CBEC Clarifications on GST Returns (Rectification of GSTR-3B Errors, Late Fee, Due Date, etc.)

CBEC has issued clarifications on various GST return filing FAQs/aspects, such as due dates, applicability and quantum of late fee, amendment of errors in submitting/filing FORM GSTR-3B, and other related queries, to consolidate/unify the information in various notifications and circulars.

1. Calendar of Due Dates for Filing of GST Returns upto March 2018

The CBEC has already notified the revised/ extended due dates for filing of monthly/ quarterly GSTR-1 and GSTR-3B returns, as under:

Revised/ Extended Due Dates of Monthly/ Quarterly GSTR-1 (July 2017 to June 2018), as notified by CBEC

GSTR-3B Return Filing/ Tax Payment Due Dates, as Extended/ notified by CBEC: July 2017 to June 2018

CBEC has earlier clarified that taxpayers those who have already filed their FORM GSTR-1 for the month of July,  2017 need not file these details again and shall only file the details for the month of August and September, 2017, in case they opt for quarterly filing, as the option was provided subsequently. However, those who have not filed their FORM GSTR-1 for the month of July, 2017 shall file their FORM GSTR-1 for the month of July, 2017 separately and then file their FORM GSTR-1 on quarterly basis for the months of August and September, 2017.

Further CBEC has already notified that the time period of filing of FORM GSTR-2 and FORM GSTR-3 for the months of July 2017 to March 2018 would be worked out by a Committee of officers and communicated later.

Registered persons opting for Composition scheme are required to file their returns quarterly in FORM GSTR-4. The due date for filing of FORM GSTR-4 for the quarter ending September 2017 has been extended to 24/12/2017 and for the subsequent quarters, the last date for filing of FORM GSTR-4 is within eighteen days after the end of such quarter.

Also, CBEC has clarified that the registered person will self-assess his aggregate turnover in terms of Section 2(6) of the CGST Act, 2017 for the previous financial year or the current financial year (in case of new registrants). Based on this self-assessed turnover, the registered person with turnover up to Rs. 1.5 Crore will be required to file FORM GSTR-1 on quarterly basis instead of on monthly basis. It is also clarified that the registered person may opt to file FORM GSTR-1 on monthly basis if he so wishes even though his aggregate turnover is up to Rs. 1.5 Crore. Once he falls in this bracket or if he chooses to file return on monthly basis, the registered person will not have the option to change the return filing periodicity for the entire financial year. In cases, where the registered person wrongly reports his aggregate turnover and opts to file FORM GSTR-1 on quarterly basis, he may be liable for punitive action under the CGST Act, 2017.

2. Applicability and quantum of Late Fee

CBEC has already notified that the late fee of GSTR-3B for the months of July, August and September 2017 has been waived off.

For subsequent months, i.e. October 2017 onwards, the amount of late fee payable, by a taxpayer whose tax liability for that month was “NIL”, will be Rs. 20/- per day (Rs. 10/- per day each under CGST & SGST Acts) instead of Rs. 200/- per day (Rs. 100/- per day each under CGST & SGST Acts). For other taxpayers, whose tax liability for that month was not “NIL”, the late fee payable will be Rs. 50/- per day (Rs. 25/- per day each under CGST & SGST Acts) instead of Rs. 200/- per day (Rs. 100/- per day each under CGST & SGST Acts).

3. Amendment/ corrections/ rectification of errors:

3.1 Various representations have been received wherein registered persons have requested for clarification on the procedure for rectification of errors made while filing their FORM GSTR-3B. In this regard, Circular No. 7/7/2017 GST dated 01/09/2017 was issued which clarified that errors committed while filing FORM GSTR-3B may be rectified while filing FORM GSTR-1 and FORM GSTR-2 of the same month. Further, in the said circular, it was clarified that the system will automatically reconcile the data submitted in FORM GSTR-3B with FORM GSTR-1 and FORM GSTR-2, and the variations if any will either be offset against output tax liability or added to the output tax liability of the subsequent months of the registered person.

3.2 Since, the GST Council has decided that the time period of filing of FORM GSTR-2 and FORM GSTR-3 for the month of July 2017 to March 2018 would be worked out by a Committee of officers, the system based reconciliation prescribed under Circular No. 7/7/2017 GST dated 01/09/2017 can only be operationalized after the relevant notification is issued. The said circular is therefore kept in abeyance till such time.

3.3 The common errors while submitting FORM GSTR-3B and the steps needed to be taken to rectify the same are provided in the table annexed herewith. The registered person needs to decide at which stage of filing of FORM GSTR-3B he is currently at and also the error committed by him. The corresponding column in the table provides the steps to be followed by him to rectify such error. 

3.4 It is clarified that as return in FORM GSTR-3B do not contain provisions for reporting of differential figures for past month(s), the said figures may be reported on net basis along with the values for current month itself in appropriate tables i.e. Table No. 3.1, 3.2, 4 and 5, as the case may be. It may be noted that while making adjustment in the output tax liability or input tax credit, there can be no negative entries in the FORM GSTR-3B. The amount remaining for adjustment, if any, may be adjusted in the return(s) in FORM GSTR3B of subsequent month(s) and, in cases where such adjustment is not feasible, refund may be claimed. Where adjustments have been made in FORM GSTR-3B of multiple months, corresponding adjustments in FORM GSTR-1 should also preferably be made in the corresponding months.

3.5 Where the taxpayer has committed an error in submitting (before offsetting and filing) the information in FORM GSTR-3B, a provision for editing the same has been provided. The facility to edit the information can be used only before offsetting the liability and editing will not be permitted after offsetting the liability. Hence, every care should be taken to ensure the accuracy of the figures before proceeding to offset the liabilities.

3.6 It is further clarified that the information furnished by the registered person in the return in FORM GSTR-3B would be reconciled by the department’s system with the information furnished in FORM GSTR-1 and discrepancies, if any, shall be dealt with in accordance with the relevant provisions of the CGST Act, 2017 and rules made thereunder.

Detailed instructions regarding reconciliation of information furnished in FORM GSTR-3B with that contained in FORM GSTR-2 and FORM GSTR-3 will be issued by CBEC in due course of time.

CBEC GST Circular 26/26/2017 dt. 29/12/2017: Common Errors in different Stages of GSTR-3B along with required Steps to Rectify the same (in tabular format)