RETURNS UNDER GST LAW

 

Introduction

Since its inception GST regime is severely criticized for its excessive compliance. As GST regime is also based on the fundamental principle of self-assessment, most of the compliances are in the form of periodic returns. Let us briefly touch base commonly used Returns/Statements in GST Regime:

1. Details of outward supplies [GSTR-1]

Section 37 of the CGST Act and Rule 59 of the CGST Rules lays down the legislative framework for outward supplies. Every registered taxable person, other than an input service distributor, composition taxpayer, persons liable to deduct tax u/s 51, persons liable to collect tax u/s 52, Non-resident taxpayer and Online information database and access retrieval (OIDAR) service are required to file GSTR-1. Please note casual taxable person is also required to file GSTR-1 and 3B.

GSTR-1 contains invoice level details of:

• Supplies to registered persons including corresponding debit credit notes, if any
• Inter-State supplies of invoice value greater than Rs. 2,50,000 to unregistered persons
• Details of export of goods and services including supplies to SEZ and SEZ developers. Further
• Amendments thereof

Further, summarised details are to be uploaded for Intrastate supply B2C supplies, Interstate B2C supply having invoice value up to Rs. 250000, Advance received and Advance adjusted etc.

Small taxpayers having an aggregate turnover up to Rs. 5 (Five) crores in the previous financial year are required to file GSTR-1 on a quarterly basis. Whereas Large taxpayers with an aggregate turnover of 5 crores or more are mandated to file monthly GSTR 1. Limited facility of amendment/rectification is made available for R-1. As per the first proviso to section 37(3), no rectification of error or omission shall be allowed after furnishing GSTR-3B for the month of September following the end of the financial year to which such details pertain, or furnishing of the relevant annual return, whichever is earlier.

Due to recent amendments, taxpayers are now not be allowed to furnish the details of outward supplies of goods or services or in FORM GSTR-1, if they have not furnished the return in form GSTR-3B for the preceding two months/ quarter. Presently due date is 11th day of next month for monthly filers and 13th day of next quarter for quarterly filers.

2. Details of Inward supplies (GSTR-2)

Section 38 of the CGST Act r.w. Rule 59 of the CGST Rules lays down substantive/procedural law in this regard. Accordingly, form GSTR-2 is prescribed for uploading details of Inward supplies. It is a statement of all Inward supplies of goods or services during a tax period. Due to technological issues, GSTR-2 has been suspended.

3. Furnishing of Return (GSTR-3/3B)

GSTR-1 and GSTR-2 were introduced as a supporting statement to facilitate the filing of Return in form GSTR-3. In terms of section 39 r.w. Rule 60 and 61 of the CGST Rules, a taxpayer who is required to file GSTR-1 is also required to file Return in the form GSTR-3 and pay applicable taxes thereon. Vide Notification No. 49/2019 – Central Tax dated 9th October 2019, Rule 61(5) of the CGST Rules has been amended retrospectively from 1st July 2017 to provide that GSTR-3B shall be a return u/s 39 of CGST Act, 2017. Accordingly, if a taxpayer has filed GSTR-3B then there will not be any requirement of filing GSTR-3. Consequently, Rule 61(6) stands deleted retrospectively from 1st July 2017. GSTR-3B contains summarised details of Outward supplies, Inward supplies, ITC availed, ITC utilised and actual tax payable, if any.

4. GSTR-2A

It is a system-generated, auto-populated statement that contains details of all inward supplies of goods and services made from registered suppliers during a tax period. Invoice details filled by suppliers in their GSTR-1/ GSTR-5 and GSTR-6 is auto-populated in GSTR-2A of the recipient. TDS/TCS details are also populated in GSTR-2A on the basis of GSTR-7/8 filed by Tax deductor/Tax collector. Recently GSTR-2A is mapped with ICEGATE and therefore details of all imports on bill of entry as well as purchase from SEZ units on the bill of entry are now auto- populated in 2A. GSTR-2A is a dynamic statement and is being updated on a real time basis.

