Types of returns under GST PPT updates as june 2024

TYPES OF GST REUTRNS AND BASICS OF GST

1. Navigating through GST & its Return Filing By Pratik Bakshi

2. What is GST in India GST is known as the Goods and Services Tax. It is an indirect tax which has replaced many indirect taxes in India such as the excise duty, VAT, services tax, etc. The Goods and Service Tax Act was passed in the Parliament on 29th March 2017 and came into effect on 1st July 2017. In other words,  Goods and Service Tax (GST)   is levied on the supply of goods and services. Goods and Services Tax Law in India is a comprehensive, multi-stage, destination-based tax that is levied on every value addition.  GST is a single domestic indirect tax law for the entire country .

3. Why India need GST? Purpose- GST is introduced majorly due to two reasons: The current indirect tax structure is full of uncertainties due to multiple taxes and multiple rates. Due to multiple rates, there are multiple forms and intern cumbersome compliances. This will improve Tax compliances. Because of above transparency, Taxation would increase and lead to reduced tax evasion. It would also reduce cascading effect(tax on tax) up to much extent.

4. Goods And Services Act(GST) Touted as “Single biggest Indirect Tax reform” since 1947. GST aims to simplify the indirect tax regime with a single tax on manufacture, sale and consumption of goods and services at national level. No distinction is made between A study conducted by NCAER estimated that roll out of GST would boost the India’s GDP growth by 1% to 2%. It is a consumption based tax. It would subsume most of the indirect taxes of the centre and the state. It is a tax on goods and services with value addition at each stage of transaction( sale,manufacture and consumption). Based on Input credit system just like VAT. Overcomes most of the drawbacks of the current system.

5. Framework(Model) of GST India will have Concurrent Dual GST comprising of Central GST and State GST levied on the same base. GST rate= CGST rate + SGST rate Total tax collected in GST will be distributed to centre and state as per CGST , SGST rate Central GST(or CGST) would be administered by Central Govt. State GST(or SGST) would be administered by State Govt. Integrated GST(or IGST) administered by central Govt. on inter state transfer of goods and services. In this model, all the goods and services would be subject to concurrent taxation by the state and the centre. For example, if a product have levy at base price of Rs. 10000 and rate of GST are 8% , CGST is 3% and SGST is 5% ,then tax collected during transaction is 800 , 300 goes to central govt as CGST tax, 500 goes to the state govt. as SGST tax. Central GST (CGST) No Excise No Service Tax No Cess, Surcharges, etc. State GST (SGST) No VAT No Cess, Surcharges, entry taxes, etc.

6. Which Central Taxes will be subsumed?? Custom Duty Tobacco Products Petroleum Products- so far no but maybe yes Central Excise Duty Central Sales Tax Service Tax Counter-Veiling Duty on Imported goods Cess, Surcharges ONLY CGST

7. Which State Taxes Will Be Subsumed?? Excise On Liquor For Human Consumption Stamp Duty On Immovable Properties Electricity Duty Petroleum Products (Will Depend Upon The GST Council But till now no) State VAT Luxury Tax, Entertainment Tax,Purchase tax Entry Tax Lottery , Betting , Gambling ONLY SGST

8. Integrated GST (IGST) IGST model would be adopted for inter-state transaction of goods and services. Centre would levy IGST where IGST = CGST + SGST The revenue collected from IGST will be distributed among the state and the centre as per SGST and CGST rate. Input Tax Credit system would be followed. SGST is credited to the importing state as against the exporting state (in present system). IGST just a mechanism not a “Tax”

