Circular No. 26/26/2017-CGST, (F. No. 349/164/2017/-GST), Filing of Returns under GST- regarding


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Circular No. 26/26/2017-GST
F. No. 349/164/2017/-GST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise and Customs
GST Policy Wing
New Delhi, Dated the 29th December , 2017
To,
The Principal Chief Commissioners/Chief Commissioners/Principal Commissioners/
Commissioners of Central Tax (All)
The Principal Director Generals/ Director Generals (All)
Subject: Filing of Returns under GST- regarding
The GST Council, in its 23rd meeting held at Guwahati on 10th November 2017, has
taken certain decisions in regard to filing of returns by taxpayers. Subsequently, various
representations have been received seeking clarifications on various aspects of return filing
such as return filing dates, applicability and quantum of late fee, amendment of errors in
submitting / filing of FORM GSTR-3B and other related queries. In order to consolidate the
information in various notifications and circulars regarding return filing and to ensure
uniformity in implementation across field formations, the Board, in exercise of its powers
conferred under section 168 (1) of the Central Goods and Services Tax Act, 2017 hereby
clarifies the following issues:
1. Return Filing Calendar:
1.1 Dates for filing of FORM GSTR-1 and FORM GSTR-3B have been put in a
calendar format for ease of understanding as under:
1.2 It may be noted that all registered persons are required to file their FORM GSTR-3B on
a monthly basis in terms of Notification No. 35/2017-Central Tax (referred to as “CT‟
hereinafter) dated 15th September, 2017 and 56/2017-CT dated 15th November 2017. Further,
Notification No. 71/2017-CT and Notification No. 72/2017 – CT both dated 29th December
2017 (superseding Notification No. 57/2017-CT and 58/2017-CT both dated 15th November
2017) have been issued to notify the due dates for filing of outward supply statement in
FORM GSTR-1 for various months / quarters (as depicted in the calendar above) by
registered persons having aggregate turnover in the previous financial year or current
financial year of upto1.5 Crores rupees and above 1.5 Crores rupees respectively. Since, the
option of quarterly filing was not available earlier, many taxpayers have already filed their
FORM GSTR-1 for the month of July, such taxpayers shall not file these details again and
shall only file details for the month of August and September, 2017. For those, who have not
filed their FORM GSTR-1 for the month of July, they shall also file their FORM GSTR-1
1 0 2 0 1 0 1 5 2 0 1 0 2 0 1 0 2 0 3 0 1 0
GSTR - 3B Dec 3B Jan 3B Feb 3B Mar 3B Apr 3B
GSTR -1 Jul - Sep 2017 Oct - Dec 2017 Jan- Mar 2017
GSTR - 3B Dec 3B Jan 3B Feb 3B Mar 3B Apr 3B
GSTR -1 July to Nov 2017 Dec 2017 Jan 2018 Feb 2018 Mar 2018
May 2018
Up to 1. 5
Crore
Return Filing Dates
Greater than
1. 5 Crore
January 2018 February 2018 March 2018 April 2018
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for the month of July separately and then file their FORM GSTR-1 on quarterly basis for the
month of August and September, 2017.
1.3 It has been further decided 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.
1.4 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 24th December 2017 vide Notification No.
59/2017-CT dated 15th November 2017. For the remaining quarters, the last date for filing of
FORM GSTR-4 is within eighteen days after the end of such quarter.
1.5 It is also 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:
2.1 The late fee for the months of July, August and September for late filing of FORM
GSTR – 3B has already been waived off vide Notification No. 28/2017-CT dated 1
st
September 2017 and 50/2017-CT dated 24th October 2017.
2.2 It has been decided that 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‟, 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). Notification No. 64/2017-CT dated 15th November 2017 has already been
issued in this regard.
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 1st September 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
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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 1st September 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.
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 alongwith 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.
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.
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 in due course of
time.
7. It is requested that suitable trade notices may be issued to publicize the contents of
this circular.
8. Difficulty, if any, in implementation of the above instructions may please be brought
to the notice of the Board. Hindi version would follow.
(Upender Gupta)
Commissioner (GST)
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Common
Error– I
Stage of Return Filing (GSTR - 3B)
Stage 1 Stage 2 Stage 3 Stage 4
Confirmed Submission Cash Ledger Updated Offset Liability Return Filed
Return liabilities / Input tax credit
availed were confirmed and submitted
and therefore no change can be done to
the liability. No action was taken after
this step.
Cash was added to the electronic cash ledger
as per the return liability. No action was taken
after this step.
All liabilities were
offset by debiting the
cash and credit ledger.
No action was taken
after this step.
Return was filed.
