TOP FAQS ABOUT THE PROPOSED GST RETURN SYSTEM

[Ramandeep Bhatia]

1. What is the turnover limit for Quarterly filing of GST return?

Answer: Quarterly filing of GST return is available only if aggregate turnover during the preceding financial year up to ₹ 5.00 Cr. For newly registered taxpayers, turnover will be considered as zero and hence they will have the option to file monthly, Sahaj, Sugam or Quarterly (Normal) return.

2. Quarterly filing of return is optional or compulsory?

Answer: Quarterly filing of return is optional, not compulsory. The periodicity of filing return will be deemed to be monthly for all taxpayers unless quarterly filing of the return is opted for.

3. Can the periodicity of GST Return be changed in between the year?

Answer:  Change in the periodicity of the return filing (from quarterly to monthly and vice versa) would be allowed only once at the time of filing the first return by a taxpayer. The periodicity of the return filing will remain unchanged during the next financial year unless changed before filing the first return of that year.

4. What are the options of returns available in case of quarterly filing?

Answer: The taxpayers opting to file the quarterly return can choose to file any of the quarterly return namely – Sahaj, Sugam or Quarterly (Normal)

5. What details will be allowed to be filed in quarterly return “SAHAJ” quarterly return?

Answer: Taxpayers opting to file quarterly return as ‘Sahaj’ shall be allowed to declare -  

• Outward supply under B2C category and
• Inward supplies attracting reverse charge only.
• Such taxpayers cannot make supplies through e-commerce operators on which tax is required to be collected under section 52.
• Such taxpayers shall not take credit on missing invoices and shall not be allowed to make any other type of inward or outward supplies.
• Such taxpayers may make “Nil rated, exempted or Non-GST supplies” which need not be declared in the said return.

 6. What details will be allowed to be filed in quarterly return ‘SUGAM’ quarterly return?

Answer: Taxpayers opting to file quarterly return as ‘SUGAM’ shall be allowed to declare-

• Outward supply under B2C and B2B category and
•  Inward supplies attracting reverse charge only.
•  Such taxpayers cannot make supplies through e-commerce operators on which tax is required to be collected under section 52.
• Such taxpayers shall not take credit on missing invoices and shall not be allowed to make any other type of inward or outward supplies.
• Such taxpayers may make “Nil rated, exempted or Non-GST supplies” which need not be declared in said return.

7. What details will be allowed in monthly return or Quarterly (Normal) return?

Answer: Taxpayers opting to file monthly return or Quarterly (Normal) return shall be able to declare all types of outward supplies, inward supplies and take credit on missing invoices.

8. Can a Taxpayers filing the return as Quarterly (Normal) can switch over to Sugam or Sahaj return in between in a financial year?

Answer: Taxpayers filing the return as Quarterly (Normal) can switch over to Sugam or Sahaj return and taxpayers filing the return as Sugam can switch over to Sahaj return only once in a financial year at the beginning of any quarter.

Taxpayers filing return as Sahaj can switch over to Sugam or Quarterly (Normal) return and taxpayers filing return as Sugam can switch over to Quarterly (Normal) return more than once in a financial year at the beginning of any quarter.

9. When will be the return available for uploading the document details in the new return system?

Answer: Registered person can upload the details of documents any time during a month/quarter to which it pertains or of any prior period but not later than the due date for furnishing of return for the month of September or second quarter following the end of the financial year to which such details pertains or the actual date of furnishing of relevant annual return whichever is earlier except that –

(i) the taxpayer filing the return on a monthly basis will not be able to upload the details of documents from 18th to 20th of the month following the tax period.

(ii) the taxpayer filing the return on a quarterly basis will not be able to upload the details of documents from 23rd to 25th of the month following the quarter.

10. When will the details of the document uploaded by the supplier be available to receipt in the new return system?  

Answer: Supplier can upload the documents for any supply on real time basis. Facility for accepting such documents by the recipient shall be made available. Details of documents uploaded by the supplier will be shown to the concerned recipient also on near real time basis.

11. If the document can be uploaded by the supplier on real time, how the credit will be available to the receipt in the new return system?  

Answer: Recipient will get credit during a tax period on the basis of the details of documents uploaded by the supplier upto the 10th of the month following the month for which the return is being filed for. Such credit can be availed i.e. credited to the ledger of the recipient only on filing of his (i.e. recipient’s) return. There may be the following two scenarios:

(i) If the recipient files his return on a monthly basis, say, for the month of January, 2019 on 20th February, 2019, he shall be eligible to take credit in his return based on the documents uploaded by the supplier upto the 10th of February, 2019 irrespective of whether the supplier files his return on monthly or quarterly basis.

(ii) If the recipient files his return on a quarterly basis (Normal, Sahaj or Sugam), say for the quarter January – March, 2019 on 25th April, 2019, he shall be eligible to take credit in his return based on the documents uploaded by the supplier upto the 10th of April, 2019 irrespective of whether the supplier files his return on monthly or quarterly basis.

12. Do supplies attracting reverse charge will be reported by the suppliers in new return forms?

Answer: Supplies attracting reverse charge will be reported only by the recipient and not by the supplier in this annexure. Such supplies shall be reported GSTIN wise and amount of tax and taxable value will be net of debit / credit notes and advance paid (on which tax has already been paid at the time of payment of advance), if any.

13. Does HSN wise reporting of supplies is mandatory in new return forms?

Answer:  All suppliers with annual aggregate turnover of more than ₹ 5 crore and that in relation to exports, imports and SEZ supplies will upload HSN level data. HSN code shall be reported at least at six digit level for goods and at least at six digit level for services.

Other taxpayers (turnover upto ₹ 5 crore) shall have an optional facility to report HSN code in the relevant table or leave it blank.

14. Do the new return system will calculate the tax or need to be reported? Do the values will be reported in whole number in new return forms?       

Answer: Tax amount shall be computed by the system based on the taxable value and tax rate. The tax amount so computed will not be editable except by way of issue of debit / credit notes. However, the tax amount under cess will be reported by the taxpayer himself.

Value of supplies and amount of tax shall be reported in whole number or upto two decimal points at the most.

15. Do the new return system allows values be reported in negative?

Answer: Wherever supplies are reported as net of debit/credit notes, the values may become negative in some cases and the same may be reported as such e.g. ( -100).

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Sources: CBIC release on the new forms.                      

Compiled by: CA Ramandeep Singh Bhatia   Faculty ICAI IDTC & NACIN

Caramandeep.bhatia@gmail.com