9. Mechanism of IGST : X has to collect ₹1.2 lakh as SGST and ₹1.4 lakh as CGST on sale of his goods to Y of same state. Input credit of Y is ₹1.2 lakh as SGST and ₹1.4 lakh as CGST paid by him to X of same state. Rate of IGST is 26%(CGST + SGST). When Y sales this to Z of Rajasthan at ₹10.5 lacs, he charges ₹2.73 lacs as IGST. Y will deposit ₹13k after claiming his input credit against CGST and SGST. The state of Maharashtra will transfer the amount of SGST(₹1.2 lacs) to the centre which is used by Y as IGST. Z of Rajasthan sold it to a consumer at cost of ₹11 lacs and will collect from him ₹1.32 lacs as SGST and ₹1.54 lacs as CGST. Z has already paid ₹2.73 lacs while as IGST which he will claim while paying his liability of CGST and SGST. So he has input credit of ₹1.26 lacs as SGST and ₹1.47 lacs as CGST. After deducting, he will pay ₹6000 SGST and ₹7000 CGST. A central agency will transfer the amount of input credit of SGST i.e. ₹1.26 lacs to the consumer state(Rajasthan). Lets understand this mechanism via a example Transaction of Sales: X of Mumbai sold Goods worth ₹10 lacs to Y of Mumbai and Y of Mumbai sold the same goods to Z of Rajasthan at ₹10.50 lacs. Now at the second stage, Z of Rajasthan sold the same goods to a consumer in Rajasthan at ₹11 lacs. Suppose rate of SGST is 12% and that of CGST is 14%.

10. GST Rates Structure Tax Rates Products 0% (EXEMPT) Milk Eggs Curd Lassi Unpacked Foodgrains Unpacked Paneer Gur Educations Services Kajal Children’s Drawing & Colouring Books Unbranded Natural Honey Prasad Besan Unbranded Maida Unbranded Atta 5% Edible Oils Domestic LPG PDS Kerosene Cashew Nuts Milk Food for Babies Coir Mats, Matting & Floor Covering Fabric Spices Coal Roasted Coffee Beans Apparels (< Rs.1000) Footwear (< Rs.500) Skimmed Milk Powder Life-saving drugs Coffee (except instant) Mishti / Mithai (Indian Sweets) Agarbatti

11. Tax Rates Products 12% Butter Ghee Almonds Umbrella of Plants including Pickle Murabba , Chutney, Jam, Jelly Preparations of Vegetables, Fruits, Nuts or other parts Fruit Juice Mobiles Processed food Computers Packed Coconut Water 18% Hair Oil Toothpaste Soap Pasta Corn Flakes Soups Printers Computers Toiletries Ice-cream Industrial Intermediaries Capital goods 28% Small cars (+1% or 3% cess ) Consumer durables such as AC and fridge High-end motorcycles (+15% cess ) Beedis are NOT included here Luxury & sin items like BMWs, cigarettes and aerated drinks (+15% cess )

12. Types Of Returns Return Form Submitted by the GST assesses Auto Populated by the GST system GSTR-1,3, 4, 5, 6, 7, 8, 9, 10, 11 Yes No GSTR – 2A, 2B, 7A, 9A, 9B No(Verified & rectified if necessary) Yes

13. Return for details of outward supplies made by the tax payer GSTR – 1 Furnishing details of outward supplies [Section 37 read with rule 59] Not applicable for Composition tax payer and Input Service Distributor (ISD) Periodicity – monthly return to be filed on or before 11 th of the subsequent month Coverage : Tax payable under reverse charge mechanism Recording of place of supply if it is different than place of recipient Tax payable under provisional assessment Provision for correction or rectification of supplies made in the previous month (Intra state as well as Interstate) Debit note and credit note details along with tax impact Supplies which are exempt, Nil rate, non-taxable or exported or deemed to be exported Tax paid on advances and details of invoices against such advance received Provision for supplies to E-commerce operator

14. Return for details of inward supplies which is available to the recipient based on GSTR-1 filed by the supplier GSTR – 2A & 2B Furnishing details of inward supplies [Section 38 read with rule 60]

15. GSTR – 2A & 2B

16. Parameters for Comparison GSTR-2A GSTR-2B Type of statement A progressive auto-drafted statement that provides input tax credit (ITC) details to every recipient of supplies, based on the suppliers’ data. A constant auto-drafted statement that provides input tax credit (ITC) details to every recipient of supplies, based on the suppliers’ data. Nature of the statement Dynamic, as it changes from day to day, as and when a supplier uploads the documents. Static, as the GSTR-2B for one month, cannot change based on future actions of the supplier. Frequency of availability Monthly Monthly Source of information GSTR-1 or IFF*, GSTR-5, GSTR-6, GSTR-7, GSTR-8, ICES GSTR-1 or IFF*, GSTR-5, GSTR-6, ICES GSTN advisory on ITC claims  Does not contain information/advisory on the action a taxpayer is supposed to take Contains an advisory against each section on whether the ITC is eligible, ineligible or reversible, for the taxpayer to take action accordingly in his GSTR-3B When will ITC entries get reflected from various sources? GSTR-1: saved/filed/submitted GSTR-6: submitted GSTR-7 and GSTR-8: filed GSTR-1, GSTR-5, or GSTR-6: filed Cut-off date for entries, to view the statement for a tax period Not applicable, as it’s a dynamic statement 11th/13th of the succeeding month (depending on the type of return)  the statement will be generated on the 14th of the succeeding month GSTR – 2A & 2B Comparison

