The trade and industry was expecting that the date for rollout of GST will have differed before the 17th GST Council meeting held on 18th June 2017 but in the press briefing the Finance Minister Shi Arun Jaitley has categorically confirmed that there are no change in the rollout of GST and it will be implemented from 1st July 2017. As the return formats have been released on 3rd June 2017 and the GSTN is not ready with the architecture, the Government has given a breather for the trade and industry that the returns for the first two months for payment of duty can be filed using a new return called GSTR – 3B and for filing of GSTR – 1 and GSTR – 2 additional timeframes has been provided. This is a golden opportunity for the trade and industry to brace up for the changes to GST and adopt the same. Now the rule of “Change or Perish” is very much applicable. If the taxpayer does not change is business process or strategy in line with the GST, the top line and the bottom line is going to be impacted heavily, which in some cases can result in being out of business also.
Return filing under GST is undergoing a major change, unlike the current process of filing different returns for each state for Value Added Tax, location based returns for Central Excise, and for Service Tax Pan India level. Going forward under GST, the return filing is online, and transaction level data has to be filed unlike the summary returns in the existing reporting requirements.
Another major change is especially for the enterprise customers have to engage the services of GST Suvidha Provider (GSP) or Application Service Provider (ASP). The same is explained in the following diagram
Same return is applicable for the Central and the State taxes under GST unlike different returns for the State and the Central Government. The returns to be filed under GST is different of the regular taxpayers and for others who deliver/supply specific services or based on the category of registration. In the case of regular taxpayers, they have to file one return for outward supplies, another for inward supplier and the third one for the consolidation of the inward and outwards supplies to determine the amount of taxes to be paid on a monthly basis. In the case of composition taxpayer, he has to file a single return on a quarterly basis; a non-resident taxpayer has to file a separate return. In cases of taxpayers who deduct tax at source under works contract has to file a separate return and a taxpayer who is deducting from the payments made to the suppliers as e-commerce operator has to file a separate return under GST.
The list of returns to be filed under GST as per the latest returns released on 3rd June 2017 after the GST Council meeting
Every registered taxable person has to furnish monthly outward supplies return i.e., GSTR – 1 by other than taxpayers registered under Composition Scheme online through the common portal or utilising the services of GSP or ASP.
The details of the GSTR – 1 to be filed by invoice wise by the tax payers consists the following data
- All outward supplies made to registered taxpayers e., B2B including the supplies attracting reverse charge
- All interstate supplies made to unregistered taxpayers e., B2C above Rs 2.5 Lacs
- All Intrastate supplies made to unregistered taxpayers not mentioned above
- Invoice wise details of all exports, deemed exports and supplies made to SEZ Operators or SEZ Developers
- Supplies made by SEZ to DTA along with the bill of entry has to be shown
- Advances received during the month and advances adjusted during the month for the current month and prior months
- All debit/credit notes issued along with reference of the original invoice and date for B2B and B2B separately
- Summary of outward supplies for B2B and B2C for nil rated supplies, exempted supplies, and non-GST Supplies
- Summary of Outward supply of goods by HSN wise along with quality
- Net number of documents issued during the month for each category of documents like tax invoices, debit notes, delivery challans for job work, receipt vouchers, etc .,
The data uploaded in GSTR – 1 by the supplier of goods or services or both is auto populated to the following returns
Part A of GSTR – 2A (regular taxpayer)
GSTR – 4A (composition taxpayer)
GSTR – 6A (input service distributor)
the format of GSTR – 1
Basis of the GSTR – 1 filed by the supplier, the data is auto-populated for the B2B customers in their GSTR – 2A and changes made in recipient’s GSTR – 2 in case of regular taxpayer or GSTR – 4 in case of composition taxpayer or GSTR – 6 in case of Input Service Distributors can accept, delete or modify the data. The changes done by the recipients in the above form is shown in GSTR – 1A of the supplier.
The supplier can accept or reject the same, once accepted, the same will be modified in the GSTR – 1 for the changes accepted and basis on this, the GSTR – 1 will be filed and processed.
