HELPING CLIENTS KEEP MORE OF WHAT THEY EARN GOODS AND SERVICES TAX RETURN PROCESS 1
PURPOSE OF FILING RETURNS Mode for transfer of information to tax administration; Compliance verification program of tax administration; Finalization of the tax liabilities of the taxpayer within stipulated period of limitation; To declare tax liability for a given period; Providing necessary inputs for taking policy decision; Management of audit and anti-evasion programs of tax administration. 1
ATTRIBUTES OF RETURNS The tax liability is self assessed by the tax payer. All returns have to be filed electronically through common portal, either directly or from a Facilitation Centre, notified by the Board or Commissioner.. Common Returns under Central GST, State GST and Integrated GST. Separate Returns have to be filed against each Registration. No concept of Revised Return. However any error or omission may be corrected in the Return filed for later tax period. Non filing of Return for a continuous period of six months by registered taxable person and three consecutive tax periods by person paying tax under composition scheme will lead to cancellation of Registration. Filing of Return without payment of tax will not be considered as a valid Return. 2
FORMS TO BE FILED BY TAXPAYERS Forms Registered person Number Description Time Limit GSTR-1 Details of outward supplies 10 th of succeeding month GSTR-2 Details of inward supplies 15 th of succeeding month Regular registered 20 th of succeeding month GSTR-3 Monthly Return taxable person 31 st December following the financial GSTR-9 Annual Return year 10 th of succeeding month GSTR-1 Details of outward supplies Casual Taxable person GSTR-2 Details of inward supplies 15 th of succeeding month GSTR-3 Monthly Return 20 th of succeeding month 13 th of succeeding month Input Service Distributor GSTR-6 Monthly Return 20 th of succeeding month Non resident Taxable GSTR-5 Monthly Return or, Person 7 days from end of validity period 18 th of succeeding quarter Taxpayer under GSTR-4 Quarterly Return 31 st December following the financial composition scheme GSTR-9A Annual Return year Deductor of tax at 10 th of succeeding month GSTR-7 Monthly Return source 28th of the month following the Person having UIN GSTR-11 Details of inward supplies month for which statement is filed 3
PROCESS OF MATCHING SUPPLY DETAILS FOR CREDIT AVAILMENT • To be filed by supplier by 10 th of month following the tax period • The details provided therein relates to goods/services supplied at invoice level GSTR-1 • It is auto generated from details provided in GSTR-1 by supplier • The details are available to recipient of supply after date of filing GSTR-1 i.e. 11 th day of month GSTR-2A • Recipient verifies, validates, amends, deletes or make addition to details provided in GSTR-2A • Recipient files details of inward supply with modification and addition in GSTR-2 by 15 th of month following the tax GSTR-2 period • Modifications made in the details as provided in GSTR-1 by the recipient are communicated to the Supplier of goods/services in GSTR-1A GSTR-1A • Modifications as intimated in GSTR-1A are either accepted or rejected by the supplier by 17 th of month following the tax period GSTR-1A • GSTR-1 is updated accordingly • Supplier and Recipient files monthly Return on the basis of GSTR-1 & GSTR-2 providing therein the details of outward and inward supplies effected during the tax period, credit availed, tax payable, etc. GSTR-3 • Such Return is to be filed by 20 th of the month following the tax period 4
EVENTS IN CHRONOLOGICAL ORDER Form Event Date 10 th of succeeding month GSTR-1 Details of outward supplies 13 th of succeeding month GSTR-6 Details by Input Service Distributor 15 th of succeeding month GSTR-2 Details of inward supplies Confirmation of outward supply by 17 th of succeeding month - the recipient Monthly Return & discharge of tax 20 th of succeeding month GSTR-3 liability 31 st December following the financial GSTR-9 Annual Return year 5
MATCHING OF CLAIM OF INPUT TAX CREDIT Grant of provisional credit on the basis of return filed in GSTR-3 Details of availed credit matched with: Corresponding Duplication of Additional duty of details in supplier claims of input tax customs return credit Does Is details duplication matching exist Communicated to recipient in Form GST ITC-1 A Final Input Tax Credit B 6
