RETURNS PROPOSED UNDER GST LAWS
Model Law GST - Series
SEPTEMBER’2016
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RETUNS PROPOSED UNDER GST LAWS
1. Introduction ............................................................................................................................................. 2
2. What is a Return? ..................................................................................................................................... 3
3. Why Return is so Important in under GST Laws ? ..................................................................................... 3
4. Who needs to file Return in GST regime? ................................................................................................. 3
Registered Dealer ........................................................................................................................................ 3
UN Agencies ................................................................................................................................................. 4
Government Entities .................................................................................................................................... 4
5. Periodicity of Return Filing? ..................................................................................................................... 4
Is payment of Tax necessary to file Return? ................................................................................................. 5
Different Returns for Different Categories of Taxpayers .......................................................................... 5
Different Ledgers for Taxpayers ............................................................................................................... 6
Is there provisions for filing Revised Information? ....................................................................................... 6
6. What are the returns for Regular & Other Assessee? ............................................................................... 7
Returns for Regular Assesses: ...................................................................................................................... 7
Returns for Assesses Other than Regular Assesses ....................................................................................... 8
7. How to File Retuns? ................................................................................................................................. 9
8. What are the Steps for Filing Return? ...................................................................................................... 9
9. Can Return be revised in GST Regime? ................................................................................................... 10
10. Source of Article ................................................................................................................................ 10
11. Other Articles on GST published by us: .............................................................................................. 10
12. Disclaimer ......................................................................................................................................... 10
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RETURNS PROPOSED UNDER GST LAWS
1. INTRODUCTION
As discussed in our earlier write up on GST Law & Practice Part-1, that three panels
were constituted to assist Empowered Committee on implementation on GST in India.
These panels were as follows:
In 2015, Reports were issued by these committees with respect to:
Refund Process
Registration
Payment Process
We would be discussing proposed Returns in Model Law GST.
GST Panel-1
Determination of Revenue Neutral Rate
(RNR)
Place of Provision of Services Rules
GST Panel-2
GST on Inter State Supplies
GST on Imports
GST Panel-3
Dual Administrative Controls
Threshold Limits & Other Exemptions
including list of common exempted
items.
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2. WHAT IS A RETURN?
A return is a statement of specified particulars relating to business activity undertaken
by the taxable person during a prescribed period. A taxable person has a legal
obligation:
(i) To declare his tax liability for a given period in the return;
(ii) Furnish details about the taxes paid in accordance with that return; and
(iii) File correct and complete return within stipulated time frame.
3. WHY RETURN IS SO IMPORTANT IN UNDER GST LAWS ?
GST is a self-assessed destination based taxation system. The submission and
processing of return is an important link between the taxpayer & tax administration as
it’s an important tool for:
(i) Compliance verification program of tax administration;
(ii) Providing necessary inputs for taking policy decision;
(iii) Management of audit and anti-evasion programs of tax administration;
(iv) Finalization of the tax liabilities of the taxpayer within stipulated period of limitation.
Note: There will be common e-return for CGST, SGST, IGST and Additional Tax.
4. WHO NEEDS TO FILE RETURN IN GST REGIME?
REGISTERED DEALER
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 (i.e. Nil Return)
during the said tax period of return.
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UN AGENCIES
UN agencies etc. will have unique GST ID and will file return for the month (in simpler
form) during which they make purchases. They would not be required to file regular
return. They would submit their purchase statements (without purchase invoices) as
per the periodicity prescribed for claim of refund.
GOVERNMENT ENTITIES
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.
However, State tax authorities may assign Departmental ID to such government
departments/ PSUs / other persons. They will ask the suppliers to quote the
Department ID in the supply invoices for all inter-State purchases being made to them.
Such supplies will be at par with B2C supplies and will be governed by relevant
provisions relating to B2C supplies.
5. PERIODICITY OF RETURN FILING?
Common periodicity of returns for a class of taxpayers would be enforced. There will
be different frequency for filing of returns for different class of taxpayers.
There would be Common e-Return for CGST, SGST, IGST & Additional Tax. Separate returns for different categories of taxpayers
Normal/Regular & Casual Taxpayer (GSTR-1, 2 ,3 & 8)
Compounding Taxpayer (GSTR- 4 & 8)
Foreign Non-Resident Taxpayer (GSTR-5)
Input Service Distributor (GSTR- 6)
Tax Deductor (GSTR-7)
Returns by a normal / casual taxpayer to be filed in sequential manner with different
cut-off dates to allow auto-population of return & automated matching of invoices.
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IS PAYMENT OF TAX NE CESSARY TO FILE RETURN?
The return can be filed without payment of self-assessed tax as per the return but
such return would be treated as an invalid return and would not be taken into
consideration for matching of invoices and for inter-governmental fund
settlement among States and the Centre.
DIFFERENT RETURNS FOR DIFFERENT CATEGORIES OF TAXPAYERS
The periodicity of return for different categories of taxpayers is as follows:
Sr. No.
