Wednesday, May 17, 2017

GST Returns with due date, particulars and procedure

1. Returns To Be Filed Under GST.

GST has shifted filing of returns on a monthly basis. Basic Returns that need to be filed under GST are as follows:
a.        Monthly Basic & special Returns
a.       GSTR 1 - Outward Sales by Dealers                                Due by 10th of Next Month
b.       GSTR 2. -Purchases by Dealers                                         Due by 15th of Next Month
c.        GSTR 3.- GST monthly return with payment of tax     Due by 20th of Next Month
d.       GSTR 6-  Return by Input Service Distributor             Due by 15th of Next Month
e.        GSTR 7 - GST Return for TDS                                          Due by 10th of Next Month
f.         GSTR 8- GST return for E- Commerce Suppliers        Due by 10th of Next Month

Ø  Quarterly Basic & Special Returns
a.       GSTR 4. - GST quarterly return                                          Due by 18th of next Month of every Quarter
b.       GSTR 5. -Return by Non-Resident Foreign Tax payer    Due by 20th of Next Month of Quarter

Ø  Annual Basic & Special Returns
a.        GSTR 9. - GST Annual Return                                             Due by 31st Dec. of Next Financial Year

Each Branch will be treated as a separate entity for GST purpose and all these returns are to be filed separately for every branch of the organization.

1.1. Statement of Outward Supplies [GSTR 1]

GSTR 1 is a monthly Statement of all the Outward Supplies made by normal registered taxpayers& to be filed by all the supplier taxpayers & shall include:
a.     Details of Credit/Debit Notes issued against invoices.
b.     Zero rated, exempted, and non-GST supplies.
c.     Exports.
d.     Advances received in relation to future supply.
Exceptions:  Only three types of service providers are not liable to file GSTR 1.
a.     Input Service Distributors.
b.     Tax Deducted at Source (TDS) Deductor.
c.     Taxpayers under the Composition Scheme.

Due Date for filing GSTR 1:The due date for filing GSTR 1 for a month is 10th day of the succeeding month (11:59:59 PM)
For Example: GSTR 1 for Goods/Services supplied during the calendar month of June 2017 should be filed by 11:59:59 PM on 10th July, 2017

Whether GSTR 1 includes only Turnover or all the Supplies by an Entity
GSTR 1 includes all the supplies of goods irrespective of the fact whether they are sales or not& includes Export sales, debit/credit notes received, NIL Rated, Exempted supplies,  Advances received against future supplies etc. Column for Turnover: GSTR 1 includes a column for Turnover. Amount of turnover has to be entered manually in this column for 1st year only.
Auto calculation of Turnover: From the second year of implementation, the system will auto-calculate the turnover based on all the annual returns filed for all the GSTINs associated with a given PAN.
Option to Amend Auto Calculated Turnover: However, the turnover value will be editable and you will have the option to amend it.

Gross Amount of Sales to be mentioned in Turnover Column:
Turnover column in GSTR 1 is for the invoice value that is inclusive of taxes. There will be no validation that the invoice value is equivalent to taxable value plus the tax amount.

Generation of Exception Reports
The GST system will generate reports where the difference between the invoice value and the taxable value is greater than INR 1,00,000 or more than 5%. The reports will be examined by the Jurisdictional Officer.

Supplies Through E-Commerce mode to be reported in GSTR 1
All  the Supplies which have been effected through E-Commerce have to be reported in GSTR 1.
Uploading of Invoices for Filing of GSTR 1.

         i.            Taxpayers can upload invoices at any time during the tax period and not just at the time of filing.
For Example: For July 2017 – Tax payer can upload invoices from 1st July to 10th August 2017 .Thus a period of  40 days is  available for upload of invoices by a taxpayer.
       ii.            A taxpayer can change/modify/delete invoices any number of times till they file the GSTR 1.
The uploaded invoice details are in a draft version till the GSTR 1 is filed and can be changed irrespective of due date.

Duplication of Invoice series in a Financial Year.
For a particular GSTIN, there cannot be duplicate invoice series in a particular financial year.
Addition of Prefix in case of Duplicate Series. In case the same series is used for different invoice books, as per the current practice, a prefix must be added to the series to make it unique.

