FAQ on Filing GST Returns

This topic lists the FAQ on filing GST returns.

1. What is the latest update on reverse charge deferment on purchases from unregistered dealers?

Reverse charge liability on purchases from unregistered dealers which was suspended till 30.09.2019, has been withdrawn. The Government would be specifying the category of Registered Dealer, for whom reverse charge mechanism would be applicable on purchases made from unregistered dealers.

2. Reverse charge is already reported in GSTR-3B of July and August for purchases from unregistered dealers. Do I need to report the same in GSTR-2 for the monthly returns of July and August?

Yes, you have to report the details of reverse charge in GSTR-2 to match it with GSTR-3B.

3. Is there any exemption limit prescribed under deferred reverse charge for purchases from unregistered dealers?

No. Irrespective of the turnover of the registered dealer who is buying, all purchases made from an unregistered dealer are exempt from reverse charge.

4. Is reverse charge deferred on the supply of goods or on the supply of services by unregistered dealers?

Reverse charge is deferred on the supply of both goods and services.

5. What about the reverse charge liability on purchases from unregistered dealers that I have already paid on the goods and services for September? Can I avail input tax credit or claim refund?

Supplies of September attracting reverse charge have to be reported, and tax credit will be available in the same month. You can utilize it to set off the forward charge liability after paying the reverse charge amount.

6. Is there a provision to enter input tax credit from the previous tax regime in GSTR-3B? If not, where is this recorded?

In GSTR-3B there is no provision to specify input tax credit (ITC). You need to file ITC using the GST TRAN-1 in the GST portal.

7. How will a composition dealer file GST returns?

Currently, there is no provision in GSTN for a composition dealer to file GST returns.

8. An incorrect invoice has been uploaded. How do I edit the invoice, or modify my returns submitted to GSTN?

It is recommended that you check the details of your invoices before submitting your returns. You can modify one invoice at a time if any changes are required. Once you click the Submit button for GSTR-1, GSTR-2, and GSTR-3B on the portal, the returns are uploaded. You cannot make any changes to the returns that are submitted.