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Returns to be filed under GST

SEMINAR ON GST RETURN & GST AUDIT FOR CA STUDENTSBY WIRC

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SCOPE

vTypes of Returns including new returns

vApplicability of Returns

vFrequencies of uploading of returns

§ Return Ordinarily means statements of information (Facts) furnished by tax payer

§ Details pertaining to the nature of activities/business operations forming the subject matter of taxation; the measure of taxation such as sale price, turnover, or value; deductions and exemptions; and determination and discharge of tax liability for a given period.

§ “filing of returns" constitutes the most important compliance procedure

§ enables the Government/ tax administrator to estimate the tax collection for a particular period

§ determine the correctness and completeness of the tax compliance of the taxpayers

INTRODUCTION

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The returns serve the following purposes:

• Mode for transfer of information to tax administration;

• C o m p l i a n c e v e r i f i c a t i o n p r o g r a m o f t a x 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

INTRODUCTION

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RETURNS

NORMAL SUPPLIER

Section Type of Return Form Period for filing Return

37 Outward supplies GSTR -1 10th of next month

38 Inward supplier GSTR-2 15th of next month

39(1) Normal Assessee GSTR-3 20th of next month

Summary Return for Payment

GSTR-3B

20th of next month

• GSTR-2 and GSTR-3 filing is currently suspended. A Summary return for payment is to be filed in Form GSTR-3B instead.

• For GSTR-1 periodicity shall be either quarterly (Turnover < 1.5 cr) or Monthly (Turnover > 1.5 cr). 26/04/20195

RETURNS

Type of Return Form Period for filing Return

Assessee under composition scheme

GSTR-4 18th of next quarter

Non-Resident foreign Taxable Person

GSTR-5 20th of next month

Non-Resident who provide OIDAR services

GSTR-5A 20th of next month

ISD GSTR-6 13th of next month

Assessee paying TDS GSTR-7 10th of next month

Details of supplies effected through e-commerce operator and the amount of tax collected

GSTR-8 10th of next month

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RETURN FILING PROCESS

GSTR-1On 10th of the month

Details of outward supply furnished by supplier

GSTR-2ABetween 10th to 15th of the month Details of outward supply furnished by supplier made available to recipient

GSTR-2Between 10th to 15th

of the month- Recipient to add,

delete, modify the details in GSTR-2

- ITC declared in GSTR- 2 to be provisionally accepted

- GSTR-1A- Between 15th to 17th

of the month- Changes made by

recipient to be communicated to Supplier and he can accept or reject the changes

GSTR -3To be filed on or

before 20th of the month

Matching of invoices as per sec. 42 and 43

If matched, ITC to be finally accepted If unmatched, added to output liability of recipient 26/04/20197

§ Every registered person is required to f i le GSTR-1 irrespective of whether there are any transactions during the month or not

§ following registered persons are exempt

• Input Service Distributor• Composition Supplier• Suppliers of online information and database access or

retrieval services (OIDAR), who have to pay tax themselves (as per Section 14 of the IGST Act)

• Non-resident taxable person• Tax payer liable to collect TCS• Tax payer liable to deduct TDS

Types of GST Returns

GSTR - 1 Information of Supply

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Details will be auto-populated on logging

To be submitted in 1st year. Auto-populated in subsequent years

To be submitted in 1st return

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Taxable outward supplies To Registered Dealer excluding z e r o r a t e d s u p p l i e s a n d deemed exports

• All B2B supplies (intra-s t a t e o r i n t e r - s t a t e ) . Invoice level Rate wise details to be reported

• Details of all the outward supply which are covered u n d e r R C M s h a l l b e reported in table 4B or else 4A

• Al l the outward supply m a d e t h r o u g h t h e e -c o m m e r c e s h a l l b e reported under the Table 4C.

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Taxable outward inter-state supplies to URD, where the invoice value > 2.5 lakh shall be reported in table 5

• B 2 C i n t e r - s t a t e suppl ies other than m a d e t h r o u g h e -c o m m e r c e w i l l b e reported in table 5A. I nvo ice leve l Rate w i s e d e t a i l s t o b e reported

• I f s u p p l y i s m o d e through e-commerce it wi l l be reported in Table 5B

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All the exports, deemed export and supplies made to SEZ will be reported in table no. 6

• A l l t h e e x p o r t w i l l b e reported in table 6A. Invoice level wise details are to be uploaded. Further, export can we with payment of duty or without payment of duty both will be reported in table no 6A

• Supplies made to the unit of SEZ or SEZ developer will be reported in table no 6B

• Deemed export as per the Act shal l be reported in table 6C

• Details of shipping bill is not mandatory field, it can be a d d e d w h e n r e c e i v e d through amendment 26/04/201912

All B2C supplies intra-state irrespective of value and inter-state where invoice value is < 2.5 lakh shall be reported in table 7.

• Aggregate level rate wise d e t a i l s o f i n t r a s t a t e supplies need to be reported in table no 7A.

• Aggregate level state wise and rate wise detai ls of inter state supplies need to be reported in table no 7B

• The aggregate value shall be net of debit/credit notes issued in that period.`

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• All the Nil rated supplies, exempted supplies and Non –GST supplies need to be reported in table no. 8

• Aggregate level details need to be prov ided w h i c h n e e d t o b e bifurcated into 4 baskets as under :

1. Inter-state to RD 2. Intra-state to RD 3. Inter-state to URD 4. Intra-state to URD

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Any amendment in table no 4, 5 or 6 made in subsequent per iod relating to earlier period and debit n o t e a n d c r e d i t n o t e a n d amendment thereafter shall be reported in table no. 9

• All the amendment, Debit note and credit note shall be tagged to the original invoice

• Any changes in relation to table no 4, ,5 and 6 will be reported in table no 9A.

