Input Tax Credit is available only if the registered person has issued the tax invoice for the supply of goods or services as given in the Revised Invoice Rules and the same is furnished in the GSTR – 2 of the recipient and GSTR -1 of the supplier of goods or services are matched.
GSTR 1 is the Tax Form to be filled and send electronically by a Tax payer which contains outward supply details of his business transactions for a period of month. A normal registered taxpayer has to fill and file the outward supply details in GSTR 1 in relation to various types of supplies made in a month, namely outward supplies to registered persons, outward supplies to unregistered persons (consumers), details of Credit/Debit Notes, zero rated, exempted and non-GST supplies, exports, and advances received in relation to future supply.
The dealers are under wrong impression that in GST regime all tax invoices shall be scanned and to be uploaded. In fact scanned copy of invoices are not required to be uploaded. Only certain prescribed fields of information from invoices need to be filled and uploaded.
Further to note that it depends on the transaction, whether B2B or B2C plus whether Intra-state or Inter-state supplies. For B2B supplies, all invoices, irrespective of whether Intra-state or Interstate supplies will have to be uploaded. Because the recipients will be claiming ITC for which, invoice matching is necessary. In B2C supplies, uploading is in general and may not be required to be uploaded since the buyer will not be taking ITC. However still in order to implement the destination based principle, invoices of value more than Rs.2.5 Lakhs in inter-state B2B supplies will have to be uploaded. For intra-state invoices below Rs. 2.5 Lakhs and all intra-state invoices, furnishing of information will be sufficient that too state wise. The formation is like description i.e. 1) Only HSN code in respect of supply of goods and Accounting code in respect of supply of services will have to be uploaded. 2) Value of each transaction 3) taxable value 4) Supply for no consideration 5) supply by virtue of schedule 1. The minimum number of digits that the filer will have to upload would be depended upon on his previous year turnover.
1. Terms used in the Return:
GSTIN : Goods and Services Taxable Person Identification Number
UIN : Unique Identity Number for embassies
HSN : Harmonized System of Nomenclature for goods
SAC : Service Accounting Code
POS : Place of Supply (State Code) of goods or services – State Code to be mentioned
2. To be furnished by the 10th of the month succeeding the tax period. Not to be furnished by compounding Taxable Person/ISD.
3. Aggregate Turnover means as defined under the Goods and Services Tax Act, 20…..
4. HSN/SAC is not mandatory for taxable person whose aggregate turnover is less than 1.5 crores. HSN shall be restricted to maximum 8 digits. If gross turnover in previous financial year is greater than Rs 5 crore, HSN should be minimum of 4 digits. If gross turnover in previous financial year is equal to or greater than Rs 1.5 crore and less than 5 crore, HSN should be minimum of 2 digit and would be mandatory from the second year of GST implementation. In case of Exports HSN should be 8 digits.
How to fill Form GSTR 1
Every taxpayer will be allotted a State-wise 15-digits PAN-based Number and is called Goods and Services Taxpayer Identification Number in short (GSTIN). How to fill the form is given below:
1. GSTIN of the taxpayer will be auto-populated at the time of return filing.
2. Name of the taxpayer will also be auto-populated at the time of logging into the common GST Portal.
3. Gross Turnover of the Taxpayer in the previous Financial Year – This information is required to be filed only in the first year of GST implementation next year onwards it will be auto-populated as carried forward balance of the previous year.
4. Tax Period, Month, Year – ATaxable person is required to select from pre-fixed a drop down the relevant month and year respectively for which GSTR-1 is being filed.
5. Taxable Outward Supplies to a Registered Person– All taxable supplies are required to be filled in this column / row / space.
Supply includes any supply under reverse charge mechanism. the option to furnish the details of nil rate and exempt supply In the case of inter-state, only IGST would be filled.
Similarly, in the case of intra-state supplies, CGST and SGST would also be filled.
6. Taxable Outward Supplies to a Consumer –
i) The details of inter-state supplies made to end consumer.
ii) Supply of Invoice value more than Rs. 2.5 lakh is mandatorily required.
7. Taxable Outward Supplies to Consumer (Other than 6 above)
Any outward supply which is not covered under heading 5 or 6 can be furnished.
8. Details of Credit/Debit Notes – the taxpayer is required to furnish details of all debit/credit notes issues as part of taxable supply, during the tax period for which period for which return is filed.
9. Amendments to Details of Outward Supplies of Earlier Tax Periods– Any kind of amendment made in current tax period with respect to earlier tax period is required to be furnished in this section.
For instance if a taxpayer is filing a return for the month of January, any change in GST invoice other than by way of debit/credit note against pertaining to a period prior to January is required to be furnished in this head. This will also include post supply discounts.
10. Nil Rated, Exempt, and Non-GST Outward Supplies– To fill:
11. Supplies Exported – All export supplies must be reported in this column/ row / space. The taxpayer is also required to furnish 8 Digit HSN code against each export supply.
12. Tax Liability of Amount Received in Advance– Any kind of advance amount received against a supply to be made in future must be reported in this section. Registered taxpayer is required to pay GST on such advance as tax liability for the period in which such advance is received.
13. Tax Already Paid –The taxpayer is required to furnish details of prepaid taxes here. This includes the scenario when advance had been received during earlier tax period and tax was paid during that month’s return filing. However, the invoice has been generated in the current tax period.
Do you think CBDT should extend Tax Audit Report and relevant ITR Due Date? Please Comment, Vote, Retweet and Like.— Tax Guru (@taxguru_in) September 18, 2018