CA Reema Uppal

As you aware that Govt. has recently unveiled draft rules on GST returns, in this article, I have given laws as released vis-à-vis my analysis. Hope you may find it useful.

1. FORM and manner of furnishing details of outward supplies:

Draft Law: What has given in law has reproduced below:

(1) Every registered taxable person required to furnish the details:

(a) of outward supplies of goods and/or services effected during a tax period under sub-section (1) of section 25; and

(b) of outward supplies of goods and/or services effected during an earlier tax period under sub-section (2) of section 25shall furnish such details in FORM GSTR-1 electronically through the Common Portaleither directly or from a Facilitation Centre, notified by the Board or Commissioner.

(2) The details of outward supplies furnished by the supplier shall be made available electronically to each of the registered taxable persons (recipients) in Part A of FORM GSTR-2A through the Common Portal after the due date of filing of FORM GSTR-1.

(3) The details of inward supplies added, corrected or deleted by the recipient in his FORM GSTR-2 under sub-section (1) of section 26 or FORM GSTR-4 under section 27 shall be made available to the supplier electronically in FORM GSTR-1A through the Common Portal and such supplier may either accept or reject the modifications made by the recipient and FORM GSTR-1 furnished by the supplier shall stand amended to the extent of modifications accepted by him.

Analysis:

Suppose “A” is a registered taxable supplier and “B” is registered taxable recipient. Now as per Rule 1 “A” needs to file FORM GSTR-1 for both current tax period and earlier tax period of his outward supplies.

Now after due date of filing of FORM GSTR-1, details filed by “A” of outward supplies shall be made available to “B” in Part A of FORM-GSTR 2A.

Then details of inward supplies added,corrected or deleted by “B” in his FORM GSTR-2 or FORM GSTR 4 shall be made available to “A” electronically in FORM GSTR-1A and “A” may either accept or reject the modifications made by “B” and FORM GSTR -1 shall stand amended to the extent of modifications accepted by him.

2. FORM and manner of furnishing details of inward supplies:

Draft Law: What has given in law has reproduced below:

(1) Every registered taxable person required to furnish the details of inward supplies of goods and/or services received during a tax period under sub-section (2) of section 26 shall, on the basis of details contained in Part A of FORM GSTR-2A, prepare such details in the manner specified in sub-section (1) of the said section and furnish the same in FORM GSTR-2 electronically through the Common Portal, either directly or from a Facilitation Centre, notified by the Board or Commissioner, after including therein details of such other inward supplies, if any, required to be furnished under sub-section (2) of section 26.

(2) Every registered taxable person shall furnish the details, if any, required under sub-section (3) of section 26 electronically in FORMGSTR-2.

(3) The recipient of goods and/or services shall specify the inward supplies in respect of which he is not eligible, either fully or partially, for input tax credit in FORM GSTR-2 where such eligibility can be determined at the invoice level.

(4) The recipient of goods and/or services shall declare the quantum of ineligible input tax credit on inward supplies which is relatable to non-taxable supplies or for purposes other than business and cannot be determined at the invoice level in FORM GSTR-2.

(5) The details of invoices furnished by an Input Service Distributor in his return in FORM GSTR-6 under rule 7 shall be made available to the recipient of credit in Part B of FORMGSTR 2A electronically through the Common Portal and the said recipient may include the same in FORMGSTR-2.

(6) The details of tax deducted at source by the deductor under section 37 furnished in FORM GSTR-7 shall be made available to the deductee in Part C of FORM GSTR-2Aelectronically through the Common Portal and the said deductee may include the same in FORM GSTR-2.

(7) The details of tax collected at source by an e-commerce operator under section 43C furnished in FORM GSTR-8 shall be made available to the concerned taxable person in Part D of FORM GSTR 2A electronically through the Common Portal and such taxable person may include the same in FORM GSTR-2.

Analysis

As per Rule 2, if “B” required to furnish details of inward supplies of any tax period u/s 26(2), then “B ” shall on the basis of details in Part A of FORM GSTR 2A, prepare and furnish such details in FORM GSTR 2.

He shall also include details required u/s 26(3) in FORM GSTR 2

Details of inward supplies in respect of which he is not eligible for input tax credit (fully/partially) where such eligibility can be determined at invoice level shall also be included in FORM GSTR 2

He shall also declare the quantum of ineligible input tax credit on inward supplies which relates to non- taxable supplies or for non-business purposes and cannot be determined at invoice level in FORM GSTR 2

Details of invoices furnished by an ISD in his return in FORM-GSTR 6 under Rule 7 shall be made available to the recipient of credit in Part B of FORM GSTR 2A and recipient may include the same in FORM GSTR 2.

