Understanding GST Returns: Types, Benefits, and Mechanisms
GST returns play a crucial role in the tax system by providing necessary information to the government in a specific format. They include details of outward and inward supplies, ITC availed, tax payable, and more. Filing returns ensures timely transfer of information, aids in tax liability determination, and helps prevent tax evasion. The return mechanism involves electronic filing, access to invoice-level information, auto-populated data, matching information, and validation by recipients. Different types of returns are required for various classes of registered persons under GST, such as regular taxpayers, composition scheme users, tax deductors, and more. Modes of filing returns include the GSTN Portal, offline services, and GST Suvidha providers.
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Return means furnishing of requisite information by the taxpayer to the govt. It has to be in a specific statutory format. TYPES OF RETURNS 1. Furnish details of outward supplies during a tax period. 2. details of inward supplies during a tax paid. 3. Furnish details of inward and outward supply, ITC availed, tax payable, tax paid and such other particulars as may be prescribed. Meaning of tax period:- a period of calendar month or, as the case may be, quarter or part thereof. Further an annual return shall also be required to be filed under GST by a person engaged in supply of goods or services or both.
15.3 Benefits of returns 1. Timely transfer of information to the tax administration. 2. Status of taxpayer can be adjusted easily 3. Helps in determination of tax liabilities of the return filer 4. In digital scenario, ensures lesser chances of tax evasion 5. Database can be used for various purposes.
15.4 Return mechanism 1. Electronic filing:- GSTN Portal, offline services, GST Suvidha providers. 2. Govt. s access to invoice level information:- details of invoices, debit notes, credit notes, revised invoices, etc. 3. Auto-populated information in return:-the information furnished by person involved in outward supplies reflects automatically in that of the recipient s return. 4. Matching information 5. Rectification window 6. Validation of details by recipient
15.5 Modes of filing return 1. GSTN Portal, 2. offline services, 3. GST Suvidha providers. 4. Common portal for central govt./state govt.
15.6 Types of return under GST 1. Under sec.39 (furnishing of returns):- for various class of registered persons: 1 Sec. 39(1) Regular taxpayers GSTR-3 2 Sec. 39(2) Composition scheme GSTR-4 3 Sec. 39(3) Tax deductor GSTR-7 4 Sec. 39(4) Input service distributor GSTR-6 5 Sec. 39(5) Non-resident taxable person GSTR-5 2. Other returns: a) First return b) Annual return GSTR-9 c) Final return GSTR-10
15.6.1 DETAILS TO BE FURNISHED 1. FURNISHING DETAILS of outward supplies GSTR-1 2. 3. DETAILS of supplies effected through e-commerce operator and the amount of tax collected GSTR-8 4. Details of inward supplies to be furnished by a person having UIN GSTR-11 inward GSTR-2
15.8 Return, furnishing details of outward supplies during a tax period. Foll. Aspects regarding furnishing of details of outward supplies: 1. Persons liable to furnish details of outward supplies 2. Form to be used (GSTR-1) 3. Due date of submission of GSTR-1 4. KIND OF details to be furnished in GSTRE-1 5. Contents of GSTR-1 6. Amendment, correction & rectification of errors.
15.8.1 Persons liable to furnish details of outward supplies:- Should be furnished by every registered person, except the foll. 1. Input service distributor 2. NRTP 3. Person paying tax under composition scheme 4. Person deduction tax at source 5. ECO 6. A supplier of online information and database access or retrieval services.
15.8.2 Form and manner of furnishing details of outward supplies i. Form GSTR-1 to be furnished electronically:- through the common portal, either directly or through a facilitation centre notified by the commissioner. ii. Details to be furnished in form GSTR-1 for outward supply: a. Invoice wise details- i. Inter state and intra-state supplies made to be registered persons; and ii. Inter-state supplies with invoice value more than Rs.2,50,000 made the unregistered person.
(b) Consolidated details of all i. Intra-state supplies made to unregistered persons for each rate of tax; and ii. State wise inter-state supplies with invoice value up to Rs.2,50,000 made to unregistered persons for each rate of tax. (c) Debit and credit notes, if any, issued during the month for invoices issued previously.
Contents of GSTR-1 1. General details of the registered person:- GSTIN, Legal name, trade name, etc. 2. Other specific contents:- 4 Invoice-wise details of taxable outward supplies made to registered persons excluding supplies covered by table 6 5 Invoice-wise details of taxable outward inter-state supplies to unregistered person where the invoice value is more than 2.5lakh 6 Invoice-wise details of zero rated supplies and deemed exports 7 Consolidated details 8 Nil rated, exempted and non GST outward supplies 9 Amendments to taxable outward supply to unregistered persons furnished in returns for earlier tax periods 10 Amendments to taxable outward supply to unregistered persons furnished in returns for earlier tax periods in table 7 11 Consolidated statement of advances received/advance adjusted in the current tax period/ amendments of information furnished in earlier tax period.
