Returns proposed under GST laws
As discussed in our earlier write up on Goods & Service Tax GST Law & Practice Part-1, that three panels were constituted to assist Empowered Committee on implementation on GST in India.
These panels were as follows:
In 2015, Reports were issued by these committees with respect to:
- Refund Process
- Payment Process
We would be discussing proposed Returns in Model Law GST.
2. What is a Return?
A return is a statement of specified particulars relating to business activity undertaken by the taxable person during a prescribed period. A taxable person has a legal obligation:
(i) To declare his tax liability for a given period in the return;
(ii) Furnish details about the taxes paid in accordance with that return; and
(iii) File correct and complete return within stipulated time frame.
3. Why Return is so Important in under GST Laws ?
GST is a self-assessed destination based taxation system. The submission and processing of return is an important link between the taxpayer & tax administration as it’s an important tool for:
(i) Compliance verification program of tax administration;
(ii) Providing necessary inputs for taking policy decision;
(iii) Management of audit and anti-evasion programs of tax administration;
(iv) Finalization of the tax liabilities of the taxpayer within stipulated period of limitation.
Note: There will be common e-return for CGST, SGST, IGST and Additional Tax.
4. Who needs to file Return in GST regime?
Every registered person is required to file a return for the prescribed tax period.
A return needs to be filed even if there is no business activity (i.e. Nil Return) during the said tax period of return.
UN agencies etc. will have unique GST ID and will file return for the month (in simpler form) during which they make purchases. They would not be required to file regular return. They would submit their purchase statements (without purchase invoices) as per the periodicity prescribed for claim of refund.
Government entities / PSUs , etc. not dealing in GST supplies or persons exclusively dealing in exempted / Nil rated / non –GST goods or services would neither be required to obtain registration nor required to file returns under the GST law.
However, State tax authorities may assign Departmental ID to such government departments/ PSUs / other persons. They will ask the suppliers to quote the Department ID in the supply invoices for all inter-State purchases being made to them. Such supplies will be at par with B2C supplies and will be governed by relevant provisions relating to B2C supplies.
5. Periodicity of Return Filing?
Common periodicity of returns for a class of taxpayers could be enforced. There will be different frequency for filing of returns for different class of taxpayers.
There would be Common e-Return for Central Goods & Service Tax (CGST), State Goods & Service Tax (SGST), Íntegrated Goods & Services Tax (IGST) & Additional Tax.
Separate returns for different categories of taxpayers
- Normal/Regular & Casual Taxpayer (GSTR-1, 2 ,3 & 8)
- Compounding Taxpayer (GSTR- 4 & 8)
- Foreign Non-Resident Taxpayer (GSTR-5)
- Input Service Distributor (GSTR- 6)
- Tax Dedudctor (GSTR-7)
Returns by a normal / casual taxpayer to be filed in sequential manner with different cut-off dates to allow auto-population of return & automated matching of invoices.
Is payment of Tax necessary to file Return?
The return can be filed without payment of self-assessed tax as per the return but such return would be treated as an invalid return and would not be taken into consideration for matching of invoices and for inter-governmental fund settlement among States and the Centre.
Different Returns for Different Categories of Taxpayers
The periodicity of return for different categories of taxpayers is as follows:
Different Ledgers for Taxpayers
There would be different types of Ledgers for taxpayers, which are as follows:
Is there provisions for filing Revised Information?
Yes, there are provisions for filing REVISED INFORMATION’S due to Differential Tax liability to be captured through:
- Debit Note
- Credit Note
- Supplementary Invoices
- Correction in Invoices
6. What are the returns for Regular & Other Assessee?
Returns for Regular Assesses:
Returns for Assesses Other than Regular Assesses
7. How to File Returns?
There would be a GST common portal to file return. Returns in GST System could be filed by tax payer:
- by himself logging on to the GST System using his own user ID & password; or
- through his authorized representative using the user Id & password (allotted to the authorized representative by the tax authorities), as chosen at the time of registration, logging on to the GST System
Filing may be done through Tax Return Preparers (TRPs) / FCs also
Filing may be done either directly or by using Applications developed by accounting companies / IT companies which will interact with GST System using APIs.
8. What are the Steps for Filing Return?
Assesse to follow some steps to file return. Steps are as follows:
9. Can Return be revised in GST Regime?
Yes, revision of information is permitted under Goods & Service Tax i.e GST
Changes in Tax liability / ITC amount to be handled through
- Debit- Credit Notes
- Revision of supply invoices
- Post sales discount
- Volume discount
- Amendments / Corrections
10. Source of Article
This article is based on Report of the Joint Committee on Business Process for GST (July’2015) and Presentation on Proposed Return Process issued by Joint Committee (November’15).
11. Other Articles on GST published by us:
Opportunities for Professionals under GST Regime
Model Law GST – Law & Practice (Part-1)
This document is for information only. All care has been taken for laws but in case something has been missed request our readers to update us. This should not be taken as any advice from our concern. We shall not be liable for any loss if occurred for laws stated in this document.
Thanks & Regards
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