Details of TDS by deductor u/s 37 furnished in FORMGSTR 7 shall be made available to deductee in Part C- of FORMGSTR 2A and he may include the same in FORM GSTR 2.

Details of TCS by an e-commerce operator u/s 43C furnished in FORM GSTR 8 shall be made available to deductee in Part D- of FORM GSTR 2A and he may include the same in FORM GSTR 2.

In other words,FORM GSTR 2 will include the following items:

(a) Details of inward supplies u/s 26(2)

(b) Details required u/s 26(3)

(c) Details of ineligible inward supplies (ineligibility can be determined at invoice level)

(d) Quantum of ineligible input tax credit relates to non-taxable/non business purposes

(e) Details of invoices furnished by an ISD as available in Part B of FORM GSTR 2A

Details of TDS by deductor u/s 37

Details of TCS by an e-commerce operator u/s 43C

Also, FORM GSTR 2A contains many parts, which are explained below:

Part A: Details of outward supplies furnished by the supplier

Part B: Details of invoices furnished by an Input Service Distributor

Part C: Details of tax deducted at source by the deductor

Part D: Details of tax collected at source by an e-commerce operator

3. FORM and manner of submission of monthly return:

Draft Law: What has given in law has reproduced below:

(1) Every registered taxable person, other than a taxable person paying tax under section 8, shall furnish a return under sub-section (1) of section 27 in FORM GSTR-3 electronically through the Common Portal either directly or from a Facilitation Centre, notified by the Board or Commissioner.

(2) Part A of the return under sub-rule (1) shall be electronically generated on the basis of information furnished  through returns in FORM GSTR-1, FORM GSTR-2, electronic credit ledger, electronic cash ledger and electronic tax liability register of the taxable person.

(3) Every registered taxable person furnishing the return under sub-rule (1) shall, subject to the provisions of section 35, discharge his liability towards tax, interest, penalty, fees or any other amount payable under the Act or these rules by debiting the electronic cash ledger and/or electronic credit ledger as per the details contained in Part B of the return in  FORM GSTR-3.

(4) A registered taxable person, claiming refund of any balance in the electronic cash ledger as per sub-section (6) of section 35, may claim such refund in Part B of the return in FORM GSTR-3 and such return shall be deemed to be an application filed under section 38.

(5) Where the time limit for furnishing FORM GSTR-1 under sub-section (1) of section 25 and FORM GSTR-2 under sub-section (2) of section 26 has been extended,return in FORM GSTR-3 may be furnished in such manner as may be notified by theCommissioner/Board.

Analysis

Every registered taxable person (say Mr A) (other than person paying tax u/s 8 i.e Composition Suppliers) shall file FORM GSTR-3 u/s 27(1)

Part A of FORM GSTR 3 shall be electronically generated on the basis of information furnished through FORM GSTR 1,FORM GSTR 2,electronic credit ledger ,electronic cash ledger &/or electronic tax liability register of taxable person.

Mr A shall also, subject to Sec 35, discharge his liability towards tax, interest, penalty, fees or any other amount payable under the act /rules (hereafter called as tax etc.), by debiting electronic cash/credit ledger as per details given in Part B of GSTR 3.

(It means that under GST regime any tax, interest, penalty etc, can be paid only by debiting electronic cash/credit ledger)

He may also claim refund of any balance in electronic cash ledger as per Sec 35(6) in Part B of GSTR 3 and such return shall be deemed to be an application filed u/s 38(Refund of Tax)

If time limit of filing GSTR 1 and GSTR 2 has been extended, the FORM GSTR 3 may be filed in such manner as may be notified by Commissioner/Board. It implies that if time limit of filing GSTR 1 and GSTR 2 has been extended, it does not automatically means that time limit of filing GSTR 3 has also been extended. However since GSTR 3 can be filed after including details given in GSTR 1 and GSTR 2 , it means GSTR 3 can be filed after filing of GSTR 1 and GSTR 2.

4. FORM and manner of submission of quarterly return by the composition Supplier:

 Draft Law: What has given in law has reproduced below:

 (1) Every registered taxable person paying tax under section 8 shall, after adding, correcting or deleting the details  contained in FORMGSTR-4A, furnish a quarterly return in FORM GSTR-4 electronically through the Common Portal, either directly or from a Facilitation Centre, notified by the Board or Commissioner.

(2) Every registered taxable person furnishing the return under sub-rule (1) shall discharge his liability towards tax, interest, penalty, fees or any other amount payable under the Act or these rules by debiting the electronic cash ledger.

Analysis:

Composition suppliers shall after adding, correcting or deleting the details contained in GSTR 4A furnish quarterly return in GSTR 4.

They shall discharge theirliability towards tax etc. by debiting electronic cash ledger.

