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Home News Goods and Services Tax - GST Month 12 2015 2015 (12) This

Proposed Return Process - GST

19-12-2015
  • Contents

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

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

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