Basic flow for filing of returns in GST:

Although there are various returns in GST. Formats for the returns in GST are already on public domain.Broadly the entire exercise of filing of returns in GST can be segregated into five parts:

• Filing of return
• Matching data with corresponding returns by supplier
• Filing of final return
• Matching of return
• Final settlement of return for a particular month.

Here we will explain in detail the provisions relating to filing of return in GST. Compliance will play an important part in future in survival of a business entity. Any mismatch or lack of compliance from one side will hurt the other side. The availability of input tax credit to a recipient in GST will be dependent on compliance by the vendor. If the vendor don’t deposit the tax or after depositing taxes don’t file a correct return the recipient will lose credit. Although even if in future the vendor corrects the return credit will flow to the recipient.

Apart from that the GSTIN will also maintain the credit rating of all vendors/suppliers on the basis of their compliance rating. This will also change our vendor selection and in long term make it easy to find the genuine business players.

Once the process of matching is done the final credit will be there with recipient. GST has allowed a time limit for correction of any data in returns. This limit is the earlier of the filing of September return of next year or filing of annual return.

 

Forms for filing returns in GST by a normal taxpayer:

 

Except the following five taxpayers three returns will be there for all other taxpayers:

• Input service distributor: GSTR 6 by 13^th of next month.
• Non-resident taxable person: GSTR 5 by 20^th of next month.
• Composition dealer paying tax in section 9: GSTR 4 by 18 of end of quarter.
• A person responsible for deducting TDS u/s 46: GSTR 7 by 10^th of next month.
• A person (e-commerce operator) responsible for deducting TCS u/s 56: GSTR 8 by 10^th of next month.

Sl. No.	Return	Due date	Frequency	Last date to modify
1	GSTR-1	10th of next month	Monthly	Date of furnishing of return for the month of September or Annual return. Whichever is earlier
2	GSTR-2	15th of next month	Monthly	Date of furnishing of return for the month of September or Annual return. Whichever is earlier
3	Modification of GSTR-1 as amended by recipient	17th of next month	Monthly
4	GSTR-3	20th of next month	Monthly	Last Date of furnishing of return for the month of September or Annual return. Whichever is earlier

 

Details we need to provide in basic returns in GST:

Now we need to understand these returns one by one.

GSTR-1:  Return of supplies

GSTIN has been working to ensure the complete synchronisation. Here the supplier will file the details of all supplies during the month. Details for these supplies will be dependent on their nature. Section 32 of Model GST law covers the provisions for filing of GSTR-1.

B2B to supplies: In case of B2b supplies invoice wise details are required. Following is the image for window to add invoice. As you can see it has various fields. Its interface is similar to quicbooks.

Broadly the data in GSTR-1 will be segregated into following headings:

• Taxable outward supplies to a registered person
• Taxable outward supplies to a consumer where Place of Supply (State Code) is other than the State where supplier is located (Inter-state supplies) and Invoice value is more than Rs 2.5 lakh.
• Supplies to consumer
• Details of Credit/Debit Notes
• Nil rated, Exempted and Non GST outward supplies*
• Supplies Exported (including deemed exports)
• Tax liability arising on account of Time of Supply without issuance of Invoice in the same period.
• Tax already paid (on advance receipt/ on account of time of supply) on invoices issued in the current period
• Supplies made through e-commerce portals of other companies
  1.  to Registered Taxable Persons
  2. to Unregistered Persons
• Invoices issued during the tax period including invoices issued in case of inward supplies received from unregistered persons liable for reverse charge

 

 

GSTR-2: Return of receipts

GSTR-2 is the return to make an action on the return of supply. The data provided by the supplier will auto populate to the recipient of the supply. He will be able to take various action.

• Accept
• Reject
• Modify
• Add invoices

DETAILS OF INWARD SUPPLIES/PURCHASES RECEIVED

1. From Registered Taxable Persons including supplies received from unregistered person in case of reverse charge
2. Goods /Capital goods received from Overseas (Import of goods)
3. Services received from a supplier located outside India (Import of services)
4. Details of Credit/Debit Notes
5. Supplies received from composition taxable person/unregistered person & other exempt/nil/non GST supplies
6. ISD credit received
7. TDS Credit received
8. TCS Credit received
9. ITC Received on an invoice on which partial credit availed earlier
10. Tax liability under Reverse Charge arising on account of time of Supply without receipt of Invoice
11. Tax already paid under Reverse Charge in earlier tax periods on account of time of supply for which invoices issued in the current period
12. ITC Reversal

Auto populated date in GSTR -2A:

Part A: (Auto populate from data filed in GSTR 1 and 5)

• Inward supplies received from Registered Taxable Persons
• Details of Credit/Debit Notes

Part B:

• ISD credit received (Auto populate from data filed in GSTR 6)

Part C: (Auto populate from data filed in GSTR 7)

• TDS Credit received

Part D: (Auto populate from data filed in GSTR 8)

• TCS Credit received

 

GSTR-3:Return for Outward Supplies

Inter-state supplies to Registered Taxable Persons	(Auto populated from GSTR-1)
Intra-State Supplies to Registered Taxable Persons	(Auto populated from GSTR-1)
Inter-State Supplies to Consumers	(Auto populated from GSTR-1)
Intra-State Supplies to Consumers	(Auto populated from GSTR-1)
Exports (including deemed exports)	(Auto populated from GSTR-1)
Revision of supply invoices/Credit notes/Debit notes and others pertaining to previous tax period (including post sales discounts or any clerical/other errors)	(Auto populated from GSTR-1)
Total tax liability on outward supplies

 

Inward supplies:

Inter-State supplies received	(Auto-populated from GSTR2)
Intra-State supplies received	(Auto-populated from GSTR2)
Imports	(Auto-populated from GSTR2)
Revision of purchase invoices/Credit note/Debit note and other details pertaining to previous tax period (including post sales discounts received or any clerical / other errors	(Auto-populated from GSTR2)
Total Tax liability on inward supplies on reverse charge	(Auto-populated from GSTR2)
ITC Reversal	(Auto-populated from GSTR2)
Output tax added/reduced on account of non-rectification/rectification of communicated mismatches	(Auto-populated from GSTR2)
Total Tax liability for the month	(Auto-populated from GSTR2)
TDS credit received during the month	(Auto-populated from GSTR2)
TCS credit received during the month	(Auto-populated from GSTR2)
ITC received during the month

 

Part B:

• Tax, interest, late fee and penalty paid (auto-populated from cash and ITC ledger)
• Refunds claimed from cash ledger

GST3A: Notice for non-filing of return.

Provisional acceptance: Section 37 and 38 of MGL provide for the matching of returns in GST. Section 37 provide for the matching of input tax credit.

 

 

Matching of returns:

There will be two type of matching in GST

Matching, reversal and reclaim of input tax credit.       (Section 37)

The details of inward supply of every registered taxable person will be matched with

• The corresponding details of outward supply furnished by the corresponding taxable person
• The additional duty of customs paid under section 3 of the Customs Tariff Act, in respect of goods imported by him

 

• For duplication of claims of input tax credit.

After this matching the discrepancies will be communicated to taxpayers:

• The claims of input tax credit matched to corresponding supplier will be accepted and communicated to recipient.
• Where the input tax credit claimed don’t match with the valid returns by the supplier. It will be communicated to both recipient and supplier.
• The duplication of claims of input tax credit shall be communicated to the recipient.

Reversal of credit:

If the discrepancies communicated in above manner are not rectified.

• Any discrepancy communicated to both for mismatch of returns will be added to the output tax liability of recipient. This addition will be in the next month of communication. However if in future the supplier add those invoice in his valid return the amount paid as tax and interest by recipient will be refunded to him.
• For any duplication the amount will be added to output tax liability of recipient in next month.

Matching, reversal and reclaim of reduction in output tax liability (Section 38)

In this part the details of every credit note will be matched with corresponding input tax credit of recipient. The details of every credit not will be matched with:

• the corresponding reduction in the claim for input tax credit by the corresponding taxable person
• for duplication of claims for reduction in output tax liability

After this matching the discrepancies will be communicated to taxpayers:

• The claim for reduction in output tax liability by the supplier that matches with the corresponding reduction in the claim for input tax credit by the recipient shall be finally accepted and communicated, in the manner as may be prescribed, to the supplier.

 

• When the reduction claimed by supplier exceeds the corresponding reduction in ITC by recipient. The discrepancy shall be communicated to both of them.

 

• The duplication of claims for reduction in output tax liability shall be communicated to the supplier

If the discrepancies communicated in above manner are not rectified.

• When the taxpayer don’t rectify the discrepancy in return for the month of communication. The amount will be added to the output tax liability of supplier in the return of succeeding month.
• Any amount for duplication will be added to the output tax liability of the supplier. This addition will be in his return for the month in which such duplication is communicated.
• If the recipient declares the details of credit note in his return supplier will be able to reduce his output tax liability.

 

Summary of various returns in GST:

Form	Details to be filed	Due date
GSTR-1	Details of outward supplies of taxable goods and/or services	10th of next month plus 17th for modifications by recipient
GSTR-1A	Details of outward supplies as added, corrected or deleted by the recipient	Auto populated
GSTR-2	Details of inward supplies of taxable goods and/or services claiming input tax credit	15th of next month
GSTR-2A	Details of inward supplies made available to the recipient on the basis of FORM GSTR-1 furnished by the supplier	Auto Populated
GSTR-3	Details of inward supplies of taxable goods and/or services claiming input tax credit	20th of next month
GSTR-3A	Notice to non-filers of return
GSTR-4	Quarterly Return for compounding Taxable persons	18th of next month
GSTR-4A	Details of inward supplies made available to the recipient registered under composition scheme on the basis of FORM GSTR-1 furnished by the supplier	Auto Populated
GSTR-5	Return for Non-Resident foreign taxable person	20th of the month within 7 days after expiry of registration
GSTR-6	ISD return	13th of next month
GSTR-6A	Details of inward supplies to ISD recipient on the basis of FORM GSTR-1 furnished by the supplier	Auto Populated
GSTR-7	Return for authorities deducting tax at source	10th of next month
GSTR-7A	TDS Certificate	Auto Populated
GSTR-ITC-1	Communication of acceptance, discrepancy or duplication of input tax credit claim	Auto Populated
GSTR-8	Details of supplies through e-commerce operator and the amount of tax collected	10th of next month
GSTR-9	Annual return	31st December of next year
GSTR-9A	Simplified Annual return by Compounding taxable persons
GSTR-9B	Reconciliation Statement
GSTR-10	Final return	Three  months from cancellation of registration or date of cancellation whichever is later
GSTR-11	Details of inward supplies to be furnished by a person having UIN	28th of following month

 

Filing of Annual return:

When Audit is not required:

 

Every registered taxable person shall furnish an annual return for every financial year. Return shall be filed on or before the thirty first day of December following the end of such financial year.

 Filing of annual return when audit is required:

Every registered taxable person who is required to get his accounts audited under shall file annual return. Alongwith annual return a copy of the annual accounts and a reconciliation statement shall be attached. The statement shall be reconciling the value of supplies declared in the return furnished for the year with the audited annual financial statement