Mentioning details of inter-State supplies made to unregistered persons in GST returns

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 but the number of registered persons has 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

Therefore in order to ensure uniformity in the implementation of the provisions of law, The Central Government vide Circular no 89/08/2019-GST dated the 18^th Feb, 2019 has clarified 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 –

1. non-apportionment of the due amount of IGST to the State where such supply takes place; and
2. 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.

Accordingly, persons making inter-State supplies to unregistered persons shall report the details of such supplies both in Table 3.2 of FORM GSTR-3B and Table 7B of FORM GSTR–1 and 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.