GST Filling in India

GST i.e. Goods and Services Tax is the most revolutionary tax reform that is being undertaken since the
time of independence. GST is a form of indirect tax which has replaced many of the indirect taxes in
India. The Goods and Service tax was passed on 29th march 2017 in the Parliament and came into effect
on 1st july 2017 with the aim of bringing together the state economies and to improve the overall
economic growth of the country. Before understanding GST, let’s first deal with the previous tax system
which was applicable in India.

Previously, the taxes which were paid to the government were in two forms i.e.: Direct tax and indirect
tax.

1) Direct tax- was the tax which was imposed on the person and was to be paid directly to the
government. For ex- Income Tax.

2) Indirect tax- it was the tax which was imposed on goods and services and was paid to the government
via third person. Ex- Service tax

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After the coming up of GST, the cascading effect on the sales of goods and services is removed. The
removal of cascading effect has in turn decreased the cost of goods by eliminating the tax on tax. GST is
basically technologically driven as all the activities like registration return filing, application for refund
and response to notice has be done online on GST portal.

There are three components of GST:-

1) CGST (Central Goods and Service Tax): It is collected by the Central Government on an intra- state
sale (e.g.: Transaction happening within Uttar Pradesh)

2) SGST (State Goods and Service Tax): It is collected by the State Government on an intra- state sale
(e.g.: Transactions happening within Uttar Pradesh)
3) IGST (Integrated Goods and Service Tax) : It is collected by Central Government for inter- state
sale (e.g.: Transactions happening between Uttar Pradesh and Madhya Pradesh)

Whosoever is registered in GST has to file GST return every month. GST return is basically a document
containing information regarding the tax which has to be informed to the tax department. It contains
details of income which each and every tax payer is required to file with the tax administrative
authorities. Under GST Return different types of information have to be provided which includes
information regarding the product or service which was sold, how much monthly sale received, how
much GST was made on that monthly sale, how much input was purchased and much GST input credited
on that purchase. All the return of GST is to be filed online on GST portal. In order to file GST return, GST
complaint sales and purchases invoices are required. The GST complaint invoices can be generated for
free on CLEAR TAX BILLBOOK. From the suppliers and the manufacturers to the consumers and the
dealers, all the taxpayers have to file their tax returns with the GST department each year. Under the
new regime of GST, the filing of tax return has become automated. Returns can be filed online by using
the software or app which are provided by the Goods and Service Tax Network (GSTN). Filing of GST
return is mandatory for registered businesses. Any business with a taxable supply turnover of over Rs.
20 Lakhs is required to register for GST in India. There is also a mechanism available for voluntary GST
registration to help claim input tax credit. The registration under GST must be obtained within 30 days of
exceeding the Rs. 20 lakhs turnover limit. No matter whether your business is active or not, you have to
file the returns. It means that there is no threshold limit for filing GST return just being registered is
necessary.

The system provides one the benefit that one has to manually enter details of just one monthly return
i.e. GSTR-1. The other two returns i.e. GSTR-2 and GSTR-3 will get auto-populated by deriving the
information which was previously entered under GSTR-1 which is already been filed. Separate returns
are required to be filed by special cases which come under the Composition Scheme. Now the question
arises what is composition scheme. A composition is an alternative method to pay tax under GST
designed to reduce compliance cost for small tax payers. Important feature of this scheme is that
whosoever has opted to pay tax under this scheme do not have to pay tax at normal rate every month,
rather they can pay tax at flat percentage of turn over every year. The composition is applicable to
manufacturers and traders if their taxable business turnover is up to Rs.1.5 crore and in case of
northeastern states it is reduced to 75 lakhs for service providers this scheme is applicable if there
turnover is upto Rs.50 lakhs. But the composition scheme can’t be opted by business with interstate
supplies manufactures of pan masala and tobacco manufacturing of ice cream and E-commerce players.

Also the dealers who are supplying goods through electronic commerce operator will be barred from
being registered under this scheme.