• Original debit note and credit note need to be reported in table no 9B and shall be tagged to the original invoice.

• Amendment in debit note and credit note need to be reported in table no 9C and shal l be tagged to original debit note and credit note

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• Any amendment in table no. 7 shall be reported in table no. 10

• Any amendment shall be tagged to that month in which there are changes

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All the details of advances and any amendments thereof need to be reported in table no 11• Advance received to be

reported in table no 11A, further bifurcation in to intra state and inter state is required

• Advance already received i n e a r l i e r p e r i o d & adjusted against supply of current period reflected in Tables 4,5,6 & 7 needs to be reported in table no 11B, further bifurcation in to intra state and inter state is required.

• Any amendment to table no 1 1 A o r 1 1 B o f t h e earlier period needs to be reported in Part II. Such amendment should be tagged.

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Summary of HSN codes needs to be provided in table No 12 depending upon the annua l T/O i n t he previous F.Y.

If Annual T/O in previous F.Y. : • Less than equal to 1.5 Cr

– either HSN or product description has to be provided

• Greater than 1.5 Cr but up to 5 Cr- HSN code 2 digits or more

• Greater than 5 Cr – HSN code 4 digits or more

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S u m m a r y o f t h e series of Invoice No o f Ta x i n v o i c e s , Debit Note, Credit N o t e , D e l i v e r y Challan, etc. issued during the period and any cancelation of the same during the tax period needs to be provided in table no 13

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Ø What is reversal as per Rule 42 and 43 ?

Ø What is Ineligible ITC as per Section 17(5) ?26/04/201926

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• New Return filing System shall be introduced on a Trial Basis from 01.04.2019 and on mandatory basis from 01.07.2019.

• All taxpayers excluding small taxpayers and a few exceptions like ISD etc. shall file one monthly return.

• New return system is simple with two main tables. One for reporting outward supplies and one for availing input tax credit based on invoices uploaded by the supplier.

• Invoices can be uploaded continuously by the supplier and can be continuously viewed and locked by the buyer for availing input tax credit. This process would ensure that very large part of the return is automatically filled based on the invoices uploaded by the buyer and the supplier. Simply put, the process would be “UPLOAD – LOCK – PAY” for most tax payers

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• Periodicity :ü Turnover > 5 cr in preceeding Financial Year (Monthly)ü Turnover < 5 cr in preceeding Financial Year (Quarterly)

ü Change in periodicity of the return filing would be allowed only once at the time of filing the first return by a taxpayer.

ü The periodicity of the return filing will remain unchanged during the next financial year unless changed before filing the first return of that year.

• Types of Returns under New System :ü SAHAJü SUGAMü NORMAL

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Return Periodicity

Clarifications

SAHAJ Quarterly • Eligibility :

ü Registered Person having B2CS supplies only and inward supplies attracting reverse charge.

• Restrictions :

ü Cannot make supplies through e-commerce operators on which TCS is applicable.

ü Cannot take credit on missing invoices .ü Shall not be allowed to make any other type

of inward or outward supplies.ü Can make nil rated, exempted or Non-GST

supplies which need not be declared in the said return.

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Return Periodicity

Clarifications

SUGAM Quarterly • Eligibility :

ü Registered Person having B2CS and B2B supplies only and inward supplies attracting reverse charge.

• Restrictions :

ü Cannot make supplies through e-commerce operators on which TCS is applicable.

ü Cannot take credit on missing invoices .ü Shall not be allowed to make any other type of

inward or outward supplies.ü Can make nil rated, exempted or Non-GST

supplies which need not be declared in the said return.

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Return Periodicity Clarifications

NORMAL Quarterly/Monthly

• Eligibility :ü Registered Person making all type of

supplies including and other than those covered under SAHAJ and SUGAM.

• Restrictions :ü There are no restrictions as such.ü Shall be able to declare all types of

outward supplies and inward supplies.ü Can take credit on missing invoices .

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• 4A, the information will be auto-populated from the provided by the supplier in GSTR-1 and GSTR-5.

• 4B, this information will be automatically filled from the information provided by the supplier in GSTR-1,

• 4C, inward supplies received from an unregistered supplier

• 4D, Import of service.

• It must be noted that all inward supplies to composition will auto-filled here

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• It will include amendment information mentioned in earlier tax periods and

• also original amended of debit or

credit note received, rate- wise. • Place of supply to be mentioned

in case if the same is different from the location of the recipient.

• While providing the information

of original debit /credit note, the details of the invoice must be provided in starting three columns,

• whereas, providing the revision

of the details of original debit /credit note shall be provided in the first three columns of this Table

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• provide the details of a tax rate,

• total turnover, out of turnover reported

• turnover of services

• composition tax amount including both central tax & State/UT tax.

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you will be able to rectify the

incorrect details you provided in

Table 6 in previous returns, without of turnover reported details additionally

added

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details of advance paid relating to reverse charge supplies and if

you paid taxes on them,

adjustments against invoices

issued to be mentioned in

Table 8

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TDS (Tax Deduct at Source will be auto-filled in Table 9

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you will be to provide the details of

Integrated Tax, Central Tax, State/UT Tax, and

cess tax amount payable as well tax

amount paid

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CA SACHIN P MAHER