Returns Process
GST FAQ 3rd Edition – December, 2018 – GST Frequently Asked Questions (FAQs)
GST
12. Returns Process
Q 1. What is the purpose of returns?
Ans.
a) Mode for transfer of information to tax administration;
b) Compliance verification program of tax administration;
c) Finalization of the tax liabilities of the taxpayer within stipulated period of limitation; to declare tax liability for a given period;
d) Providing necessary inputs for taking policy decision;
e) Management of audit and anti-evasion programs of tax administration.
Q 2. Who needs to file Return in GST regime?
Ans. Every person registered under GST will have to file returns in some form or other. A registered person will have to file returns either monthly (normal supplier) or quarterly basis (Supplier opting for composition scheme). An ISD will have to file monthly returns showing details of credit distributed during the particular month. A person required to deduct tax (TDS) and persons
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017-Central Tax dated 15.11.2017. Such taxpayers need to file GSTR-1 on a quarterly basis. The last date for filing GSTR-1 for such taxpayers for the period Oct-Dec 18 is 31.01.2018. It is also clarified that the registered person may opt to file FORM GSTR-1 on monthly basis if he so wishes even though his aggregate turnover is up to ₹ 1.5 Crore.
Q 5. Is the scanned copy of invoices to be uploaded along with GSTR-1?
Ans. No scanned copy of invoices is to be uploaded. Only certain prescribed fields of information from invoices need to be uploaded.
Q 6. Whether all invoices have to be uploaded in the returns?
Ans. No. It depends on whether the invoice is B2B or B2C plus whether Intra-state or Inter-state supplies.
For B2B supplies, all invoices, whether Intra-state or Inter- state supplies, will have to be uploaded. Why So? Because ITC will be taken by the recipients.
In B2C supplies, uploading in general may not be required as the buyer will not be taking ITC. However still
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is the status of GSTR-2 and GSTR-3?
Ans. GSTR-2 and GSTR-3 have been indefinitely postponed and GSTR-3B is being filed since July, 2017. The matching as envisaged is not being done. Section 43A has been inserted in the CGST Act, 2017 vide the CGST(Amendment) Act, 2018 for new procedure for furnishing returns and availing input tax credit. The work on the same is being done and this will be implemented at a later date.
However, GSTR-2A is being auto-populated by GST Portal. The taxpayers can view the details of supplies made to them wherever their suppliers have uploaded the details of their outward supplies in their GSTR-1. The GSTR-2A is helping the taxpayers in reconciling the ITC being taken by them on self-declaration basis in Form GSTR-3B with the taxes declared by their suppliers in their respective GSTR-1s.
Q 10. Do tax payers under the composition scheme also need to file GSTR-1 and GSTR-2?
Ans. No. Composition tax payers do not need to file any statement of outward or inwa
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of inward and outward supplies.
Q 12. How does a taxpayer get the credit of the tax deducted at source on his behalf? Does he need to produce TDS certificate from the deductee to get the credit?
Ans. Under GST, the deductor will be submitting the deductee wise details of all the deductions made by him in his return in Form GSTR-7 to be filed by 10th of the month next to the month in which deductions were made.
TDS amount deducted from the payment due to the deductee, would be reflected in electronic cash ledger of deductee after furnishing of return and payment of tax to the Government account by the deductor. The amount credited to electronic cash ledger of the deductee may be utilized by the deductee towards payment of his GST liability as a regular tax payer.
Q 13. How can taxpayers file their returns?
Ans. Taxpayers will have various modes to file the statements and returns. Firstly, they can file their statement and returns directly on the Common Portal online. However, this
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inues subject to a maximum of an amount calculated at a quarter percent [0.25%] of his turnover in a state, will be levied.
Q 16. What happens if ITC is taken on the basis of a document more than once?
Ans. In case the system detects ITC being taken on the same document more than once (duplication of claim), the amount of such credit would be added to the output tax liability of the recipient in the return for the month in which duplication is communicated. [Section 42(6)]. In other words, the same would be recovered along with interest.
Q 17. What is GSTR-3B?
Ans. GSTR-3B is a simplified monthly return that all taxpayers need to file on monthly basis .. It is a summarized return form which every taxpayer is required to file on selfdeclaration basis. The same needs to be filed by 20th day of subsequent month. i.e. for the month of December,2018 GSTR-3B needs to be filed by 20th January, 2019 after paying appropriate taxes.
Q 18. Is there any late fees for late filing of GSTR
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ve not been issued till the end of the tax period shall have to be reported on a consolidated basis in Table 11 of Form GSTR-1. As and when the invoices against these advances are issued, they have to be declared in Form GSTR-1 and the adjustment of the tax paid on advances against the tax payable on the invoices uploaded in Form GSTR-1 shall have to be done in Table 11 of Form GSTR-1. It may be noted that in terms of notification 66/2017-Central Tax dated 15.11.2017, there is no liability to pay tax at the time of receipt of advance in case of supply of goods.
Q 20. What is an annual return?
Ans. Section 44(1) of CGST Act read with Rule 80(1) of CGST Rules, 2017 requires that every registered person other than ISD's, casual/non-resident taxpayers and TDS/TCS deductors are required to file an annual return in form GSTR-9. for every financial year.
The composition taxpayers are required to file Annual return in Form GSTR-9A.
Every registered person whose aggregate turnover during a
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each GSTIN will have to file separate annual return.
Q 23. What is final return? What is the need for it?
Ans. Every registered person whose registration is cancelled needs to file a final return in GSTR-10 within three months of the date of cancellation or date of order of cancellation, whichever is later. The purpose of the final return is to ensure that the taxpayer discharges any liability that he/she may have incurred under section 29(5) of the CGST Act.
As per section 29(5) of the CGST Act, read with rule 20 of the CGST Rules a taxpayer seeking cancellation of registration has to pay, by way of debiting either the electronic credit or cash ledger, the input tax contained in the stock of inputs, semi-finished goods, finished goods and capital goods or the output tax payable on such goods, whichever is higher. This requirement to debit the electronic credit and/or cash ledger by suitable amounts should not be a prerequisite for applying for cancellation of registration. This can
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