RETURNS

1. Salient features of return filing process

• The GST law requires mandatory electronic filing of returns
  • By directly punching details on the GSTN portal [www.gst.gov.in]
  • By using the offline return preparation utility provided by the GSTN portal
  • By using return filing software solutions provided by GST Suvidha providers [GSPs] or Applicable Service Providers (ASPs)
• Uploading of invoice level details of business-to-business (B2B) supplies (including exports) and consolidated details of supplies to end consumers (B2C)
• Revision of returns is not permissible. However, rectification can be done in subsequent tax periods
• Regular taxpayers to upload details of outward supplies (GSTR-1) and inward supplies (GSTR-2) and file monthly returns
• Regular taxpayers whose aggregate turnover is up to 1.5 crore rupees in the preceding financial year or the current financial year have the option to file details of outward supplies (GSTR-1) on a quarterly basis.
• Annual returns for taxpayers who have opted for the composition scheme. Such taxpayers however are required to make payment of tax on a quarterly basis.
• Separate returns for non-resident taxpayers, Input Service Distributor, persons liable for TDS or TCS and holders of UIN
• Furnishing of summary return in Form GSTR-3B in addition to GSTR-1. Filing of GSTR-2 and GSTR 2A is extended.

2. Types of returns – current provisions

   The GST law provides for different compliances from time to time. The nature of compliance to be undertaken and the various types of returns have been prescribed under the Rules. These are tabulated here under:

COVID-19 related Waiver of Late Fees u/s 47 & Concessional Rate of Interest u/s 50

Broad Framework of the Forms

FORM GSTR-1: DETAILS OF OUTWARD SUPPLIES MADE DURING A TAX PERIOD

[Sec. 37, Rule 59]

The return filing process commences with the furnishing of details of outward supplies in Form GSTR-1. The broad architecture of Form GSTR-1 comprises of furnishing invoice level details and other details of outward supplies. The details that need to be furnished in Form GSTR-1 are enumerated hereunder:

• Invoice level details of B2B Taxable Outward Supplies [Intra-State and Inter-State]
• Details to be furnished include deemed supplies [made without consideration] in terms of Schedule I to the CGST Act, 2017
• Invoice Level details of B2C Inter-State Taxable Outward Supplies [where invoice value > 2.5 lakh]
• Invoice level details of zero-rated supplies and deemed exports
• Consolidated details of B2C Taxable Outward Supplies [Intra-State and Inter-State]
• HSN wise summary of outward supplies
• Details of various documents issued

FORM GSTR-2: DETAILS OF INWARD SUPPLIES OF GOODS OR SERVICES

[Sec. 38, Rule 60] [Suspended]

Form GSTR-2 requires furnishing details of all inward supplies received during a tax period. Details of inward supplies shall be prepared based on auto-drafted details made available in Form GSTR-2A. This process would require the taxpayer to reconcile the auto drafted details with the details as per books of account. The filing of return in GSTR-2 has currently been suspended.

FORM GSTR-3: RETURN BY A REGULAR TAXABLE PERSON [Suspended]

[Sec. 39(1), Rule 61]

• Every taxpayer furnishing details in Form GSTR-1 and 2 is also required to furnish a return in Form GSTR-3
• Return is to be furnished whether or not any supplies of goods or services have been made during a tax period [i.e., it is mandatory to file a NIL return]¹
• Return in Form 3B is to be filed wherever the due date for filing GSTR-1/ GSTR-2 has been extended [detailed in subsequent paras]
• The filing of return in GSTR-3 has currently been suspended.

FORM GSTR-3B: SUMMARY RETURN IN LIEU OF MONTHLY RETURN

[Sec. 39(4), Rule 62]

Form GSTR-3B is a summary return and requires the taxpayer to provide summary details of output tax payable, input tax credit claimed, ineligible Input Tax Credit and net tax, interest, late fee payable and paid. Form GSTR-3B is to be filed whenever due dates for filing GSTR1 and GSTR-2 have been extended [Rule 61(5)]. Where a return in GSTR-3B is furnished then furnishing of the return in GSTR-3 shall not be required.

