GST

Contents :
  1. Purpose and Modes of Filing Returns under GST.
  2. List of Various Types of Returns under GST Law.
  3. GSTR 1 : Details of Outward Supplies.
  4. GSTR 2 : Furnishing Details of Inward Supplies.
  5. GSTR 3 & 3B : Monthly Return.
  6. GSTR 4 : Return for Composition Supplier and Person Paying Tax under NN 2/2019.
  7. GSTR 5 : Return for Non-Resident Taxable Person.
  8. First Return (Section 40) and Annual Return (Section 44).
  9. GSTR 10 : Final Return.
  10. GSTR 11 : Details of Inward Supplies of Person Having UIN.
  11. Default in Furnishing Return (Section 46 & 47).
  12. Rectification of Errors or Omissions (Section 39(9)).
  13. Goods and Services Tax Practitioners (Section 48).

WHAT IS GST RETURN ?


GST return is a document that will contain all the details of your sales, purchases, tax collected on sales (output tax), and tax paid on purchases (input tax). Once you file GST returns, you will need to pay the resulting tax liability (money that you owe the government). 

WHO SHOULD FILE GST RETURN ?

All business owners and dealers who have registered under the GST system must file GST returns according to the nature of their business or transactions. 
  • Regular Businesses.
  • Businesses registered under the Composition Scheme.
  • Other types of business owners and dealers.
  • Amendments.
  • Auto-drafted Returns.
  • Tax Notice.

PURPOSE OF FILING GST RETURNS :

  • Mode for transfer of information to tax administration.
  • Compliance verification program of tax administration.
  • Finalization of the tax liabilities of the taxpayer within stipulated period of limitation.
  • Providing necessary inputs for taking policy decision.
  • Management of audit and anti- evasion programs of tax administration.


MODES OF FILING RETURNS :


(All Returns under GST laws are to be filed Electronically)

LIST OF VARIOUS TYPES OF RETURNS UNDER GST LAW :


GSTR

Particulars

Frequency

Due Date

1

Details of Outward Supplies of taxable G/S (Sec 37)

Monthly

 

10th of the next month

2

Details of inward supplies of taxable G/S effected claiming ITC (Section 38).

Monthly

 

15th of the next month

3

Monthly return on the basis of finalization of details of outward supplies & inward supplies along with payment of amount of tax (Sec 39(1)].

Monthly

 

20th of the next month

3B

Simple return for Jul 2017- September 2019

Monthly

 

20th of the next month

4

Return for compounding taxable person (Section 39(2) of the CGST Act, 2017)

Quarterly

 

18th of the month succeeding quarter

5

Return for Non-Resident foreign taxable person

(Section 39(5) of the CGST Act, 2017)

Monthly

 

20th of next month OR within 7 days after last day of the period of registration specified u/s 27(1), whichever is earlier

6

Return for ISD : Section 39(4)

Monthly

 

13th of the next month

7

Return for authorities deducting tax at source (Section 39(3) of the CGST Act, 2017)

Monthly

 

10th of the next month

 

8

Details of supplies effected through ECO & amount of tax collected

Monthly

 

10th of the next month

9

Annual Return (section 44)

Who Files: Registered Person (other than ISD, TDS/TCs Taxpayer, CTP & NRTP).

Annually

 

31st December of next FY

 

10

Final Return (Section 45)

(When registration is cancelled or surrendered)

Once

 

Within 3 Months of the date of cancellation or Date of cancellation order, whichever is later

11

Details of Inward supplies to be furnished by a person having UIN & claiming refund.

Monthly

 

28th of the month following the month for which statement is filed

Note : For CA- INTER, only GSTR-1/3B/4/5/9/10 are relevant.


GSTR 1: DETAILS OF OUTWARD SUPPLIES (SEC 37 r/w Rule 59 of CGST Act) :


Who Shall File :
  • Every Registered person + CTP shall furnish details of outward supplies Except :
  • ISD.
  • NRTP.
  • Composition Dealer u/s 10.
  • Person deducting tax at source u/s 51 (TDS).
  • Person collecting tax at source u/s 52 (EC0 (not being agent).
  • Supplier of OIDAR Services.
(NOTE : GSTR-1 NOT REQUIRED )

Frequency :
  • Monthly
  • Quarterly by Small tax payers with Aggregate. TO upto Rs. 1.5 crore in Preceditng FY or current FY.
Due Date :
  • On or before 10th of the immediately succeeding month.