No Relation Between HSN Code & Tax Rate applicable on Taxpayer.
Rate of tax is not automatically update in form GSTR 1 once HSN code is entered because tax rate is not validated with HSN code at the time of filing return. Taxpayer has to manually enter the applicable tax rate. The list of HSN codes & their corresponding tax rates has been given on the GST portal.

Credit to be allowed only in  respect of invoices pertaining to the period after the date of Registration.
Tax payer shall not be allowed input tax credit in respect of invoices prior to the period of registration.
 Steps involved in filing GSTR 1:
                Step I:    Log into GST portal using his ID & Password.
                Step II:   Navigate to Services < Returns < Returns Dashboard.
                Step III:  Select FY & Month for which GSTR 1 is to be filed.
                Step IV:   All Return form will be displayed & Taxpayer will select Form GSTR 1 & click on                                                                PREPARE ONLINE/ UPLOAD.
                Step V: After entering/uploading the data click SUBMIT to validate DATA.
                Step VI: After data has been validated, click "File GSTR 1 using DSC or E-sign.
                Step VII: Confirm the same & an acknowledgement will be generated.

Fees for late filing of GSTR
Fees  for late filing of GSTR 1 is calculated once GSTR 1 has been filed. Late fees for GSTR 1 must be paid before filing of GSTR 3 otherwise GSTR 3 shall become invalid.
Late Fees @ Rs. 100 per day for the period of delay is payable in respect of delay in filing of GSTR 1.

GSTR 1 can be filed only after the end of the month to which GSTR Relates.
However, following persons can file GSTR 1 even before the end of current tax period:
         i.            Casual Taxpayers/ Non Resident Taxable Persons
       ii.            Normal Taxpayers in event of cancellation of GSTIN.

On filing of GSTR1, details of B2B supplies shall automatically be updated in GSTR 2 of the respective taxpayer.

Filing of GSTR 1 by supplier after filing of GSTR 2 by the receiver- Actions to be taken by Supplier.
If the receiver of supplies has filed GSTR 2 before the supplier's GSTR 2, then the supplier shall have to accept/ modify/ reject the invoices uploaded by the supplier.
Such acceptance/modification/rejection of invoices  by supplier w.r.t. invoices uploaded by Receiver in From GSTR 2 will form part of GSTR 3 of supplier if such acceptance/modification/ rejection of invoice is done & GSTR 1 filed successfully before creation of GSTR 3 by the supplier.

Example 1: A supplier files GSTR 1 on 10 July& GSTR 2 has been filed by the receiver of supply on 17 th July then, invoice data will go to supplier for acceptance/modification/rejection to the supplier. If invoice data is accepted/ modified before creating GSTR 3 by the supplier, it will be added to GSTR -3 of supplier for July.
 If supplier has not taken any action regarding any addition/modification made by receiver of supplies till the due date of filing GSTR 3, then the invoices shall be carried forward to next tax months until the end of Financial Year.  

Reversal of Tax Credit by a receiver of supply in case of Non filing of GSTR 1 by supplier/ Non acceptance of invoices by the supplier.
In such a scenario, buyer may avail a provisional credit. In order to avail provisional credit, receiver taxpayer has to fill the required details in GSTR 2 by using ADD MISSING INVOICE option.
The supplier must accept the missing invoices before the end of succeeding tax period otherwise provisional input tax credit availed by receiver taxpayer has to reversed& interest will also be payable on the same.

FORM GSTR 1 - Rectifications
Rectifications can be made in Form GSTR 1 only in respect of those invoices that have remained unmatched in the tax period & the same has not been accepted by the receiver. Such rectification shall be made upto 30th September of succeeding FY or filing of Annual Return of GST whichever is earlier.

Once the invoices have been accepted by the receiver taxpayer, same cannot be amended.

Rectification of incorrect GSTIN filed in GSTR 1.
There are two possible scenarios in this case.
a. Normal Scenario: The receiver rejects the invoice(s), following which you will get the intimation for the same and you can then amend the GSTIN of the invoice.
b. Exceptional Scenario: If the receiver accepts the invoice(s), you will have to report the issue to your Jurisdictional Officer as availing credit on goods and/or services not received and/or availed respectively by a receiver taxpayer is a violation of GST law.

