returns proposed under gst laws - gst...

RETURNS PROPOSED UNDER GST LAWS

Model Law GST - Series

SEPTEMBER’2016

GSTPANACEA.COM CONSULTANCY PRIVATE LIMITED

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Returns Proposed under GST Laws - Compiled by www.GSTpanacea.com

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RETUNS PROPOSED UNDER GST LAWS

1. Introduction ............................................................................................................................................. 2

2. What is a Return? ..................................................................................................................................... 3

3. Why Return is so Important in under GST Laws ? ..................................................................................... 3

4. Who needs to file Return in GST regime? ................................................................................................. 3

Registered Dealer ........................................................................................................................................ 3

UN Agencies ................................................................................................................................................. 4

Government Entities .................................................................................................................................... 4

5. Periodicity of Return Filing? ..................................................................................................................... 4

Is payment of Tax necessary to file Return? ................................................................................................. 5

Different Returns for Different Categories of Taxpayers .......................................................................... 5

Different Ledgers for Taxpayers ............................................................................................................... 6

Is there provisions for filing Revised Information? ....................................................................................... 6

6. What are the returns for Regular & Other Assessee? ............................................................................... 7

Returns for Regular Assesses: ...................................................................................................................... 7

Returns for Assesses Other than Regular Assesses ....................................................................................... 8

7. How to File Retuns? ................................................................................................................................. 9

8. What are the Steps for Filing Return? ...................................................................................................... 9

9. Can Return be revised in GST Regime? ................................................................................................... 10

10. Source of Article ................................................................................................................................ 10

11. Other Articles on GST published by us: .............................................................................................. 10

12. Disclaimer ......................................................................................................................................... 10

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RETURNS PROPOSED UNDER GST LAWS

1. INTRODUCTION

As discussed in our earlier write up on GST Law & Practice Part-1, that three panels

were constituted to assist Empowered Committee on implementation on GST in India.

These panels were as follows:

In 2015, Reports were issued by these committees with respect to:

Refund Process

Registration

Payment Process

We would be discussing proposed Returns in Model Law GST.

GST Panel-1

Determination of Revenue Neutral Rate

(RNR)

Place of Provision of Services Rules

GST Panel-2

GST on Inter State Supplies

GST on Imports

GST Panel-3

Dual Administrative Controls

Threshold Limits & Other Exemptions

including list of common exempted

items.


http://gstpanacea.com/services/model-law-gst-law-practice-part-1/


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2. WHAT IS A RETURN?

A return is a statement of specified particulars relating to business activity undertaken

by the taxable person during a prescribed period. A taxable person has a legal

obligation:

(i) To declare his tax liability for a given period in the return;

(ii) Furnish details about the taxes paid in accordance with that return; and

(iii) File correct and complete return within stipulated time frame.

3. WHY RETURN IS SO IMPORTANT IN UNDER GST LAWS ?

GST is a self-assessed destination based taxation system. The submission and

processing of return is an important link between the taxpayer & tax administration as

it’s an important tool for:

(i) Compliance verification program of tax administration;

(ii) Providing necessary inputs for taking policy decision;

(iii) Management of audit and anti-evasion programs of tax administration;

(iv) Finalization of the tax liabilities of the taxpayer within stipulated period of limitation.

Note: There will be common e-return for CGST, SGST, IGST and Additional Tax.

4. WHO NEEDS TO FILE RETURN IN GST REGIME?

REGISTERED DEALER

Every registered person is required to file a return for the prescribed tax period.

A return needs to be filed even if there is no business activity (i.e. Nil Return)

during the said tax period of return.



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UN AGENCIES

UN agencies etc. will have unique GST ID and will file return for the month (in simpler

form) during which they make purchases. They would not be required to file regular

return. They would submit their purchase statements (without purchase invoices) as

per the periodicity prescribed for claim of refund.

GOVERNMENT ENTITIES

Government entities / PSUs , etc. not dealing in GST supplies or persons exclusively

dealing in exempted / Nil rated / non –GST goods or services would neither be required

to obtain registration nor required to file returns under the GST law.

However, State tax authorities may assign Departmental ID to such government

departments/ PSUs / other persons. They will ask the suppliers to quote the

Department ID in the supply invoices for all inter-State purchases being made to them.

Such supplies will be at par with B2C supplies and will be governed by relevant

provisions relating to B2C supplies.

5. PERIODICITY OF RETURN FILING?

Common periodicity of returns for a class of taxpayers would be enforced. There will

be different frequency for filing of returns for different class of taxpayers.

There would be Common e-Return for CGST, SGST, IGST & Additional Tax. Separate returns for different categories of taxpayers

Normal/Regular & Casual Taxpayer (GSTR-1, 2 ,3 & 8)

Compounding Taxpayer (GSTR- 4 & 8)

Foreign Non-Resident Taxpayer (GSTR-5)

Input Service Distributor (GSTR- 6)

Tax Deductor (GSTR-7)

Returns by a normal / casual taxpayer to be filed in sequential manner with different

cut-off dates to allow auto-population of return & automated matching of invoices.



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IS PAYMENT OF TAX NE CESSARY TO FILE RETURN?