For ex- if somebody is selling their product through Amazon or through Myntra then him/her can’t opt
for tax composition scheme.
Also if a taxable person has different segments of businesses such as textiles, groceries and electronic
accessories etc, under the same PAN they must register under all such businesses collectively under the
scheme or if they are not registering collectively then they must opt out of the scheme. All the tax
payers under composition scheme have to mention the words composition taxable person on every
notice or signboard displayed at their place of business. In order to opt for composition scheme taxpayer
has to file GST CMP-02 with the government. This can be done online by logging into GST portal. The
main restriction on the composition dealer is that he/ she cannot tax invoice, this is because
composition dealers cannot charge tax on their customers. Hence the dealer has to issue a Bill of
Supply. Following details must be mentioned in the Bill of Supply:-

1) Name, Address and GSTIN of the supplier.

2) A serial number which is a unique number for every financial year.

3) Date of issue.

4) If the recipient is registered, then the name, address and GSTIN of the recipient.

5) Accounting code of services and HSN code of goods.

6) Description of goods and services.

7) Value of the goods and services after adjusting any discount or abatement.

8) Signature or digital signature of the supplier or his representative.

Advantages of Composition scheme

1) Lesser compliance

2) Limited tax liability

3) High liquidity

Disadvantage of Composition scheme

1) Business territory gets limited, as the dealer is barred from carrying out inter-state transactions.

2) No input tax credit available

3) The tax-payers will not be allowed to supply goods through e- commerce portal.

Different types of GST return

The different types of GST return are:-

1) GSTR-1
 Every registered dealer has to file GSTR-1. It is a monthly or quarterly return that contains the details of
all outward supplies i.e. sales. If the registered person does not has any sale in that particular month
then too he/ she has to file GSTR-1. But there are certain registered dealers who are exempted from
filing GSTR-1 which include Composition dealers, input service distributors, supplies of online
information and database excess, non- resident taxable person, taxable payer liable to collect TCS,
taxable payers liable to deduct TDS.

Once the return is filed it cannot be rectified, it can only be rectified during the filing in the next month.
For filing the GSTR-1 the details of outward supplies of taxable goods and/ or services affected is
required.

2) GSTR-2

In GSTR-2 details of inward supply i.e. purchases of a tax period is to be provided by every registered
taxpayer. The details of all purchases transactions for a month of a registered dealer are contained in
GSTR-2. It also contains purchases on which reverse charges applies. The GSTR-2 filed by a registered
dealer is used to check with the sellers GSTR-1 for buyer- seller reconciliation by the government.

If GSTR- 2 is not filed then next return i.e. GSTR-3 cannot be filed. Hence late filing will lead to heavy
fines and penalty. For the filing of GSTR-2 return the details of inward supplies of taxable goods and/ or
services affected claiming the input tax credit is required. Every registered person has to file GSTR-2
irrespective of whether they have any transactions during that month or not. But there are certain
exceptions of who cannot file GSTR-2 are same as that of GSTR-1.

3) GSTR-3

GSTR-3 is a monthly return. IT contains summarized details of sales, purchases, sales during the month,
amount of GST liability. It is auto- generated from the information from GSTR-1 and GSTR-2.

If GSTR-3 is not filed then GSTR-1 of the next month cannot be filed. Hence, late filing of GST return will
lead to heavy fine. Every registered person is required to file GSTR-3 irrespective whether there is any
transaction during that month or not and the exception of those who do not have to file GSTR-3 is same
as that of GSTR-1 and GSTR-2. Any mistake in the filing of GSTR-3 cannot be revised; it can only be
revised during the filing of next month’s GSTR-1 and GSTR-2 returns. GSTR-3 is auto- generated.

4) GSTR-4

It is a quarterly return. It has to be filed by composition dealers. Unlike normal tax payer who needs to
file 3 monthly returns, a dealer who is opting for Composition scheme is required to file only one return
i.e. GSTR-4.

