Returns in GST

Returns in GST

The basic features of the return mechanism in GST includes electronic filing of returns, uploading of invoice level information, auto-population of information relating to input tax credit 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.

Under GST, a regular taxpayer needs to furnish monthly returns and one annual return. There are separate returns for a 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), a person granted Unique Identification Number. It is important to note that a taxpayer is NOT required to file all the types of returns. In fact, taxpayers are required to file returns depending on the activities they undertake. The GST Council has however recommended to ease the compliance requirements for small tax payers by allowing taxpayers with annual aggregate turnover up to Rs. 1.5 Crore to file details of outward supplies in FORM GSTR-1 on a quarterly basis and on monthly basis by taxpayers with annual aggregate turnover greater than Rs. 1.5 Crore. Further, GST Council has recommended to postpone the date of filing of Forms GSTR-2 and GSTR-3 for all normal tax payers, irrespective of turnover, till further announcements are made in this regard.

All the returns are to be filed online. Returns can be filed using any of the following methods:

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

·         Offline utilities provided by GSTN

GST Suvidha Providers (GSPs).

If a tax payer is already using the services of an ERP providers such as Tally, SAP, Oracle etc, there is a high likelihood that these ERP providers would provide inbuilt solutions in the existing ERP systems.

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

Return	Description	Who Files	Standard Date for Filing
GSTR 1	Statement of Outward Supplies or Services	Normal Registered Person	10th of the next month
GSTR 2	Statement of Inward Supplies or Services	Normal Registered Person	15th of the next month
GSTR 3	Return for normal tax payer	Normal Registered Person	20th of the next month
GSTR 3B	Simple Monthly	Normal Registered Person	20th of the next month
GSTR 4	Quaterly Return	Taxable person opting for Composition Levy	18th of the month succeeding the quarter
GSTR 5	Monthly return for non-resident taxpayer	Non Resident Taxpayer	20th of the month succeeding tax period & within 7 days after expiry of registration
GSTR 5A	Monthly return for a person supplying OIDAR services from a  place outside India to a non-taxable online recipient	Supplier of OIDAR services.	20th of next month.
GSTR 6	Monthly return for an Input Service Distributor.	Input Service Distributor	13th of next month.
GSTR 7	Monthly return for authorities deducting tax at source.	Deductor	10th of 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 9A	Simplified Annual return under Composition Scheme.	Taxable person opting for Composition Levy.	31st December of next financial year.
GSTR 10	Final return	Taxable person whose registration has been surrendered cancelled.	Within 3 months of date of cancellation or date of cancellation whichever is earlier.
GSTR 11	Details of Inward Supplies to be furnished by a person having UIN.	Persons who have been issued a unique identification number(UIN).	28th of the next month.

Registered persons having aggregate turnover of up to 1.5 Crore rupees in the preceding financial year or the current financial year shall furnish GSTR-1on a quarterly basis. Other Registered persons having aggregate turnover of more than 1.5 Crore rupees shall furnish these returns on a monthly basis. Filing of GSTR-2 and GSTR-3 has been postponed till a further announcement in this regard is made.

Note: Due dates have not been notified for GSTR-2 and GSTR-3 for any of the months. That is, a taxpayer need not file GSTR-2 and GSTR-3 for any of the months from July 2017 until a notification is issued in this regard mentioning the due dates. Till such time, Form GSTR-3B is required to be filed by tax payers instead of Form GSTR-3.

Revision of Returns:

The mechanism of filing of revised returns for any correction of errors/omissions has been done away with. The rectification of errors/omissions is allowed in the return for subsequent month(s). However, no rectification is allowed after furnishing of 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.

Interest on Late GST Payment

An interest of 18 percent is levied on the late payment of taxes under the GST regime. The interest would be levied for the days for which tax was not paid after the due date.

Penalty for non-filing of GST Returns

In case a taxpayer does not file his/her return within the due dates, he/she shall have to pay a late fee of Rs. 200/- i.e. Rs.100/- for CGST and Rs.100/- for SGST per day (up to a maximum of Rs. 5,000/-) from the due date to the date when the returns are actually filed.

            For the months July to September, 2017, the late fee payable for failure to furnish the

return has been waived completely

From the month of October 2017 onwards, the GST Council has recommended that the amount of late fee payable by a taxpayer whose tax liability for that month is ‘NIL’ is Rs. 20/- per day (Rs. 10/- per day each under CGST & SGST Acts). However, if the tax liability for that month is not ‘NIL’, the amount of late fee is Rs 50/- per day (Rs. 25/- per day each under CGST & SGST Acts).

