• twitter-icon
Unlimited Tax Return Filing


In GSTR-3B, GST Dept Releases a SOP for Observing Taxpayers Reversing Ineligible IGST ITC

SOP for Monitoring Ineligible ITC Under IGST Reversal by Taxpayers in GSTR-3B

The GST branch of Kerala has declared the introduction of Standard Operating Procedures (SOPs) to track taxpayers’ corrections of improper IGST Input Tax Credit (ITC) reversals by using the GSTR-3B form.

A streamlined summary tax return form GSTR-3B, enables taxpayers to report the total unpaid GST liabilities for a particular tax period. It is mandatory for a taxpayer to submit the GSTR-3B form every fiscal period.

With examples, it will be easy to understand, that the SOP clarifies the statutory requirements.

The purpose of this SOP is to ensure that IGST credits that are determined to be ineligible for taxpayers are reversed correctly and quickly. As a result, it ensures that the state share is used to settle 50% of the IGST credit monthly rather than on an ad-hoc basis each year.

In the previous Trade Circular No.1/2022, dated November 21, 2012, we provided instructions for providing accurate and appropriate information regarding blocked or ineligible input tax credits.

Regarding the reversal monitoring procedure specified in the standard operating procedure (SOP), which must ensure the inflow of IGST Credit eligible to the State, the taxpayers must take the following actions to ensure accurate GSTR 3B disclosure:

  • Identification of cases for scrutiny
  • Appointment of the appropriate officer for scrutiny and subsequent tracking
  • Establishment of a scrutiny schedule
  • Execution of the scrutiny process
  • Implementation of further measures

A verification register must be maintained for each GSTIN designated for verification so that verification and monitoring can be carried out. During the verification stage of a case, the District Joint Commissioners of Taxpayer Services should monitor its progress.

Additionally, at the conclusion of each month, the appropriate officer is required to compile a Verification Progress Report and send it to the District Joint Commissioner, who in turn is responsible for submitting a consolidated verification report to the Commissionerate.

Disclaimer:- "All the information given is from credible and authentic resources and has been published after moderation. Any change in detail or information other than fact must be considered a human error. The blog we write is to provide updated information. You can raise any query on matters related to blog content. Also, note that we don’t provide any type of consultancy so we are sorry for being unable to reply to consultancy queries. Also, we do mention that our replies are solely on a practical basis and we advise you to cross verify with professional authorities for a fact check."

Published by Krishna Sharma (Ex-employee)
Krishna Sharma has done his engineering from Jaipur. His mostly time spend in gaining the knowledge about new things. He wants to demonstrate his powerful word's empire in front of the world. Apart from this, he is a simple person and has a helping nature. View more posts
SAGINFOTECH PRODUCTS

Leave a comment

Your email address will not be published. Required fields are marked *

Follow Us on Google News

Google News

Latest Posts

New Offer for Professionals

Super Tax Offer

Upto 20% Off
Tax, ROC/MCA, XBRL, Payroll, Online GST

Limited Offer, Hurry

Big Offer for Tax Experts

Upto 20% Discount on Tax Software

    Select Product*

    Current GST Due Dates