GSTR-4 cannot be revised after filing the return; it can only be revised in filing the next months return. A
penalty of Rs. 200 per day is levied is GSTR-4 is not filed on time.

5) GSTR-5
 It is a return that has to be filed by a non-resident foreign taxpayer who is registered under GST for the
duration of their business transactions in India. This can be done either online or from a tax facilitation
center. GSTR- 5 has be filed every month.

6) GSTR-6

It is to be filed by Input Service Distributors every month. There are 11 sections in this return. It has all
the details of ITC received by Input Service Distributer and also distribution of ITC. The Details of all the
documents issued for distribution of Input Tax Credit and the way in which the distribution of credit and
tax invoice on which the credit is received is contained in GSTR-6.

GSTR-6 has to be filed by every ISD irrespective whether there is any transaction or not. There is no
provision or revising GSTR-6 under GST, it can only be revised during the filing of GSTR-6 of the next
month.

7) GSTR-7

It is a monthly return that has be filed by the person who is required to deduct TDS i.e. Tax Deducted at
Source under source. GSTR-7 contains the details of TDS deducted, TDS liability paid and payable, TDS
refund claimed if any.

Following people/ entities need to deduct TDS under GST law:-

1) An establishment or Department under Central or State Government, or

2) Local authority, or

3) Governmental agencies, or

4) Person or category of persons as may be notified, by Central or a State Government on

recommendations of the Council.

Once GSTR-7 is filed it cannot be revised, it can only be revised on the filing of the next months return.

8) GSTR-8

It is a monthly return to be filed by e- commerce operators who are required to deduct TCS i.e. Tax
Collected at Source. It contains the details of supplies affected through e- commerce platforms and
amount of TCS collected on such supplies. E- Commerce operator as defined by GST Act as any person
who owns or manages a digital or electronic facility or platform for electronic commerce such as
Amazon etc. All such e- commerce operators as mentioned by the GST Act are required to obtain GST
registration as well as registration with TCS (Tax collection at source).

If the GSTR-8 is not followed on time then a penalty of Rs.200 of CGST and 100 SGST is levied on the
taxpayer. GSTR-8 once paid cannot to revised, it can only be revised on the payment of next month’s
GSTR-8.
9) GSTR-9

It is an annual return to paid by taxpayers’ registered under GST. It consists of details regarding outward
and inward supplies made or received during the relevant previous year under different tax heads which
include CGST, SGST & IGST and HSN codes. Basically, GSTR-9 is a consolidation of all the
monthly/quarterly returns which include GSTR-1, GSTR-2A and GSTR-3B filed in that particular year.
There are 4 types of annual return under GSTR-9 which are GSTR-9, GSTR-9A, GSTR9B, GSTR9C.

GSTR-9 can be filed by:-

 Taxpayers opting composition scheme

 Casual Taxable Person
 Non- resident taxable person
 Input service distributors
 Persons paying TDS under section 51 of CGST Act.

The late fee of not filing GST within the due date is Rs.100 per day, per act, which means 100 under
CGST and 100 under SGST.

10) GSTR-10

It is also called as final return. Under the GST Act any taxable person whose GST registration is
cancelled or surrendered has to file a return in GSTR-10. It has to be filed within three months from
the date of cancellation or date of cancellation order whichever is later. Any regular persons
registered under GST are not required to file return under GSTR-10, it has to be filed only by the
persons whose registration has been cancelled or surrendered under GST. If it is not filed within the
due date, a notice will be sent to the registered person who has not filed and the person will be
given 15 days time after that for filing the return with all the required documents. If the registered
person still fails to file the return then the tax officer will pass the final order for the cancellation
with the amount of tax payable along with interest/penalty.

11) GSTR-11
Those persons who have been issued a Unique Identity Number(UIN) in order to get refund under GST
for the goods and services purchased by them in India can only file return under GSTR-11 . 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 Act, 1947,
 Consulate or Embassy of foreign countries
 Any other person or class of persons as notified by the Commissioner.