Liability
was under
reported
Use “Edit” facility to add under reported
liability.
Use "Edit" facility to add such liability and
additional cash, if required (i.e. where
sufficient balances are not available in the
credit or cash ledgers) may be deposited in the
cash ledger by creating challan in FORM
GST PMT-06.
Liability may be added in the return of
subsequent month(s) after payment of
interest.
Company A has four units in Haryana,
while filing their return for the month of
July, they inadvertently, missed on
details of a last minute order. Since, they
had already submitted and confirmed
their output supply details, they were not
sure of how to proceed. What can they
do?
The company may use the „edit return‟
facility to add such liability in their
submitted return and then proceed for
filing of their return.
Company A has four units in Haryana, while
filing their return for the month of July, they
inadvertently, missed on details of a last
minute order. Since, they had already
submitted and confirmed their output supply
details, but were not sure of how to proceed.
They added cash in the cash to the extent of
their under reported liability. What can they
do?
The company may use the „edit return‟ facility
to add such liability in their submitted return.
Further, the company may generate a fresh
challan under FORM GST PMT-06 to
additional cash or utilize their credit and
Company A has four units in Haryana,
while filing their return for the month of
July, they inadvertently, missed on details
of a last minute order. The Company had
filed their returns in order to not pay late
fee and other penalties. What can they do?
In this case, they may report this additional
liability in the return of next month and pay
tax with interest.
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furnish their return.
Change in
FORM
GSTR-1
If such liability was not reported in FORM GSTR-1 of the month/quarter, then such liability may be declared in the subsequent
month’s/quarter’s FORM GSTR-1 in which payment was made.
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Common
Error - II
Stage of Return Filing (GSTR - 3B)
Stage 1 Stage 2 Stage 3 Stage 4
Confirmed Submission Cash Ledger Updated Offset Liability Return Filed
Return liabilities / Input tax credit
availed were confirmed and submitted
and therefore no change can be done to
the liability. No action was taken after
this step.
Cash was added to the electronic cash ledger
as per the return liability. No action was taken
after this step.
All liabilities were
offset by debiting the
cash and credit ledger.
No action was taken
after this step.
Return was filed.
Liability
was over
reported
Use “Edit” facility to reduce over
reported liability.
Use “Edit” facility to reduce over reported
liability and cash ledger may be partially
debited to offset such liability.
Remaining balance may either be claimed as
refund or used to offset future liabilities.
Liability may be adjusted in return of
subsequent month(s) or refund may be
claimed where adjustment is not feasible.
Company B had reported an inter-State
sale but realized that the same sale was
counted twice and hence was not to be
reported. But the return form was
already submitted and no change could
be done to the liabilities. What can
company B do?
In this case, Company B has the option
to use the "edit" facility to reduce such
liability and proceed to file their return.
Company B had reported an inter-State sale
but realized that the same sale was counted
twice and hence was not to be reported or
taxed. But the return form was already
submitted and no change could be done to
reduce the liabilities. Further, the company
had already deposited cash in their cash
ledger before realizing this error. What can
company B do?
In this case, Company B has the option to use
the "edit" facility to reduce such liability.
Once, this is done, they can partially debit
their cash ledger to offset their tax liability.
Further, remaining balance can either be
claimed as refund or used to offset future
liabilities.
Company B had reported an inter-State sale
but realized that the same sale was counted
twice and hence was not to be reported or
taxed. But the return form was already filed
and no change could be done to reduce the
liabilities. What can company B do?
In this case, they may reduce this liability in
the return of subsequent months or claim
refund of the same.
Change in
FORM
GSTR-1
Where the liability was over reported in the month’s / quarter’s FORM GSTR-1 also, then such liability may be amended
through amendments under Table 9 of FORM GSTR-1
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Common
Error - III
Stage of Return Filing (GSTR - 3B)
Stage 1 Stage 2 Stage 3 Stage 4
Confirmed Submission Cash Ledger Updated Offset Liability Return Filed
Return liabilities / Input tax credit
availed were confirmed and
submitted and therefore no change
can be done to the liability. No action
was taken after this step.
Cash was added to the electronic cash ledger as per the return
liability. No action was taken after this step.
All liabilities were
offset by debiting the
cash and credit ledger.
No action was taken
after this step.
Return was filed.
Liability
was wrongly
reported
Use “Edit” facility to rectify wrongly
reported liability.
Use “Edit” facility to rectify wrongly reported liability and cash
ledger may be debited to offset new liability, where sufficient
balances are not available in the credit ledger.
Remaining balance, if any may be either claimed as refund or used
to offset future liabilities.