5. FORM and manner of submission of return by non-resident taxable person:

Draft Law: What has given in law has reproduced below:

Every registered non-resident taxable person shall furnish a return in FORM GSTR-5 electronically through the Common Portal, either directly or from a Facilitation Centre,notified by the Board or Commissioner, including therein the details of outward suppliesand inward supplies and shall pay the tax, interest, penalty, fees or any other amountpayable under the Act or these rules within twenty days after the end of a tax period orwithin seven days after the last day of the validity period of registration, whichever isearlier.

Analysis

Non-resident person shall file return in FORM GSTR 5 including therein details of outward and inward supplies and shall pay tax etc.within 21 days after the end of tax period or within 7 days after last day of validity of registration whichever is earlier.

It means that Non-Resident person has not require to file two separate returns for inward and outward supplies. He can file a single return covering both.

6. FORM and manner of submission of return by an input service distributor

Draft Law: What has given in law has reproduced below:

Every input service distributor shall, after adding, correcting or deleting the details contained in FORM GSTR-6A,  furnish electronically a return in FORM GSTR 6, containing the details of tax invoices on which credit has been received and those issuedunder section 17, through the Common Portal either directly or from a Facilitation Centre, notified by the Board or Commissioner

Analysis:

An ISD shall after adding, correcting or deleting details contained in GSTR -6A, file return in GSTR-6 containing details of tax invoices on which credit has been received and those issued u/s 17.

7. FORM and manner of submission of return by a person required to deduct tax at source:

 Draft Law: What has given in law has reproduced below:

 (1) Every registered taxable person required to deduct tax at source under section 37 shall furnish a return in FORM GSTR-7 electronically through the Common Portal either directly or from a Facilitation Centre, notified by the Board or Commissioner.

(2) The details furnished by the operator under sub-rule (1) shall be made available electronically to each of the suppliers in Part C of FORM GSTR-2A on the Common Portal after the due date of filing of FORM GSTR-7.

(3) The certificate referred to in sub-section (3) of section 37 shall be made available electronically to the deductee on the Common Portal in FORM GSTR-7A on the basis of the return filed under sub-rule (1).

Analysis:

Those who required to deduct TDS u/s 37shall furnish return in FORM GSTR 7.

Details furnished above shall be made available to suppliers in Part C of GSTR 2A on common portal.

TDS certificates shall be made available to deductee on common portal in FORM GSTR-7A on the basis of GSTR 7 filed.

8. FORM and manner of submission of statement of supplies effected through e-Commerce

 Draft Law: What has given in law has reproduced below:

 (1) Every e-Commerce operator required to collect tax at source under section 43C shall furnish a statement in FORM GSTR-8 electronically through the Common Portal, either directly or from a Facilitation Centre, notified by the Board or Commissioner, containing details of supplies effected through such operator and the amount of tax collected as required under sub-section (1) of section 43C.

(2) The details furnished by the operator under sub-rule (1) shall be made available electronically to each of the suppliers in Part D of FORM GSTR-2A on the Common Portal after the due date of filing of FORM GSTR-8.

Analysis:

Those e-commerce operators who are required to collect TCS u/s 43C shall furnish a statement in FORM-GSTR 8 containing

-details of supplies effected through them and

-amount of tax collected Details furnished above shall be made available to suppliers in Part D of GSTR 2A on common portal.

9. Notice to non-filers of returns:

Draft Law: What has given in law has reproduced below:

A notice in FORM GSTR-3A shall be issued, electronically, to a registered taxable person who fails to furnish return under section 27 and section 31 ( Final Return ).

Invoice Format under GST

Table showing different forms of returns

Sr.No FORM To be filed by What to file?
1 GSTR 1 Registered taxable supplier Outward supplies
2 GSTR 2 Registered taxable recipient Inward supplies
3 GSTR 3 Registered taxable person Outward supplies , inward supplies, ITC availed, tax payable, tax paid and other particulars as prescribed
4 GSTR 4 Composition supplier Outward supplies, inward supplies
5 GSTR 5 Non-resident person Outward supplies, inward supplies
6 GSTR 6 Input service distributor details of tax invoices on which credit has been received
7 GSTR 7 Tax deductor Details of tax deducted
8 GSTR 8 E commerce operator/tax collector Details of tax collected.

More Under Goods and Services Tax

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Category : Goods and Services Tax (6687)
Type : Articles (16737) Featured (4087)
Tags : goods and services tax (5174) GST (4778)

One response to “All about GST Returns”

  1. Parul says:

    There are lot type of return under GST which are to be filed monthly and one annually from GSTR 1 to GSTR 11. For return filling and Offline Utility in Excel format and other related issues.
    Contact 9899550422

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