FORM GSTR-4: RETURN BY A TAXABLE PERSON OPTING FOR COMPOSITION UNDER SECTION 10 OR PERSON AVAILING THE BENEFIT OF NOTIFICATION NO. 2/2019-CT (RATE) DATED 07/03/2019

[Sec. 39(4), Rule 62]

• Furnish consolidated details of outward supplies on annual basis in common Form GSTR-4
• Furnish details of inward supplies on the basis of details contained in auto-drafted Form GSTR-4A in Form GSTR-4
• If the taxpayer opts out of composition at the beginning of the financial year, he shall, where required, furnish details of inward and outward supplies in the returns applicable to regular tax payers relating to the period where he was not under composition²
• However, the taxpayer shall not be allowed to claim ITC in respect of invoices or debit notes pertaining to pre- composition period
• Similarly, the taxpayer opting out of the composition scheme shall continue to furnish details relating to composition period in Form GSTR-4 (where required) till the due date for filing of return for the quarter ended September of the following financial year

FORM GSTR-5: RETURN BY A NON-RESIDENT TAXABLE PERSON

[Sec. 39(5), Rule 63]

Non-Resident taxpayers are required to furnish details of all taxable supplies in GSTR-5. The details that need to be furnished in Form GSTR 5 are similar to those enumerated for GSTR 1.

FORM GSTR-5A: RETURN FOR FURNISHING DETAILS OF SUPPLIES OF OIDAR³ SERVICES BY A PERSON LOCATED OUTSIDE INDIA TO A NON-TAXABLE PERSON IN INDIA

[Rule 64]

In case of OIDAR services, the person (service provider) located in non-taxable territory providing services to an unregistered person located in taxable territory, is liable for paying the IGST⁴. It is mandatory for such person to obtaining registration under the GST Law⁵ and furnish details of outward supplies in Form GSTR-5A

FORM GSTR-6: RETURN FOR INPUT SERVICE DISTRIBUTOR [‘ISD’]

[Sec. 39(6), Rule 65]

Details of receipt of Tax Invoices and distribution of Input Tax Credit shall be furnished by an ISD in Form GSTR-6 based on auto-drafted details provided in Form GSTR-6A. The details that need to be furnished in Form GSTR-6 are, ITC received for distribution, total ITC, eligible and ineligible ITC, distribution of eligible and ineligible ITC, amendments (if any), debit notes, credit notes, ITC mismatches and reclaims to be distributed, late fees, refund claimed from cash ledger etc.

FORM GSTR-7: RETURN IN RESPECT OF TAX DEDUCTION AT SOURCE [‘TDS’]

[Sec. 39(3), Rule 66(1)]

Under the GST law, certain specified persons are required to deduct Tax at Source on specified inward supplies received by them. TDS certificate is to be issued in Form 7A⁶. Further, details of amounts paid and tax deducted are to be furnished in Form GSTR-7.

Form GSTR-8: STATEMENT OF TAX COLLECTION AT SOURCE [‘TCS’]

[Section 52, Rule 67]

An e-Commerce operator is required to collect tax at source from net value of taxable supplies made through it. It has to furnish details of supplies made through it and the TCS deducted in GSTR-8.

Form GSTR-11: STATEMENT OF INWARD SUPPLIES BY PERSONS HAVING UNIQUE IDENTIFICATION NUMBER (UIN)

[Section 55, Rule 82]

Specialised agencies of the United Nations, Embassies and Consulates and other agencies are allotted a Unique Identification Number [‘UIN’] in lieu of a GSTIN⁷. Such persons are allowed to claim refund of taxes paid⁸ on notified supplies of goods or services received by them. For claiming refund of the input taxes⁹ these persons are required to file a statement of inward supplies in Form GSTR-11. The refund is to be claimed by filing Form RFD-10¹⁰.