Unreported liability may be added in the next
month‟s return with interest, if applicable.
Also, adjustment may be made in return of
subsequent month(s) or refund may be
claimed where adjustment is not feasible.
Company C is registered in the State
of Haryana. While entering their
outward supplies in FORM GSTR3B,
the company realized that they
had inadvertently, shown inter-State
supply as intra-State supply and
submitted the return. What can they
do?
In this case, the company will have to
rectify wrongly reported liability
using the edit facility. Here, the
company will reduce their Central
Tax / State tax supplies and liability
and add integrated tax liability and
proceed to file their return.
Company C is registered in the State of Haryana. While entering
their outward supplies in FORM GSTR-3B, the company realized
that they had inadvertently, shown inter-State supply as intraState
supply and submitted the return. Further, they also had
updated their Central Tax and State tax cash ledgers. What can
they do?
In this case, the company will have to rectify wrongly reported
liability using the edit facility. The company will reduce their
Central Tax / State tax liability and add integrated tax liability.
Further, they will have to pay integrated tax and update their cash
ledger. They may seek for Central Tax / State tax cash refund in
due course or use the same for offsetting future liabilities.
Company C was registered in the State of
Haryana. While entering their outward
supplies in FORM GSTR-3B, the company
realized that they had inadvertently, shown
inter-State supply as intra-State supply and
submitted the return. The company paid their
wrong liability and filed their return in order
to avoid late fee and penalty? What can they
do?
Since, the return has already been filed, then
the company will have to report the interState
supply in their next month‟s liability
and adjust their wrongly paid intra-State
liability in the subsequent months returns or
claim refund of the same.
Change in
FORM
GSTR-1
Such taxpayers will have to file for amendments by filling Table 9 of the subsequent month’s / quarter’s FORM GSTR-1.
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Common
Error - IV
Stage of Return Filing (GSTR - 3B)
Stage 1 Stage 2 Stage 3 Stage 4
Confirmed Submission Cash Ledger Updated Offset Liability Return Filed
Return liabilities / Input tax credit availed
were confirmed and submitted and therefore
no change can be done to the liability. No
action was taken after this step
Cash was added to the electronic cash ledger as per
the return liability. No action was taken after this
step.
All liabilities were offset
by debiting the cash and
credit ledger. No action
was taken after this step.
Return was filed.
Input tax
credit was
under
reported
Use 'Edit” facility to add un-availed input tax
credit. Input tax Credit will be added to the
credit ledger and may be used for offsetting
this month or subsequent month‟s liability.
No Action required in cash ledger Input tax credit which was not reported may be
availed while filing return for subsequent
month(s).
Company D, while filing their FORM GSTR -
3B for the month of July, inadvertently,
misreported Input tax credit of Rs.
1,00,00,000/- as Rs. 10,00,000/-. They had
confirmed and submitted their return. What
can they do?
The company may use the "edit” facility to
add more Input tax credit to their submitted
FORM GSTR-3B. Once, this is done, such
credit will be reflected in their Electronic
Credit ledger and may be utilized to offset
liabilities for this month or for subsequent
months.
No Action required in cash ledger Company D, while filing their FORM GSTR - 3B
for the month of July, inadvertently, misreported
Input tax credit of Rs. 1,00,00,000/- as Rs.
10,00,000/-. They had filed their return and paid
Rs. 90,00,000/- in cash. What can they do?
Since, the return has already been filed, Company
D may add such Input tax credit in their return for
subsequent month(s).
Change in
FORM
GSTR-1
No Action
Common Stage of Return Filing (GSTR - 3B)
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Error - V Stage 1 Stage 2 Stage 3 Stage 4
Confirmed Submission Cash Ledger Updated Offset Liability Return Filed
Return liabilities / Input tax credit
availed were confirmed and submitted
and therefore no change can be done to
the liability. No action was taken after
this step.
Cash was added to the electronic cash ledger
as per the return liability. No action was taken
after this step.
All liabilities were
offset by debiting the
cash and credit ledger.
No action was taken
after this step.
Return was filed.
Input tax
credit was
over
reported
Use “Edit” facility to rectify the over
reported input tax credit
Additional cash, if required, may be deposited
in the cash ledger by creating challan in
FORM GST PMT-06
Pay (through cash) / Reverse such over
reported input tax credit with interest in
return of subsequent month (s).
While filing their FORM GSTR 3B for
the months of July, 2017, Company E
inadvertently, reported their eligible
input tax credit, as Rs. 20,00,000/-
instead of Rs. 10,00,000/-. What can they
do?
Since, the company has submitted details
of their input tax credit but not used such
credit for offsetting their liabilities, they
can reduce their input tax credit by using
the "edit" facility.
