Overview of GST Return Filing
GST Return Filing is a necessary permission/ document for every business that is recorded under the GST Act/regime. This is used by tax authorities to determine tax liability. Under GST (Goods and Services Tax), GST Return Filling is a critical activity that works as a connection between the government and the taxpayer. While presenting the return, the taxpayer has to provide knowledge such as the details of the enterprise activity, payment of taxes, disclosure of tax liability, and other learning as required by the government.
GST Return Filing is deemed to be filed electronically, i.e. on the GST portal. Nonetheless, there’s a convenience where one can also file GST return filing manually. Such returns are served offline and then uploaded to GSTIN portal either by the taxpayer or a facilitation hub. By offering the GST return filing, GST compliant sales and purchase invoices are expected. You can generate GST compliant invoices: An inventory or a bill is a list of goods sent or assistance provided, along with the sum due for payment.
GST Return Filing
Who should precede GST Invoices and what are the compulsory fields a GST Invoice concedes and why?
The Goods and Services Tax (GST) subsumes many indirect taxes which were imposed by Centre and State such as excise, VAT, and service tax. It is levied on both goods and services sold in the country where- GST return filing reduces the descending effect of the tax, essential in inception for registration, produce a scheme for small businesses, safe and straightforward online method, lesser in docility, individualized treatment for E-commerce supervisors, increased in the efficiency of logistics and regulated disorganized sector under GST.
If you obtain a GST listed business, you require providing GST-complaint invoices to your clients for the sale of goods and services. Your GST listed merchants will provide GST-compliant buying invoices to you. You can personalize your bill with your company’s logo. A tax invoice is generally assigned to load the tax and pass on the input tax credit. A GST return filing Invoice must have the subsequent necessary fields-
- Invoice figures and days
- Customer title
- Transportation and billing location
- Client and taxpayer’s GSTIN
- Area of supply
- HSN / SAC code
- Item details, i.e. classification, quantity (number), unit (meter, kg etc.), the total amount
- Taxable value and discounts
- Rate and volume of taxes, i.e. CGST/ SGST/ IGST
- Whether GST is payable on the reverse charge basis
- Signature of the supplier
Types of GST Return Filing Invoices
Bill about Supplies
A bill of a stock is related to a GST Return Filing invoice except for the statement of supply does not include any tax expense as the seller cannot impose GST to the customer. It gets issued in cases where tax cannot charge: The Registered person is trading exempted goods/services and who has opted for "composition scheme."
According to Notification No. 45/2017 – Central Tax on 13th October 2017 If a recorded person is supplying taxable and excused goods/ services to an unregistered person, then he can originate a single "invoice-cum-bill of supply" for all before-mentioned stocks.
If the utility of multiple bills is less than Rs. 200 and the Buyer are unregistered; the dealer can issue a total or bulk invoice for the various invoices on a daily base.
Debit and credit note:
A debit note is issued by the seller when the amount payable by the Buyer to seller increases and when Tax invoice has a lower taxable value.
A credit note is issued by the seller when the cost of invoice decreases and Tax invoice has a higher taxable value, Buyer refunds the goods to the supplier, Services are found to be deficient.
Revision of invoices issued before GST Returns Filing?
You can analyze invoices appeared before GST Return Filing. Under the GST administration, all the dealers must beg for provisional delegation before getting the changeless registration certificate. As a dealer, you need to issue an updated invoice against the invoices previously issued. The revised invoice has to be issued within one month period from the date of issuance of the registration certificate.
Who all are required and doesn't need to file GST Return Filing?