ReturnFilingMilestones:

ITC Matching and Auto-Reversal:

It is a mechanism to prevent revenue leakage and to facilitate availment of eligible and rightful ITC by taxpayers. The process of ITC Matching begins after the due date for filing of the return (20th). This is carried out by GSTN. The details of every inward supply furnished by the taxable person (i.e.the “recipient” of goods and/or services) in form GSTR-2 shall be matched with the corresponding details of outward supply furnished by the corresponding taxable person (i.e. the “supplier” of goods and / or services) in his valid return. A return may be considered to be a valid return only when the appropriate GST has been paid in full by the taxable person as shown in such return for a given tax period.

In case the details match, then the ITC claimed by the recipient in his valid returns shall be considered as finally accepted and such acceptance shall be communicated to the recipient. Failure to file valid return by the supplier may lead to denial of ITC in the hands of the recipient.

In case the ITC claimed by the recipient is in excess of the tax declared by the supplier or where the details of outward supply are not Declared  by the supplier in his valid returns, the discrepancy shall be communicated to both the supplier and the recipient. Similarly, in case, there is duplication of claim of ITC, the same shall be communicated to the recipient.

The  recipient  will   be  asked   to   rectify   the   discrepancy   of   excess   claim   of  ITC   and   in   case   the   Supplier  has not rectified the   Discrepancy Communicated in his valid returns for the month in which discrepancy is communicated then such excess ITC as claimed by the recipient shall be added to the output tax liability of the recipient in the succeeding month.

Similarly, duplication of ITC claimed by the recipient shall be added to the output tax liability of the recipient in the month  in which Such duplication is communicated. The recipient shall be liable to pay interest on the excess or duplicate ITC added back to the output tax liability of the recipient from the date of availing of ITC till the corresponding additions are made in their returns.

Reclaim of ITC refers to taking back the ITC reversed in the Electronic Credit Ledger of the recipient by way of reducing the output tax liability.Such  re-claim can be made by the recipient only in case the supplier declares the details of invoice and/or Debit Notes in his valid return within the prescribed timeframe. In such case, the interest paid by the recipient shall be refunded to him by way of crediting the amount to his Electronic Cash Ledger.

Note: It may be noted that the return process is being examined by a Committee of officers and has not been finalised so far.

Returns in GST

The basic features of the return mechanism in GST includes electronic filing of returns, uploading of invoice level information, auto-population of information relating to input tax credit 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.

Under GST, a regular taxpayer needs to furnish monthly returns and one annual return. There are separate returns for a 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), a person granted Unique Identification Number. It is important to note that a taxpayer is NOT required to file all the types of returns. In fact, taxpayers are required to file returns depending on the activities they undertake. The GST Council has however recommended to ease the compliance requirements for small tax payers by allowing taxpayers with annual aggregate turnover up to Rs. 1.5 Crore to file details of outward supplies in FORM GSTR-1 on a quarterly basis and on monthly basis by taxpayers with annual aggregate turnover greater than Rs. 1.5 Crore. Further, GST Council has recommended to postpone the date of filing of Forms GSTR-2 and GSTR-3 for all normal tax payers, irrespective of turnover, till further announcements are made in this regard.

All the returns are to be filed online. Returns can be filed using any of the following methods:

<![if !supportLists]>·         <![endif]>GSTN portal (www.gst.gov.in )

<![if !supportLists]>·         <![endif]>Offline utilities provided by GSTN

                        GST Suvidha Providers (GSPs).

If a tax payer is already using the services of an ERP providers such as Tally, SAP, Oracle etc, there is a high likelihood that these ERP providers would provide inbuilt solutions in the existing ERP systems.

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

Return	Description	Who Files	Standard Date for Filing
GSTR 1	Statement of Outward Supplies or Services	Normal Registered Person	10th of the next month
GSTR 2	Statement of Inward Supplies or Services	Normal Registered Person	15th of the next month
GSTR 3	Return for normal tax payer	Normal Registered Person	20th of the next month
GSTR 3B	Simple Monthly	Normal Registered Person	20th of the next month
GSTR 4	Quaterly Return	Taxable person opting for Composition Levy	18th of the month succeeding the quarter
GSTR 5	Monthly return for non-resident taxpayer	Non Resident Taxpayer	20th of the month succeeding tax period & within 7 days after expiry of registration
GSTR 5A	Monthly return for a person supplying OIDAR services from a  place outside India to a non-taxable online recipient	Supplier of OIDAR services.	20th of next month.
GSTR 6	Monthly return for an Input Service Distributor.	Input Service Distributor	13th of next month.
GSTR 7	Monthly return for authorities deducting tax at source.	Deductor	10th of 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 9A	Simplified Annual return under Composition Scheme.	Taxable person opting for Composition Levy.	31st December of next financial year.
GSTR 10	Final return	Taxable person whose registration has been surrendered cancelled.	Within 3 months of date of cancellation or date of cancellation whichever is earlier.
GSTR 11	Details of Inward Supplies to be furnished by a person having UIN.	Persons who have been issued a unique identification number(UIN).	28th of the next month.

