1. Returns to be filed
Every registered taxable person paying tax shall furnish the first return containing the details
v GSTR 1
Outward supplies made by taxpayer (other than compounding taxpayer and ISD), to be filed by 10th of the next month.
v GSTR 2
Inward supplies received by a taxpayer (other than a compounding taxpayer and ISD) , to be filed by 15th of next month.
v GSTR 3
Monthly return (other than compounding taxpayer and ISD), to be filed by 20th of the next month.
v GSTR 4
Quarterly return for compounding Taxpayer, to be filed by 18th of the month next to quarter
v GSTR 5
Periodic return by Non-Resident Foreign Taxpayer Last day of registration
v GSTR 6
Return for Input Service Distributor (ISD), to be filed by 15th of the next month
v GSTR 7
Return for Tax Deducted at Source, to be filed by 10th of the next month
v GSTR 8
Annual Return, to be filed by 31st December of the next financial year
2. First Return
Every registered taxable person paying tax shall furnish the first return containing the details of outward supplies made from the date on which he became liable to registration till the end of the month in which the registration has been granted and inward supplies under from the effective date of registration till the end of the month in which the registration has been granted.
3. Who needs to file return?
Every registered person is required to file a return for the prescribed tax period. A return needs to be filed even if there is no business activity during the said tax period of return. UN agencies etc. will have unique GST ID and will file return for the month during which they make purchases. They would not be required to file regular return. They would submit their purchase statements as per the periodicity prescribed for claim of refund. Government entities / PSUs , etc. not dealing in GST supplies or persons exclusively dealing in exempted / Nil rated / non –GST goods or services would neither be required to obtain registration nor required to file returns under the GST law.
4. Other important points relating to periodicity of return
v Normal / Regular taxpayers (including casual taxpayers) would have to file GSTR-1, GSTR-2 and GSTR-3 for each registration.
v Normal / Regular taxpayers with multiple registrations within a State would have to file GSTR-1, GSTR-2 and GSTR-3 for each of the registrations separately.
v Casual/ Non – Resident Taxpayers would have to file GSTR-1, GSTR-2 and GSTR-3 returns for the period for which they have obtained registration.
v Annual return (GSTR-8) will be filed by all normal / regular taxpayers. It will be based on financial records.
v Compounding taxpayer will also file a simple annual return.
v Cut-off date for filing of details of outward supplies (GSTR-1), inward supplies (GSTR-2) and Monthly return (GSTR-3) would be10th, 15th and 20th day respectively of the succeeding month for all Monthly filers.
v Cut-off date for filing of Quarterly return (GSTR-4) by compounding taxpayer would be 18thday of the first month of the succeeding quarter.
v Cut-off date for filing of Input Service Distributor return (GSTR-6) would be 15th day of the succeeding month.
v Cut-off date for filing of TDS (Tax Deducted at Source) return (GSTR-7) by Tax Deductor would be 10th day of the succeeding month.
v For Annual return, the cut-off date would be 31st December following the end of the financial year for which it is filed.
v The filing of return would be only through online mode although the facility of offline generation and preparation of returns would be provided. The returns prepared in offline mode would have to be uploaded.
5. Components of GSTR-1
5.1 Basic details of the Taxpayer i.e. Name along with GSTIN
5.2 Period to which the Return pertains
5.3 Gross Turnover of the Taxpayer in the previous Financial Year (this information would be submitted by the taxpayers only in the first year and will be auto-populated in subsequent years)
5.4 Details relating to advance received against a supply to be made in future will be submitted in accordance.
5.5 Details relating to taxes already paid on advance receipts for which invoices are issued in the current tax period will be submitted.
5.6 Details relating to supplies exported (including deemed exports) both on payment of IGST as well as without payment of IGST would be submitted.
5.7 There will be a separate table for submitting the details of revisions in relation to the outward supply invoices pertaining to previous tax periods. This will include the details of Credit/Debit Note issued by the suppliers and the differential value impact and the concomitant tax payable or refund/tax credit sought.
5.8 There will be a separate table for effecting modifications/correcting errors in the returns submitted earlier.
5.9 There will be a separate table for submitting details in relation to NIL rated, Exempted and Non GST outward supplies to ( both inter-state and intra-state) to registered taxpayers and consumers.
6. Components of GSTR-2
6.1 Basic details of the Taxpayer i.e. Name along with GSTIN
6.2 Period to which the Return pertains
6.3 Final invoice-level inward supply information pertaining to the tax period for goods and services separately
6.4 The information submitted in GSTR-1 by the Counterparty Supplier of the taxpayer will be auto populated in the concerned tables of GSTR-2. The same may be modified by the Taxpayer while filing the GSTR-2. The recipient would be permitted to add invoices (which are not uploaded by the counterparty supplier) if he is in possession of the same and have received the goods or services.
6.5 There will be separate tables for submitting details relating to import of Goods/Capital Goods from outside India and for the services received from outside India.