All GST registration owners who is chargeable under the GST Act, 2017 is to file GST returns as based on the nature of their business. Under GST, GST returns that include:
- Purchases (Procurements)
- Sales (Exchanges)
- Output GST (Ongoings)
- Input tax credit (GST paid on gains)
Business turnover is below the entrance limit of Rs. 40 lakh doesn't require filing GST returns, and the same is for North-Eastern and hilly regions with the turnover below Rs. 20 lakhs,
Categories of GST Return Filing in India
GSTR-1 is for reporting details of all outward supplies of goods and services made, or sales transactions made during a tax period, and also for reporting debit and credit notes issued. It is to be filed by all 'normal taxpayers' except in the case of small taxpayers with turnover up to Rs.1.5 crore in the previous financial year. Frequency: Monthly
- GSTR-2 SUSPENDED
GSTR-2A is the return including details of all inward stocks of goods and services, like purchases made from certified suppliers during a tax period which based on data filed by the suppliers in their GSTR-1 return. It is a read-only return, and no action should be taken. Frequency: Monthly
- GSTR-3 SUSPENDED
GSTR-3B is a monthly self-declaration to be listed, for providing compiled details of all outward stocks made, input tax credit claimed, tax account defined and taxes paid. It is to be registered by all normal taxpayers enrolled under GST. Frequency: Monthly
- GSTR-4- (CMP-08)
It is the return that has to file by taxpayers who possess opt for the 'Composition Scheme' under GST. It is the return which has replaced the now erstwhile GSTR-4. Frequency: Quarterly
It is the return to be filed by non-resident foreign taxpayers under GST carrying business transactions in India. It acquires of all outward supplies made; inward stocks received, credit/debit notes, tax liability and taxes paid. Frequency: Monthly
It is a monthly return to be filed by an 'Input Service Distributor' (ISD). It will concede details of input tax credit received and distributed by the ISD. Frequency: Monthly
It is a monthly return to be filed by persons required to deduct TDS (Tax deducted at source) under GST. It will contain details of TDS deducted, the TDS liability payable and paid and TDS refund claimed if any. Frequency: Monthly
It is a monthly return that has to file by e-commerce operators registered under the GST (TCS). It will contain details of all supplies made through the E-commerce platform, and the TCS received on the same. Frequency: Monthly
It is the annual return to be filed by taxpayers registered under GST. It is to filed by all taxpayers registered under GST*, *The 37th GST Council meeting decided to make GSTR-9 filing optional for businesses with turnover up to Rs.2 crore in FY 17-18 and FY 18-19. It will include details of all external supplies made, inside stock goings received. It is an accumulation of all the monthly or quarterly returns by filing GSTR-1, GSTR-2A, GSTR-3B during that year. It is required to be, except taxpayers who have opted for the Composition Scheme, Casual Taxable Persons, Input Service Distributors, Non-resident Taxable Persons and Persons paying TDS under section 51 of CGST Act.
It is the annual return to be responded and filed by taxpayers registered under the 'Composition Scheme' in a financial year*. Frequency: Quarterly
*Filing for "Composition taxpayers" has been suspended off for FY 2017-18 and FY 2018-19 (27th GST Council meeting).
It is the reconciliation statement to be filed by all taxpayers under GST with turnover exceeding Rs.2 crore in a financial year. Frequency: annual return
It is to be filed by a taxable person whose registered has been cancelled or surrendered. Rate: three months from the date of cancellation of the order.
It is the return to be filed by persons who have been allotted a Unique Identity Number (UIN) to get a refund under GST for the goods and assistance purchased by them in India. UIN is a distribution made for foreign diplomatic embassies not liable to tax in India, to get a refund of taxes. GSTR-11 will contain details of inward supplies received, and refund claimed.
New GST Return Filings – Critiques, Forms, Invoices, Input Tax Credit, Modifications, Offline Tool
According to 31st GST Council Meet, GST would be introduced for taxpayers also. This return system will include uncomplicated return forms, for the comfort of filing over taxpayers registered under GST. There will be one principal return GST RET-1 and 2 annexures GST ANX-1 and GST ANX-2 to be submitted every month, except for small taxpayers (turnover up to Rs 5 crore in the preceding financial year who can opt to file the same quarterly.
Forms under the New GST Return Filing System
The primary GST Return Filing, GST RET-1 will include details of all supplies made, input tax extension availed, and the adjustment of taxes, along with interest, if any. The return mentioned above will consist of two annexure forms, particularly' GST ANX-1 and GST ANX-2'. 'GST ANX-1' (Annexure of Outward Supplies) is for reporting details of all outward supplies, inward supplies liable to reverse charge, and import of goods and services, that will need to be reported invoice-wise (except for B2C supplies) on a real-time basis. 'GST ANX-2' (Annexure of Inward Supplies) will publish details of all interior supplies. Greatest of these features will be auto-drafted from the details uploaded by the suppliers in their 'GST ANX-1'.
Disparities between Current Vs New GST Return Filing Systems
Previous Return Filing System
New GST Return Filing System
Small Taxpayers: turnover is up to Rs 1.5 crore in the preceding financial year.