17. Monthly return based on outward and inward supplies as finalized and for payment of tax GSTR – 3B Periodicity – 20 th of the subsequent month Not applicable for Composition  tax payer, Input Service Distributor (ISD), Non-resident taxable persons Coverage : Once the supplier finalize their GSTR-1, GSTR-3 is auto populated with relevant details about inward and outward supplies from GSTR-1 Any other information like ITC, tax payments and tax liability will be updated real time once the relevant details are populated from the cash and liability ledger. Relevant details will be fetched from ISD returns and TDS/ TCS returns also. Segregation of turnover between exempt, taxable, non-taxable, nil rate etc.

18. Due Dates for GSTR-3B Filing Tax liability and payments, interest liability and penalty liability is auto populated from cash ledger if already paid Provision for claiming the refund or carrying forward the ITC or TDS or TCS to the next period. Due Dates for GSTR-3B Filing Up to December 2019: The due date is 20th of the subsequent month January 2020 onwards: The due dates have been staggered. It is either 20th of every month or 22nd/24th of the month following every quarter, for monthly and quarterly filers as provided in the below chart Taxpayers opting for the QRMP scheme from 1st January 2021: The due date is 22nd or 24th of the month following every quarter, as per the State/UT of the principal place of business list of States/UT given in the below chart

19. CPM – 08

20. Quarterly return for Composition tax payer GSTR-4 and GST CMP-08: For Composition dealers Periodicity – A composition supplier is required to file the return GSTR-4 yearly and is required to pay the tax quarterly in Form GST CMP-08 . Coverage : Inward supplies from unregistered supplier in addition to auto populated Imported inward supplies and amendment thereto Outward supplies (intra state and interstate) Debit note and credit note details which are not auto populated TDS, TCS, ITC received and availed Inward supplies and advances liable under reverse charge mechanism

21. Note: (1) The inward supplies of a composition supplier received from registered persons filing GSTR-1 will be auto populated in FORM GSTR-4 for viewing. (2) Filing of NIL GST CMP-08 is mandatory for all taxpayers who have opted to pay tax under composition scheme if there is no business activity in any tax period

22. Return for Non-Resident taxable person (Foreigners) GSTR – 5  

23.   Coverage: Imported goods and services Outward supplies and changes thereto Debit and credit note details Closing stock of goods Tax paid details Provision for refund claim which is linked from cash ledger An NRTP is not required to file an Annual Return.

24. Return for Input Service Distributor (ISDs) Periodicity – to be filed on or before 15 th of the subsequent month GSTR – 6

25. GSTR – 6   Coverage: Details of transactions with registered taxable persons will be auto populated from GSTR-1 and GSTR-5 Provision to add, delete or modify any transactions which are not auto populated Debit and credit note details Details of ISD ledger, with details of opening balance, ITC received, ITC reversed, ITC distributed (with internal segregation between IGST, CGST and SGST) and closing balance

26. Return for TDS (Tax Deducted at Source) GSTR – 7 Periodicity – to be filed on or before 10th of the subsequent month   Coverage: GSTR-7 is a return for tax deducted at source, whenever taxable goods or services or both are supplied to a Central/ State Government’s Department/ establishment or, local authority, or Governmental agencies, recipient is required to deduct tax at source and total value of supply exceeds ` 2,50,000.

27. TDS certificates GSTR – 7A This is not returns, rather these are TDS certificates which are auto populated and generated once GSTR-7 is filed. These certificates will be available after due date to every concerned recipient on GST web portal.

