Goods and Services Tax

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 6
Bill
Assessment and Audit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 6. 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 t

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What is the latest time by which final assessment is required to be made?
Question 5
Bill
Assessment and Audit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 5. 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 w

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When can a taxable person pay tax on a provisional basis?
Question 4
Bill
Assessment and Audit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 4. 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 suomoto order payment of tax on provision

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‘A’ supplied goods to ‘B’ in April 2017, these goods were returned by ‘B’ to ‘A’ on June 2017. The tax rate charged by ‘A’ on such goods was 18%. In May 2017, the rate was amended to 18.5%. What is the tax payable on return of such inward supply by ‘B’ to ‘A’?
Question 3
Bill
Assessment and Audit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 3. 'A' supplied goods to 'B' in April 2017, these goods were returned by 'B' to 'A' on June 2017. The t

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Is there any provision in MGL for tax treatment of goods returned by the recipient?
Question 2
Bill
Assessment and Audit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 2. Is there any provision in MGL for tax treatment of goods returned by the recipient?
Ans. Yes, Explanation to Section 44 of MGL has such a provision. It provides that where goods received as an inward supply is returned by the recipient to the supplier within six months from the date of the relevant inv

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Who is the person responsible to make assessment of taxes payable under the Act?
Question 1
Bill
Assessment and Audit
FAQ on GST dated 21.9.2016 based on Draft Model GST
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 27.
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What is the consequence of not filing the return within the prescribed date?
Question 23
Bill
Returns Process and matching of Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 23. What is the consequence of not filing the return within the prescribed date?
Ans. A registered taxable 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.
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Is it compulsory for taxpayer to file return by himself?
Question 22
Bill
Returns Process and matching of Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 22. Is it compulsory for taxpayer to file return by himself?
Ans. No. A registered taxpayer person can also get his return filed through a Tax Return Preparer, duly approved by the Central or the State tax administration.
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What all should a diligent taxpayer ensure for a hassle free compliance under GST?
Question 21
Bill
Returns Process and matching of Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 21. What all should a diligent taxpayer ensure 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 basi

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e 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 ecosystem will develop towards this objective. Taxpayers should make efficient use of this ecosystem for easy and has

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How can taxpayers file their returns?
Question 20
Bill
Returns Process and matching of Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 20. 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 taking for taxpayers with large number of invoices. For such taxpayers, an offli

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If a return has been filed, how can it be revised if some changes are required to be made?
Question 19
Bill
Returns Process and matching of Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 19. 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

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Is an Annual Return and a Final Return one and the same?
Question 18
Bill
Returns Process and matching of Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 18. Is an Annual Return and a Final Return one and the same?
Ans. No. Annual Return has to be filed by every registered taxable person paying tax as a normal or a compounding taxpayer. Final Return has to be filed only by those registered taxable persons who have applied for cancellation of registration.

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Who all need to file Annual Return?
Question 17
Bill
Returns Process and matching of Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 17. Who all need to file Annual Return?
Ans. All taxpayers filing return in GSTR-1 to 3 other than casual taxpayers and taxpayers under composition scheme are required to file an annual return. Casual taxpayers, nonresident taxpayers, ISDs and persons authorized to deduct tax at source are not required to file annual return.

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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 16
Bill
Returns Process and matching of Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 16. 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 submitt

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Do Input Service Distributors (ISDs) need to file separate statement of outward and inward supplies with their return?
Question 15
Bill
Returns Process and matching of Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 15. 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 GSTR-6 and the return has the details of credit received by them from th

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Do tax payers under the composition scheme also need to file GSTR-1 and GSTR-2?
Question 14
Bill
Returns Process and matching of Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 14. 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 1st of the month after the end of the quar

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Whether the ITC denied can be restored?
Question 13
Bill
Returns Process and matching of Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 13. Whether the ITC denied can be restored?
Ans. If the supplier uploads the invoice at any time after the reversal but by September of the next financial year, the credit reversed earlier gets restored along with refund of the interest paid during reversal.
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What is the special feature of GSTR-2?
Question 12
Bill
Returns Process and matching of Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 12. What is the special feature of GSTR-2?
Ans. The special feature of GSTR-2 is that the details of supplies received by a recipient can be auto populated on the basis of the details furnished by the counterparty supplier in his GSTR-1.
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What will be the legal position in regard to the reversed input tax credit if the supplier later realises the mistake and feeds the information?
Question 11
Bill
Returns Process and matching of Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 11. What will be the legal position in regard to the reversed input tax credit if the supplier later realises the mistake and feeds the information?
Ans. At any stage, but before September of the next financial year,

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What if the invoices do not match? Whether ITC given or denied? If denied, what action is taken against supplier?
Question 10
Bill
Returns Process and matching of Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 10. What if the invoices do not match? Whether ITC given or denied? If denied, what action is taken against supplier?
Ans. If invoices in GSTR-2 do not match with invoices in counter-party GSTR-1, the ITC will be reversed if the mismatch continues

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Do the taxable person have to feed anything in the GSTR-2 or everything is auto-populated from GSTR-1?
Question 9
Bill
Returns Process and matching of Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 9. Do the taxable person have to feed anything in the GSTR-2 or everything is auto-populated from GSTR-1?
Ans. While a large part of GSTR-2 will be auto-populated, there are some details that only recipient can fill like details of imports, details of purchas

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Can a recipient feed information in his GSTR-2 which has been missed by the supplier?
Question 8
Bill
Returns Process and matching of Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 8. Can a recipient feed information in his GSTR-2 which has been missed by the supplier?
Ans Yes, the recipient can himself feed the invoices not uploaded by his supplier. The credit on such invoices will also be given provisionally but will be subject to matching. On matchin

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Whether value for each transaction will have to be fed? What if no consideration?
Question 7
Bill
Returns Process and matching of Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 7. Whether value for each transaction will have to be fed? What if no consideration?
Ans. Yes. Not only value but taxable value will also have to be fed. In some cases both may be different.
In case there is no consideration, but it is supply by virtue of schedule 1, the taxable

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Whether description of each item in the invoice will have to be uploaded?
Question 6
Bill
Returns Process and matching of Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 6. Whether description of each item in the invoice will have to be uploaded?
Ans. No. In fact description will not have to be uploaded. Only HSN code in respect of supply of goods and Accounting code in respect of supply of services will have to be fed. The minimum number of digits that

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Whether all invoices will have to be uploaded?
Question 5
Bill
Returns Process and matching of Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 5. Whether all invoices will have to be uploaded?
Ans. No. It depends on whether B2B or B2C plus whether Intra-state or Inter-state supplies.
For B2B supplies, all invoices, whether Intra-state or Interstate supplies, will have to be uploaded. Why So? Because ITC will be taken by the recipients, invoice matching

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