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
- Line-item level data in case multiple tax rate or HSN / Service Accounting Code in one invoice
- 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
- All B2C intra-State taxable supplies
- All exempted, nil rated & non-GST supplies (intra- State & inter-State AND B2B & B2C)
- 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