Points to be noted :
  • GSTR-1 of a month can be filed any time b/w 1st 10th day of succeeding month.
  • GSTR-1 cannot be filed during the period from 11th 15th day of succeeding month.
  • A taxpayer cannot file GSTR-1 before the end of Current Tax Period. Exception to this rule:
(1) CTP after the closure of their business
(2) Cancellation of GSTIN of normal taxpayer (after confirming receipt of application)

Ex : Details of outward supplies pertaining to the month of October will be required to be furnished on or before 10th Nov & GSTR-1 for 0ctober cannot be filed b/w 11th Nov to 15th November.

Basic Details :
  • GSTIN; Legal name & Trade name; Aggregate T/O in previous year; Tax period.
  • Details of documents issued; HSN-wise summary of outward supplies.
  • Advances received/advances adjusted.
Content :
  • Outward supplies including zero rated supplies & deemed export, export made.
  • Inter-State supplies; Return of inward supplies.
  • Relevant debit/credit notes or supplementary invoices for the month.
Uploading of Invoices :

Nature

B2C

B2B

Intra state

 

Consolidated details for each rate of tax

Invoice wise details

 

Inter state

 

Invoice value > Rs. 2.5 Lacs - Invoice wise details

Invoice value < Rs. 2.5 Lacs - Consolidated details for each rate of tax for each state (State-wise summary)

  • For B2B supplies, all invoices will have to be uploaded because recipient will take ITC.
  • For B2C supplies, uploading in general may not be required as buyer will not be taking ITC.
Some other Points :
  • Invoices can be uploaded any time during tax period & not just at the time of filing of GSTR-1.
  • Invoices can be modified/deleted any number of times till submission of GSTR-1 of a tax period.
  • Uploaded invoice details are in a draft version till GSTR-1 is submitted & can be changed.
  • Scanned copies of invoices are not required to be uploaded. Only certain prescribed fields of information from invoices need to be uploaded [Ex: Invoice no, date, taxable value, rate & amount of tax etc].
  • Description of each item in the invoice will not be uploaded. Only HSN code in respect of supply of goods & accounting code in respect of supply of services will have to be fed.
  • Indication of HSN Details [Depends on T/O in the last year] :

Annual TO in last FY

Upto 1.5 Crore

 

> 1.5 Crore & upto 5 Cr

 

> 5 Crore

 

No. of digits of HSN Code

Nil

2

4

Communication to Recipient :

Details of outward supplies for a month furnished by the supplier are communicated and made available electronically (auto populated) to respective recipients and in Part A of Form GSTR-2A/Form, GSTR-4A (in case of composition dealer/NN 2/2019) through the common portal after 10th day of succeeding month (due date of filing of GSTR-1). 

Amendment Tables :

Particulars furnished in GSTR-1 of the prior period can be amended by way of amendment tables given in GSTR-1 of subsequent periods.

Errors :

If supplier discovers an error or omission, It shall rectify the same in the tax period during which such error or omission is noticed a pay tax & interest (in case of
payment) in the return to be furnished for such tax period.

Time Limit for Rectification :

1) Date of filing of monthly return u/s 39 for September following the end of FY to which such details pertain .
2) Date of filing of relevant Annual Return (whichever is Earlier).

Ex : An entity has furnished annual return for FY 2018-19 on 15 Aug of succeeding FY 2019-20. An error is discovered in respect of a transaction pertaining to Nov of FY 2018-19. Entity has filed the returns for Sep of Fy 2019-20 on 20 Oct of FY 2019-20. In this case, the rectification of the error pertaining to the transaction in Nov of FY 2018-19 cannot be rectified beyond 154 Aug of FY 2019-20.

Points to Remember :

1. GSTR 1 needs to be filed even if there is no business activity (Nil Return) in the tax period.
2. In cases where a taxpayer has been converted from a normal taxpayer to composition taxpayer, GSTR 1 will be available for filing only for the period during which taxpayer was registered as normal taxpayer. GSTR 1 (for said period) even if filed with delay would accept invoices for the period prior to conversion.
3. Taxpayer opting for voluntary cancellation of GSTIN will have to file GSTR-1 for active period.

GSTR 2: FURNISHING DETAILS OF INWARD SUPPLIES [Section 38] :


By whom :
Taxable Person including those under RCM & IGST with relevant debit/credit notes.

Frequency : Monthly

Due Date :
On or before 15% of the immediately succeeding month.

Matching Mechanism :
Details of GSTR-2 will mostly be auto-populated from GSTR-1 of the counter-party making supplies.
Auto populated details can be modified, validated, deleted & additional invoices or debit/credit can also be added in case such details are missed out by the supplier.

