India is heading towards its biggest tax reforms ever. The whole World is watching this roll out, as the World 3rdlargest economy is moving towards a destination based tax-reporting structure. Every transaction has to be reported through the last mile with a common invoice, identifiable to the seller and recipient of goods and services.
The GST Council and the Ministry of Finance have come
up with a great solution to record all such invoices in one place and collate
data for the taxpayer. The processes have been simplified, and many taxes have
been removed. The whole nation shall report using the same structure
irrespective of where and how you carry your business.
A widespread IT system has been deployed by the
Ministry to cope up with such a huge influx of data. It is called the GSTN
(Goods and Service Tax Network) that will house all the information of sellers
and buyers together, collaborate the details submitted and even maintain 3
registers for you for future reference and anytime reconciliation.
For properly updating the invoices, Indian taxpayers
and businesses have to file certain returns with the Government. These returns
have to be mandatorily filed as any non-compliance towards the same may lead to
disallowance of input tax credit, apart from attracting penalties and
interests, etc. Proper filing of information and passing the same in the
returns is a mandatory process for smooth flow of credit to the last recipient.
The returns have been designed so that all
transactions are in sync with each other and that no transaction is left
unattended between the buyer and the seller. The tale starts from GSTR-1. All
the data is stored in GSTN, which can be accessed by the users anytime.
The taxpayer records all his outward supplies of goods
and services in details in this form. This has to be mandatorily done by the
10th of the next month (GSTN is frequently changing the due date of filing
GSTR1. So, keep checking announcements).
This will form the basis for all future flow and match
for credit reconciliations. GSTR-1 is a detailed form containing 13 different
heads. The critical headings are:
· GSTIN
of the Taxable Person – Auto-populated result
· Name – Auto-populated result
· Gross
Turnover in Last Financial Year – This has to be filed only once. From next
year onwards, this field will be auto-populated
· The
Period for which the return is being filed – Month & Year shall be available
as a drop-down for selection
·
Taxable outward supplies – Here, IGST shall be filled only in the case
of inter-state movement whereas CGST and SGST shall be filled in case of
intra-state movement. Moreover, details of any exempted sales or sale at nil
rate of tax shall also be mentioned here
·
Outward Supplies to end customer, where the value exceeds Rs. 2.5 lakhs
– Other than mentioned, all such supplies are optional in nature
· Any other supplies not covered in above 2
sections
· Debit
Notes or Credit Notes Details
·
Amendments to the details of any outward supplies of previous periods –
This does not cover any changes by way of debit/credit notes
· Exempted, Nil-Rated and Non-GST Supplies –
This is a Non-GST section. When the details of exempted sales or nil-rated
sales have already been mentioned anywhere above, then only Non-GST shall be
filled up here
· Export
Sales
· Tax
Liability arising out of advance receipts
· Tax
Paid
GSTR-2A
It is available on the 11th of the next month for the
recipients to see and validate the information therein. Recipients have time
between 11th – 15th of the next month to change any information, delete or add,
based on their books of accounts.
GSTR-2
This form is the culmination of all inward supplies of
goods and services as approved by the recipient of the services. The due date
is 15th of the next month. It is auto-populated with the details of GSTR-2A.