6.6 The details of inward supplies would be auto-populated in the ITC ledger of the taxpayer on submission of his return. The taxpayer will select the invoice details regarding the in-eligibility and eligibility of ITC in relation to these inward supplies and the quantum available in a particular tax period.
6.7 There will be a separate table for submitting details in relation to ITC received on an invoice on which partial credit has been availed earlier.
6.8 In respect of capital goods, there will be a field to capture appropriate information regarding availment of ITC over a period from the date of accountal of capital goods in the taxpayer’s books of accounts.
6.9 In respect of inputs, there can be two situations. If inputs are received in one lot, the ITC will be given in the return period in which the purchase is recorded in the books of accounts. In case inputs covered under one invoice are received in more than one instance/lot, the ITC will be given in the return period in which the last purchase is recorded in the books of accounts.
6.10 There will be a separate table for submitting the details of revisions in relation to inward supply invoices pertaining to previous tax periods (including post purchase discounts received). This will include the details of Credit/Debit Note issued by the suppliers and the differential value impact and concomitant tax payable or refund/tax credit sought.
6.11 There will be a separate table for effecting modifications/correcting errors in the returns submitted earlier. The time period for correcting these errors will be provided in the GST Law.
6.12 There will be a separate table for submitting details in relation to NIL rated, Exempted and Non GST inward Supplies ( Both Inter-State and Intra-State) including those received from compounding taxpayers and unregistered dealers.
6.13 There will be a separate table for the ISD credit received by the taxpayer.
6.14 There would be a separate table for TDS Credit received by the taxpayer.
7. Annual Return
7.1 All the Normal taxpayers would be required to submit Annual Return. This return to be filed annually is intended to provide 360 degree view about the activities of the taxpayer. This statement would provide a reconciliation of the returns with the audited financial statements of the taxpayer.
7.2 The said return would also capture the details of pending arrears against the taxpayer and the current status of the orders leading to such arrears. The details of all the refund claims pending with the tax authorities would also be captured. Since this return captures the minutes details of income and expenditure of the taxpayer, the gross profit/loss arrived on the basis of the details submitted in this statement should tally with the gross profit/loss indicated in the Profit and Loss Account of the dealer. Accordingly, this return is to be submitted along with the audited copies of the Annual Accounts of the dealer and would be filed by 31st December following the end of the financial year for which it is filed.
7.3 A separate reconciliation statement, duly certified by a Chartered Accountant, will have to be filed by those taxpayers who are required to get their accounts audited under section 44AB of Income Tax Act 1961.
7.4 Consolidated statement of purchases and supplies based on monthly returns filed by the taxpayer can be made available to taxpayers by GSTN common portal as a facilitation measure for enabling him to prepare annual return.
7.5 The format of Reconciliation statement would be finalized after finalization of GST Model law
8. Steps for return filing
8.1 Uploading of return
The taxpayer will upload the final GSTR-1 return form either directly through data entry at the GST Common Portal or by uploading the file containing the said GSTR- 1 return form through Apps. The supplier would not be allowed to include any missing invoices on his own after 10th day of the month. GSTN will facilitate periodic (may be daily, weekly etc.) upload of such information to minimize last minute load on the system.
8.2 Auto Draft of GSTR-2
GST Common Portal (GSTN) will auto-draft the provisional GSTR-2 of taxpayer based on the supply invoice details reported by the counter-party taxpayer (supplier) on a near real-time basis.
8.3 Check with furnisher of GSTR-2
Purchasing taxpayer will accept / reject/ modify such auto-drafted provisional GSTR-2.
8.4 Feeding additional invoices
Purchasing taxpayer will also be able to add additional purchase invoice details in his GSTR-2 which have not been uploaded by counter-party taxpayer (supplier), provided he is in possession of valid invoice issued by counter-party taxpayer and he has actually received such supplies.
8.5 Reconciliation of inward supplies
Taxpayers will have the option to do reconciliation of inward supplies with counterparty taxpayers (suppliers) during the next 7 days by following up with their counterparty taxpayers for any missing supply invoices in the GSTR-1 of the counter-party taxpayers, and prompt them to accept the same as uploaded by the purchasing taxpayer.
8.6 Finalisation of GSTR
Taxpayers will finalize their GSTR-1and GSTR-2 by using online facility at Common Portal or using GSTN compliant off-line facility in their accounting applications, determine the liability on their supplies, determine the amount of eligible ITC on their purchases and then generate the net tax liability from the system for each type of tax. Cash details as per personal ledger/ carried forward from previous tax period, ITC carried forward from previous tax period, ITC reversal and associated 23 Interest/Penalty, taxes paid during the current tax period etc. would get auto populated in the GSTR-3.
8.7 Payment of tax liability
Taxpayers will pay the amount as shown in the draft GSTR-3 return generated automatically at the Portal post finalization of activities mentioned above.
8.8 Submission of return
Taxpayer will debit the ITC ledger and cash ledger and mention the debit entry No. in the GSTR-3 return and would submit the same.