Page 9 - Ch14 _RETURNS

5 Bluffer Traders 10,000 Availed the ITC more than the amount of ITC which can be
availed

6 Scammer Pvt. Ltd. 2,500 Person defaulted in discharging tax liability in accordance with
Section 49(12)
Answer:-
ÜITC not available under section 38 as per GSTR - 2B if the supplier

? Is having new registration (upto the prescribed time period)
? has defaulted in tax payment and default has continued for the prescribed time period
? has tax paid in GSTR-3B lower than output tax shown in GSTR-1 by the prescribed limit
? has taken more ITC in GSTR -2B than in GSTR - 2B than in GSTR - 3B by the prescribed limit

? has paid higher proportion of taxes from his credit than what is allowed as per law
? other notified persons
ITC available to Mr. Avinash Kumar is:
S.no Name of Supplier ITC (Rs) Available Yes/No Available Amount Non-Available Amount

1 PQR Ltd. 18,000 Yes 18,000 –
2 ABC Ltd. 22,000 No – 22,000
3 DEF & Co. 2,000 No – 2,000
4 XYZ Pvt Ltd. 6,500 No – 6,500

5 Bluffer Traders 10,000 No – 10,000
6 Scammer Pvt. Ltd. 2,500 No – 2,500
Total 18,000 43,000

04. Sec 39: Furnishing of Returns

CCP 14.04.11.00
Answer the following questions independently:-
a) Explain the consequences, if the taxable person under GST law files the GST return under Section 39(1) of

the CGST Act, 2017, but does not make payment of self-assessment tax. [CA Inter Nov 19 Exam-New]
b) Mrs. Zarina, a registered dealer in Rajasthan, did not file GSTR-3B for the month of June but she
wants to file GSTR-3B for the month of July. Is it possible? Answer with reference to section 39 of
the CGST Act. [Study Mat]
c) Briefly elaborate the provisions relating to nil GSTR-3B. [CA Inter MTP Mar 23]

Answer:-
a) Ü If taxable person under GST law files the GST return u/s 39(1) of CGST Act, 2017, but does not pay
the self-assessment tax, the return is not considered as a valid return.

Ü Such person will not be able to claim any input tax credit (ITC), since ITC can be availed only on the
basis of a valid return.
Ü He shall pay interest, penalty, fees or any other amount payable under the CGST Act for filing
return without payment of tax.

b) Legal Provision:-
Ü As per section 39(10) of CGST Act, a registered person is not allowed to furnish a return for a tax
period if the return for any of the previous tax periods has not been furnished by him.
Discussion & Conclusion:-
Ü Therefore, in the given case, Mrs. Zarina cannot file GSTR-3B for July if she has not filed GSTR-3B
for the preceding month, i.e., June.

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