Proposed Return Process - GST

PROPOSED RETURN PROCESS

PRESENTATION PLAN….

• Basic Features
• Periodicity of Return Filing
• Contents of GSTR-1 Return
• Contents of GSTR-2 Return
• Contents of GSTR-3 Return
• Contents of Compounding Taxpayer Return (GSTR-4)
• Contents of Foreign Non-Resident Return (GSTR-5)
• Contents of ISD Return (GSTR-6)
• Contents of TDS Return (GSTR-7)
• Contents of Annual Return (GSTR-8)
• HSN Codes & SAC
• Typical Invoice Details
• Invoice matching & Credit reversal
• Filing of return
• Revision

BASIC FEATURES….

• Self-assessment of tax liability by the taxpayer
• Common e-Return for CGST, SGST, IGST & Additional Tax
• Separate returns for different categories of taxpayers
  • Normal/Regular & Casual Taxpayer (GSTR-1, 2 ,3 & 8)
  • Compounding Taxpayer (GSTR- 4 & 8)
  • Foreign Non-Resident Taxpayer (GSTR-5)
  • Input Service Distributor (GSTR- 6)
  • Tax Deductor (GSTR-7)
• Returns by a normal / casual taxpayer to be filed in sequential manner with different cut-off dates to allow auto-population  of  return  &  automated  matching  of invoices
• Payment of due tax is must for filing valid return
  • Returns can be submitted with short payment but shall be treated as invalid - not taken into account for invoice matching & inter-Government fund settlement
• Provision for filing revised information
  • Differential Tax liability to be captured through Debit Note / Credit Note/ Supplementary invoices / correction mechanism
• Maintenance of electronic Cash Ledger
• Maintenance of electronic ITC Ledger
• Maintenance of electronic Tax liability Ledger

PERIODICITY OF RETURN FILING….

• Normal/Regular taxpayers - monthly return

• 10th day of succeeding month: last date for uploading supply invoice details - GSTR -1
• 15th  day of succeeding month: last date for auto-population & uploading purchase details - GSTR-2
• 17th  day of succeeding month: last date for finalizing supply & purchase details
• 20th day of succeeding month: last date for filing GSTR-3

• Compounding taxpayers to file quarterly return: by 18th day of succeeding month of the Quarter - GSTR-4
• Foreign  Non-resident  Taxpayers  to  file  monthly  return: within 7 days after expiry of registration - GSTR-5
• Input Service Distributors (ISD) taxpayers  to file monthly return: by 15th day of succeeding month -GSTR-6
• Tax Deductors to file monthly TDS return: by 10th of succeeding month - GSTR- 7
• Casual taxpayers to file same return as for normal taxpayer  but  with  monthly  periodicity  and / or linked to validity period of registration
• UN agencies to file return for the month in which they make purchases - to claim refunds
•  Annual Return (GSTR-8)

• All Regular and Compounding taxpayers to file Annual Return
• Last date - 31st December following the end of the financial year
• Simpler Annual Return for Compounding taxpayers & those taxpayers who are not required to get their accounts audited
• Annual Return to be accompanied with a statement showing reconciliation of information as per Returns with information as per annual audited accounts
  • Reconciliation statement to be filed by taxpayers who are required to get accounts audited under Section 44AB of the Income Tax Act, 1961

CONTENTS OF GSTR-1 RETURN….

• Taxpayer details
• Return period details
• Invoice level specified details

• All B2B supplies

• Line-item level data in case multiple tax rate or HSN / Service Accounting Code in one invoice

• Inter-State B2C supplies

• only  if  Taxable  Value  per  invoice  is ≥ INR 250000/-

• Aggregate State-wise summary

• All other B2C inter-State taxable supplies  having address on record

• Every  invoice  having  Taxable  Value  of ≥ INR 50,000/- to mandatorily have address of buyer

•  Aggregate summary

• All B2C intra-State taxable supplies
• All exempted, nil rated & non-GST supplies (intra- State & inter-State AND B2B & B2C)

• Export & deemed Export

• Invoice level details along with shipping bill details

• with payment of GST
• without payment of GST

• Debit Notes / Credit Notes: Details of debit note, credit note & changes  in  supply  information  for  earlier  tax  periods  with consequential increase/decrease in tax liability
• Details of tax liability on receipt of advance
• Details of subsequent issuance of invoices issued w.r.t. advance receipt

CONTENTS OF GSTR-2 RETURN….

• Taxpayer details
• Return period details
• Invoice  level  inward  supply  details  received  from registered taxpayer

• To be auto-populated from GSTR-1 of counterparty supplier
• Recipient to have option to add receipts not declared by counterparty supplier - if in possession of taxable invoice & have received supply of goods / services

• Bill of entry details of import of goods
• Invoice level details of import of services
• Debit Notes / Credit Notes: Details of debit note, credit note and changes in inward supply information for earlier tax periods with consequential increase/decrease in ITC
• Option to declare eligibility for ITC
• Aggregate summary of receipts of exempted, nil rated, non-GST   supplies   &   supplies   received   from unregistered person
• Details of ITC received from ISD
• Details of cash credit received on account of TDS

CONTENTS OF GSTR-3 RETURN….