GSTR 3 : MONTHLY RETURN [SEC 39(1)] :


By whom :
Every Registered Person + CTP shall file monthly return Except -
• ISD
• NRTP
• Composition Dealer u/s 10
• Person deducting tax at source u/s 51 (TDS)
• Person collecting tax at source u/s 52 [ECO (not being agent)].
• Supplier of OIDAR Services
(Note : GSTR 3 note required)

Frequency : Monthly

Due Date : 
On/before 20th of the month succeeding the relevant calendar month/part
thereof.

Deferred :
Filing of GSTR-3 has been deferred by GST Council till September, 2019.

GSTR 3B: MONTHLY RETURN [SEC 37] :


By Whom :
Every Registered persons who are required to file GSTR 3.

Frequency : Monthly

Due Date :
On/before 20th of the immediate succeeding month.

Content :
Summarized details of :
• Outward supplies & inward supplies liable to RCM.
• Inter-State supplies made to unregistered persons, compartiler & UIN holders.
• Values of exempt, nil rated & non GST inward supplies.
• Eligible ITC
• Payment of tax TDS/TCS credit

Note : 
GSTR-3B does not require invoice-wise data of outward supplies.
PC Note :
✓ GSTR-33 cannot be revised.
✓ Tax ability of GSTR-3B must be paid by last date of filing GSTR-3B for that month.

GSTR 4: RETURN FOR COMPOSITION SUPPLIER & Person paying tax under NN 2/2019 :


By Whom :
Every Registered persons paying tax under composition scheme or NN 2/2019.

Frequency :
Annually, By 30 day of April following the end of such FY.

Quarterly statement for payment of self-assessed tax : Persons required to file GSTR 4 are also required to furnish a statement in FORM GST CMP-08 containing details of payment of self-assessed tax for every quarter (or part of the quarter), by 18th day of the month succeeding such quarter.

Basic Content :
• GSTIN: Legal name and Trade name.
• TDS credit received [Table 9].
• Tax payable & paid [Table 10], Interest, Late fees payable & paid [Table 11].
• Refund claimed from Electronic cash ledger [Table 12].
• Debit entries in electronic cash ledger for tax/interest payment [Table 13].

Content :
• Invoice-wise details of all inward supplies including RCM supplies [Table 4].
• Consolidated details of outward supplies (intra-state) [Table 6].
• Tax on outward supplies (net of advances & goods returned).
• Consolidated statement of advances paid/adjusted on receipt of supply [Table 8].
• Amendements of inward & outward supplies for earlier tax period [Tables 5 & 7].

Note : 
Amendments in outward supplies not be reported invoice-wise. But it would be necessary to mention the relevant past quarter in which the error has occurred & sought to be rectified.

GSTR 4A :
  • Inward supplies of a composition supplier received from registered persona filing GSTR-1 will be auto populated in FORM GSTR-4A.
  • Composition supplier can view auto populated details of inward supplies in GSTR-4A.
Statements for prior period :
If a registered person opts for composition scheme from the beginning of FY, he will have to furnish statements / return relating to period prior till: [Earlier of] :
(a) Due date of furnishing return for September of succeeding FY.
(b) Furnishing of annual return of preceding FY.

Note : 
Composition dealer will not be eligible to avail of ITC on receipt of invoices or debit notes from the supplier for the period prior to his opting for the composition scheme.

Statements in case of EXIT :
Composition dealer (withdrawing from composition scheme) will have to furnish GSTR-4 & GST CMP-OS relating to the period prior to his exiting from composition levy till :
GSTR-4 : 30th April following the end of FY during which such withdrawal / cessation falls.
GST CMP-08 : 18th of the month succeeding the quarter in which date of withdrawal falls.

Note :
Sincs a composition dealer and person paying tax under NN 2/2019 is not eligible to take ITC, he will discharge his tax liability only by debiting electronic cash ledger.

GSTR 5: RETURN FOR NON-RESIDENT TAXABLE PERSON (Sec 39(5) r/w Rule 63] :


Frequency : Monthly

Due Date of filling return : 
  • Within 20 days after the end of calendar month.
  • Within 7 days after last day of validity period of registration (whichever is earlier).
Content :
Details of outward supplies and inward supplies.

Payment :
Tax, interest, penalty, fees etc. shall be paid till the last date of filing GSTR 5.
However, NRTP or CTP are required to make advance deposit of tax of an estimated tax liability for a period for which registration is sought/extended period.

Note :
NRTP is not required to file annual return.