12 HSN WISE Summary of outward supplies 13 Documents issued during the tax period. Communication of details of GSTR-1 to recipient of supply The details of outward supplies shall be made available to the concerned recipients. There exists a process of modification, validation, amendment etc. It can be easily understood in the form of foll. Steps. Step 1. filing of GSTR-1:- The return for outward supplies is filed in form GSTR-1
Step 2 detail of GSTR-1 communicated to recipient: It is made available through the common portal after the 10thday of the succeeding month. Such information reflected in part A of the foll. Part A of form GSTR-2A or Part A of form GSTR-4A [in case of registered person opting for composition levy] Step 3 action by recipient:- the recipient is provided an opportunity to add, correct or delete such details in two-way communication process. So, the recipient reviews GSTR-2A and files the details of his inward supplies in form GSTR 2 after making modifications, if any. It is done after 10thday but on or before 15thday of the month succeeding the relevant month.
Step 4 Modification made available to supplier:- The details of inward supplies added, corrected or deleted by the recipient in FORM GSTR-2 [FORM GSTR-4 for persons opted for composition scheme] are made available to the supplier electronically in Form GSTR-1A through the common portal. Step 5 Action by supplier:- the supplier can accept or reject the modifications made by the recipient between 15thday and 17thday of the month succeeding the relevant month. Step 6 When supplier accepts the modification:- If the supplier accepts the modification, GSTR-1 filed by him gets amended accordingly.
Step 6 Effect on GSTR-3:- Such amended details of outward supply are reflected in form GSTR-3 to be filed by the supplier on or before 20thday of the month succeeding the relevant month.
GSTR-2: furnishing details of inward supplies Foll. Are the relevant aspects as regards Inward supplies: i. Persons liable to furnish details of inward supplies ii. Form to be used GSTR-2 iii. Due date of submission of GSTR-2 iv. Kind of details to be furnished in GSTR-2 v. Contents of GSTR-2 1. Persons liable to furnish details of inward supplies:- The registered persons who file detail of outward supplies are also required to file the details of inward supplies.
2. Form to be used for inward supplies:- furnished electronically form GSTR-2 3. Due date of submission of GSTR-2:- Filed after 10th day but on or before the 15thday of the immediately succeeding month. 4. Kind of details to be furnished in GSTR-2:- a) Invoice-wise details of all inter-state and intra- state supplies received from registered persons or unregistered persons; b) Import of goods and services made; and c) Debit and credit notes, if any received from supplier.
Contents of GSTR2 Divide into 2 parts. 1. Auto-populated( to the extent they are accepted/modifies in GSTR-2A) namely- i. Inward supplies received from registered persons including inward supplies taxable under reverse charge. ii. Amendments to details of inward supplies received in earlier tax periods. iii. Details of credit/debit notes iv. Amendment to details of credit/debit notes of earlier tax periods
The contents of GSTR-2 may be divided into 2 parts: 1. Basic and other details:- GSTIN, year, tax period, legal name, trade name, HSN, ITC REVERSL/RECLAIM, addition/reduction in output tax due to mismatch, advances paid, ISD credit/ TDS/TCS credit. 2. Details of inward supplies:- i. B2B supplies under forward charge ii. Supplies under reverse charge iii. Import of inputs and capital goods iv. Debit/credit notes v. Supplies from composition taxable person vi. Amendments for prior period
FURNISHING OF RETURN UNDER SEC.39 These person are- 1. Regular taxpayers (other than special category) 2. Composition scheme taxable persons 3. Tax dedutors 4. Input service distributor 5. NRTP
1. Regular taxpayers (other than special category) EXCEPT THE FOLL. a) Supplier of OIDAR Services b) Composition taxpayer c) NRTA d) ISD e) ECO f) Person deducting tax at source Form no. Periodicity Due date 20thof the next month GSTR-3 Monthly
2. Composition scheme taxable persons SEC.39(2) FORM NO PERIODICITY DUE DATE 18THOF THE NEXT TO THE RELEVANT QUARTER. GSTR-4 QUARTERLY 3. Tax dedutors SEC. 39(3) ON OR BEFORE 10THOF THE MONTH SUCCEDING SUCH CALENDAR MONTH GSTR-7 MONTHLY 4. Input service distributor On or before 13thof the month, succeeding such calendar month GSTR-6 MONTHLY 5. NRTP GSTR-5 NA Within 20 days after the end of the calendar month or within 7 days after the last day of the period of registration whichever is earlier.
15.4 Rectification by the supplier of error or omission in details of outward supply which remained unmatched and payment of tax and interest if there is any short payment Any registered taxable person, who has furnished the details under sub-section (1) for any tax period and which have remained unmatched under section 37 or section 38, shall, upon discovery of any error or omission therein, rectify such error or omission in the tax period during which such error or omission is noticed in such manner as may be prescribed, and shall pay the tax and interest, if any, in case there is a short payment of tax on account of such error or omission, in the return to be furnished for such tax period: PROVIDED that no rectification of error or omission in respect of the details furnished under sub-section (1) shall be allowed after furnishing of the return under section 34 for the month of September following the end of the financial year to which such details pertain, or furnishing of the relevant annual return, whichever is earlier.