Format of GSTR – 1A
GSTR – 2 is the monthly inward supplies return of good or services or both. This return has to be filed by 15th of the next month. It contains the following data
- Inward supplies of goods or services or both from B2B
- Inward supplies of goods or services or both from B2C that is purchases from unregistered taxpayers on which GST is to be paid on reverse charge basis.
- Inputs or capital goods received from overseas suppliers or SEZ’s
- Amendment/debit/credit notes issued for the data given above for previous months
- Summary of interstate and intrastate supplies received from composition taxpayer, exempt supplies, Nil Rated Supplies and Non-GST
- Input credit received from ISD, TDS and TCS Deductors
- Advance paid to unregistered taxpayers during the month by the issue of payment vouchers and supplies adjusted against the payment vouchers issued during the month and the previous month.
- Input tax credit reversed on account of non-payment to supplier’s or due to mismatch or used for personal consumption etc
- Summary of Inward Supplies of goods with HSN codes, tax rates, and tax values.
Format of GSTR – 2
GSTR – 2A is auto-populated based on the data filed by the supplier of goods or services or both. The data has to be accepted or rejected or modified or kept pending, if not received. Based on the changes here the GSTR – 2 will be updated accordingly, and this activity has to be completed by 15th of the month from 10th once the supplier files his GSTR – 1.
Format of GSTR – 2A
GSTR – 3 is the summary return auto populated and generated based on the data of outward supply of goods or services or both and inward supply of goods or services or both. This return will determine the amount of input tax available for utilisation and also the amount of tax to be paid along with interest, late fee, etc. for the month.
Electronic liability register, electronic cash ledger and electronic credit ledger of the taxpayer will be updated on the generation of GSTR-3 by the taxpayer.
Part A of GSTR-3 is auto-populated on the basis of GSTR 1, GSTR 1A and GSTR 2.
GSTR – 3 will be treated as an invalid return if the total tax liability is not paid.
In case if the supplier/taxpayer wants to pay the balance tax again subsequently again, he has to file GSTR – 3 Part B.
Format of GSTR – 3
Is a communication received from the common portal if the taxpayer does not file his return for the inward supplies or outward supply of goods or services or both.
The same notice/communication is issued to the taxpayer how does file is a final return on surrendering of his registration number.
Format of GSTR – 3A
On a quarterly basis, every taxpayer registered as composition taxpayer has to file the GSTR – 4 return by 18th of the next month of quarter end. It also includes and the amount of taxes to be paid and paid for the quarter for which the return is being filed.
The GSTR – 4 contains the following information
- Inward supply of goods or services or both including the supplies which attract reverse charge or tax is to be paid on reverse charge.
- Any changes or debit/credit notes issued for the above supplies
- Taxes payable on outward supplies by rate wise for central and state taxes
- Advance received during the month and also supplies made against advances received in the previous months.
- TDS credit received
- The amount of total tax payable along with the amount of tax paid.
- Any late fee or interest payable or paid
- If any refund received
Format of GSTR – 4
GSTR – 4A is an auto-populated or auto drafted return based on the returns filed by the regular taxpayer from his GSTR – 1, GSTR – 5 of input service distributor or tax deducted at source through GSTR – 7.
The return will contain the following data
- Inward supplies received from registered taxpayers including inward supplies attracting the reverse charge.
- Any debit/credit note issued for the above supplies for the previous period
- If any TDS credit is received from the deductor on works contracts
Format of GSTR – 4A
It is a return to be filed by the non-resident taxpayer by 20th of the next month or within 7 days from the expiry of his registration period.
The data to be filed in the return are
- Details of the import of goods or services along with the bill of entry number.
- Any amendments/corrections for the previously declared import data
- Outward supplies to B2B during the return period
- Outward supplies to B2C during the period where the transaction value is greater than Rs 2.5 Lacs
- Outward supplies to the B2C net of debit or credit notes if issued during the tax period.