Due date for payment of tax : 
  • Due dates for payment of tax i.r.o persons required to file GSTR-3B & GSTR-5 are linked with the due dates for filing of such returns i.e., the last dates ir due dates of filing such returns are also due dates for payment of tax i.r.o persons required to file such returns.
  • In case of persons paying tax u/s 10 & NN 2/2019, due date for payment of tax & filing of GSTR-4 is delinked. While GSTR-4 for a financial year is required to be filed by 30th April of the following year, tax for a quarter is to be paid by 18th of the month succeeding such quarter.

GST


FIRST RETURN (SECTION 40) :


  • Purpose of section 40 : To enable RP to declare the taxable supplies made by him for the period b/w the date on which he became liable to registration till date on which registration has been granted so that ITC can be availed by the recipient on such supplies.
  • Firstly, RP may issue Revised Tax Invoices against the invoices already issued during said period within 1 month from date of issuance of certificate of registration (Sec 31(3)(a) r/w rule 53).
  • Further, section 40 provides that registered person shall declare his outward supplies made during said period in the first return furnished by him after grant of registration.
  • The format for this return is the same as that for regular return.
Note : 
When a person becomes liable to registration after his turnover crosses Rs. 20/10 lacs, he may apply for registration within 30 days of becoming liable.

ANNUAL RETURN [SECTION 44] FORM GSTR-9/9A (for composition supplier) :


By Whom :
Every Registered Person shall furnish Annual Return Except -
  • CTP & NRTP
  • Input Service Distributor
  • Person paying tax u/s 51 (TDS)
  • Person paying tax u/s 52 (TCS)
(Note : Annual return not required)

Due Date :
31st December of the next FY.

Reconciliation Statement :
Every registered person who is required to get his accounts audited by CA/CMA (if his aggregate T/O during FY> Rs. 2 crores) is required to furnish electronically.
a) Audited annual accounts.
b) A Reconciliation Statement.

GSTR 10: FINAL RETURN (SECTION 45) :


By whom :
Every registered person who is required to furnish return u/s 39(1) & whose registration has been surrendered or cancelled shall file a Final Return.

Due Date :
Final Return has to be filed within 3 months of: [Later of (a) or (b)]
(a) Date of cancellation 
(b) Date of order of cancellation

GSTR 11 : DETAILS OF INWARD SUPPLIES OF PERSONS HAVING UIN (RULE 82) :


UIN issued for

Details to be furnished by person having UIN

Claiming refund of taxes paid on inward supply

Details of Inward taxable supplies of G/S on which refund has been claimed along with application for such refund claim.

 

Other purposes (not for refund of tax paid)

Such person shall furnish the details of inward supplies of taxable G/S as may be required by PO.

 

DEFAULT IN FURNISHING RETURN (SECTION 46 & 47) :


Particulars

Requirements & Consequences

Notice to Defaulters (Sec 46)

 

  • Notice shall be given to RP who fails to furnish Normal Return u/s 39; Annual Return u/s 44; Final Return u/s 45; TCS statement u/s 52.
  • Such RP shall furnish such return within 15 days.

Late fees for delay in filing (a), (b), (c)

 

Any RP who fails to furnish following by the due date shall pay Late fees:

(a) Outward Supplies Statement u/s 37; 

(b) Returns u/s 39; 

(c) Final Return u/s 45.

Late Fee = Lower of (a) Rs. 100 per day or (b) Rs. 5,000.

Delay in filing Annual Return

(a) Rs. 100 per day or

(b) 0.25% of turnover (in state/UT) (whichever is Lower)

RECTIFICATION OF ERRORS/OMISSIONS (SECTION 39(9)) :


  • In GST there is NO concept of revised return, any need to revise a return may arise due to change in a set of invoices or debit/credit notes. In GST system allow a person to change the details of those transactions (invoices or debit/credit notes) that are required to be amended.
  • They can be amended in any of the future GSTR-1 in the tables specifically provided for the purposes or amending previously declared details.
  • Omission / incorrect particulars discovered in the returns filed u/s 39 can be rectified in return to be filed for the month quarter during which such omission/incorrect particulars are noticed.
  • Any tax payable as a result of such error / omission will be required to be paid along with interest.
Note : 
Section 39(9) does not permit rectification of error or omission discovered on account of scrutiny audit, inspection or enforcement activities by tax authorities. Hence, assesse may not be able to pass on ITC to the receiver for tax payments made by him in pursuance of any of the aforementioned situations.