GSTR-2 shall include the following heads:
· GSTIN
of the Taxable Person – Auto populated result
· Name –
Auto populated result
· The
Period for which the return is being filed – Month & Year shall be available
as a drop-down for selection
·
Details of all inward supplies – Auto populated with the details of
GSTR-1. The taxable person can make any further addition or changes to the
invoice here
·
Changes to the inward supplies made for any previous period
· Import
of Goods – Imports are treated as Inter-state supply and IGST shall be
applicable on the same
· Import
of Goods in earlier periods
·
Services received from a person outside India (Import of Services)
· Import
of Services in earlier periods
· Debit
notes or Credit notes Details
·
Amendments made to Debit or Credit notes of previous periods
· Inward
supplies emanating from Unregistered persons
·
Credits received from an Input Service Distributor – Auto populated from
details of GSTR-6
· TDS
credit from specified persons – Auto populated from details of GSTR-7
· TCS
credit from E-Commerce operators – Auto populated from details of GSTR-8
· Input
Tax Credit remaining to be taken against an invoice, from which initially a
partial invoice was taken
· Reverse Charge tax liability
·
Amendment to such reverse charge tax liability
· Tax
Paid
· Input
Tax Credit Reversals – A dropdown containing reasons for such reversals shall
be made available
·
Amendments to such Input Tax Credit Reversals
GSTR-1A
The form shall be auto-populated after filing of
GSTR-2 on the 15th of the next month, having all the correct or changed
information. The supplier shall have the choice to accept or reject the changes
made by the recipient. Following such acceptance, the GSTR-1 shall be revised
to such extent.
GSTR-3
This form is auto prepared by 20th of the next month.
It will have the details of all outward as well as inward supplies of goods and
services as furnished in GSTR-1 and GSTR-2. After considering both the details,
GSTN will determine your input tax credit availability or the amount of tax
payable.
It will have the following details:
· GSTIN
of the Taxable Person – Auto-populated result
· Name – Auto-populated result
·
Address of the person – Auto-populated result
· The
Period for which the return is being filed – Month & Year shall be available
as a drop-down for selection
· Total
turnover
1. Export
Turnover
2. Taxable
Turnover
3. Non-GST
Turnover
4. Nil Rated or Exempted Turnover
5. Total
Turnover (Sum of 1-4)
·
Details of outward supplies
1. Inter-state
supply to end customers
2. Intra-state
supply to end customers
3. Inter-state
supply to registered persons
4. Intra-state
supply to registered persons
5. Exports
6. Amendments
to Sales Invoices, Debit Notes and Credit Notes
7. Tax
liability on such outward supplies
·
Details of inward supplies
1.
Inter-State received
2.
Intra-State received
3. Imports
4. Amendments
to Purchase invoices, Debit Notes and Credit Notes
5. Tax liability
on such inward supplies
6. Reversals of Input Tax Credit
· Total
tax liability for the period
· TDS received for the period
· TCS
received for the period
· ITC
for the period
Apart from the above details, a Part B has to be filed
containing the details of,
· Any
taxes, interests, penalties or fees paid during the period
· Any
refunds claimed during the period w.r.t. cash ledger
Apart from the above forms, the Government shall serve
those taxpayers who fail to furnish the returns on time, notice in Form
GSTR-3A.
After the GSTR-3 is fully accepted for the month, then
final input tax credit shall be communicated through form GST ITC-1. The
details of ITC-1 has to be confirmed in due time to get the credit for that
month. If the same is not done in due time, then it will disallow the credit
for the month and will be computed as a tax liability for the month instead.
Returns to be filed by Composition Tax Payers
GSTR-4A
Similar to the GSTR-2A above, GSTR-4A is generated quarterly
for composition scheme taxpayers. It has the details of the inward supplies as
reported by suppliers in GSTR-1.
GSTR-4
With the auto-populated details of GSTR-4A, the taxpayer can
furnish all his outward supplies here. The due date is 18th of the following
month and has to be filed quarterly. It also contains the details of tax
payable and payment of tax
GSTR-9A
This is the annual return for all composition taxpayers. It
has to be filed by 31st December of the coming financial year and includes all
the quarterly returns filed by the composition taxpayer.
Returns to be filed by Foreign Non-Resident Taxpayer
GSTR-5
This is a detailed form containing the particulars of
outward supplies, imports, tax paid, input tax availed and remaining stock.
This has to be filed monthly within 20th of the next month or if the
registration is given up, then within 7 days of such surrender or expiry of
registration.
Returns to be filed by an Input Service Distributor
GSTR-6A
This form will be generated by 11th of next month after the
suppliers have filed their GSTR-1 on 10th of the next month. It will be
auto-populated with the details of inward supplier made to them. It has to be
filed on a monthly basis by the ISD.