Small Taxpayers: turnover is up to Rs 5 crore in the preceding financial year.
Multiple return forms to be filed– GSTR-1, GSTR-4, GSTR-5, GSTR-6, GSTR-7, etc
Single GST Return Filing form GST RET-1 conceding 2 annexure GST ANX-1 and GST ANX-2 to be filed by all categories of taxpayers
Revenue invoices can be uploaded only at the time of filing of returns of outward supplies
A mechanism for the continuous upload of revenue invoices on a real-time basis
Input tax credit: on a self-declaration
Input tax credit: on invoices uploaded by the supplier
Misplaced invoices and amendments, if any, could only be made in the return of the following tax period
Missing invoices and amendments, if any, can be made by filing an Amendment Return
Significant Changes Commenced in the New GST Return Filing System
There are specific changes introduced in the 'new return system'-
- Harmonized System of Nomenclature code will be certainly required to submit details during documentation whereas a separate HSN summary. Moreover, a user will get 'HSN' via GST ANX-2, wherever a supplier was supposed to declare the HSN code.
- Offline Demo Tool: With this, a taxpayer will be able to operate across various pages. The prototype mentioned above will also allow a user to undergo multiple operations such as drop-down lists, upload of receipts, upload of the acquisitions etc.
- The supplier in the 'GST ANX-1' need not show B2B supplies mechanism; however, the aggregate amount will need to display in 'GST RET-1'.
- Inward supplies which are liable to RCM has to be declared in GST ANX-1 at the GSTIN level, by the recipient of supplies.
- The theory of B2C-L got liquidated. The turnover limit for small taxpayers will be as Rs 5 crore
- Any beneficiary can report abstaining invoices at an invoice level.
Invoices under the New GST Return Filing System
There are numerous terms included in the current return system, regarding the upload of invoices–
- Disappeared invoices:
If any supplier claims ITC because of not uploading invoices, is called as missing invoices.
- Locking of invoices:
A beneficiary will have the opportunity to secure in an invoice if he clicks with the details proclaimed in that invoice. If there is a massive quantity of invoices, it may not be possible to lock in particular invoices, and in such cases, considered securing of invoices will be done on those invoices uploaded which not denied.
- Unlocking of the invoices:
An invoice on which a recipient has already availed ITC will be deemed a locked invoice, and will not be subject for improvements. If any change made to a particular invoice, the supplier would have to originate a debit/credit note. Any mistakenly locked invoice can be unlocked by the recipient online, subjected to a reversal of ITC claim made following to online confirmation.
- Pending invoices:
Conditions apply to the Circumstances:
The beneficiary has not got the supply
The recipient thinks that there is a necessity for an improvement in the invoice
- Rejected invoices:
If the GSTIN is filled mistakenly by the supplier, the invoice will be apparent for a taxpayer who is not the recipient of such supplies and will not be eligible to be taken on these invoices.
ITC- Input Tax Credit under the New GST Return System
Adjudication of ITC will consider uploading of receipts by the supplier within the stipulated time frame only. An invoice uploaded online by the supplier within the 10th of every month will be visible continuously for the beneficiary. The taxes payable after that could be claimed as 'ITC' shall be posted in the ITC tabular framework of the recipient's return before the 11th of the very next month. However, viewing tools will be continuous.
'Amendment Returns' under the 'New GST Return Filing System' a taxpayer will be entitled to file two amendment returns for every tax period. A taxpayer will further be allowed to obtain payment through an amendment return which automatically will help in saving liabilities on interests. In a matter where ITC is possible in the taxpayer's 'electronic credit ledger (ECL), it can examine for utility for paying the liable obligations in the bill return.
In matters where the recipient has acknowledged and secured an invoice, correction of that invoice will not permit. To amend either a supplier will raise a debit/credit note, or a supplier can seek the help of the recipient in unlocking the invoice so that he will be able to make an amendment by filing an amendment return.
Penalty for not Filing GST Returns Timely
Delayed GST Return Filing may have a delusional effect leading to substantial fines and punishment. If GST return filings have been not filed within the designated time, then the taxpayers would have to pay interests and the late fee. Moreover, an interest of 18% per annum would be responsible. Nonetheless, the taxpayer can calculate the interest on the amount of outstanding tax to be paid. The Late fee includes Rs. 100 per day per Act, concurrently it is Rs. 100 under CGST & Rs. 100 under SGS, in total, it amounts to Rs. 200 per day. The maximum amount will result in Rs. 5000. (Not applicable on the Integrated Goods and Services Act).