Validation checks for Duplication of Input Tax Credits.
The validation shall be performed by GST portal using a combination of GSTIN, Invoice Number, and Financial Year.
Whenever an invoice is uploaded by a supplier, the system will display an error message if the counterparty attempts to upload the same invoice again.

Refund of IGST & payment of CGST/SGST if interstate transactions are mentioned as intra state transactions in GSTR 1
In such a case, the taxpayer is required to claim refund for the incorrect payment of IGST and is required to pay CGST/SGST separately. Interest will also be payable for any additional amount if any.

1.2 Statement of Inward Supplies [GSTR 2]

Applicability & Exemptions: All those taxpayers who are required to file GSTR 1 shall also be required to file GSTR 1 since GSTR is mandatory even if there is no business activity during the period. (NIL Return)  
Further, like GSTR 1, Input Service Distributors, Taxpayers opting for composition scheme & nonresident taxable persons shall be exempt from the requirement of filing GSTR 2 mandatorily. 

Due Date of filing GSTR 2
The due date for filing GSTR 2 is the 15th of the month succeeding the month being returned.
Example: The goods and/or services received during the month of June should be filed by the 15th of July. In other words, for the supplies received in a month, the GSTR 2 shall be filed on or before the 15th day in next month.

Late fees for delayed filing of GSTR 2
The charge for late filing of GSTR 2 is INR 100 per day per Act under GST laws (IGST/CGST/SGST)&total late fees per day may go upto INR 300 (100+100+100) per day.
Late fee for filing GSTR 2 after the due date is auto calculated after filing the return &the payment of late fee is not required before filing of GSTR 2.
The fee must be paid before filing GSTR 3, otherwise the return will be considered invalid.

Filing of GSTR 2 allowed even if GSTR 3 of previous period not filed.
Receiver taxpayer can file his GSTR 2 for a tax period if he has not filed GSTR 3 for previous tax period. However, taxpayer cannot file the GSTR 2 for a given tax period he has not filed his GSTR 2 for the previous tax period.

Earlier filing of GSTR 2
Normally a receiver taxpayer cannot file GSTR 2 before 10th of the month succeeding the tax period. However, GSTR 2 can be filed by the taxpayer during the tax period only in cases of:
• Casual Taxpayers and Non-resident Persons
• Taxpayers who applied for cancellation of GST registration if they have received the cancellation order.

Flow of Information from GSTR 1 & GSTR 2 to other Returns
         i.            If GSTR 2 is filed after supplier has filed GSTR 1
Once the supplier has filed GSTR 1, receiver taxpayer can accept/delete/modify each and every invoice uploaded by supplier. Such Invoices uploaded by supplier may be kept pending for action till next tax period return of the receiver taxpayer.
Any invoice accepted/modified by receiver taxpayer, becomes part of their GSTR 2 return in its modified form.
In case of rejection of invoice by receiver taxpayer, such invoice is removed (deleted) from your GSTR 2 and intimation is sent to the supplier & the rejected invoice does not form part of GSTR 1 of supplier.
Further, receiver taxpayer has to take action (accepting/modifying/rejecting) on each & every invoice declared by supplier in GSTR 1.
Invoice once rejected by receiver taxpayer, cannot be accepted by him later.

        ii.            If GSTR 2 is filed before supplier has filed GSTR 1
In such a case,  all B2B, Amended B2B, Debit and Credit Notes, and Amended Debit/Credit Note details from your GSTR 2 will be auto recorded in the GSTR 1 of the supplier taxpayer and supplier taxpayer has to take action against each and every invoice received by accepting/modifying/rejecting it.

      iii.            Mismatch in value of tax declared by supplier & receiver.
In such cases, there will be an upward revision of tax liability for either party &a mismatch report shall be generated that will be communicated to the supplier, receiver, and concerned tax officer(s).

The recipient shall also have to pay interest at the rates prescribed on the amount of credit mismatched.

Revision of GSTR 2
Yes, GSTR 2 can be revised before filing of return for the month September of the succeeding FY or filing of the Annual Return GSTR 9 of the relevant Financial Year, whichever is earlier.

