CA Khushboo Jian

CA Khushboo Jian

A new system of ‘GST Compliance Rating Score’ has been proposed to be introduced under section 116 of model GST law. In this system, a rating score would be given to the every taxable person based on record of compliance made by them.  This score shall be determined on the basis of parameters to be prescribed under GST law.

Further, GST Compliance rating score would be placed in the public domain so that other dealers would know the compliance profile of the dealer with whom they are going to deal. These scores shall be updated at periodic intervals and intimated to the taxable person.

In GST law, compliance part are very important aspect for doing business. This includes timely furnishing of the returns and its details, depositing the taxes within due date, and other various statutory compliances. Here, I want to touch upon the compliances aspect of returns and furnishing of detail for inward supplies and outward supplies under GST law.

Under the model GST law, following details and return need to be furnish.

1. Furnishing details of outward supplies

2. Furnishing details of inward supplies

3. Returns under section 27

4. Annual return

5. Audited statement of account & reconciliation statement

6. Final Return

1. Furnishing details of outward supplies: Every registered taxable person should have to furnish detail of outward supplies of goods and/or services which include details relating to zero-rated supplies, inter-state supplies, return of goods received in relation to/ in pursuance of an inward supply, exports, debit notes, credit notes and supplementary invoices issued during the tax period. This return need to be furnished electronically on or before 10thday of the succeeding month and communicate to the recipient.

Rectification of error or omission:

Details of Outward supplies can be rectified before filing of annual return of relevant financial year or return filed u/s 27 for the month of September of the following year, whichever is earlier.

2. Furnishing details of inward supplies: Every registered taxable receiver is required to match his receipts with the outward supplies filed by the supplier. The receiver is required to verify, validate, modify or delete the details relating to outward supplies and credit or debit notes communicate by the supplier. These details should be furnished electronically on or before 15th day of the succeeding month of the said tax period.

In addition to the above, following details are also required to be furnish –

i. Inward services on which tax is payable under reverse charge basis

ii. inward supplies taxable under IGST act

iii. Credit or debit note received in respect of such supplies.

Rectification of error or omission:

Details of Inward supplies can be rectified before filing of annual return of relevant financial year or return filed u/s 27 for the month of September of the following year, whichever is earlier.

Persons not required to furnish the Inward & Outward Supplies Return:-

i. Input Service Distributor,

ii. Tax Deductor

iii. Person opting for Composition Levy Scheme

3. Return under section 27

A registered taxable person shall, for every calendar month or part thereof, required to furnish an electronic return with respect to:-

i. inward and outward supplies of goods and/or services,

ii. input tax credit availed,

iii. tax payable,

iv. tax paid

v. other particulars as may be prescribed

Within 20 days after the end of such month.

Furnishing of return in specified cases:-

1. Person opting Composition Levy Scheme – shall file an electronic return for every quarter within 18 days after the end of such quarter.

2. Input Service Distributer – shall file an electronic return on monthly basis within 13 days after the end of such month.

3. Person required to deduct tax at source- shall furnish an electronic return on monthly basis within 10 days after the end of such month.

NIL Return shall be furnish for every tax period, even no supply has effected during month/ quarter, as the case may be.

4. Annual return

Every registered taxable person will be require to furnish an annual return for every financial year on or before the 31st December following the end of such financial year These provisions are not applicable on input service distributor, Tax deductor, a casual taxable person and a non-resident taxable person.

5. Audited statement of account & reconciliation statement

Every taxable person who is required to get his accounts audited as may be prescribe later on, furnish electronic annual return along with the audited annual accounts and a reconciliation statement, reconciling the value of supplies declared in the return furnished for the year with the audited annual financial statement, and such other particulars as may be prescribed.

6. Final return for cancellation of registration.

Every registered taxable person who applies for cancellation of registration shall furnish a final return within 3 months of the date of cancellation or date of cancellation order, whichever is later.

Late filing fee of returns & detail

(1) A taxable person who fails to furnish the details of outward or inward supplies or returns furnished under section 27 or final return, by the due date shall be liable to a late fee of Rs 100 for every day during which such failure continues subject to a maximum of Rs 5000.

(2) Any registered taxable person who fails to furnish the Annual return by the due date shall be liable to a late fee of Rs 100 for every day during which such failure continues subject to a maximum of an amount calculated at a quarter percent of his aggregate turnover.

On the basis of above insight shared, it can be concluded that there will be numerous compliance procedure that need to be undertaken by the taxable person. Fulfilling these compliances in GST regime will not benefit only department but to all those taxable person who are performing their statutory compliance duty in timely manner as these are now linked with compliance rating score.

I am ending this topic with thankful remark. Hope my thoughts & views can help others in analyzing this concept. In case if any of my peer wants to add or modify my view are welcome. I will be ready for any discussion on this matter,If required.

Posted Under

Category : GST (2072)
Type : Articles (10792)
  • viji

    It would be nice if a similar rating system was available in the same portal where the assessees can rate the Department on various parameters & give a ranking – should also see how the Department fares in the expectation from the assessees

  • viji

    It would be nice if a similar rating system was available in the same portal where the assessees can rate the Department on various parameters & give a ranking – should also see how the Department fares in the expectation from the assessees