Returns under GST..

Hello readers,

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.

So, it is imperative to know about returns under GST. 

Let us learn about those.

Under GST, a regular taxpayer needs to furnish monthly returns and one annual return.

There are separate returns for :

• 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:

1. GSTN portal (www.gst.gov.in )

2. Offline utilities provided by GSTN

3. GST Suvidha Providers (GSPs) - By using solutions provided by GSP's (to know more about GSP click here: https://gst4cacscma.blogspot.in/2017/06/concept-of-gsp-asp-under-gst_22.html)

Following table lists the various types of returns under GST Law:

Return	Descripton	Who Files?	Date of Filing
GSTR-1	Monthly Statement of Outward supplies of Goods or Services	Registered Person	10th of the next month
GSTR-2	Monthly Statement of Inward suppliesof Goods or Services	Registered Person	15th of the next month
GSTR-3	Monthly Return for a normal taxpayer	Registered Person	20th of the next month
GSTR-4	Quarterly Return	Taxable Person opting for Composition Levy	18th of the month succeeding the quarter
GSTR-5	Monthly Return for a non-resident taxpayer	Non-resident Taxpayer	20th of the month succeeding the tax period & within 7 days after expiry of registration
GSTR-6	Monthly Return for an Input Service Distributor (ISD)	Input Service Distributor	13th of the next month
GSTR-7	Monthly Return for authorities deducting tax at source	Tax Deductor	10th of the next month
GSTR-8	Monthly Statement for E-Commerce Operator depicting supplies effecting through it	E-Commerce Operator	10th of the next month
GSTR-9	Annual Return	Registered Person other than an ISD, TDS/TCS Taxpayer, Casual Taxable Person and Non-resident Taxpayer	31st December of next Financial Year
GSTR-10	Final Return	Taxable Person whose registration has been surrendered or cancelled	Within three months of the date of cancellation or date of order of cancellation, whichever is later.

So, normally a registered person shall file 37 returns annually (i.e, 3 returns per month & one Annual return)

Filing Process :

A normal taxpayer has to file the following returns:

1. 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 filed 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.

2. 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. GSTR 2A 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. Based on GSTR 2A Return, tax payer has to file GSTR 2. 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.

3. GSTR-3: This is an auto-populated and consolidated return of GSTR 1 & GSTR 2 .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

NOTE:

1. Taxpayer’s GSTR-2A is auto-populated from the Suppliers’ GSTR-1s

2. Taxpayer’s GSTR-3 is significantly auto-populated from tax payer’s GSTR-1 and GSTR-2

Return Filing milestone:

1.   GSTR-1

• File via GSTN/Easy upload tools provided by GSTN/GSPs

• Periodical uploading allowed

• Filed by 10th

• Frozen after 10^th

2.   GSTR-2

• Auto-populated from GSTR-1s filed by a Tax Payer’s Suppliers

• Changes allowed between 10th and 15th

• Filed by 15th

3.   Reconciliation

• 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

Finally, Tax liability will be freezed by 17^th of succeeding month. 

4.   GSTR-3

• Auto-populated from GSTR-1 and GSTR-2

• Filed by 20th

• Payment can be made anytime before or on 20th

Revision of Returns:

No revision of returns are allowed. 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.

For example any Invoice dated 23^rd July, 2017 (pertains to F.Y. 2017-18), can be uploaded earlier of the following:

Date of filing the September, 2018 return (normally due date is 20^th of October, 2018)

                                                          (Or)

Date of filing the Annual Return of F.Y. 2017-18 ( Due date is 31^st December, 2018)

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.

Regarrds
Kumara Swamy A