28. Return or statement for supplies effected through E-Commerce Operator GSTR – 8 Periodicity – to be filed on or before 10th of subsequent month  

29. E-commerce taxability and registration (Where supplier supplies goods or services through ECO)

30. Once the GSTR-8 is successfully filed, the relevant extracts will be available to the recipient in GSTR-2A. E- Commerce operators are required to collect TCS on supplies made and hence, it is the most important part of GSTR-8., so that it will be reflected in GSTR-2A.

31. 5

32. Annual return for the normal/ regular tax payer GSTR – 9 Periodicity – 31 st December of the next financial year  

33. Coverage: Details of expenditure for goods and services received (segregation into interstate and intra state, exempt, non-taxable etc.) Details of income for goods and services supplied (segregation into interstate and intra state, exempt, non-taxable etc.) Reconciliation of SGST, CGST, IGST and their arrears (as per audits or assessments) as well as refunds HSN wise details for outward and inward supplies Annual Aggregate Turnover (AAT) GSTR-9 GSTR-9C Up to INR 2 Crore From F.Y. 2022-2023, the registered person is exempted from filing Annual Return having AAT up to INR 2 Crore. Not Applicable > INR 2 Crore < INR 5 Crore Mandatory to be filed by all registered taxpayers. Mandatory to be filed by all registered taxpayers whose AAT exceeds INR 5 Crore. > INR 5 Crore Mandatory to be filed by all registered taxpayers. Mandatory to be filed by all registered taxpayers.

34. Annual return for Composition tax payer GSTR – 9A Periodicity – 31 st December of the next financial year   Coverage: Details of gross turnover Details of expenditure for goods and services received (segregation into interstate and intra state, exempt, non-taxable etc.) Details of goods and services which are liable for reverse charge tax liability Details of income for goods and services supplied (segregation into interstate and intra state, exempt, non-taxable etc.) Reconciliation of SGST, CGST, IGST and their arrears (as per audits or assessments) as well as refunds

35. Annual return for E-Commerce Operator GSTR – 9B Periodicity – 31 st December of the next financial year   Coverage: Details of expenditure for goods and services received (segregation into interstate and intra state, exempt, non-taxable etc.) Details of income for goods and services supplied (segregation into interstate and intra state, exempt, non-taxable etc.) Reconciliation of SGST, CGST, IGST and their arrears (as per audits or assessments) as well as refunds Certification by Cost accountant or Chartered Accountant along with audit report GST 9B Form is yet to be released by the Central Board of Excise and Customs (CBIC).

36. GSTR – 9C Periodicity – 31 st December of the next financial year Broad Heads of Reconciliation Statement Reconciliation of gross turnover. Reconciliation of taxable turnover. Reconciliation of tax paid. Reconciliation of Input Tax Credit (ITC) Reconciliation of ITC declared in GSTR 9 with ITC availed on expenses as per books Auditor’s recommendation on additional liability due to non – reconciliation. Certification in cases where the reconciliation statement (Form GSTR-9C) is drawn up by the person who had conducted the audit. Certification in cases where the reconciliation statement (Form GSTR-9C) is drawn up by a person other than the person who had conducted the audit of the accounts.

37. GST final return GSTR – 10 Periodicity – Registered taxable person whose registration has been cancelled or surrendered, is required to file GSTR-10 within 3 months from the date of actual cancellation or cancellation order, whichever is later.   Coverage: Date of surrender or cancellation along with details of cancellation order Closing stock as on date of cancellation Tax payable on closing stock so held

38. Return / statement for inward supplies for person holding UIN (Unique Identity Number) GSTR – 11 Periodicity – to be filed on or before 28th of the subsequent month Coverage: GSTR-11 is the return to be filed by the persons who has been issued a Unique Identity Number(UIN) in order to get refund under GST for the goods and services purchased by them in India Details of purchases made (inward supplies) used for consumption or use (than making outward supplies), in short for captive consumption.  

39. Unique Identity Number is a special classification made for foreign diplomatic missions and embassies who are not liable to taxes in Indian territory. The following organizations can apply for a UIN: A specialized agency of the United Nations Organization A Multilateral Financial Institution and Organization notified under the United Nations (Privileges and Immunities) Act, 1947, Consulate or Embassy of foreign countries Any other person or class of persons as notified by the Commissioner.

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