5. GSTR-2B

It is also a system-generated, auto-populated statement. This statement is generated only once a month on 14th day of the succeeding month. As compared to GSTR-2A, GSTR-2B is a static document. This statement is auto-populated on the basis of GSTR-1, GSTR-5 and GSTR-6 furnished by the suppliers. In addition, this statement also contains details of Imports as per ICEGATE. However, GSTR-2B does not contain details of TDS/TCS. Further for the benefit of taxpayer ITC appearing in GSTR-2B is bifurcated into ITC available and ITC not available (due to place of supply issue etc).

6. GST Return for Composition taxpayer [CMP 08/ GSTR 4]

As per the mandate of Section 39(2) of the CGST Act and Rule 62 of the CGST Rules, a composition taxpayer is required to make quarterly payment of their self-assessed liability in form CMP-08 by 18th day of the month succeeding such quarter. In addition, such persons shall furnish a return for every financial year in FORM GSTR-4 on or before the 30th day of April following the end of such financial year.

7. GST Return for Non-Resident Taxable person [GSTR-5]

In terms of Section 39(5) of the CGST Act r.w. Rule 62 of the CGST Rules, every registered non-resident taxable person doing business in India is required to furnish a return in form GSTR-5 within 20(twenty) days after the end of a tax period or within 7(seven) days after the last day of the validity period of registration, whichever is earlier.

8. GST Return for non-resident OIDAR [GSTR-5A]

As laid down in Rule 63 of the CGST Rules, non-resident Online Information and Database Access or Retrieval (OIDAR) service provider is required to monthly file form GSTR-5A to provide details of services rendered to unregistered service recipients and government entities in India within 20th day of the succeeding month.

9. GST Return for Input Service Distributor [GSTR-6]

Section 39(4) of the CGST Act and Rule 65 of the CGST rules makes it imperative on the part of Input Service Distributor (ISD) to file monthly return in GSTR-6 and such return shall contain details of input tax credit received and distributed to ISD units.

10. GST Return for TDS deductor [GSTR-7]

Section 51 of the CGST Act elaborately lays down a provision for deduction of GST TDS [Tax Deduction at Source]. As prescribed in section 39(4) of the CGST Act r.w. Rule 66 of the CGST Rules, such TDS deductor are required to file monthly return in form GSTR-7 by 10th day of succeeding month. This return contains information with regard to TDS deducted, TDS liability payable etc.

11. Acceptance of TDS and TCS credit received [GSTR-7A]

Form GSTR-7A is a system generated TDS Certificate which is generated once deductor furnishes a return in Form GSTR-7 on the GST Portal. For availing GST TDS/TCS deducted by the deductors/collectors deductee need to file ‘TDS/TCS credit received’ tab on the portal. Only after accepting such details TDS/TCS credit will be reflected in Electronic cash ledger of deductee.

12. GST Return for E commerce Operator [GSTR-8 Return]

Section 52 of the CGST Act, 2017 provides for Tax Collection at Source (TCS), by e-Commerce operator in respect of the taxable supplies made through it by other suppliers, where the consideration in respect of such supplies is collected by him. Section 52(4) of the CGST Act and Rule 67 of the CGST Rules outlines periodic compliance for such tax collector. Accordingly, Registered E-commerce operators collecting TCS are required to file monthly return in GSTR-8 within 10(ten) days after the end of such month and such return shall contain information with regard to supplies made through the platform of E-commerce operator, and the TCS collected on the same.

13. Annual Return for Regular Registered Person [GSTR-9]

Section 44 of the CGST Act and Rule 80 of the CGST rules provides legislative background for Annual Return. GSTR-9 shall be filed by filed by all taxpayers except for below mentioned categories of registered taxpayers, provided aggregate turnover in a financial year exceeds
Rs. 2 (two) crore.

• Casual taxpayers
• Input Service Distributors
• Non-resident taxpayers
• Tax Deductor under Section 51
• Tax Collector under Section 52
• Composition taxpayers
• Electronic Commerce operators

It is more of an opportunity to rectify any error committed while filing a return of any tax period. However, no additional ITC can be claimed in GSTR-9. GSTR-9, if applicable, shall be filed on or before the 31st day of December following the end of such financial year.