MATCHING OF CLAIM OF INPUT TAX CREDIT A B Accepted and Discrepancy Added to output communicated to communicated to tax liability recipient recipient and supplier Supplier Supplier not rectified rectified . discrepancy discrepancy Final Input Tax Credit Added to output tax liability of recipient in FORM GSTR-3 & interest Final Input Tax Credit levied Whether supplier subsequently communicated invoice details C 7
MATCHING OF CLAIM OF INPUT TAX CREDIT C Output tax liability is reduced and interest paid is refunded . Final Input Tax Credit in FORM GST ITC-1 8
RETURN BY COMPOSITION SUPPLIER Every registered taxable person paying tax under composition scheme shall be required to file quarterly return in Form GSTR-4 electronically. Return shall be filed after correcting or deleting the details contained in Form GSTR-4A generated on the basis of details of outward supplies provided in Form GSTR 1. Liability towards tax, interest, penalty, fees or any other amount payable under the Act shall be discharged by debiting the electronic cash ledger. 9
RETURN BY NON-RESIDENT TAXABLE PERSON Every registered non-resident taxable person shall furnish a monthly Return in Form GSTR-5 electronically. Return shall be filed within twenty days after the end of a tax period or within seven days after the last day of the validity period of registration, whichever is earlier. Any amount payable under the Act shall be paid before or at the time of filing Return. 10
RETURN BY INPUT SERVICE DISTRIBUTOR Every Input Service Distributor shall be required to file return in Form GSTR-6 electronically through the Common Portal. Return shall be filed after correcting or deleting the details contained in Form GSTR-6A generated on the basis of details of outward supplies provided in Form GSTR 1. This return form would capture the following information: 1. Details of inward supply pertaining to the tax period separately for goods and services on which the input tax credit is being claimed. This will be auto populated on the basis of GSTR-1 filed by the Counterparty Supplier of the taxpayer. The same may be modified i.e. added or deleted by the Taxpayer while filing the ISD return. 2. Details of the Invoices along with the GSTIN of the receiver of the credit i.e. to whom the ISD is distributing credit. 3. There will be separate ISD Ledger in the return that will detail the Opening Balance of ITC (to be auto- populated on the basis of previous return), credit for ITC services received, debit for ITC reversal and ITC distributed and Closing Balance. 11
RETURN BY PERSON REQUIRED TO DEDUCT TAX AT SOURCE Every registered taxable person required to deduct tax at source shall furnish return in Form GSTR-7 electronically through the common portal. The details furnished in the Return shall be communicated to each of the supplier in Part C of Form GSTR-2A. The certificate of tax so deducted shall be made available electronically to the deductee on the common portal in Form GSTR-7A on the basis of return filed by tax deductor. This return would capture the following information: 1. Details of GSTIN of the Supplier along with the invoices against which the Tax has been deducted. This will also contain the details of tax deducted against each major head i.e. CGST, SGST and IGST. 2. Details of other payments – Interest, Penalties, Fee, etc. (This will be auto populated from the Debit entry in Cash ledger) 12
MISCELLANEOUS PROVISIONS First Return Every registered taxable person shall declare the details of outward supplies in relation to period between the date on which he became liable to registration and the date of grant of registration in the first Return filed by him. Annual Return Every registered taxable person shall file Annual Return on or before 31st December following the end of the financial year in Form GSTR-9 . Provided that a person paying tax under Section 9 shall furnish the annual return in Form GSTR- 9A. Taxable persons who get their accounts audited under section 53(4) are required to electronically file annual return along with a copy of the audited accounts as well as a reconciliation statement, reconciling value of supplies declared in the return furnished for the year in Form GSTR-9B along with the audited annual financial statement and such other prescribed. Input Service distributor, a person paying tax under section 46 (TDS) or 56 (TCS), casual taxable person and Non-Resident taxable person are not required to furnish annual return. 13
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