Know about filing and handling GST returns

Bathinda Helper
Tue, 23 Nov 2021 13:31:27 +0000
General Discussion

One Pan can have multiple GST numbers issued for/under him, for diff businesses (in diff cities).

GSTR-1 is the monthly/quarterly return to be furnished for reporting details of all outward supplies of goods and services made. In other words, it contains the invoices and debit-credit notes raised on the sales transactions for a tax period. GSTR-1 is to be filed by all normal taxpayers who are registered under GST, including casual taxable persons.

GSTR-2A is a view-only static GST return important for the recipient or buyer of goods and services. It is available every month, and contains the purchases/inward supplies of the tax payer (it may change over the days if your supplier makes any changes). While 2b contains the constant ITC data for a period whenever checked back, it can’t be changed. It shows the ITC details from the date of filing GSTR-1 for the preceding month (M-1) up to the date of filing GSTR-1 for the current month (M). The return is made available on the 12th of every month, giving sufficient time before filing GSTR-3B, where the ITC is declared. It provides action to be taken against every invoice reported, such as to be reversed, ineligible, subject to reverse charge, references to the table numbers in GSTR-3B.

GSTR-2 is currently a suspended GST return, that applied to registered buyers to report the inward supplies of goods and services, i.e. the purchases made during a tax period.

GSTR-2A is a read-only return, no action can be taken in it. It is used frequently for checking the purchases made by oneself. And 2b is for checking/claiming ITC for every tax period. The buyers mostly refer to GSTR-2B, static return, to claim the input tax credit for every tax period. In case any invoice is missing, the buyer can communicate with the seller to upload it in their GSTR-1 on a timely basis.

GSTR-3, is a return that is suspended since Sep2017. It was a monthly summary return for furnishing summarized details of all outward supplies made, inward supplies received and input tax credit claimed, along with details of the tax liability and taxes paid. This return would have got auto-generated on the basis of the GSTR-1 and GSTR-2 returns filed.

GSTR-3B discloses supplies made during the month/quarter along with GST to be paid, input tax credit claimed, purchases on which reverse charge is applicable, etc., and also makes a provision for the payment of taxes, if any, for the relevant period (monthly if your last year’s sale was above 5 Crore and quarterly if your sale was below 5 crore and you opted quarterly). The sales and input tax credit details must be reconciled with GSTR-1 and GSTR-2B every tax period before filing GSTR-3B. GST reconciliation is crucial to identify mismatches in data, that may lead to GST notices in future or suspension of GST registration as well.

GSTR-4, for composition schemers, is the annual return that was to be filed by the composition taxable persons under GST, by 30th April of the year following the relevant financial year. It has replaced the erstwhile GSTR-9A (annual return) from FY 2019-20 onwards. Prior to FY 2019-20, this return had to be filed on a quarterly basis. Thereafter, a simple challan in form CMP-08 filed by 18th of the month succeeding every quarter replaced it. Its only for the traders having a turnover below 1.5 Cr and service providers having a turnover below 50 Lacs.

GSTR-5 is the return to be filed by non-resident foreign taxpayers

GSTR-5A refers to a summary return for reporting the outward taxable supplies and tax payable by Online Information and Database Access or Retrieval Services (OIDAR) provider under GST. OIDAR means those online services provided by any service provider, which are non-physical and are consumed online only. E.g. Providing or receiving online gaming services. Selling/buying eBooks.

GSTR-6 is a monthly return to be filed by an Input Service Distributor (ISD). ISD or an Input Service Distributor is a type of taxpayer under GST who needs to distribute the GST input tax credits that pertain to its GSTIN to its units or branches having different GSTIN but registered under the same PAN. In other words, An Input Service Distributor (ISD) is a taxpayer that receives invoices for services used by its branches. It distributes the tax paid known as the Input Tax Credit (ITC), to such branches on a proportional basis by issuing ISD invoices. The branches can have different GSTINs but must have the same PAN as that of ISD. Let’s understand with an example. The head office of M/s ABC Limited is located in Bangalore having branches in Chennai, Mumbai and Kolkata. The head office incurred annual software maintenance expense (service received) on behalf of all its branches and received the invoice for the same. Since the software is used by all its branches, the input tax credit of entire services cannot be claimed in Bangalore. The same has to be distributed to all three locations. Here, the head office at Bangalore is the Input Service Distributor.

GSTR-7 is a monthly return to be filed by persons required to deduct TDS (Tax deducted at source) under GST. This return will contain details of TDS deducted, the TDS liability payable and paid and TDS refund claimed if any.

Diff between TDS and TCS: TDS is deducted by a employer or customer (called deductor) who is to make the payment for goods/services to a seller/employee (called deductee). The deductee will claim refund while filing his (income tax?) returns.
While TCS is collected by the seller at the time of sale. E.g. a timber merchant selling wood to a (taxable?) person will deduct TCS while making the sale.

GSTR-8 is a monthly return to be filed by e-commerce operators registered under the GST who are required to collect tax at source (TCS). It contains details of all supplies made through the e-commerce platform, and the TCS collected on the same.

GSTR-9 is the annual return to be filed by taxpayers registered under GST. It is due by 31st December of the year following the relevant financial year, as per the GST law. It contains the details of all outward supplies made, inward supplies received during the relevant financial year under different tax heads i.e. CGST, SGST & IGST and a summary value of supplies reported under every HSN code, along with details of taxes payable and paid. It is a consolidation of all the monthly or quarterly returns (GSTR-1, GSTR-2A, GSTR-3B) filed during that financial year. GSTR-9 is required to be filed by all taxpayers registered under GST. However, there are few exceptions such as taxpayers who have opted for the composition scheme, casual taxable persons, etc.

GSTR-9A is currently a suspended annual return earlier required to be filed by composition taxpayers. It had a consolidation of all the quarterly returns filed during that financial year. Ever since GSTR-4 (annual return) was introduced from FY 2019-20, this return stands scrapped. Prior to that, GSTR-9A filing for composition taxpayers had been waived off for FY 2017-18 and FY 2018-19.

GSTR-9C is the reconciliation statement to be filed by all taxpayers registered under GST whose turnover exceeds Rs.2 crore in a financial year, as per the GST law.
It must be certified by a Chartered Accountant/Cost & Management Accountant after conducting a thorough GST audit of the books of accounts and comparing the figures with the GSTR-9.

As per the Union Budget 2021 outcome , the GST audit requirement by professionals such as CAs and CMAs has been removed from the GST law. Sections 35 and 44 were amended for this but yet to be notified by CBIC. Accordingly, GSTR-9 needs to be filed on the GST portal by taxpayers on a self-certification basis, completely removing the requirement for GSTR-9C. However, the financial year and date of applicability of this removal are yet to be clarified by the government.

GSTR-10 is to be filed by a taxable person whose registration has been cancelled or surrendered. This return is also called a final return and has to be filed within three months from the date of cancellation or cancellation order, whichever is earlier.

GSTR-11 is the return to be filed by persons who have been issued a Unique Identity Number (UIN) in order to get a refund under GST for the goods and services purchased by them in India. UIN is a classification made for foreign diplomatic missions and embassies not liable to tax in India, for the purpose of getting a refund of taxes. GSTR-11 will contain details of inward supplies received and refund claimed.

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