• Taxpayer details
• Return period details
• To be auto-populated from GSTR-1 & GSTR-2
• Aggregate values of all B2B outward supplies
• Aggregate value of all B2C outward supplies
• Aggregate value of all exports including deemed exports
• Aggregate value of all inward supplies
• Aggregate value of all imports
• Information about adjustments for earlier periods
• Details of cash credit received on account of TDS
• Details of all liabilities (Tax, interest, penalty, late fee, etc.)
• Details of ITC availed, ITC utilized, credit reversible on  account  of  invoice  mismatch  and  other adjustment
• Details of gross & net tax liability
• Details  of  payment  of  tax  and  other  statutory liabilities
• Provision for capturing Debit Entry No. of Cash & ITC Ledger
• A field for return based refund & Bank Account Number

CONTENTS OF COMPOUNDING TAXPAYER  RETURN (GSTR-4)….

• Taxpayer details
• Return period details
• Inward supply details

• Auto-populated from GSTR-1 of counter-party supplier
• Option to add receipts not uploaded by counter-party supplier
• Receipts from unregistered dealers to be added
• Includes  supply  attracting  tax  payment  on  reverse charge basis

• Details of import of goods and services
• Details of outward supply: intra-state, exports & non-GST
• Details of all liabilities (Tax, interest, penalty, late fee, etc.)
• Details  of  payment  of  tax  and  other statutory liabilities
• Provision for capturing Debit Entry No. of Cash ledger
• Information   on   possibility   of   crossing composition limit before date of next return

CONTENTS OF FOREIGN NON-RESIDENT RETURN (GSTR-5)

• Taxpayer details
• Return period details
• Details of imported goods: HSN details at 8 digit level
• Details of outward supplies
• Details of ITC availed
• Details of tax payable
• Details of tax paid
• Closing stock of goods

CONTENTS OF ISD RETURN (GSTR-6)….

• Taxpayer details
• Return period details
• Details of ITC

• Auto-populated  from  GSTR-1of  counter-party supplier
• Option to add receipts not declared by counterparty supplier - if in possession of taxable invoice & have  received supply of goods or services
• Includes supplies attracting reverse charge
• Information about ITC available in the month for Distribution

• Details of credit of CGST, SGST & IGST distributed
• Details of ISD ledger

• Opening and closing balance of ITC
• ITC received, reversed and distributed

CONTENTS OF TDS RETURN (GSTR-7)

• Taxpayer’s details
• Return period details
• Details of Tax deducted

• GSTIN of supplier
• Invoice details
• Payment details
• Amount of TDS on account of CGST, SGST & IGST

• Details of payments of any other amount

CONTENTS OF ANNUAL RETURN (GSTR-8)

• Taxpayers Details
• Details of all expenditure
• Details of all income
• Details of all other tax liability
• Other Reconciliation Statement

HSN Codes & SAC

• HSN Code for goods - in invoice level details

• 4-digit HSN Code mandatory for taxpayers having turnover above ₹ 5 Crore in preceding FY
• 2-digit HSN Code for taxpayers with turnover between ₹ 1.5 Crore & ₹ 5 Crore in preceding FY - optional in 1st  Year and mandatory from 2nd Year
• 8-digit level mandatory for exports & imports

• Accounting Codes for services - in invoice level details

• Mandatory for those services for which Place of Supply Rules are dependent on nature of services
• Mandatory for exports & imports

• Service  Accounting  Code  to  be  prefixed  with ‘s’  for differentiating from HSN

Typical Invoice Details

• Buyer’s GSTIN / Departmental ID / Address
• Invoice Number & Date
• HSN Code/Accounting Code

• for each line item of an invoice in case of multiple codes in an invoice

• Taxable Value
• Invoice Value
• Tax Rate
• Tax Amount (CGST & SGST or IGST & / or Additional Tax)
• Place of Delivery/Place of Supply

• only if different than the location of buyer

Invoice Matching & Credit Reversal

• B2B supply information given by the supplying taxpayer in GSTR-1 will be auto-populated into GSTR-2 of the counter-party purchaser
• Purchasing taxpayers will be allowed to add invoice details in GSTR-2 & avail credit if he is in possession of valid invoice & have received supply of goods or services
• Counterparty registered taxpayers shall have a 2-day window to reconcile invoice information among themselves prior to filing of GSTR-3
• Credit availed on unmatched invoices shall be auto-reversed in the next to next return period (e.g. mismatched ITC for April to be auto-reversed in return for June)

FILING OF RETURN

• To be filed by taxpayer at GST Common Portal either:

• by himself logging on to the GST System using his own user ID & password; or
• through his authorized representative using the user Id & password (allotted to the authorized representative by the  tax authorities), as chosen at the time of registration, logging  on to the GST System

• Filing may be done through TRPs / FCs also
• Filing may be done either directly or by using Applications developed by accounting companies / IT companies which will interact with GST System using APIs
• Steps for filing Return

REVISION

• Revision of information permitted
• Changes in Tax liability / ITC amount to be handled through

• Debit- Credit Notes
• Revision of supply invoices
• Post sales discount
• Volume discount
• Amendments / Corrections