Registered persons having aggregate turnover of up to 1.5 Crore rupees in the preceding financial year or the current financial year shall furnish GSTR-1on a quarterly basis. Other Registered persons having aggregate turnover of more than 1.5 Crore rupees shall furnish these returns on a monthly basis. Filing of GSTR-2 and GSTR-3 has been postponed till a further announcement in this regard is made.

Note: Due dates have not been notified for GSTR-2 and GSTR-3 for any of the months. That is, a taxpayer need not file GSTR-2 and GSTR-3 for any of the months from July 2017 until a notification is issued in this regard mentioning the due dates. Till such time, Form GSTR-3B is required to be filed by tax payers instead of Form GSTR-3.

Revision of Returns:

The mechanism of filing of revised returns for any correction of errors/omissions has been done away with. The rectification of errors/omissions is allowed in the return for subsequent month(s). However, no rectification is allowed after furnishing of 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.

Interest on Late GST Payment

An interest of 18 percent is levied on the late payment of taxes under the GST regime. The interest would be levied for the days for which tax was not paid after the due date.

Penalty for non-filing of GST Returns

In case a taxpayer does not file his/her return within the due dates, he/she shall have to pay a late fee of Rs. 200/- i.e. Rs.100/- for CGST and Rs.100/- for SGST per day (up to a maximum of Rs. 5,000/-) from the due date to the date when the returns are actually filed.

Note: In case of GSTR-3B,

               For the months July to September, 2017, the late fee payable for failure to furnish the return has been waived completely.

                From the month of October 2017 onwards, the GST Council has recommended that the amount of late fee payable by a taxpayer whose tax

liability for that month is ‘NIL’ is Rs. 20/- per day (Rs. 10/- per day each under CGST & SGST Acts). However, if the tax liability for that month is not

‘NIL’, the amount of late fee is Rs 50/- per day (Rs. 25/- per day each under CGST & SGST Acts).

ReturnFilingMilestones:

ITC Matching and Auto-Reversal:

It is a mechanism to prevent revenue leakage and to facilitate availment of eligible and rightful ITC by taxpayers. The process of ITC Matching begins after the due date for filing of the return (20th). This is carried out by GSTN. The details of every inward supply furnished by the taxable person (i.e.the “recipient” of goods and/or services) in form GSTR-2 shall be matched with the corresponding details of outward supply furnished by the corresponding taxable person (i.e. the “supplier” of goods and / or services) in his valid return. A return may be considered to be a valid return only when the appropriate GST has been paid in full by the taxable person as shown in such return for a given tax period.

In case the details match, then the ITC claimed by the recipient in his valid returns shall be considered as finally accepted and such acceptance shall be communicated to the recipient. Failure to file valid return by the supplier may lead to denial of ITC in the hands of the recipient.

In case the ITC claimed by the recipient is in excess of the tax declared by the supplier or where the details of outward supply are not Declared

by the supplier in his valid returns, the discrepancy shall be communicated to both the supplier and the recipient. Similarly, in case, there is duplication of claim of ITC, the same shall be communicated to the recipient.

The  recipient  will   be  asked  to  rectify  the  discrepancy  of  excess  claim  of  ITC  and  in  case  the  Supplier has  not rectified the Discrepancy

Communicated in his valid returns for the month in which discrepancy is communicated then such excess ITC as claimed by the recipient shall be added to the output tax liability of the recipient in the succeeding month.

Similarly, duplication of ITC claimed by the recipient shall be added to the output tax liability of the recipient in the month in which Such

duplication is communicated. The recipient shall be liable to pay interest on the excess or duplicate ITC added back to the output tax liability of the recipient from the date of availing of ITC till the corresponding additions are made in their returns.

Reclaim of ITC refers to taking back the ITC reversed in the Electronic Credit Ledger of the recipient by way of reducing the output tax liability.Such  re-claim can be made by the recipient only in case the supplier declares the details of invoice and/or Debit Notes in his valid return within the prescribed timeframe. In such case, the interest paid by the recipient shall be refunded to him by way of crediting the amount to his Electronic Cash Ledger.

Note: It may be noted that the return process is being examined by a Committee of officers and has not been finalised so far.