While filing their FORM GSTR 3B for the
months of July, 2017, Company E
inadvertently, reported their eligible input tax
credit, as Rs. 20,00,000/- instead of Rs.
10,00,000/-. What can they do?
Since, the company has submitted details of
their input tax credit but not used such credit
for offsetting their liabilities, they can reduce
their input tax credit by using the "edit"
facility. Since, they have deposited Rs.
10,00,000/- only in their input tax credit
ledger they may deposit additional Rs.
10,00,000/- in the cash ledger by creating
challan in FORM GST PMT-06.
While filing their FORM GSTR 3B for the
months of July, 2017, Company E
inadvertently, reported their eligible input
tax credit, as Rs. 20,00,000/- instead of Rs.
10,00,000/-. Company E also utilized their
additional input tax credit and filed their
returns. What can they do?
Since, the company had utilized ineligible
credit to offset such liabilities, the company
will have to pay (through cash) / Reverse
such over reported utilized input tax credit
with interest.
Change in
FORM
GSTR-1
No Action
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Common
Error - VI
Stage of Return Filing (GSTR - 3B)
Stage 1 Stage 2 Stage 3 Stage 4
Confirmed Submission Cash Ledger Updated Offset Liability Return Filed
Return liabilities / Input tax credit
availed were confirmed and submitted
and therefore no change can be done to
the liability. No action was taken after
this step
Cash was added to the electronic cash
ledger as per the return liability. No action
was taken after this step.
All liabilities were offset
by debiting the cash and
credit ledger. No action
was taken after this step.
Return was filed.
Input Tax
Credit of
the wrong
tax was
taken
 “Edit” facility to be used to rectify
such liability.
 New Input tax credit will be added to
the credit ledger.
 Input tax credit reduced will be
adjusted in the credit ledger without
any additional liability
Additional cash, if required, may be
deposited in the cash ledger by creating
challan in FORM GST PMT-06
Pay(through cash) / Reverse any wrongly
reported input tax credit in return of
subsequent month(s).
For under reported input tax credit, the same
may be availed in return of subsequent
month(s).
While filing their FORM GSTR 3B for
the months of July, 2017, Company E
inadvertently, reported their Central Tax
credit of Rs. 20,00,000/- as Integrated
tax. What can they do?
Use edit facility to claim correct central
tax credit under the right head.
While filing their FORM GSTR 3B for the
months of July, 2017, Company E
inadvertently, reported their Central Tax
credit of Rs. 20,00,000/- as Integrated tax.
What can they do?
They can use “edit” facility to correct
central tax credit under the right head. For
offsetting any integrated tax liability,
additional cash may be deposited in the
cash ledger by creating challan in FORM
GST PMT-06.
While filing their FORM GSTR 3B for the
months of July, 2017, Company E
inadvertently, reported their Central Tax
credit of Rs. 20,00,000/- as Integrated tax
credit. In order to avoid late fee and penalties,
they paid Rs. 20,00,000/- Central Tax in cash
and did not utilize their Integrated tax credit.
What can they do?
Since, the company has filed the returns and
there is an unutilized Integrated tax credit of
Rs. 20,00,000/- which was inadmissible to
them, they will have to pay / reverse such
credit in the return of subsequent month(s).
Further, Central Tax credit of Rs. 20,00,000/-
can be availed in return of subsequent
month(s).
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Change in
FORM
GSTR-1
No Action
Common
Error - VII
Stage of Return Filing (GSTR - 3B)
Stage 1 Stage 2 Stage 3 Stage 4
Confirmed Submission Cash Ledger Updated Offset Liability Return Filed
Return liabilities / Input tax credit
availed were reported correctly and
thereafter confirmed and submitted.
Therefore no change is required to be
done to the liability. No action was taken
after this step.
Cash was added to the electronic cash ledger
as per the return liability. No action was taken
after this step
All liabilities were
offset by debiting the
cash and credit ledger.
No action was taken
after this step
Return was filed.
Cash
ledger
wrongly
updated
No Action Add cash under the right tax head
and seek cash refund of the cash added under
the wrong tax head.
No Action
No Action While filing their FORM GSTR-3B return,
Company F while generating payment challan
added Rs. 5,00,000/- under the Central Tax
head, while they wanted to deposit Rs.
5,00,000/- under the integrated tax head.
What can they do?
Since, they have already filed their challan,
they will have to add Rs. 5,00,000/- in their
integrated tax head and file their returns.
Further, they may seek refund of Rs.
5,00,000/- from their cash ledger.
No Action
Change in
FORM
GSTR-1
No Action

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