Central Tax Circulars

CGST Circular 89/2019

To,

The Principal Chief Commissioners / Chief Commissioners / Principal
Commissioners /
Commissioners of Central Tax (All) The Principal Director Generals / Director
Generals (All)

Madam/Sir,

Subject: Mentioning details of inter-State supplies made to unregistered
persons in Table 3.2 of FORM GSTR-3B and Table 7B of FORM GSTR-1 – Reg.

1) A registered supplier is required to mention the details of inter -State
supplies made to
unregistered persons, composition taxable persons and UIN holders in Table 3.2
of FORM GSTR-3B. Further, the details of all inter-State supplies made to
unregistered persons where the invoice value is up to Rs 2.5 lakhs (rate-wise)
are required to be reported in Table 7B of FORM GSTR-1.

2) It has been brought to the notice of the Board that a number of registered
persons have
not reported the details of inter-State supplies made to unregistered persons
in Table 3.2 of FORM GSTR-3B. However, the said details have been mentioned in
Table 7B of FORM GSTR-1. In order to ensure uniformity in the implementation of
the provisions of law across the field formations, the Board, in exercise of
its powers conferred by section 168 (1) of the Central Goods and Services Tax
Act, 2017(CGST Act for short), hereby issues the following instructions.

3) It is pertinent to mention that apportionment of IGST collected on
inter–State supplies
made to unregistered persons in the State where such supply takes place is
based on the information reported in Table 3.2 of FORM GSTR-3B by the
registered person. As such, non-mentioning of the said information results in –

(i) non-apportionment of the due amount of IGST to the State where such
supply
takes place; and

(ii) a mis-match in the quantum of goods or services or both actually
supplied in a
State and the amount of integrated tax apportioned between the Centre and that
State, and consequent non-compliance of sub-section (2) of section 17 of the
Integrated Goods and Services Tax Act, 2017.

4) Accordingly, it is instructed that the registered persons making
inter-State supplies to
unregistered persons shall report the details of such supplies along with the
place of supply in Table 3.2 of FORM GSTR-3B and Table 7B of FORM GSTR–1 as
mandated by the law. Contravention of any of the provisions of the Act or the
rules made there under attracts penal action under the provisions of section
125 of the CGST Act.

5) It is requested that suitable trade notices may be issued to publicize the
contents of this
Circular.

6) Difficulty, if any, in the implementation of this Circular may be brought
to the notice
of the Board. Hindi version will follow.