The return can be filed without payment of self-assessed tax as per the return but

such return would be treated as an invalid return and would not be taken into

consideration for matching of invoices and for inter-governmental fund

settlement among States and the Centre.

DIFFERENT RETURNS FOR DIFFERENT CATEGORIES OF TAXPAYERS

The periodicity of return for different categories of taxpayers is as follows:

Sr. No.

Return For Due Date

1 GSTR-1 Outward supplies made by taxpayer (other than compounding taxpayer and ISD)

10th of the next month

2 GSTR-2 Inward supplies received by a taxpayer (other than a compounding taxpayer and ISD)


3 GSTR-3 Monthly return (other than compounding taxpayer and ISD)


4 GSTR-4 Quarterly return for compounding Taxpayer

18th of the month next to quarter

5 GSTR-5 Periodic return by Non-Resident Foreign Taxpayer

Last day of registration

6 GSTR-6 Return for Input Service Distributor (ISD) 15th of the next month

7 GSTR-7 Return for Tax Deducted at Source 10th of the next month

8 GSTR-8 Annual Return By 31st December of next Financial Year



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DIFFERENT LEDGERS FOR TAXPAYERS

There would be different types of Ledgers for taxpayers, which are as follows:

Sr. No.

Name & Purpose of Ledger Due Date

1 Electronic ITC Ledger of taxpayer Continuous

2 Electronic Cash Ledger of taxpayer Continuous

3 Electronic Tax Ledger of taxpayer Continuous

IS THERE PROVISIONS FOR FILING REVISED INFORMATION?

Yes, there are provisions for filing REVISED INFORMATIONS due to Differential Tax

liability to be captured through:

Debit Note

Credit Note

Supplementary Invoices

Correction in Invoices



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6. WHAT ARE THE RETURNS FOR REGULAR & OTHER ASSESSEE?

RETURNS FOR REGULAR ASSESSES:

Ret

urn

s fo

r R

egu

lar

Ass

esse

s

Normal/ Regular Tax Payer

GSTR-1Supply Invoice Details

10th of next month

GSTR-2Auto Population & Purchase Details

15th of next month

Last date for finalizing Supply & Purchase details

17th of next month

GSTR-3Monthly return (other than

compounding taxpayer and ISD)20th of next month

Compunding Tax PayerGSTR-4

Quarterly Return18th of next month

Foreign Non-Resident TaxpayersGSTR-5

Monthly Return7 days after expiry of Registration

Input Service Distributor(ISD)

GSTR-6Montly Returns

15th of next month

Tax DeductorsGSTR-7 (TDS Return)

Monthly Return10th of next month

Annual Return

GSTR-8All Regular & Compunding Assessee

31st December of next F/Y



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RETURNS FOR ASSESSES OTHER THAN REGULAR ASSESSES

Ret

urn

s fo

r A

sses

ses

Oth

er

than

Reg

ula

r A

sses

ses

Casual Tax Payer

to file same return as for normal taxpayer but with monthly periodicity

and / or linked to validity period of registration

UN Agenciesto file return for the month in which

they make purchases – to claim refunds

Annual Return

Not Applicable.As Annual REturn is applicable only for

All Regular & Compunding Assessee



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7. HOW TO FILE RETUNS?

There would be a GST common portal to file return. Returns in GST System could be filed by tax payer:

by himself logging on to the GST System using his own user ID & password; or

through his authorized representative using the user Id & password (allotted to the authorized representative by the tax authorities), as chosen at the time of registration, logging on to the GST System

Filing may be done through Tax Return Preparers (TRPs) / FCs also

Filing may be done either directly or by using Applications developed by accounting

companies / IT companies which will interact with GST System using APIs.

8. WHAT ARE THE STEPS FOR FILING RETURN?

Assesse to follow some steps to file return. Steps are as follows:

Taxpayer

GSTN

Upload Supply details by 10th of

next month.

File GSTR-110th of next

month

Inward supply details inGSTR-2 to be auto –populated on the basis ofGSTR-1 of counter-partysupplier

Add or modify details & file GSTR-2 by 15th of the succeeding month.

Reconcile by 17th of the

next month.

Pay Tax or use Credit in Cash Ledger

File GSTR-3 by 20th of next

month.



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9. CAN RETURN BE REVISED IN GST REGIME?

Yes, revision of information is permitted.

Changes in Tax liability / ITC amount to be handled through

Debit- Credit Notes

Revision of supply invoices

Post sales discount

Volume discount

Amendments / Corrections

10. SOURCE OF ARTICLE

This article is based on Report of the Joint Committee on Business Process for GST

(July’2015) and Presentation on Proposed Return Process issued by Joint

Committee (Nov’15).

11. OTHER ARTICLES ON GST PUBLISHED BY US:

Opportunities for Professionals under GST Regime

http://gstpanacea.com/services/opportunities-professionals-gst-regime/

Model Law GST - Law & Practice (Part-1)


12. DISCLAIMER


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This document is for information only. All care has been taken for laws but in

case something has been missed request our readers to update us. This should

not be taken as any advice from our concern. We shall not be liable for any loss

if occurred for laws stated in this document.

Thanks & Regards Team GSTpanacea.com 7503031378 [email protected]


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