Article explains what is GST Return, Type of GST Return, Who is required to file GST Return, How to File GST Return, How to revise GST Return, Due dates to file GST Return etc.
What is Return?
The word returns itself needs some understanding. So let us understand the purpose of Returns first:
a) Mode for transfer of information to tax administration;
b) Compliance verification program of tax administration;
c) Finalization of the tax liabilities of the taxpayer within stipulated period of limitation; to declare tax liability for a given period;
d) Providing necessary inputs for taking policy decision;
e) Management of audit and anti-evasion programs of tax administration.
What type of Information to be given in Return?
(Summary Details with Due date of all the returns is given at the end in a Summary table)
GSTR-1 – The Return of Outward supplies
A normal registered taxpayer has to 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.
For B2B supplies, all invoices, whether Intra-state or Interstate supplies, will have to be uploaded. Why So? Because ITC will be taken by the recipients, invoice matching is required to be done.
In B2C supplies, uploading in general may not be required as 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 lacs in inter-state B2B supplies will have to be uploaded. For intra-state invoices below Rs. 2.5 lacs and all intra-state invoices, state wise summary will be sufficient.
For each transaction not only value but taxable value will also have to be fed. In some cases both may be different. In case there is no consideration, but it is supply by virtue of schedule 1, the taxable value will have to be uploaded.
GSTR-2 – The Return of Inward Supply
A normal registered taxpayer has to file the Inward supply details in GSTR-2 in relation to various types of supplies Received in a month.
While a large part of GSTR-2 will be auto-populated, there are some details that only recipient can fill like details of imports, details of purchases from non-registered or composition suppliers and exempt/non-GST/nil GST supplies etc.
The recipient can himself feed the invoices not uploaded by his supplier. The credit on such invoices will also be given provisionally but will be subject to matching. On matching, if the invoice is not uploaded by the supplier, both of them will be intimated. If the mismatch is rectified, provisional credit will be confirmed. But if mismatch continues even after intimation, the credit provisionally allowed will be reversed.
If invoices in GSTR-2 do not match with invoices in counter-party GSTR-1, the ITC will be reversed if the mismatch continues even after it is made known to both and still it is not rectified. Mismatch can be because of two reasons. First, it could be due to mistake at the side of the recipient, and in such a case, no further action is required. Secondly, it could be possible that the said invoice was issued by supplier but he did not upload it and pay tax on it. In such a case, recovery action shall be taken against the supplier. In short, all mismatches will lead to proceeding if the supplier has made a supply but not paid tax on it.
If the supplier uploads the invoice at any time after the reversal but by September of the next financial year, the credit reversed earlier gets restored along with refund of the interest paid during reversal.
GSTR-3 – Summary Return
Every registered taxable person (other than person paying tax as Composition Suppliers) shall file FORM GSTR-3.
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.
Tax payer 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.
GSTR-4 – Returns for Composition Tax Payer
Composition tax payers do not need to file any statement of outward or inward supplies. They have to file a quarterly return in Form GSTR-4 by the 1st of the month after the end of the quarter. Since they are not eligible for any input tax credit, there is no relevance of GSTR-2 for them and since they do not pass on any credit to their recipients, there is no relevance of GSTR-1 for them. In their return, they have to declare summary details of their outward supplies along with the details of tax payment. They also have to give details of their purchases in their quarterly return itself, most of which will be auto populated.
GSTR-5 – Return for Non Resident person
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 required to file two separate returns for inward and outward supplies. He can file a single return covering both.
GSTR-6 – The Return for Input Service distributor
The Input Service Distributers (ISD) need to file only a return in GSTR-6 and the return has the details of credit received by them from the service provider and the credit distributed by them to the subsidiaries. Since their return itself covers these aspects, there is no requirement to file separate statement of inward and outward supplies.
GSTR-7 – The Return for tax deductor
Under GST, the deductor will be submitting the deductee wise details of all the deductions made by him in his return in Form GSTR-7 to be filed by 10th of the month next to the month in which deductions were made. The details of the deductions as uploaded by the deductor shall be auto populated in the GSTR-2 of the deductee. The taxpayer shall be required to confirm these details in his GSTR-2 to avail the credit for deductions made on his behalf. To avail this credit he does not require to produce any certificate in physical or electronic form.
The certificate will only be for record keeping of the tax payer and can be downloaded from the Common Portal.
GSTR-8 – For E-commerce Operator/Tax Collector
GSTR 8 to be furnished by e-commerce operator(s) providing facility of supplying goods and/or services, other than branded services, of other suppliers through his portal required to collect tax.
GSTR-9 – The Annual Return
All taxpayers filing return in GSTR-1 to 3 other than casual taxpayers and taxpayers under composition scheme are required to file an annual return. Casual taxpayers, non-resident taxpayers, ISDs and persons authorized to deduct tax at source are not required to file annual return.
