Submission of Correct Return Under GST

Circular No. 06/2020

Sub: SGSTDK- Submission of correct return under GST- reg.

Ref: Section 17 of IGST Act 2017 r/w Goods and Services Tax Settlement of Funds Rules, 2017

1.Background

1.1 After the implementation of Goods and Services Tax, the State Tax revenue constitutes the State GST paid (SGST) by the taxpayers in Kerala and the fund transfer from Centre on account of the settlement and apportionment of Integrated Tax(IGST).

1.2 The fund from Centre (IGST) on account of settlement and apportionment of IGST is based on the returns filed by the taxpayers. Incorrect disclosures of Input Tax Credit (ITC) of IGST on account of interstate inward supplies or import supplies of goods or services will result in a short settlement of the amount of fund transfer to the state.

2. Fund Transfer and Apportionment:

2.1 The modalities for settlement or transfer of funds from the centre to state or vice a versa on account of cross utilization of IGST or as the case may be of SGST and apportionment of IGST between the centre, states and within states are provided in section 53 of CGST/ SGST Act, section 17 and 18 of IGST Act r/w the Goods and Services Tax Settlement of Funds Rules, 2017. The Goods and Services Tax Network (GSTN) common portal, on the basis of returns filed by the taxpayers, periodically transmits the report of such cross-utilization and the IGST funds available for the apportionment, to the competent authority. According to such periodic report furnished by the GSTN, the competent authority transfers funds towards the settlement of IGST collected by the Centre on the basis of the cross-utilization of ITC of IGST utilized against CGST/SGST liability and vice-versa as well as apportionment in terms of Section 17 of IGST Act 2017 r/w Goods and Services Tax Settlement of Funds Rules, 2017.

2.2 The aforesaid Fund Transfer and apportionment is predominantly based on the information of GSTR-3B return available within GSTN.

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