Declaration of invoices not declared by supplier in GSTR 1 earlier - Effect on Interest & Output Tax Liability
The recipient can reduce, from his output tax liability, the amount of tax which was added as a result of non-declaration of tax for the same supply by the supplier.
The interest paid by the recipient shall be refunded to the recipient by crediting the amount in his electronic cash ledger but the amount of interest refund shall not exceed the amount of interest paid by the supplier.


It is generated when the first supplier taxpayer files their GSTR 1 and is then updated incrementally as and when supplier taxpayers file their respective GSTR 1s for the given tax period until such time that the receiver taxpayer files their GSTR 2.
GSTR 2A shows the details of GSTR 1 & 5, ISD Credits,  TDS Credits & TCS Credits received.
a.       Read Only Document: It is a read-only document provided so that receiver taxpayer can have a record of all the invoices received from various supplier taxpayers in a month.
b.       Available for download: GSTR 2A for a given tax period will be available for downloading in your post-login section of the GST portal.
c.        Intimation of new entries in GSTR 2A: An alert in the form of an email and a message on the dashboard will be sent to the taxpayer when any new details are auto-populated into GSTR 2A.

How GST TDS & GST TCS be utilized for payment under GST regime ?
Procedure to avail TDS/TCS Credit:  There is a ‘Utilize Cash/ITC’ button available for making the payment on the summary page of the GSTR 3.  On clicking this button, the following will be displayed:
                a. Tax liability
                b. Cash balance in electronic cash ledger (including TCS and TDS credits accepted in GSTR 2)
                c. Provisional Input Tax Credit available as per the electronic credit ledger
                d. Realised Input Tax Credit available as per the electronic credit ledger
Thereafter, the taxpayer will be facilitated to pay the return-related liability for the current tax period by utilizing (b), (c), and (d).
TDS: Any amount of tax deducted at source by a receiver taxpayer or consumer while making payment(s) in lieu of supply of taxable goods and/or services to the supplier is known as TDS credit and the same can be set-off against the tax liability of the supplier as discussed above.
TCS: Any amount of tax collected at source by an e-commerce operator while making payment(s) in lieu of supply of taxable goods and/or services to the supplier is known as TCS credit and the same can be set-off against the tax liability of the supplier as discussed above.
Process of computation of interest under GST
The interest on admitted tax as per the return GSTR 3 shall be calculated from the first day after due date for payment of the tax. The interest on undue or excess claim of ITC for a month shall be calculated from the first day after due date for claiming the correct amount of ITC.

Illustration: Taxpayer filed GSTR 1 for April on 10th July mentioning a tax liability of INR 100000 and GSTR 2 was filed on 15th July where ITC availed was INR 75000. The balance, INR 250, was paid on 25th July and GSTR 3 was also filed on the same day (5th day after the due date 20th July).

Q1: Will interest will be levied on balance INR 25000 or INR 100000?
Answer: The interest will be levied on INR 25000.

Q2: What are the total number of days for which interest will be calculated?
Answer: Interest will be computed from 21st July to 25th July.
Interest Calculation due to mismatch of invoices in GSTR 1 & GSTR 2.
Mismatch report of invoices and debit notes will consist of following parts –
Case 1: Invoices and debit notes included in GSTR 2 of receiver but not in GSTR 1 of supplier.

Case 2: Invoices and debit notes included both in GSTR 1 of supplier and GSTR 2 of receiver, however, supplier has not filed a valid GSTR 3 return. Report will be generated on 21st of month or filing of GSTR 3 by receiver whichever is later, where M is the tax period.

Case 3:If the supplier rejects or doesn’t take any action till creation of GSTR 3 of supplier or due date of filing of GSTR 3 by receiver , whichever is earlier, entry for ITC reversal in the electronic credit ledger of the receiver will be made on 21st of the month. (1 day after due date of GSTR 3)

Case 4: If the supplier doesn’t file a valid return by 20th of month (due date), entry for ITC reversal in the electronic ledger of the receiver will be made on 21st of month (1 day after due date of GSTR 3).

Can existing CENVAT/VAT Credit be adjusted against tax liability under GST Act?
Yes, provided such CENVAT /VAT credit is also admissible under the GST laws.

