Mohan Arya

This article is for acquiring the knowledge on the basis of draft model of GST which would be modified  at a later stage.  As on date it has become essential to understand the tax structure once GST is implemented since for compliance of indirect taxation, all the existing heads of indirect taxes like CST, VAT, Service tax, Excise duty, Countervailing duty, Octroi, Luxury Tax, etc shall be replaced by GST (Goods and Services Tax).  The process of registration under the GST has been initiated by the Government.

Tax structure under GST is divided into three parts as below :-

CGST :- Central Goods and Service Tax

SGST :- State Goods and Service Tax

IGST : Inter State Goods and Service Tax

However petroleum products, alcohol for human consumption and tobacco have been kept out of the purview of the GST and the existing tax structure shall continue to be applicable for these products thereby extending support to the states. Central Government shall be the sole authority for levying and collecting GST.

Utilization of input credit tax :- Input tax credit of all three tax can be utilized for discharging IGST liability whereas input tax credit of IGST & CGST can be taken in CGST Act. The tax credit of IGST & SGST can be utilized under SGST Act and it is important to note that input tax credit of CGST & SGST cannot be cross-utilized but Input tax credit shall be  available on reverse charge .

Return  Structure :-

Assessees have to file at least three monthly returns and one annual return, as per the revised draft model GST Law. Monthly returns are applicable for output supply, input supply. The monthly and annual returns are summarized as under:

  • GSTR-1 This form is applicable for outward supplies and return need to be file on or before the 10th of the next month;
  • GSTR-2 This form is applicable for inward supplies and return need to be file on or before the 15th of the next month;
  • GSTR-3 : This form is applicable for Other than compounding taxpayer / ISD and return need to be file on or before the 20th of the next month;
  • GSTR-9 This is annual tax return which need to file on or before 31st December of next Financial year

The GSTR-1 & GSTR-2  these forms will contain details relating to sales and purchases of/from various types of suppliers/vendors, exports/imports, sales/purchase returns, debit/credit notes etc.

GSTR-4 :- This form is applicable to compounding Dealers who are availing composition scheme and return needs to be filed quarterly on or before the 18th day of the  next month of quarter ending.

GSTR -9A :- This is Annual Return which needs to be filed by 31st December of next financial year.

GSTR-5 :- This form is applicable to non-resident taxpayers .

GSTR-6  :- This form  is applicable to  Input Service Distributor .

GSTR-7 : This form is applicable to the persons who are liable to deduct tax at source.

Period : It is monthly return which need to be file on or before 10th of the next month.

GSTR-8  :The persons liable to collect tax at source, i.e., e-commerce operators.

Period : Its a monthly return which need to be file on or before 10th of the next month.

Similarly the dealer with multiple registrations for business verticals within a State would have to file GSTR-1, GSTR-2, GSTR-3 and GSTR-9 for each of the registrations separately.

This is very important for  every registered taxable person who has made outward supplies  between the dates on which he became liable to registration and  the date on which registration has been granted, shall declare the same in the first return filed by him after grant of registration.

Final Return has to be filed by registered taxable person who applies for cancellation of registration. If any taxable person after furnishing a return discovers any omission or incorrect particulars therein, other than as a result of scrutiny, audit, inspection or enforcement activity by the tax authorities, he shall rectify such omission or incorrect particulars in the return to be filed for the month or quarter, as the case may be, as once filed, Returns cannot be revised.

Penalty Provision :- A registered taxable person who files return beyond the prescribed date will have to pay late fees of INR 100/- for every day of delay subject to a maximum of INR 5,000/-. However, late fee for filing the GSTR-9, Annual Return beyond the prescribed date will be INR 100/- per day subject to maximum of 0.25% on Aggregate Turnover.

All the above information is based on the draft law of GST. However, it can only be understood properly when it is actually implemented.

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Category : Goods and Services Tax (5344)
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Tags : goods and services tax (3888) GST (3480)

3 responses to “GST- Tax Structure, Returns and Penalty Provisions”

  1. Sathish says:

    Grammatical errors must have been corrected, before publishing this article.

  2. Durga Dutt Tiwari says:

    This is very knowledgeable & helpful to understand gst provisions. Very thankful for this and keep it up.

  3. Deepak says:

    Very informative and it’s a good effort, keep it up.

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