The
basic features of the returns mechanism in GST include electronic filing of
returns, uploading of invoice level information and auto-population of
information relating to Input Tax Credit (ITC) from returns of supplier to that
of recipient, invoice-level information matching and auto-reversal of Input Tax
Credit in case of mismatch. The returns mechanism is designed to assist the
taxpayer to file returns and avail ITC.
Under
GST, a regular taxpayer needs to furnish monthly returns and one annual return.
There are separate returns for a taxpayer registered under the composition
scheme, non-resident taxpayer, taxpayer registered as an Input Service
Distributor, a person liable to deduct or collect the tax (TDS/ TCS) and a
person granted Unique Identification Number. It is important to note that a
taxpayer is NOT required to file all types of returns. In fact, taxpayers are
required to file returns depending on the activities they undertake.
All
the returns are to be filed online. Returns can be filed using any of the
following methods:
GSTN
portal (www.gst.gov.in )
Offline
utilities provided by GSTN
GST
Suvidha Providers (GSPs) - If you are already using the services of ERP
providers such as Tally, SAP, Oracle etc., there is a high likelihood that
these ERP providers would provide inbuilt solutions in the existing ERP systems
Following
table lists the various types of returns under GST Law:
Return
|
Description
|
Who
Files?
|
Date
for filing
|
|
|
|
|
|
|
GSTR-1
|
Monthly
Statement of
|
Registered
Person
|
10th
of the next month
|
|
|
Outward
supplies of
|
|
|
|
|
Goods
or Services
|
|
|
|
GSTR-2
|
Monthly
Statement of
|
Registered
Person
|
15th
of the next month
|
|
|
Inward
supplies of
|
|
|
|
|
Goods
or Services
|
|
|
|
GSTR-3
|
Monthly
Return for a
|
Registered
Person
|
20th
of the next month
|
|
|
normal
taxpayer
|
|
|
|
GSTR-4
|
Quarterly
Return
|
Taxable
Person opting for
|
18th
of the month
|
|
|
|
Composition
Levy
|
succeeding
the quarter
|
|
GSTR-5
|
Monthly
Return for a
|
Non-resident
Taxpayer
|
20th
of the month
|
|
|
non-resident
taxpayer
|
|
succeeding
the tax period
|
|
|
|
|
&
within 7 days after
|
|
|
|
|
expiry
of registration
|
|
GSTR-6
|
Monthly
Return for an
|
Input
Service Distributor
|
13th
of the next month
|
|
|
Input
Service
|
|
|
|
|
Distributor
(ISD)
|
|
|
|
GSTR-7
|
Monthly
Return for
|
Tax
Deductor
|
10th
of the next month
|
|
|
authorities
deducting
|
|
|
|
|
tax
at source
|
|
|
|
GSTR-8
|
Monthly
Statement for
|
E-Commerce
Operator
|
10th
of the next month
|
|
|
E-Commerce
Operator
|
|
|
|
|
depicting
supplies
|
|
|
|
|
effecting
through it
|
|
|
|
GSTR-9
|
Annual
Return
|
Registered
Person other
|
31st
December of next
|
|
|
|
than
an ISD, TDS/TCS
|
Financial
Year
|
|
|
|
Taxpayer,
Casual Taxable
|
|
|
|
|
Person
and Non-resident
|
|
|
|
|
Taxpayer
|
|
|
GSTR-10
|
Final
Return
|
Taxable
Person whose
|
Within
three months of
|
|
|
|
registration
has been
|
the
date of cancellation
|
|
|
|
surrendered
or cancelled
|
or
date of order of
|
|
|
|
|
cancellation,
whichever
|
|
|
|
|
is
later.
|
Filing Process
A
normal taxpayer has to file the following returns:
GSTR-1
(Statement of Outward Supplies):
a.
This return signifies the tax liability of
the supplier for the supplies effected during the previous month.
b.
It
needs to be filled by the 10th of every month in relation to
supplies effected during the previous month. For example, a statement of all
the outward supplies made during the month of July 2017 needs to be filed by 10th
August, 2017.
GSTR-2
(Statement of Inward Supplies):
a.
This return signifies accrual of ITC (Input
Tax Credit) from the inputs received during the previous month.
b.
It is auto-populated from the GSTR-1s filed
by the corresponding suppliers of the Taxpayer except for a few fields like
imports, and purchases from unregistered suppliers.
c.
It needs to be filed by the 15th
of every month in relation to supplies received during the previous month. For
example, a statement of all the inward supplies received during the month of
July 2017 needs to be filed by 15th August, 2017.
GSTR-3:
This
is a consolidated return. It needs to be filed by the 20th of
every month. It consolidates the following details
a.
Outward Supplies (Auto-Populated from GSTR-1)
b.
