Returns under GST

1. Returns under GST Manoj Malpani CA, CMA

2. Why Returns..?? • Mode for transfer of information to tax administration • To declare tax liability for a given period • Furnish details about the taxes paid in accordance with that return • Compliance verification program of tax administration • Providing necessary inputs for taking policy decision • Management of audit and anti-evasion programs of tax administration

3. Features of Tax Returns in GST • Based on transactions – Invoice based • Designed for system based matching of Input Tax Credit and other details (import, export etc.) • Auto-population from details of outward supplies • Auto-reversal of ITC in case of mismatch • Concepts of ledgers – cash, ITC and liability • No revised returns – changes through amendments to original details

4. Important Returns under GST

5. Returns and their due dates

6. Auto Drafted Forms

7. GSTR-1 Details of outward supplies of goods or services

8. GSTR-1 : Outward Supplies • Basic details of taxpayer like • GSTN • Legal Name • Trade Name • Aggregate Turnover in the preceding financial year • Aggregate Turnover – April to June 2017

9. GSTR-1 : Outward Supplies • Details of outward supplies bifurcated into • Invoice wise details for, • Inter-State and Intra-State supplies made to registered persons (All B to B transaction) • Inter-State supplies with invoice value more than 2.5 lakh rupees made to unregistered persons. (Interstate - B to C invoice value more than 2.5 Lacs) • Consolidated details for, • Intra-State supplies made to unregistered persons for each rate of tax; (Intra State : B to C supplies having invoice value upto 2.5 Lacs) • State wise inter-State supplies with invoice value upto 2.5 lakh rupees made to unregistered persons for each rate of tax; (Interstate : B to C invoice value upto 2.5 Lacs)

10. GSTR-1 : Outward Supplies • Debit and Credit Note details with reference to original invoice issued earlier. • Invoice wise details of Zero Rates supplies and Deemed Exports bifurcated into, • Physical Exports • Supplies to SEZ Unit / Developer • Deemed Export • Nil rated, exempted and non GST goods supplies • Interstate supplies to registered and un-registered person • Intra-state supplies to registered and un-registered person

11. GSTR-1 : Outward Supplies • Consolidated statement of Advances received and adjusted • HSN-wise summary of outward supplies • Details of documents issued during the tax period like • Numbers • Total quantity / number of documents issued • Number of Cancelled documents • Net document issued • Verification cum declaration and signature of the authorised signatory (Digital signature / E-aadhar based verification)

12. Format of GSTR-1: Details of outward supplies of goods or services

13. GSTR-1 : Outward Supplies

14. GSTR-1 : Outwards Supplies – Important Points • Table 3 : Turnover details will be auto-populated after first return. • Table 4 : Place of supply needs to be mentioned only if it is different from the location of the recipient • Table 5 : Place of supply is mandatory • Table 6 : In case of exports, GSTN will be blank • Table 6 : Shipping bill details not mandatory at the time of filing of return. It can updated later. • Table 6 : Shipping details to be mentioned in 13 digits: first 6 digit port code, next 7 digits SB number.

15. GSTR-1 : Outwards Supplies – Important Points • Table 9 : Details of debit / credit note pertaining to earlier period invoice also needs to be reported. • Table 11A : Reporting of advances required only in cases wherein Tax Invoice is not raised in the same tax period in which the advances are received. • Table 12: HSN wise summary mandatory for tax payers having turnover above 1.5 Cr. The HSN reporting mandatory as under, • upto 1.5 Cr : Not mandatory • More than 1.5 Cr but upto 5 Cr : 2 digits • More than 5 Cr : 4 digits

16. GSTR-1 : Outwards Supplies – Important Points • GSTR-2A: Based on information submitted in GSTR – 1, GSTR 2A (Auto-populated form) will get prepared by GST Network. • Refer Format of GSTR – 2A.

17. GSTR-2 Details of inward supplies of goods or services

18. GSTR-2 : Inward Supplies • Basic details of taxpayer like • GSTN • Legal Name • Trade Name • Table 3: Inward supplies received from registered person (other than reverse charge) • Invoice wise details auto-populated • Selection from one of the following option • Inputs • Capital goods • Ineligible • Exact of amount of input tax eligible to be mentioned (to be mentioned even though the amount of tax has been auto-populated).

19. GSTR-2 : Inward Supplies • Table 4: Inward supplies received on which tax to be paid under reverse charge • To accept the invoices only on the basis of time of supply. • Reverse charge details to be separately reported as, • Inward supplies from registered person attracting reverse charge • Inward supplies received from un-registered person • Import of services • Table 5: Input capital goods imported from outside India or SEZ • Bill of Entry wise Assessable value • 13 digit BoE Number : first 6 digit port code, next 7 digits BoE number. • Selection for Inputs / Capital goods / Ineligible • Exact of amount of input tax eligible to be mentioned.

20. GSTR-2 : Inward Supplies • Table 6: Amendment to inward supplies details • Debit / Credit note for supplies other than imports and supplies from SEZ • Debit / Credit note for imports and supplies from SEZ • Table 7: Supplies received from below needs to be bifurcated into Intrastate and Interstate • Purchased from Composition dealer • Purchases of exempted goods • Purchase of nil rates goods • Non GST supplies

21. GSTR-2 : Inward Supplies • Table 8 : ISD Credit received • Not auto-populated • The recipient is required to re-determine the credit eligibility • Table 9: TDS and TCS Credit received (auto-populated) • Table 10: Consolidated statement of advances paid / adjusted • Table 11: Input tax credit reversal / reclaim

22. Format of GSTR-2: Details of inward supplies of goods or services

23. GSTR-2 : Inward SuppliesImportant Points • Action to be taken on receipt of GSTR–2A • Accept • Reject • Modify • Keep transaction pending for action (if the goods / services have not been received) • Comment on eligibility of the credit –(Be careful: Refer ITC restriction under Section 17 (5)) • HSN Reporting requirement same as per outward supplies.

24. GSTR-3 Monthly Return

25. GSTR-3 : Monthly Return • Basic details of taxpayer like • GSTN • Legal Name • Trade Name • Part A : Auto Populated • Part B : Below details to be updated • Payment of tax by ITC and Cash • Details of Interest, Late fees payable and paid • Refund claimed from cash ledger

26. Format of GSTR-3: Monthly Return

27. Why ITC Matching..

28. Post Return filing • Seamless availability of credit in one State of tax paid in another State • IGST Model • Credit of IGST paid in one State available for payment of local tax in another State – Central Government to transfer funds to State • Credit of local taxes paid in one State available for payment of IGST in another State – State Government to transfer funds to Centre • No Government can transfer funds unless collection of tax is ensured • But recipient have to be given an opportunity to claim ITC • ITC matching and auto-reversal is the workable solution

29. Late Fee

30. Late Fees • Late fee for filing of returns other than annual return: Fee Rs. 100 per day maximum uptoRs. 5000/- will be applicable for delay in submission returns (other than annual return). • Late fee for filing of annual return: Fee Rs. 100 per day maximum up to 0.25% of aggregate turnover will be applicable for delay in submission annual return.

31. Post Return filing action

32. Post Return filing • System based notice in case of failure to file return • Non-filer assessment • Analysis of Returns • System based scrutiny • Scrutiny Assessments • Compliance verification

33. Manoj Malpani ACA, ACMA Contact : +91 99700 61039 manoj.malpani@bizsolindia.com