GSTR-3 B AND GSTR -1

This query is : Resolved

Satish Chaudhary (Querist)
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18 April 2024 Q1.In Feb.24 GSTR-1 Rs.5000 was excess mentioned in exports due to wrong conversion rate. Amendment was done in GSTR-1 of March 24 in which exports were Rs. 500000. Now query is what figure in GSTR-3 B will be taken Rs.500000 or Rs. 495000. System Generated is showing Rs.500000 as exports in March 24. Please help. Further how to correct theGSTR-3 B of Feb.24 . Please advise.

Q2.Which conversion rate is to be taken for exports of services for accounting in books for GST purposes

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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07 July 2024 Let's address each of your queries:

**Q1: GSTR-1 Amendment and Impact on GSTR-3B**

When you amend GSTR-1 for February 2024 to correct the exports amount from Rs. 5000 to Rs. 495000 due to a wrong conversion rate, the correct figure for exports for February 2024 should be Rs. 495000. This correction ensures that your GSTR-1 reflects the accurate export value for that period.

Now, for GSTR-3B filing:
- Since the correct export figure for February 2024 is Rs. 495000 after amendment, this should be the figure you report in the GSTR-3B for that month.
- Ensure that you adjust any corresponding input tax credit (ITC) claims or other figures impacted by this correction in your GSTR-3B filing.

To correct GSTR-3B of February 2024:
- The GSTR-3B once filed cannot be amended directly. However, if there is an adjustment needed due to the corrected GSTR-1, you should rectify it in the subsequent month's GSTR-3B. Adjust the figures in the relevant sections (like 3.1 for outward supplies, 4 for ITC, etc.) to reflect the corrected amounts.

**Q2: Conversion Rate for Exports of Services**

For accounting in books for GST purposes, the conversion rate used should ideally be the rate prevailing at the time of supply. Here are some considerations:
- **GST Compliance:** Use the exchange rate as per the GST rules and guidelines prevalent at the time of the export transaction.
- **Accounting Standards:** Follow the generally accepted accounting principles (GAAP) or specific guidance applicable in your jurisdiction for foreign exchange transactions.
- **Consistency:** Ensure consistency in the exchange rates used across your GST filings and financial records to maintain accuracy and compliance.

If there are fluctuations in exchange rates between the time of supply and the time of payment, the rate used should reflect the actual rate applicable at the time of supply, as per GST regulations.

For practical implementation and specific scenarios, consulting with a tax advisor or accountant who understands both GST regulations and accounting principles would be beneficial to ensure accurate compliance and reporting.