1Rectification by the recipient of error or omission in details of outward supply which remained unmatched and payment of tax and interest if there is any short payment Any registered person, who has furnished the details under sub- section (2) for any tax period and which have remained unmatched under section 42 or section 43, shall, upon discovery of any error or omission therein, rectify such error or omission in the tax period during which such error or omission is noticed in such manner as may be prescribed, and shall pay the tax and interest, if any, in case there is a short payment of tax on account of such error or omission, in the return to be furnished for such tax period: Provided that no rectification of error or omission in respect of the details furnished under sub-section (2) shall be allowed after furnishing of the return under section 39 for the month of September following the end of the financial year to which such details pertain, or furnishing of the relevant annual return, whichever is earlier.
Contents of GSTR-3 1. Divide into 2 parts namely part A and part B. 2. Part A shall be auto-populated on the basis of information furnished through GSTR-1, GSTR-2 are based on other tax liabilities of proceeding tax periods. This part comprises tables showing GSTIN, legal name, turnover, outward supplies, inward supplies, ITC, etc. 3. The GSTR-3 is generated only when GSTR-1 AND GSTR-2 For the same tax period is filed. Only then, the auto-populated feature. 4. On generation GSTR-3, Electronic liability register, electronic cash ledger and electronic credit ledger are populated.
5. Part B of GSTR-3 comprises tables showing the foll. Particulars. a) discharge his liability towards tax, b) interest, penalty, fees or any other amount payable under the Act or c) the provisions of this Chapter by debiting the electronic cash ledger or electronic credit ledger d) Refund claimed from electronic cash ledger
15.12 GSTR-3B [When due dates for GSTR-1 or GSTR- 2 gets extended] 1. It can be submitted through the common portal 2. Containing summary of outward and inward supplies liable to reverse charge, eligible ITC, payment of tax etc. GSTR-3B does not require invoice-wise data of outward supplies. 3. It is notified as the form for return by the commissioner when the due dates for furnishing GSTR-1 and GSTR-2 get extended.
4. Where a return in FORM GSTR-3B has been furnished, after the due date for furnishing of details in FORM GSTR-2 (a) Part A of the return in FORM GSTR-3 shall be electronically generated on the basis of information furnished through FORM GSTR-1, FORM GSTR-2 and based on other liabilities of preceding tax periods and PART B of the said return shall be electronically generated on the basis of the return in FORM GSTR-3B furnished in respect of the tax period; (b) the registered person shall modify Part B of the return in FORM GSTR-3 based on the discrepancies, if any, between the return in FORM GSTR-3B and the return in FORM GSTR- 3 and discharge his tax and other liabilities, if any; (c) where the amount of input tax credit in FORM GSTR- 3 exceeds the amount of input tax credit in terms of FORM GSTR-3B, the additional amount shall be credited to the electronic credit ledger of the registered person.
15.5 furnishing of returns by registered person Normal registered person required to furnish return every calendar month Quarterly return by registered person paying tax under composition scheme Every registered person, other than an Input Service Distributor or a non- resident taxable person or a person paying tax under the provisions of section 10 or section 51 or section 52 shall, for every calendar month or part thereof, furnish, in such form and manner as may be prescribed, a return, electronically, of inward and outward supplies of goods or services or both, input tax credit availed, tax payable, tax paid and such other particulars as may be prescribed, on or before the twentieth day of the month succeeding such calendar month or part thereof. A registered person paying tax under the provisions of section 10 shall, for each quarter or part thereof, furnish, in such form and manner as may be prescribed, a return, electronically, of turnover in the State or Union territory, inward supplies of goods or services or both, tax payable and tax paid within eighteen days after the end of such quarter.
15.5b Monthly return by registered person required to deduct tax at source Monthly return by input service distributor Monthly return by registered non-resident taxable person. Every registered person required to deduct tax at source under the provisions of sec.51 shall furnish a return in form GSTR-7 electronically through the common portal either directly or form a facilitation centre notified by the commissioner, for the month in which such deductions have been made within 10 days after the last month. Every input service distributor shall, on the basis of details contained in form GSTR-6A and where required, after adding, correcting or deleting the details, furnish electronically the return in FORM GSTR-6 containing the details of tax invoices on which credit has been received and those issued under sec.20, through the common portal either directly or from a facilitation centre notified by the commissioner. Within 13 days after the end of such month. Every registered non-resident taxable person shall, for every calendar month or part thereof, furnish a return in form GSTR-5 electronically through the common portal, either directly or through a facilitation centre notified by the commissioner, within 20 days after the end of a calendar month or within 7 days after the last day of the period of registration.
14.5c Extension of time for furnishing the returns D. tax due as per return to be paid latest by last date of furnishing returns E. return to be furnished compulsorily even if there is no supply during the tax period f. Rectification of omission or incorrect particulars in the return furnished g. Furnishing a return not to be allowed if return of previous tax periods not furnished.