14. Annual Return for Composition Taxpayer [GSTR-9A]

GSTR-9A was originally notified as an annual return for composition taxpayers. However, said form has been disabled from FY 2019-20 onwards for composition taxpayers due to the introduction of GSTR-4 (supra).

15. Annual Return for Registered E commerce operator collecting TCS [GSTR-9B]

As per rule 80(2) of the CGST Rules, Registered E-commerce operators collecting TCS are required to file an annual return in form GSTR-9B on or before the 31st day of December following the end of such financial year.

16. GST Final Return [GSTR-10]

As per section 45 of the CGST Act r.w. Rule 81 of the CGST Rules, every registered person who is required to furnish GSTR-3B and whose registration has been cancelled (voluntarily or suo motu by the proper officer) shall furnish a final return within 3(three) months of the date of order of cancellation. In terms of section 18(4) of the CGST Act and Rule 44 of the CGST Rules, the amount of input tax credit relating to inputs held in stock, inputs contained in semi-finished and finished goods held in stock, and capital goods held in stock as on date of cancellation shall  be reversed and applicable tax shall be paid by filing GSTR-10.

17. GST Return for Embassy [GSTR-11]

Foreign diplomatic missions, consulate and embassies operating in India and registered under GST for the purpose of claiming refund of tax paid by it on inward supplies of goods or services or both are allotted a UIN (Unique Identity Number) instead of GSTIN. Persons having Unique Identification Number (UIN) are required to file Form GSTR-11. Such Return is to be filed quarterly any time after end of the quarter. Primarily such return contains Invoice level details of Input tax paid on inward supplies of goods or services or both.

18. QRMPS - Quarterly Return Monthly Payment (QRMP) Scheme

With an aim to reduce the compliance burden of small taxpayers having Aggregate Turnover (PAN wise) up to  Rs. 5 Crores in the preceding financial year, QRMPS scheme was introduced from 1st January 2021. Under this scheme, the eligible taxpayer will have to make a monthly payment of taxes and quarterly submission of returns. If Aggregate Annual Turnover crosses Rs. 5 Crore during any quarter, then the taxpayer will become ineligible for the Scheme from the next quarter. Any person obtaining a new registration or opting out of the Composition Scheme can also opt for this Scheme. Multistate taxpayers can even avail scheme qua each GSTIN. Accordingly, for a few GSTINs multistate taxpayer can opt for the Scheme and for remaining GSTINs can continue under the normal scheme.

Option for QRMP, once exercised, will continue till the taxpayer opts out of the scheme or his annual aggregate turnover exceeds Rs. 5 Crore. The facility for opting out of the Scheme for a quarter will be available from the first day of the second month of preceding quarter to the last day of the first month of the quarter. A taxpayer opting for the Scheme would be required to furnish form GSTR-3B, for each quarter, on or before 22nd or 24th day of the month (depending upon the state in which taxpayer is registered) succeeding such quarter. As already informed, taxpayer opting for the scheme would be required to furnish the details of an outward supply in Form GSTR-1 on a quarterly basis.

IFF (Invoice Furnishing Facility) is an optional facility under the QRMP scheme for small taxpayers, who can choose to upload their B2B outward supply invoices each month, for the first two months of the quarter. The invoices relating to the last month of the quarter are to be uploaded in the GSTR-1 return. The said details of outward supplies shall not exceed the value of fifty lakh rupees in each month. Please note B2C supply, export supply of the first 2 months need not be uploaded and the same will form part of Quarterly GSTR-1. Further there is a restriction on uploading B2B invoices up to Rs. 50 Lakhs only. Accordingly, if the value of invoices exceeds Rs. 50 lakhs then such excess can only be uploaded in quarterly GSTR-1. If Invoice Furnishing Facility (IFF) has opted, then Invoice details uploaded in IFF by 13thd day of next month shall be reflected in GSTR 2A & 2B of the recipient. If a taxpayer fails to furnish invoice details using IFF by 13th of the succeeding month, then this facility for furnishing IFF for a previous month would not be available.