GSTR -10 Final Return
Taxable Person whose registration has been surrendered or cancelled, has to file final return in Form GSTR-10.
GSTR-11 Inward Supplies Statement for UIN
GSTR 11 -Inward Supplies statement for UIN -Unique Identity Number- is to be furnished by the persons holding UIN w.r.t. the inward supplies made during the month for consumption or use.
|GSTR||Purpose||Due Date||Applicable to|
|Returns to be filed by Regular Tax Payer (Other than Compounding)|
|GSTR-1||For Outward Supply made by taxpayer||10th of the Following month||Other than Compounding tax payer|
|GSTR-2||For Inward supplies received by tax payer||15th of the following month||Other than Compounding tax payer|
|GSTR-3||Monthly summary return||20th of the following month||Other than Compounding tax payer|
|GSTR-9||Annual Return||31st December of next FY||GSTR – 9 – Registered Taxable Persons
GSTR- 9B – Registered Taxable Person (if Turnover Exceeds 1Crore)
|Returns to be filed by Compounding Tax Payer|
|GSTR-4||Quarterly return for compounding taxpayer||18th of the month succeeding the Quarter||Compounding Tax payer|
|GSTR-9 A||Annual Return||31st December of next FY||GSTR–9A–Compounding Taxable Person|
|Other Misc. Returns|
|GSTR-5||For Non-resident person||Within 21 days after the end of tax period or within 7 days after last day of validity of registration whichever is earlier.||Non-Resident person|
|GSTR-6||For Input Service Distributor||13th of the month succeeding the tax period||Input Service Distributor|
|GSTR-7||Details of tax deducted||10th of the month succeeding the month of deduction||Tax Deductor|
|GSTR-8||Details of tax collected.||10th of the month succeeding the month of deduction||E-Commerce Operator/Tax Collector|
|GSTR-10||Final return||Within three months of the date of cancellation or date of cancellation order, whichever is later
|Taxable person whose registration has been surrendered or cancelled
|GSTR-11||Details of inward supplies
|28th of the month following the month for which statement is filed||Persons having Unique Identity Number and Claiming Refund|
Who is supposed to File GST Returns?
Every registered taxable person – who crosses the threshold limit for payment of taxes. A supplier will be required to file returns when he crosses the threshold limit of Rs. Twenty lacs (Ten Lacs for the Assesee from North East States).
There are some other class of persons who need to be registered and therefore will have to file returns like interstate suppliers, TDS deductors , e-commerce operators, suppliers supplying goods through e-commerce operators etc.
How to File GST Returns?
Taxpayers will have various modes to file the statements and returns. Firstly, they can file their statement and returns directly on the Common Portal online. However, this may be tedious and time taking for taxpayers with large number of invoices. For such taxpayers, an offline utility will be provided that can be used for preparing the statements offline after downloading the auto populated details and uploading them on the Common Portal. GSTN has also developed an ecosystem of GST Suvidha Providers (GSP) that will integrate with the Common Portal.
How to Revise the GST Returns?
In GST, since the returns are built from details of individual transactions, there is no requirement for having a revised return. Any need to revise a return may arise due to the need to change a set of invoices or debit/ credit notes. Instead of revising the return already submitted, the system will allow changing the details of those transactions (invoices or debit/credit notes) that are required to be amended. They can be amended in any of the future GSTR- 1/2 in the tables specifically provided for the purposes of amending previously declared details.
One of the most important things under GST will be timely uploading of the details of outward supplies in Form GSTR-1 by 10th of next month. How best this can be ensured will depend on the number of B2B invoices that the taxpayer issues. If the number is small, the taxpayer can upload all the information in one go. However, if the number of invoices is large, the invoices (or debit/ credit notes) should be uploaded on a regular basis. GSTN will allow regular uploading of invoices even on a real time basis. Till the statement is actually submitted, the system will also allow the taxpayer to modify the uploaded invoices. Therefore, it would always be beneficial for the taxpayers to regularly upload the invoices. Last minute rush will make uploading difficult and will come with higher risk of possible failure and default. The second thing would be to ensure that taxpayers follow up on uploading the invoices of their inward supplies by their suppliers. This would be helpful in ensuring that the input tax credit is available without any hassle and delay. Recipients can also encourage their suppliers to upload their invoices on a regular basis instead of doing it on or close to the due date. The system would allow recipients to see if their suppliers have uploaded invoices pertaining to them. The GSTN system will also provide the track record about the compliance level of a tax payer, especially about his track record in respect of timely uploading of his supply invoices giving details about the auto reversals that have happened for invoices issued by a supplier.