1.3   GSTR 3

GSTR-3 is a consolidated return filed by the taxpayer based on GSTR-1 and GSTR-2. GSTR-3 provides the details of tax liability for a given tax period and details of tax paid.
Applicability: All normal taxpayers including casual dealers and non-resident taxable persons shall file GSTR 3.
Exceptions: Input Service Distributors (ISD), Compounding Taxpayers and Tax Deducted at Source (TDS) deductors are not required to file GSTR 3.

Can GSTR 3 be filed offline
Yes. GSTR 3 can be submitted online on the GST portal, offline using the offline utility provided by GSTN, or using the services of a GST Suvidha Provider (GSP).

Due Date of filing GSTR 3
GSTR 3 needs to be filed by 20th of the succeeding month from the end of month for which it is being filed. Unlike GSTR 1 & 2, late filing of GSTR 3 will be permitted only after payment of late fees.
Example: For the tax period 1st July 2017 to 31st July 2017, GSTR 3 needs to be filed by 20th August 2017.
Further, GSTR 3 shall not be allowed to be filed if taxpayer has not filed GSTR 3 of previous tax period.
& GSTR 3 needs to be filed even if there are no business activities during the period.

Late fees for GSTR 3 & invalidation of GSTR 3
Late fee for filing of GSTR 3 is INR 100 per act & may go upto INR 300 per day.
Your GSTR 3 for a month will be invalid if it is filed without the payment or with partial payment of liabilities.

3. GSTR 7: TDS Return under GST

3.1. Registered Tax Payers who are liable to deduct Tax Deduction at Source (TDS) under GST, will be required to file a monthly return for the tax deducted under GST in Form GSTR – 7.  A certificate of tax deducted is issued by the deductor to the deductee through Form GSTR-7.
A.      Person liable to File GSTR-7.
a.       The person who has to deduct tax has to obtain registration number by filing of Form GST REG – 07.
b.      Monthly filing of GSTR-7:  GSTR – 7 has to be filed by the deductor every month using the services of GSP or directly on GSTN servers.
c.       Deduction Certificate: GSTR – 7A is the deduction certificate to be issued month-wise to the deductee.
B.       Due Date.
a.       GSTR-7 TDS Return to be furnished by 10th of the month succeeding the month of deduction.
3.2. Return to be Furnished Electronically :  Every registered taxable person required to deduct tax at source under section 37 Model GST Law shall furnish a return in FORM GSTR-7 electronically through the Common Portal on basis of this return, part C for GSTR – 2A will be auto-populated for the deductee. either directly or from a Facilitation Centre, notified by the Board or Commissioner.
3.3. Details required in GSTR-7 TDS Return :
i.  Invoice wise and Deductee wise TDS details.
ii.   Revision in TDS details.
iii.  TDS Liability payable and paid.
iv.  TDS Refund Claimed.

3.4. TDS deducted as declared in GSTR-7 to form part of GSTR-2
TDS under GST will be shown in Table 10 of GSTR – 2, basis of the return filed by the deductor in the return GSTR – 7.
The amount of TDS deducted under TDS under CGST, TDS under SGST and TDS under IGST will be eligible for ITC and can be utilized for payment of output tax liability.

3.5.  Information to Supplier in FORM GSTR-2A:-
The details furnished by the operator shall be made available electronically to each of the suppliers in Part ‘C’ of FORM GSTR-2A on the Common Portal after the due date of filing of FORM GSTR-7.

3.6.  Certificate of TDS to Deductee :-
The certificate of TDS deduction shall be made available electronically to the deductee on the Common Portal in FORM GSTR-7A on the basis of the return filed.