The basic purpose of issuing UIN is that if any amount of tax is collected from the bodies or any
person holding UIN is refunded back to them.

Various GST rates-

The government has proposed a 4-tier tax structure which is applicable for all goods and services,
under the slabs- 5%, 12%, 18% and 28% .

1) Goods which come under no tax slab:-

 Hulled cereal grains like barley, wheat, oat, rye, etc.

 Bones and horn-cores unworked and also the waste of these products.
 Palmyra jaggery
 Salts of all types
 Dicalcium Phosphate (DCP) of animal feed grade conforming to IS specification No. 5470 :2002
 Kajal
 Picture books, colouring books or drawing books for children
 Human hair which include dressed, thinned, bleached or otherwise worked
 Sanitary Napkins
  Unit container-packed frozen branded vegetables (uncooked/steamed)
 Vegetables which are preserved using various techniques including brine and other
preservatives which are unsuitable for the immediate consumption by humans.
   Music Books/manuscripts

2) Goods which come under 5% tax slab:-

 Cashew nuts or cashew nuts in shell

 Ice and snow
 Bio gas
 Insulin
 Aggarbatti or incense sticks
 Kite
 Coir mats, matting and floor covering
 Pawan Chakki that is Wind-based Atta Chakki
 Postage or revenue stamps, stamp-postmarks etc.
 Numismatic coins
 Braille paper, braille typewriters, braille watches, hearing aids and other appliances to
compensate for a defect or disability
 Fly-ash blocks
 Walking sticks
 Marble rubble
 Natural cork
 Accessories or the parts for carriages designed for differently-abled individuals

3) Goods which come under 12% tax slab:-

 Preparations of vegetables, fruits, nuts or other parts of plants, including pickle, murabba,
chutney, jam and jelly
 Ketchups, sauces and mustard sauce but this excludes curry paste, mayonnaise and salad
dressings, mixed condiments and mixed dressings
 Bari made of pulses
 Menthol and menthol crystals, peppermint, fractionated/de-terpenated mentha oil,
dementholised oil, Mentha piperita oil and spearmint oil
 All diagnostic kits and reagents
 Plastic beads
 Exercise books and also the note books
 Glasses for corrective spectacles and flint buttons
 Spoons, forks, skimmers, cake servers, fish knives, tongs
 Fixed Speed Diesel Engines
 Two-way radio i.e. Walkie talkie which is used by defence, police and paramilitary forces etc.
 Intraocular lens
 Corrective spectacles
 Playing cards, chess board, carom board and other board games which also include ludo, etc.
 Debagged/roughly squared cork
 Items manufactured from natural cork
 Agglomerated cork

4) Goods which come under 18% slab

 Kajal pencil sticks

 Dental wax
 Plastic Tarpaulin
 School satchels and bags other than of leather or the other composition leather; toilet cases,
Hand bags and shopping bags of artificial plastic material, cotton or jute; Handbags of other
materials excluding wicker work or basket work
 Headgear and parts thereof
 Precast Concrete Pipes
 Salt Glazed Stone Ware Pipes
 Aluminium foil
 All goods, including hooks and eyes
 Rear Tractor tyres and rear tractor tyre tubes
 Rear Tractor wheel rim, tractor centre housing, tractor housing transmission, tractor support
front axle
 Weighing Machinery but excluding the electric or electronic weighing machinery
 Printers other than multifunction printers which are not included
 Ball bearing, Roller Bearings, Parts and related accessories
 Transformers Industrial Electronics
 Electrical Transformer
 Static Converters (UPS)
 CCTV which also includes the CCTV with video recorders
 Set top Box for TV
 Computer monitors but it should not exceed 17 inches
 Electrical Filaments or discharge lamps
 Winding Wires, Coaxial cables and Optical Fiber
 Perforating or stapling machines like staplers, pencil sharpening machines
 Baby carriages
 Instruments for measuring length, for use in the hand (for example, measuring rods and tapes,
micrometers, callipers)
 Bamboo furniture
 Swimming pools and paddling pools
 Televisions and Monitors which should not increase 32 inches
 Power banks powered by Lithium-ion batteries
 Sports goods, games consoles and related items
 All items with HS code 8483 including gear boxes, transmission cranks and pulleys
 Used or retreaded pneumatic rubber tires

