Filing of returns under GST.

Circular No.: 26/26/2017-GST
Date of Circular: 29th December 2017
Relevant Sections and Rules:

• Central GST Act, 2017:
  • Section 168(1): Power to issue instructions
• CGST Rules, 2017:
  • Rules 61–67: Returns under GST
• Relevant Notifications:
  • Notification Nos. 35/2017, 56/2017, 71/2017, 72/2017, 59/2017, 64/2017, etc.

Summary of Circular:

This circular consolidates and clarifies various aspects regarding the filing of GST returns, including timelines, late fees, and corrections in FORM GSTR-3B, in accordance with decisions taken in the 23rd GST Council meeting.

1. Return Filing Calendar and Options:
   • All registered persons must file FORM GSTR-3B monthly.
   • GSTR-1 to be filed:
     • Quarterly by taxpayers with turnover ≤ ₹1.5 Cr.
     • Monthly by taxpayers with turnover > ₹1.5 Cr.
   • Taxpayers can choose monthly GSTR-1 filing even if eligible for quarterly, but must continue the same for the full financial year.
2. Late Fee for GSTR-3B:
   • Waived for July to September 2017 (via Notifications 28/2017 and 50/2017).
   • From October 2017 onward:
     • ₹20/day for NIL return (₹10 CGST + ₹10 SGST).
     • ₹50/day for other cases (₹25 CGST + ₹25 SGST).
3. Amendment and Correction Mechanism:
   • Errors in GSTR-3B can be rectified in subsequent returns.
   • GSTR-3B does not allow negative entries; adjustments must be made on a net basis in current or future returns.
   • Circular No. 7/7/2017-GST on auto-reconciliation kept in abeyance pending system development.
4. Common Error Scenarios and Corrections:
   The circular provides a detailed matrix (7 common errors) covering:
   • Under-reporting or over-reporting of liability.
   • Misreporting of IGST/CGST/SGST.
   • Wrong ITC claims.
   • Wrong tax head in challans.
   • Provides step-by-step solutions based on the stage of error detection (submission, cash ledger, offset, or filed).
5. Editing Option in GSTR-3B:
   • Taxpayers can edit GSTR-3B before offsetting liability.
   • Once offset and submitted, corrections must be made in subsequent months.
6. Departmental Reconciliation:
   • GSTR-3B will be matched with GSTR-1 (and eventually with GSTR-2/3 once enabled).
   • Discrepancies will be dealt with under the provisions of CGST Act and Rules.
7. Trade and Implementation Instructions:
   • Field formations must issue trade notices to ensure uniform understanding and implementation.

Source: Circular No.: 26/26/2017-GST