Goods and Services Tax

Who can conduct audit of taxpayers?
Question 13
Bill
Assessment and Audit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 13. Who can conduct audit of taxpayers?
Ans. There are three types of audit prescribed in the GST Act(s) as explained below:
(a) Audit by Chartered Accountant or a Cost Accountant: Every registered person whose turnover exceeds the prescribed limit, shall get his accounts audited by a chartered accountant or a cost accountant. (Section 35(5) of the CGST/SGST A

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Is summary assessment order to be necessarily passed against the taxable person?
Question 12
Bill
Assessment and Audit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 12. Is summary assessment order to be necessarily passed against the taxable person?
Ans. No. In certain cases, like when goods are under transportation or are stored in a warehouse, and the taxable per son in respect of such good s cannot be ascertained, the person in charge of such goods shall be deemed to be the t

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Other than appellate remedy, is there any other recourse available to the taxpayer against a summary assessment order?
Question 11
Bill
Assessment and Audit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 11. Other than appellate remedy, is there any other recourse available to the taxpayer against a summary assessment order?
Ans. A taxable person against whom a summary assessment order has been passed can apply for its withdrawal to the jurisdictional Additional/Joint Commissione

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Under what circumstances can a tax officer initiate Summary Assessment?
Question 10
Bill
Assessment and Audit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 10. Under what circumstances can a tax officer initiate Summary Assessment?
Ans. As per section 64 of CGST/SGST Act, Summary Assessments can be initiated to protect the interest of revenue when:
a) the proper officer has evidence that a taxable person has incurred a liability to pay tax under the Act, and
b) the proper off

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

What is the legal recourse available in respect of a person who is liable to pay tax but has failed to obtain registration?
Question 9
Bill
Assessment and Audit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 9. What is the legal recourse available in respect of a person who is liable to pay tax but has failed to obtain registration?
Ans. Section 63 of CGST/SGST Act provides that in such a case, the proper officer can assess the tax liability and pass an order to his best judgment

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

What is the time limit for passing assessment order u/s 62 (Best Judgment) and 63 (Non-filers)?
Question 8
Bill
Assessment and Audit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 8. What is the time limit for passing assessment order u/s 62 (Best Judgment) and 63 (Non-filers)?
Ans. The time limit for passing an assessment order under section 62 or 63 is five years from the due date for furnishing the annual return.
–
Statute, statutory provisions legislation, law, enactmen

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Under what circumstances can a best judgment assessment order issued under section 60 be withdrawn?
Question 7
Bill
Assessment and Audit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 7. Under what circumstances can a best judgment assessment order issued under section 60 be withdrawn?
Ans. The best judgment order passed by the Proper Officer under section 62 of CGST/SGST Act shall automatically stand withdrawn if the taxable person furnishes a valid return for the default period

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

If a taxable person fails to file the return required under law (under section 39 (monthly/quarterly), or 45 (final return), what legal recourse is available to the tax officer?
Question 6
Bill
Assessment and Audit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 6. If a taxable person fails to file the return required under law (under section 39 (monthly/quarterly), or 45 (final return), what legal recourse is available to the tax officer?
Ans. The proper officer has to first issu

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

What recourse may be taken by the officer in case proper explanation is not furnished for the discrepancy detected in the return filed, while conducting scrutiny under section 61 of CGST ACT?
Question 5
Bill
Assessment and Audit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 5. What recourse may be taken by the officer in case proper explanation is not furnished for the discrepancy detected in the return filed, while conducting scrutiny under section 61 of CGST ACT?
Ans. If the t

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Where the tax liability as per the final assessment is higher than in provisional assessment, will the taxable person be liable to pay interest?
Question 4
Bill
Assessment and Audit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 4. Where the tax liability as per the final assessment is higher than in provisional assessment, will the taxable person be liable to pay interest?
Ans. Yes. He will be liable to pay interest from the date the tax was due to be paid originally till the da

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

What is the latest time by which final assessment is required to be made?
Question 3
Bill
Assessment and Audit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 3. What is the latest time by which final assessment is required to be made?
Ans. The final assessment order has to be passed by the proper officer within six months from the date of the communication of the order of provisional assessment. However, on sufficient cause being shown and for reasons to be recorded in writing, t

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

When can a taxable person pay tax on a provisional basis?
Question 2
Bill
Assessment and Audit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 2. When can a taxable person pay tax on a provisional basis?
Ans. As a taxpayer has to pay tax on self-assessment basis, a request for paying tax on provisional basis has to come from the taxpayer which will then have to be permitted by the proper officer. In other words, no tax officer can suo-moto order payment of tax on provisional basis

