GST Returns - Insights

Return is an important tool to collect the financial data and other related information, so as to enable the Department to have a concrete database for enforcing the compliance part. Thus, return process has become a powerful tool to implement the ‘data and revenue’ collection system. The submission and processing of return is an important link between the tax payer and tax administration. This article aims to throw light on the same.

All the assessees will have various modes to file the statements and returns. The GSTN upon enrolment will provide a User Id and Password which shall be used by the assessees for filing the tax return on the Common Portal. The assessees can e-file their statement and returns directly on the Common GST Portal. However, this may be tedious and time taking for them with large number of invoices. For such assessees, an offline utility will be provided that can be used for preparing the statements offline after downloading the auto-populated details and uploading them on the Common GST Portal.

Assessees have to file at least three monthly returns and one annual return, as per the revised draft model GST Law. Monthly returns are for output supply, input supply and summary accounts and would cover SGST, IGST & CGST. The monthly and annual returns are summarized as under:

  • GSTR-1 for outward supplies made by 10th of the next month;
  • GSTR-2 for inward supplies received by 15th of the next month;
  • GSTR-3 by 20th of the next month; and
  • GSTR-9 [annually] by 31st December of next FY.

The GSTR-1 & GSTR-2 forms will contain details relating to sales and purchases of/from various types of suppliers/vendors, exports/imports, sales/purchase returns, debit/credit notes etc. Further, GSTR-3 form is a monthly return which will be consolidation of Forms 1, 2, 6, 7 & 8 along with details of ITC ledger, tax liability and cash ledgers.

Compounding Dealer [availing composition scheme under section 9 of CGST/SGST Act, 2016] would have to file GSTR-4 [quarterly] by 18th of the month next to quarter and an Annual Return in GSTR-9A by 31st December of next FY; whereas GSTR-5 is to be filed by non-resident taxpayers and Input Service Distributor [ISD] would have to file GSTR-6 by 13th of the next month. However, Compounding Dealer and ISD would not be required to file GSTR-1, GSTR-2 and GSTR-3. Similarly, the persons liable to deduct tax at source under Section 46 will file a monthly return in GSTR-7 by 10th of the next month, whereas the persons liable to collect tax at source, i.e., e-commerce operators will file a monthly return in GSTR-8 by 10th of the next month.

Dealer with multiple registrations [for business verticals] within a State would have to file GSTR-1, GSTR-2, GSTR-3 and GSTR-9 for each of the registrations separately.

Every registered taxable person who has made outward supplies in the period between the dates on which he became liable to registration till the date on which registration has been granted shall declare the same in the first return filed by him after grant of registration. Additionally a Final Return has to be filed by registered taxable person who applies for cancellation of registration.

If any taxable person after furnishing a return discovers any omission or incorrect particulars therein, other than as a result of scrutiny, audit, inspection or enforcement activity by the tax authorities, he shall rectify such omission or incorrect particulars in the return to be filed for the month or quarter, as the case may be, as once filed, Returns cannot be revised.

Further, a separate reconciliation statement, duly certified by a CA, will have to be filed by those dealers who are having Audit under sub-section (4) of Section 53 of the revised draft model GST law. A registered taxable person who files return beyond the prescribed date will have to pay late fees of INR 100/- for every day of delay subject to a maximum of INR 5,000/-. However, late fee for filing the GSTR-9 Annual Return beyond the prescribed date will be INR 100/- per day subject to maximum of 0.25% on Aggregate Turnover.

To conclude, present regime of GST will have manifold effects on every part of business. Overall, the rules on return, in particular, look quite comprehensive and it is clear that businesses would need to have a strong technology support for GST compliance. Further, maintenance of separate set of books of accounts for each premise, concept of electronic ITC ledger, tax liability and cash ledgers will promote the transparency, thus, leaving no room for Hawala/suspicious transactions.

Disclaimer: The contents in this document are solely for information purpose. It does not constitute any professional advice. Author does not accept any liability for any loss or damage of any kind arising out of any information in this document. Due care has been taken in preparing this document, still the existence of mistakes or omissions herein is not ruled out. This document is property of the author. No part of this document should be published, reproduced or used in any other manner [except for personal, non-commercial use] without written permission of the author.

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Amrit Dalmia 
on 06 January 2017
Published in GST
Views : 10200
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