Inward Supplies (Auto-Populated from GSTR-2)
c.
ITC availed
d.
Tax Payable
e.
Tax Paid (Using both Cash and ITC)
NOTE:
Payment
should be made on or before 20th of every month.
Annual Return
This
return needs to be filed by 31st December of the next Financial Year. In this
return, the taxpayer needs to furnish details of expenditure and details of
income for the entire Financial Year.
The
population of these returns is explained by the following graphic:
Supplier 1
|
Supplier 2
|
Supplier 3
|
Supplier 4
|
GSTR-1
|
GSTR-1
|
GSTR-1
|
GSTR-1
|
Taxpayer
|
Taxpayer
|
GSTR1
|
GSTR2
|
(Signifies Tax Liability)
|
(Signifies ITC Availability)
|
GSTR3
(Cash
to be paid = Tax Liability - ITC Available)
NOTE:
Taxpayer’s
GSTR-2 is auto-populated from the Suppliers’ GSTR-1s
Taxpayer’s
GSTR-3 is significantly auto-populated from tax payer’s GSTR-1 and GSTR-2
• File via GSTN/Easy upload tools provided
GSTR-1
|
by
GSTN/GSPs
|
|
•
Periodical uploading allowed
|
|
|
|
|
|
|
•
Filed by 10th
|
|
|
•
Frozen after 10th
|
|
GSTR-2
|
•
Auto-populated from GSTR-1s filed by a
|
|
Tax
Payer’s Suppliers
|
|
|
|
|
|
|
•
Changes allowed between 10th and 15th
|
|
|
•
Filed by 15th
|
|
|
•
Occurs between 15th and 17th. Tax Payer
|
|
|
can add additional invoices.
|
|
|
•
Supplier has the option to accept/reject
|
|
|
additional
invoices. Supplier’s GSTR-1
|
|
|
gets
amended to that effect.
|
|
GSTR-3
|
•
Auto-populated from GSTR-1 and GSTR-2
|
|
•
Filed by 20th
|
|
|
|
• Payment can be made anytime before or
|
|
|
on
20th
|
|
The mechanism of filing revised returns for any correction of errors/ omissions has been done away with. The rectification of errors/ omissions is allowed in the subsequent returns. However, no rectification is allowed after furnishing the return for the month of September following the end of the financial year to which, such details pertain, or furnishing of the relevant annual return, whichever is earlier.
Penal Provisions Relating to Returns:
Any registered person who fails to furnish form GSTR-1, GSTR-2, GSTR-3 or Final Return within the due dates, shall be liable to pay a late fee of Rs. 100 per day, subject to a maximum of Rs. 5,000.
ITC Matching and Auto-Reversal:
It is a mechanism to prevent revenue leakage.
The process of ITC Matching begins after the due date for filing of the return (20th of every month). This is carried out by GSTN.
The details of every inward supply furnished by the taxable person
(i.e. the “recipient” of goods and/or services) in form GSTR-2 shall be matched with the corresponding details of outward supply furnished by the corresponding taxable person (i.e. the “supplier” of goods and/or services) in his valid return. A return may be considered to be a valid return only when the appropriate GST has been paid in full by the taxable person, as shown in such return for a given tax period.
In case the details match, then the ITC claimed by the recipient in his valid returns shall be considered as finally accepted and such acceptance shall be communicated to the recipient. Failure to file valid return by the supplier may lead to denial of ITC in the hands of the recipient.
In
case the ITC claimed by the recipient is in excess of the tax declared by the
supplier or where the details of outward supply are not declared by the
supplier in his valid returns, the discrepancy shall be communicated to both
the supplier and the recipient. Similarly, in case, there is duplication of
claim of ITC, the same shall be communicated to the recipient.
The
recipient will be asked to rectify the discrepancy of excess claim of ITC and
in case the supplier has not rectified the discrepancy communicated in his
valid returns for the month in which, the discrepancy is communicated, then
such excess ITC as claimed by the recipient shall be added to the output tax
liability of the recipient in the succeeding month. Similarly, duplication of ITC claimed by the recipient shall be added to the output tax liability of the recipient in the month in which, such duplication is communicated.
The recipient shall be liable to pay interest on the excess or duplicate ITC added back to the output tax liability of the recipient from the date of availing of ITC till the corresponding additions are made in their returns.
Re-claim of ITC refers to taking back the ITC reversed in the
Electronic Credit Ledger of the recipient by way of reducing the output tax liability. Such re-claim can be made by the recipient only in case the supplier declares the details of the Invoice and/or Debit Notes in his valid return within the prescribed timeframe. In such case, the interest paid by the recipient shall be refunded to him by way of crediting the amount to his Electronic Cash Ledger.
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