- Amendment to outward supplies for B2B or B2C
- Total amount of tax payable and tax paid for the return period
- Any late fee or interest payable
- Any amount received as a refund.
Format of GSTR – 5
GSTR – 5A is to be filed by persons who are supplying online data who is not based/has office in India. The return has to be filed by 20th of the next month.
Since the person supplying data is not Indian Resident, he has to have a registration under GST in India and if required can appoint an official representative who will file the return.
The data to be filed in the return
- Return to be filed based on place of supply
- The data to be filed includes the tax rate, taxable value along with the IGST and Cess
- Any amendments for the above data
- The amount of tax payable and paid
Format of GSTR – 5A
A taxpayer who is registered as Input Service Distributor has to file a return GSTR – 6 between 10th to 13th of the next month.
ISD details will flow to Part B of GSTR-2A of the Registered Recipients Units on the filing of GSTR 6.
ISD has to distribute both eligible and ineligible ITC to its Units in the same tax period in which the inward supplies have been received.
Mismatch liability between GSTR-1 and GSTR-6 will be added to ISD, and further ISD taxpayer has to issue ISD credit note to reduce the ITC distributed earlier to its registered recipient’s units.
The amount of tax payable and paid along with if any Interest, the late fee payable and paid.
If any refunds are eligible a claimed, the same will be reflected in the return.
Format of GSTR – 6
On the basis of the return filed by the supplier of goods or services or both in his GSTR – 1, the data will be auto populated in GSTR – 6A of the Input Service Distributor.
The data auto-populated is
- Supplies made by the supplier along with invoice number, date, taxable value, tax rate and tax amounts.
- If there are any debit notes or credit notes issued for the previous period by the supplier if uploaded will also be part of the GSTR – 6A.
The basis of the data auto-populated there is no action to be taken by the input service distributor.
Format of GSTR – 6A
Any person how is eligible or required to deduct tax at source on the works contract is required to file GSTR – 7 by 10th of the next month.
The return will contain the following information
- Details of tax deducted at source by deductee
- If any amendments issued for the previous tax periods
- Amount of tax deducted at source and paid
- If any interest and late fee payable and paid for the return period
- If any refund received during the return period
Format of GSTR – 7
The taxpayer how is required to deduct tax on works contract is required to issue a certificate in the next period after payment of the tax recovered from the deductee in GSTR – 7A within stipulated period.
The certificate will contain the following information
- GSTIN of the deductor and the deductee
- Amount of tax deducted as central tax or state tax or IGST
- Period for which the certificate is issued
Format of GSTR – 7A
Every e-commerce operator has to collect tax before paying it suppliers as the collection of tax at source and have to file a monthly return known as GSTR – 8 by 10th of the next month.
The return will contain the following information
- Details of the suppliers to e-commerce operators for the supplies made during the month and the goods returned.
- The amount payable by the e-commerce operator under GST and the amount recovered as GST in the form of central / state or IGST taxes.
- Amount of tax payable and paid
- If any interest and late fee payable and paid
- If any, refund received during the return filing period.
Format of GSTR – 8
Any qualified persons as per the GST Law if they want to claim input tax refund on their inward supplies as UIN have to file GSTR – 11 by 28th of the next month.
The return will contain the following details
- Inward supply of goods or services
- GSTIN of the supplier of goods or services
- Invoice wise details along with the taxes
- The amount of refund eligible.
Format of GSTR – 11
The monthly returns for the first two months after the rollout of GST has been relaxed and they can be filed within the following dates
For the delayed filing for the first two months, there will not be any fines or penalties be there.
Though the number of returns to be filed by the taxpayer is increasing for an existing VAT dealer from one to three returns in a month, the additional benefit is that the existing VAT dealer is not able to take input tax credit for the central taxes and offset against VAT Liability going forward the same are available for input tax credit. This will result in lower prices to customers and also the return filing is online and matching happens within two months, unlike the current process where the taxpayer is not sure when he will receive the notice.
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