Return For Due Date
1 GSTR-1 Outward supplies made by taxpayer (other than compounding taxpayer and ISD)
10th of the next month
2 GSTR-2 Inward supplies received by a taxpayer (other than a compounding taxpayer and ISD)
15th of the next month
3 GSTR-3 Monthly return (other than compounding taxpayer and ISD)
20th of the next month
4 GSTR-4 Quarterly return for compounding Taxpayer
18th of the month next to quarter
5 GSTR-5 Periodic return by Non-Resident Foreign Taxpayer
Last day of registration
6 GSTR-6 Return for Input Service Distributor (ISD) 15th of the next month
7 GSTR-7 Return for Tax Deducted at Source 10th of the next month
8 GSTR-8 Annual Return By 31st December of next Financial Year
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DIFFERENT LEDGERS FOR TAXPAYERS
There would be different types of Ledgers for taxpayers, which are as follows:
Sr. No.
Name & Purpose of Ledger Due Date
1 Electronic ITC Ledger of taxpayer Continuous
2 Electronic Cash Ledger of taxpayer Continuous
3 Electronic Tax Ledger of taxpayer Continuous
IS THERE PROVISIONS FOR FILING REVISED INFORMATION?
Yes, there are provisions for filing REVISED INFORMATIONS due to Differential Tax
liability to be captured through:
Debit Note
Credit Note
Supplementary Invoices
Correction in Invoices
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6. WHAT ARE THE RETURNS FOR REGULAR & OTHER ASSESSEE?
RETURNS FOR REGULAR ASSESSES:
Ret
urn
s fo
r R
egu
lar
Ass
esse
s
Normal/ Regular Tax Payer
GSTR-1Supply Invoice Details
10th of next month
GSTR-2Auto Population & Purchase Details
15th of next month
Last date for finalizing Supply & Purchase details
17th of next month
GSTR-3Monthly return (other than
compounding taxpayer and ISD)20th of next month
Compunding Tax PayerGSTR-4
Quarterly Return18th of next month
Foreign Non-Resident TaxpayersGSTR-5
Monthly Return7 days after expiry of Registration
Input Service Distributor(ISD)
GSTR-6Montly Returns
15th of next month
Tax DeductorsGSTR-7 (TDS Return)
Monthly Return10th of next month
Annual Return
GSTR-8All Regular & Compunding Assessee
31st December of next F/Y
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RETURNS FOR ASSESSES OTHER THAN REGULAR ASSESSES
Ret
urn
s fo
r A
sses
ses
Oth
er
than
Reg
ula
r A
sses
ses
Casual Tax Payer
to file same return as for normal taxpayer but with monthly periodicity
and / or linked to validity period of registration
UN Agenciesto file return for the month in which
they make purchases – to claim refunds
Annual Return
Not Applicable.As Annual REturn is applicable only for
All Regular & Compunding Assessee
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7. HOW TO FILE RETUNS?
There would be a GST common portal to file return. Returns in GST System could be filed by tax payer:
by himself logging on to the GST System using his own user ID & password; or
through his authorized representative using the user Id & password (allotted to the authorized representative by the tax authorities), as chosen at the time of registration, logging on to the GST System
Filing may be done through Tax Return Preparers (TRPs) / FCs also
Filing may be done either directly or by using Applications developed by accounting
companies / IT companies which will interact with GST System using APIs.
8. WHAT ARE THE STEPS FOR FILING RETURN?
Assesse to follow some steps to file return. Steps are as follows:
Taxpayer
GSTN
Upload Supply details by 10th of
next month.
File GSTR-110th of next
month
Inward supply details inGSTR-2 to be auto –populated on the basis ofGSTR-1 of counter-partysupplier
Add or modify details & file GSTR-2 by 15th of the succeeding month.
Reconcile by 17th of the
next month.
Pay Tax or use Credit in Cash Ledger
File GSTR-3 by 20th of next
month.
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9. CAN RETURN BE REVISED IN GST REGIME?
Yes, revision of information is permitted.
Changes in Tax liability / ITC amount to be handled through
Debit- Credit Notes
Revision of supply invoices
Post sales discount
Volume discount
Amendments / Corrections
10. SOURCE OF ARTICLE
This article is based on Report of the Joint Committee on Business Process for GST
(July’2015) and Presentation on Proposed Return Process issued by Joint
Committee (Nov’15).
11. OTHER ARTICLES ON GST PUBLISHED BY US:
Opportunities for Professionals under GST Regime
http://gstpanacea.com/services/opportunities-professionals-gst-regime/
Model Law GST - Law & Practice (Part-1)
http://gstpanacea.com/services/model-law-gst-law-practice-part-1/
12. DISCLAIMER
Returns Proposed under GST Laws - Compiled by www.GSTpanacea.com
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This document is for information only. All care has been taken for laws but in
case something has been missed request our readers to update us. This should
not be taken as any advice from our concern. We shall not be liable for any loss
if occurred for laws stated in this document.
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