3. Proposed return forms (with effect from 1st April 2020)

   With effect from 01/10/2020, it is proposed that the returns under GSTR 1, 2, 3 and 3B will be discontinued and a new scheme of return filing in Form GST RET-1 (Normal), GST RET – 2 (Sahaj) and GST RET – 3 (Sugam) will be introduced. The GST RET-1 can be filed monthly / quarterly, while GST RET 2 and 3 are to be filed on a quarterly basis. The proposed framework bifurcates tax payers into two categories, based on their aggregate turnover as:

   • Tax-payers having aggregate turnover not exceeding 5 crores in the preceding financial year-

     Such tax payers have been given an option to file returns monthly or quarterly, though tax payment would continue to be on monthly basis only (in PMT-08.) The type of return form, that is RET 1, RET 2 or RET 3, to be filed depends upon the nature of transactions effected as well as the periodicity of return chosen by the taxpayer.

   • Tax-payers having aggregate turnover exceeding 5 crores in the preceding financial year –

     Such tax payers have to compulsorily file returns on monthly basis in GST RET – 1 (Normal).

   • In case of fresh registration, the turnover of the previous financial year shall be considered as zero and therefore such taxpayers shall have an option of filing the returns either monthly or quarterly.
   • The option to select the periodicity of the return as to be filed monthly or quarterly has to be selected at the beginning of the financial year. It is important to note that once a periodicity is selected, the same can be changed only during the beginning of next financial year. In case no option is selected, the option selected in the previous year shall continue to be applied for the next financial year as well.
   • Further, switching between the return forms will be allowed in the beginning of any quarter in the following manner:

• Type of return forms proposed and related details are tabulated here under:

* In case of Sahaj and Sugam forms, tax payers would not be able to take credit on missing invoices nor be able to make zero rated supplies, supplies through e-commerce operators, etc. In case the tax payer is also making NIL rated, exempt and non-GST supplies, Sahaj and Sugam forms can be used although there is no requirement to report the same in the said forms.

4. Other compliances

   Every regular taxpayer [Other than ISD, NR Taxable person, casual taxable person and persons liable for TDS/ TCS] shall file an annual return for every financial year on or before 31st December of following the end of the said financial year:

1. Annual return (GSTR-9 and GSTR-9A)

   Broad details that need to be furnished in the Annual return in Form GSTR-9 (for regular taxpayer) and GSTR-9A (for composition taxpayer) are enumerated hereunder:

   • Details of the advances, outward and inward supplies including exempt supplies, Nil rated supplies, Non-GST supplies etc.
   • Details of ITC availed, reversed and ineligible which is described (only in GSTR-9):
     • ITC availed to be classified into Inputs, Input Services and Capital Goods.
     • ITC reversed to be categorized as per Rule 37, Rule 39, Rule 42, Rule 43.
     • ITC ineligible as per Section 17(5)
   • Details of ITC reversed (while opting for Composition scheme) or availed (opting out of Composition scheme) (only in case of GSTR-9A).
   • Details of tax paid, interest, late fee & penalty as per GST returns filed.
   • Details of transactions reported in the next FY and the consequential tax paid thereon
   • Details of the additions or amendments (net of credit/debit notes) made in the next FY for the supplies declared during the period covered under the annual return.
   • Details of Demands and Refunds.
   • Details of supplies received from composition taxpayers, deemed supply to job workers and goods sent on approval basis.
   • HSN wise summary of Outward and Inward supplies.
   • Details of late fee paid and payable.
2. Audit report (GSTR-9C)

   This statement is applicable to all those taxpayers whose Annual aggregate turnover exceeds ₹ 2 crores in a financial year. For financial year 2018-19, this statement is applicable only to those taxpayers whose aggregate turnover exceeds 5 crores. It consists of two parts, Part-A: Reconciliation Statement & Part -B-Certification.

   Following are the reconciliation required under Part-A:

   • Turnover as per Audited Annual Financial Statement with turnover declared as per GSTR-9.
   • Details of tax paid including transactions liable to RCM with tax as declared in GSTR-9.
   • Details of ITC availed on expenses as reported in Audited Annual Financial Statement / Books of Account with ITC declared in GSTR-9.
   • Recommendation’s by auditor due to non-reconciliation of turnover or ITC.

   Part-B Certification is divided in two parts:

   1. Case where the reconciliation statement is prepared by the same person who conducted the audit of accounts.
   2. Case where the reconciliation statement is prepared by the person other than the one who conducted the audit of accounts.