GSTR-6
Once the details are confirmed or corrected by the ISD, then
GSTR-6 will be generated. It has to be filed by the ISD by 13th of the next
month. This is also a monthly filing.
Returns to be filed by a Tax Deductor
GSTR-7
Details of the tax deductions made during the month have to
be furnished here. The due date is 10th of the next month.
GSTR-7A
This is a TDS certificate, which is auto-generated upon
filing the GSTR-7 by the tax Deductor. It will be available for the assessees
to download and keep a record of. It will contain details of the tax deducted
and the total amount of payment made.
Return to be filed by an E-Commerce Portal
GSTR-8
This return shall contain all the supplies made by the
E-Commerce seller and the amount of tax collected as well. It has to be filed
by 10th of the next month.
For those assessees whose annual turnover exceeds INR 1
Crore, then a reconciliation statement in Form GSTR-9B has to be filed by 31st
December of the next fiscal year. It has to be filed annually and is basically
an audited annual account, duly certified by competent authority.
Where the assessee is a Government body or a United Nations
Body, then a monthly Form GSTR-11 has to be filed by 28th of the next month.
These bodies have a UIN (Unique Identification Number) and hence will be
required to furnish the details of inward supplies.
Where a taxable person’s registration has been surrendered
or cancelled, then a final return in Form GSTR-10 has to be filed within 3
months of such cancellation or registration. It will declare the input tax
credit and capital goods held by the taxpayer, tax payable and paid at such
time.
The Government has automated all the forms together by
bringing the same details on a real-time basis in front of the taxpayers. The
step, which is of paramount importance, is Step No. 1, i.e. FORM GSTR-1. It
will form the basis of all further activities.
Any shortcomings or short filings of information in the
details provided by the suppliers can be rectified, changed or deleted by the
recipients in ample period of time. It is a seamless process that matches all
information together to get the final credit figures and tax payable if any.
The payment challans are also a very crucial part of all the
filing process. Without them, it is not possible to clear tax payments and dues
in due course of time and also claim credit.
PMT-1: An online tax liability register arising out of
return or non-return related liabilities of the taxpayer.
PMT-2: Credit balance online as in GSTN
PMT-2A: Re-credit addition to the GSTN balance of a taxpayer
PMT-3: Online cash ledger
PMT-4: Challan for payment of GST
PMT-5: Payment register for unregistered taxpayers
PMT-6: Application for claiming missing credit
Where it is found that there is an excess credit available
in the account of a taxpayer, then the taxpayer has an option to claim a refund
of such excess credit within the prescribed time. The refund application forms
are different for the State and Central Governments.
There are 10 forms prescribed for the Central Government,
out of which only 5 are applicable to the State application. The main form is
RFD-01 where the application for refund is made.
GSTR 3B Return
In order to ease the burden on taxpayers, tax authorities
have introduced a simple return form called as GSTR 3B. This has to be used
only for the month of July and August. Every registered taxpayer (Except for
composition scheme) needs to file a separate GSTR 3B for each GSTIN they have.
This is more like a self-declaration return and the taxpayer
is not required to provide invoice level information in this form. Only total
values for each field have to be provided.
The due date for filing GSTR 3B return for July was 20th
August – It has been extended to 25th August now.
As of April 2018, Government has made it mandatory to file
GSTR 3B every month until further notice.
File GST Returns with Gst Suvidha Kendra Irinjalakuda by EL
Ventures
No matter whether you are a trader or a manufacturer, you will have to file returns mandatorily. It is a matter of perception when it comes to defining the whole return filing process, as some may treat it as cumbersome or some may feel happy with the level of automation available. Draft GST return format provided by government can easily confuse a small business owner who doesn’t have any accounting knowledge. Gst Suvidha Kendra Irinjalakuda by EL Ventures is a popular Gst service provider which can help you to easily file your GST returns.
No comments:
Post a Comment