Filing GST Returns

FILING GST RETURN

Filing GST Returns is necessary for every registered person, whether having tax liability or not. Forms and statements are filed stating all outward and inward supply of goods or services or both thereby assessing tax liability and availing input tax credit (ITC). Timely payment of taxes and filing of returns saves assessee from interests and penalty.

For filing returns, government has divided States and Union Territories (UT) into two categories and prescribed different due dates to keep it hassle-free:

Category ‘X’ States & UT– Andhra Pradesh, Chattisgarh, Goa, Gujrat, Karnataka, Kerela, Madhya Pradesh, Maharashtra, Tamil Nadu, Telangana, Andaman and Nicobar Islands, Dadar and Nagar Haveli, Daman and Diu, Lakshadweep and Puducherry
Category ‘Y’ States & UT- Arunachal Pradesh, Assam, Bihar, Haryana, Himachal Pradesh, Jharkhand, Manipur, Meghalaya, Mizoram, Nagaland, Odisha, Punjab, Rajasthan, Sikkim, Tripura, Uttarakhand, Uttar Pradesh, West Bengal, Chandigarh, Delhi, Jammu & Kashmir and Ladakh

Form GSTR 1 and Form GSTR 3B can be filed under any of the two schemes:

Quarterly Return Filing and Monthly Payment of Taxes (QRMP)- for taxpayers whose turnover is up to Rs. 5 crores. Under this scheme, taxes are paid every month and GSTR 1 & GSTR 3B are filed quarterly.
Regular Scheme- for taxpayers (except payers under Composition Scheme) who has not opted for QRMP scheme. Here GSTR 1 and GSTR 3B are filed monthly along with payment of taxes.

QRMP Scheme

Pre-conditions

Person must be registered as a regular taxpayer and has not opted or opted out of composition scheme
The annual turnover in preceding financial year (F.Y.) and current F.Y. is up to Rs. 5 crores
Form GSTR 3B for immediately preceding tax period has been filed, if any
GSTR 1 has not been filed for the period for which this scheme is opted

Key Notes

Taxpayer has an option to opt for same or different scheme for different GSTIN number under same PAN
The taxpayer can transit from one scheme to another for any quarter between first day of second month of preceding quarter to the last day of first month of quarter for which scheme is to be opted-

Tax Audit Assessees

Applicability

When total turnover/gross receipts in a business > Rs. 1 crore in the relevant previous year (P.Y.)

However, the threshold limit is increased from Rs. 1 crore to Rs. 10 crores when more than 95% of the business transactions been done through banking channels.

When gross receipts of a profession for the year exceeds Rs. 50 lakhs
When assessee covered u/s 44AE, 44BB,44BBB claims income lower than deemed profit in relevant previous year
When assessee covered u/s 44ADA claims income lower than deemed profit and his/her income exceeds Rs. 2.5 lakhs in relevant previous year

Non-Applicability

When a person opts for presumptive scheme u/s 44AD and total turnover does not exceed Rs. 2 crores in relevant previous year.

Quarter		Time Period for Transit
QUARTER 1		February 01 – April 30
QUARTER 2		May 01 – July 31
QUARTER 3		August 01 – October 31
QUARTER 4		November 01 – January 31 of next year

Information Furnishing Facility (IFF) is given to the taxpayers to furnish the details of outward supplies made to a registered person in respect to B2B transactions. This facility is provided to allow the recipient taxpayers to avail ITC of these invoices in the same month.

Taxpayers have two ways to pay their monthly tax liability-

Fixed Sum Method (FSM)- where 35% of the tax liability paid in the previous quarter in return GSTR 3B; or
Self-Assessment Method (SAM)- where taxpayer self-assess the tax liability for the month to which it relates

Due Dates

Form Number	Period under Tax	Due Date
GST PMT 06	For every month in which tax liability is due	25th day of the next month
IFF	For first two months of every quarter	Within 13 days from the end of the month to which it relates
GSTR 1	Quarter to which it relates	Within 13th day of the month succeeding the quarter
GSTR 3B	Quarter to which it relates	Within 22nd day of the month succeeding the quarter

Regular Scheme

Due Dates

Form Number		Period under Tax	Due Date
GSTR 1		Month to which it relates	11th day of every succeeding month
GSTR 3B		Month to which it relates	20th of every succeeding month

*If the form GSTR 1 is filed after due date, then invoices reported will be reflected in the next month of GSTR 2B of the recipient party.

GST Returns

GSTR 1- a return for furnishing details of all outward supplies of goods and services along with debit and credit notes raised, if any. It is filed by all normal taxpayers including casual taxable persons.
GSTR 2B- it is an auto-populated statement reflecting inward supplies along with eligible and ineligible ITC, separately, for every normal taxpayer, for the tax period to which it relates; i.e.; it shall only reflect the outward supplies of the corresponding suppliers uploaded for the month to which it relates. It acts as the ITC statement for the taxpayer. It is generated on 14^th day of every month.
GSTR 3B- it is a return reconciling details of outward and inward supplies along with eligible and ineligible ITC and supplies taxed under reverse charge mechanism (RCM).
GSTR 4- it is an annual return filed by taxpayers under Composition Scheme within 30^th April from the end of the relevant financial year.
GSTR 5- this return is filed by the non-resident taxpayers carrying out financial transactions in India. It is monthly filed within 20^th day of each month for the immediately preceding tax period.
GSTR 5A- it is a monthly summary return filed by Online Information and Database Access or Retrieval Services (OIDAR) providers by 20^th day each month for the immediately preceding tax period.
GSTR 6- it is a monthly return filed by Input Service Distributors (ISD) within 13^th day each month for the immediately preceding tax period.
GSTR 7- it is a monthly return filed by TDS deductors within 10^th day each month for the immediately preceding tax period.
GSTR 8- it is filed by e-commerce operators required to collect tax at source on a monthly basis within 10^th day each month for the immediately preceding tax period.
GSTR 9- it is an annual return filed by certain taxpayers having turnover up to Rs. 2 crores consolidating all the returns filed during the relevant year within 31^st December of the following year.
GSTR 9C- it is self-certified return filed by taxpayers with a turnover > Rs. 5 crores in the previous financial year.
GSTR 11- it is a return filed by persons holding Unique Identification Number (UIN) within 28^th day of the month succeeding to the month in which inward supply is received.

Composition Scheme

The taxpayers dealing in goods and having turnover up to Rs. 1.5 crores can participate in this scheme. However, in case of Special Category States, the limit has been reduced to Rs. 75 lakhs. Further, a composite dealer may also engage in supply of services up to maximum of 10% of the turnover disclosed or Rs. 5 lakhs, whichever is higher.

Special Category States for this scheme includes, Arunachal Pradesh, Uttarakhand, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim and Tripura

Non-Availability of Composition Scheme

Following persons are barred from opting the scheme-

Manufacturer of ice-cream, pan masala or tobacco
Casual Taxable Person or Non-Resident Taxable Person
Businesses supplying goods through an e-commerce operator
Businesses making inter-state supplies

They opt for paying taxes at a fixed rate on the turnover (under same PAN) disclosed in the return and are not required to maintain detailed records. They file a quarterly statement and pay tax liability in Form CMP-08 within 18^th day of the following month from the end of the quarter.

Requisite Documents

Invoices (for both B2B and B2C)
Debit and credit notes, if any
Details of consolidated intra-state and inter-state sales transaction

Advance receipts, if any
Details of Export and Import bills, if any
HSN wise summary details