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Who is the person responsible to make assessment of taxes payable under the Act?
Question 1
Bill
Assessment and Audit
Faq On GST (2nd Edition) Dated 31.3.2017
13. Assessment and Audit
Q 1. Who is the person responsible to make assessment of taxes payable under the Act?
Ans. Every person registered under the Act shall himself assess the tax payable by him for a tax period and after such assessment he shall file the return required under section 39.
–
Statute, statutory

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Whether the amount of credit detected by the system on account of mis-match between GSTR-1 and GSTR-2 and recovered as output tax can be reclaimed?
Question 24
Bill
Returns Process and matching of Input Tax Credit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 24. Whether the amount of credit detected by the system on account of mis-match between GSTR-1 and GSTR-2 and recovered as output tax can be reclaimed?
Ans. Yes, once the mismatch is rectified by the supplier by declaring

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

What happens if ITC is taken on the basis of a document more than once?
Question 23
Bill
Returns Process and matching of Input Tax Credit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 23. 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. [section 42(

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

What is the consequence of not filing the return within the prescribed date?
Question 22
Bill
Returns Process and matching of Input Tax Credit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 22. What is the consequence of not filing the return within the prescribed date?
Ans. A registered person who files return beyond the prescribed date will have to pay late fees of rupees one hundred for every day of delay subject to a maximum of rupees five thousand. For failure to furnish A

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Is it compulsory for a taxpayer to file return by himself?
Question 21
Bill
Returns Process and matching of Input Tax Credit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 21. Is it compulsory for a taxpayer to file return by himself?
Ans. No. A registered taxpayer can also get his return filed through a Tax Return Preparer, duly approved by the Central or the State tax administration.
–
Statute, statutory provisions legislation, law, enactment, Acts, Rules, Regulations, T

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

What precautions, a taxpayer is required to take for a hassle free compliance under GST?
Question 20
Bill
Returns Process and matching of Input Tax Credit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 20. What precautions, a taxpayer is required to take for a hassle free compliance under GST?
Ans. One of the most important things under GST will be timely uploading of the details of outward supplies in Form GSTR-1 by 10th of next month. How best this can be ensured will depend on the number of B2B invoices that the taxpayer issues. If the number is small, the taxpayer can upload all the information in one go. However, if the number of invoices is large, the invoices (or debit/ credit notes) should be uploaded on a regular

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

close to the due date. The system would allow recipients to see if their suppliers have uploaded invoices pertaining to them. The GSTN system will also provide the track record about the compliance level of a tax payer, especially about his track record in respect of timely uploading of his supply invoices giving details about the auto reversals that have happened for invoices issued by a supplier. The Common Portal of GST would have pan India data at one place which will enable valuable services to the taxpayers. Efforts are being made to make regular uploading of invoices as easy as possible and it is expected that an enabling eco- system will be developed to achieve this objective. Taxpayers should make efficient use of this ecosystem fo

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

How can taxpayers file their returns?
Question 19
Bill
Returns Process and matching of Input Tax Credit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 19. 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 may be tedious and time consuming for taxpayers with large number of invoices. For such taxpayers, an offline u

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

If a return has been filed, how can it be revised if some changes are required to be made?
Question 18
Bill
Returns Process and matching of Input Tax Credit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 18. If a return has been filed, how can it be revised if some changes are required to be made?
Ans. In GST since the returns are built from details of individual transactions, there is no requirement for having a revised return. Any need to revise a return may arise due to the

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Is an Annual Return and a Final Return one and the same?
Question 17
Bill
Returns Process and matching of Input Tax Credit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 17. Is an Annual Return and a Final Return one and the same?
Ans. No. Annual Return has to be filed by every registered person paying tax as a normal taxpayer. Final Return has to be filed only by those registered persons who have applied for cancellation of registration. The Final return has to be filed within

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Which type of taxpayers need to file Annual Return?
Question 16
Bill
Returns Process and matching of Input Tax Credit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 16. Which type of taxpayers need to file Annual Return?
Ans. All taxpayers filing return in GSTR-1 to GSTR-3, other than ISD's, casual/non-resident taxpayers, taxpayers under composition scheme, TDS/TCS deductors, are required to file an annual return. Casual taxpayers, non- resident taxpayers, ISDs and persons auth

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

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?
Question 15
Bill
Returns Process and matching of Input Tax Credit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 15. 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

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Do Input Service Distributors (ISDs) need to file separate statement of outward and inward supplies with their return?
Question 14
Bill
Returns Process and matching of Input Tax Credit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 14. Do Input Service Distributors (ISDs) need to file separate statement of outward and inward supplies with their return?
Ans. No, the ISDs need to file only a return in Form GSTR6 and the return has the details of credit received by them from the se

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Do tax payers under the composition scheme also need to file GSTR-1 and GSTR-2?
Question 13
Bill
Returns Process and matching of Input Tax Credit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 13. 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 inward supplies. They have to file a quarterly return in Form GSTR-4 by the 18th of the month after the end of the quarter. S

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =