure of ITC

The Commissioner of Kerala Goods and Service Tax issued the detailed guidelines in the form of a circular so as to guide people to file the periodic return in GSTR-3B to avoid incorrect disclosure of Input Tax Credit (ITC). The fund transferred from the center (IGST) on account of settlement and appointment of IGST is based on the return filed by the taxpayers. Incorrect disclosure of ITC of IGST on account of interstate inward supplies of goods or services will result in a short settlement of the amount of funds transferred to the state.

The Circular elaborated on the procedure of fund transfer and appointment, which is based on the information of GSTR-3B returns available with the GSTN. So it necessitates the availability of correct data and information of GSTR-3B returns with the GSTN for proper settlement and appointment of funds. The other procedure which was highlighted by the Commissioner in the circular was the correct declaration of ITC in monthly GSTR-3B. If only the net effects are shown by the taxpayers in the returns, it would result in a short settlement of IGST. Therefore the reversal of ITC and ineligibility of ITC has to be reported by taxpayers while filing the due returns.

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