TIME LIMIT FOR RECTIFICATION (Earlier of (1) or (2)) :


  • Due date of filing of return for the month of September/quarter ending September following the end of FY (i.e. 20th October of next FY].
  • Actual date of filing of the relevant annual return.
Ex : Last date of filing of annual return for FY is 31st Dec of next FY. Hence, if annual return for FY 2017-18 is filed before 20th Oct 2018, then no rectification of errors/omissions in returns pertaining to FY 2017-18 would be permitted thereafter.

Points to Remember :

  1. Return furnished u/s 39(1) on which full self-assessed tax has been paid - Considered as valid return.
  2. Filing of returns for current month is possible only after filing returns of previous month(s).
  3. Taxpayer needs to electronically sign submitted returns (otherwise it will be considered not-filed).
  4. Taxpayers can electronically sign their returns using -
• EVC (Electronic Verification Code sent to registered mobile no. of authorized signatory).

GOODS AND SERVICES TAX PRACTITIONERS [SECTION 48] :


  • RP may authorise an approved GSTP to furnish information on his behalf to Government.
  • GSTN will provide separate user ID & Password to GSTP to enable him to work on behalf of his clients without asking for their user ID & passwords. They can do all the work on behalf of taxpayers as allowed under GST Law.
  • A taxpayer may choose a different GSTP by simply unselecting the previous one and then choosing a new GSTP on GST portal.
  • A GSTP enrolled in any State/UT shall be treated as enrolled in the other States/UTs.

ELIGIBILITY CRITERIA FOR GSTP :


A person who is : 
  • Indian Citizen; Person of Sound Mind: Not Adjudicated as insolvent & not been convicted.
Person satisfying ANY of the following conditions :
  • Retired officer of Commercial Tax Department of any SG/CBEC who had worked in a post not lower than rank of a Group-B gazetted officer for > 2 years.
  • Enrolled as a Sales Tax Practitioner or Tax Return Preparer under the earlier indirect tax law for a period of not less than 5 years.
  • Has aquired any of the prescribed qualifications :
  1. Graduate/PG or equivalent examination having a degree in Commerce, Law, Banking including Higher Auditing, Business Administration, Business Management from any Indian University established by any law for the time being in force.
  2. Degree examination of any Foreign University recognised by any Indian university as equivalent to the degree examination mentioned above.
  3. Any degree examination of Indian University of Foreign University recognized by any Indian University as equivalent of the degree examination.
  4. Has passed final examination of ICAI / ICSI / Institute of Cost Accountants of India.
  5. Any other examination notified by Government on recommendation of GST Council.

ACTIVITIES UNDERTAKEN BY GSTP ON BEHALF OF REGISTERED PERSON :


  • Furnish details of outward and inward supply.
  • Make deposit in electronic cash ledger.
  • Furnish monthly, quarterly, annual or final return.
  • File a refund claim.
  • Application for registration amendment / cancellation (only after prior approval of RP).
  • Appear as authorised representative before any officer of Department, Appellate Authority or Appellate Tribunal, on behalf of such RP (if he is enrolled as GSTP u/r 83).
  • Furnish information for generation of e-way bill.
  • Furnish details of challan in the prescribed form.
  • File an application for amendment or cancellation of enrolment under rule 58.
  • File an intimation to pay tax under composition scheme or withdraw from the said scheme.

FURNISHING RETURNS THROUGH GSTP :


  • When a registered person opts to furnish his return through GSTP, such registered person : Gives his consent in prescribed form to any GSTP to prepare & furnish his return.
  • Before confirming submission of any statement prepared by GSTP, RP shall ensure that the facts mentioned in the return are true & correct. (Deemed confirmation if RP did not respond).
  • GSTP can undertake only such tasks as indicated in the prescribed form.
  • The registered person may, at any time, withdraw such authorization.
Note : 
Any statement furnished by GSTP shall be made available to RP on GST Common Portal. For every statement furnished by GSTP, confirmation shall be sought from RP over email or SMS.
Responsibility for correctness of any particulars furnished in the return or other details filed by the GSTP continues to rest with registered person on whose behalf such return and details are furnished.

PROCEDURE FOR ENROLMENT AS GSTP :


  • An application may be made electronically through common portal for enrolment as GSTP.
  • Application shall be scrutinised & GST practitioner certificate shall be granted.
  • If application is rejected, proper reasons shall have to be given.
  • Enrolment once done remains valid till it is cancelled.
  • Any person who has been enrolled as GSTP by virtue of him being enrolled as Sales Tax Practitioner or TRP under earlier Indirect Tax law shall remain enrolled only for 30 months from appointed date unless he passes the said examination within 30 months. [AMD]
  • No person enrolled as a GSTP shall be eligible to remain enrolled unless he passes such examination conducted at such periods by NACIN.