Tuition for using New Return System Prototype
- Offline Tool of new return:
i. Annexure of Supplies (GST ANX-1)
ii. Annexure of Inward Supplies (GST ANX-2)
iii. The matching Tool: auto-drafted details of GST ANX-2 with their purchase register.
- Screens originating from the login page to filling up the particulars in Form 'GST ANX-1' and Action in Form GST ANX-2 granted for a specimen taxpayer who is arranging his return monthly. All the taxpayers return fillings quarterly will be similar.
- Fill in items in the 'Manage Profile' section. However, in this Prototype, this information cannot be saved or updated by the operator
- The user can select a particular GSTIN in LOGIN Page and tax period from the dropdown to advance further. The user may immediately click on the 'Proceed' button which will lead him to the next screen to fill features in Form 'GST ANX-1' and Form 'GST ANX-2'.
Form GST ANX-1:
- Click on 'Prepare Offline'under 'GST ANX-1to fill in the details. Functionalities will be shown IN TABS IMPORT EXCEL/CSV FILE', 'OPEN DOWNLOADED JSON FILE', 'REMOVE DATA IN ALL TABLES', 'GENERATE JSON FILE TO UPLOAD' and 'EXPORT TO EXCEL' are not available for use in Prototype.
- The different tables can also be clicked by users one by one from the dropdown to view the prefilled details. A summary can be considered taxpayer wise or document wise.
- 'VIEW SUMMARY'tab provides a table-wise summary of ANX-1 on sample data. Entries in the tables on the screen are for view only and no new entry can be made in the filters in the Prototype and summary will not be updated as new data is not saved.
- After filling up details in applicable tables, the user has to create a JSON file to upload the same on the portal which will be available after actual deployment.
Form GST ANX-2
- Click on 'TAKE ACTION'under 'GST ANX-2' to take Action on the details. On this screen, details of the functionalities which will be available in the Offline Tool, is shown. Tabs namely 'OPEN DOWNLOADED JSON FILE', 'REMOVE DATA IN ALL TABLES', 'EXPORT TO EXCEL' AND 'GENERATE JSON FILE TO UPLOAD' are not available for use in Prototype. Working of 'MATCHING TOOLS' can be seen in Prototype with prefilled data provided.
- Open downloaded 'JSON' file from the GST Portal by shipping the same in the Offline Tool.
- Serving of 'MATCHING TOOLS'can be seen in Prototype with prefilled data presented. Bang on 'REFINE MATCHING RESULT' to refine further criteria for matching by selecting a tolerance limit in rupees and approach in the document number. Taxpayer can take effort (Accept/ Reject/ Pending) after pairing.
- User can decide to Accept, Reject, and Pending buttonunder 'Take Action' support on the documents uploaded by their suppliers.
- Summary of ITC will be ready after taking Action in table 4. Click on 'View Table 4 of ANX-2', which is non-editable. Offline Tool will auto-fill the details in this table.
- Credit received from ISD can view by selecting table 5. It is for view only.
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Frequently Asked Questions
You can always go for GST Return Filing using other methods which involve an OTP from your registered phone number/ PAN /DSC.
It is the corporate office of a supplier of goods and services which receives tax invoices for inward supplies made by vendors on behalf of the branch offices to distribute tax credits.
Ensure that you record the purchase in your GSTR-2.
The recipient can check and validate/modify/delete such details and even add features, and after that, submit the same in FORM GSTR-2 on or before 15th of the succeeding tax period.
The infos uploaded by the supplier in GSTR-1 would be communicated to the recipient in 'Part A of FORM GSTR-2A', which is an auto-drafted form
No. An assessee under the 'composition scheme' is not necesserily is required to file GST return specifying the details of inward and outward supplies. Such assesses required to register quarterly returns in FORM GSTR-4 within 18 days from the end of the quarter.
A non-resident taxable assessee is liable to file GST Return – GSTR-5 for furnishing the monthly details of 'inward' and 'outward supplies', debit/credit notes, tax paid details, details of closing stock and refund claimed if any.
The rejected documents shall be intimated to the supplier only after the recipient has filed his return.
The Form RET-1 can be filed through SMS only in case of a Nil return – no supplies have been made or received.