Every registered taxable business is required to furnish details of Inward and Outward Supply and make payment of GST in monthly GSTR-3 Return. Taxable person who opted for compounding scheme u/s 8 of GST Act shall require to furnish a return for each quarter or part thereof, electronically, in GSTR-3, within eighteen days after the end of such quarter.
Under GSTR-1 requires the taxpayer to furnish details of outward supply. Likewise, GSTR-2 mandates furnishing details of inward supply or purchases.  Now, let us know, various heads and their information source under GSTR-3.
Every registered taxpayer is required to file monthly return before 20th of next month.
Please note that the Form GSTR-3 contains two parts Part A and Part B.
Part A contains the Inward Supply, Outward Supply, Total Tax Liabilities, TDS and TCS credit receipt during the month.
Part B contains tax, interest, late fee and penalty remitted during the month
How to fill Form GSTR-3:
 1. GSTIN – Each taxpayer will be allotted a state-wise PAN-based 15-digit Goods and Services Taxpayer Identification Number in short (GSTIN).   GSTIN of the taxpayer will be auto-populated at the time of return filing.  The GSTR-3 will have two parts 1) Part –A and 2) Part-B which consisting of the information of Form GSTR-1 and Form GSTR-2 which will be auto generated in other words electronic credit ledger, electronic cash ledger and electronic tax liability register of the taxable person.
√ 2. Name of the Taxpayer – Name of the taxpayer, will also be auto-populated at the time of logging into the common GST Portal.
 3. Address – Business address of the registered taxable person will get auto-populated here.
√ The system will not allow to furnish return for a tax period if valid return for any previous tax period has not been furnished by the  taxable person.
√ If there is no transaction during the month, the taxpayer shall submit a NIL return.
 4. Period: (Month -Year) – A Taxable person is required to select from a pre-fixed drop down the relevant month and year respectively for which GSTR-3 is being filed.
√ 5. Turnover Details – This column will include consolidated turnover of all types of supplies. Gross turnover needs to be bifurcated between:
√ Taxable Turnover
√ Export Turnover
√ Nil rated and Exempted Turnover
√ Non-GST Turnover
√ Total Turnover ( sum of above all)
√ 6. Outward Supplies – All the particulars filed under GSTR-1 will flow under this column. GSTR-1 requires an assessee to furnish details of outward supplies. All such information gets auto-populated under respective column. These sub-columns have been provided as under:
1. Inter-State Supplies to Registered Taxable Person
2. Intra-State Supplies to Registered Taxable Person
3. Inter-State Supplies to Consumers
4. Intra-State Supplies to Consumers
5. Exports (including deemed exports)
6. Revision of Supply Invoices / Credit Notes / Debit Notes
7. Total Tax Liability on Outward Supplies
√ 7.  Inward Supplies – Similar to outward supply, every registered taxpayer is required to furnish details of inward supply in his monthly GSTR-2. All the information filed under GSTR-2 will flow into this column. The following are the sub-columns wherein the information will get auto-populated:
1. Inter-State Supplies Received
2. Intra-State Supplies Received
3. Imports
4. Revision of Purchase Invoices / Credit Notes / Debit Notes
5. Total Tax Liability on Inward Supplies on Reverse Charge
6. ITC Reversal
√ 8.  Total Tax Liability for the month – Once all the outward supplies and inward supplies are declared, GSTN portal will auto-calculate the tax liability under this column. The taxpayer will have to determine his taxliability  from dealing in goods and services both. Further,  a separate value will be shown for CGST, SGST, and IGST respectively.
√ Any tax due to appropriate government as per the return shall pay to the credit of appropriate government not later than the last date on which the taxpayer is required to furnish return, without such payment the return will not be treated as a valid return and will not allow input tax credit.
√ 9.  TDS credit received during the month – Any tax credit by way of tax deducted at source will auto-populate here from taxpayer’s GSTR-2.
√ 10. TCS credit received during the month – Similar to TDS above, in the case of E-commerce market place sellers, any amount of TCS collected by the E-commerce operator will be available here. This information will again be auto-filled from the GSTR-2 filed for the same period.
√ 11. ITC received during the month – Total amount of eligible input tax credit available for adjustment will get auto-computed here.
Part B
√ a.  Tax, Interest, Late Fee and Penalty Paid – This will take input from all the columns above and will determine the final GST liability. Tax liability will be shown separately against IGST, CGST, and SGST. The taxpayer will have an option to debit his cash ledger or credit ledger against the liability outstanding.
√ b.  Refunds Claimed from Cash Ledger – Input Credit amount in excess of tax liability will flow to this column. The taxpayer can claim a refund of the amount showing in this header.
Once all the particulars are furnished correctly, the taxpayer is required to sign digitally either through a digital signature certificate (DSC) or Aadhaar based signature verification to authenticate the return.

Contributed by Team GST at Sandeep Ahuja & co