5) Goods which come under 28% tax slab- no additional items were added to highest the
GST slab of 28%

GST on Services- Government has also imposed GST on Services with the same 4-tier tax
structure as that of goods. 

1) Services which come under nil tax slab:-

Chargeable services offered on Basic Savings Bank Deposit (BSBD) account opened under the
Pradhan Mantri Jan Dhan Yojana (PMJDY).

2) Services which come under 5% tax slab:-

 Railways-Transportation of goods and also for passengers

 Goods which are transported in a vessel from outside India
 Renting a motor cab without the cost of fuel
 Transport services in AC contract/stage or radio taxi
 Transport by air (scheduled) or air travel for purpose of pilgrimage via chartered or non-
scheduled flights
 Tour operator services
 Leasing of the aircrafts
 Print media ad space
 Working for the printing of the newspapers

3) Services which come under 12% tax slab:-

 Rail transportation of goods in containers from a third party other than that of Indian Railways
 Air travel excluding economy class travel
 Food or drinks at restaurants without AC/heating or liquor license
 Renting of accommodation for more than Rs.1000 and less than Rs.2500 per day
 Chit fund services by foremen
 Construction of a building for the purpose of sale
 IP rights on a temporary basis
 Movie Tickets less than or equal to Rs. 100

4) Services which come under 18% tax slab:-

 Food and drinks at the restaurants with liquor license

 Food and drinks at restaurants with AC or heating
 Outdoor catering service
  Renting for accommodation for more than Rs.2500 but less than Rs.5000 per day
 Supply of food, shamiyana, and other party arrangement
 Circus, Indian classical, folk, theatre, drama
 Supply of works contract
 Movie Tickets over Rs. 100

5) Services under 28% tax slab:-

 Entertainment events-amusement facility, water parks, theme parks, joy rides, merry-go-round,
race course, go-carting, casinos, ballet and other sporting events like IPL
 Race club services
 Gambling
 Foods and drinks at AC 5-star hotels
 Accommodation in 5-star hotels or above

Earlier Service Tax was been levied on Loans but it has now been replaced by GST which would
now be levied on loans. Previously, the rate of service tax was 15% but after the replacement
with GST, the rate of GST is 18%. On Personal Loan, Home Loan and Car Loan 18% GST is
charged. For the loan of car GST range from 29% to 50% whereas on gold loan GST range from
3% to 5%.

Now the question arises that how one can file GSTR. As we already know that right from
manufacturers and suppliers to dealers and consumers, all the taxpayers have to file their tax
returns with the GST department every year. So, there are certain steps which are listed below
for the filing GST returns online by using the software or apps provided by Goods and Service
Tax Network (GSTN):-

 Firstly, Visit the GST portal (www.gst.gov.in).

 Then a 15-digit GST identification number will be issued based on your state code and your PAN
number.
 Upload invoices on the GST portal or the software. An invoice reference number will be issued
against each invoice.
 After uploading invoices, outward return, inward return, and cumulative monthly return have to
be filed online. If there are any errors, then you have the option to correct it and also to refile the
returns.
 File the outward supply returns in GSTR-1 form through the information section at the GST
Common Portal (GSTN) on or before 10th of the following month.
 Details of outward supplies furnished by the supplier will be made available in GSTR-2A to the
recipient.
 Recipient has to also verify, validate, and modify the details of the outward supplies, and also
file details of credit or debit notes.
 Recipient has also to furnish the details of the inward supplies of taxable goods and services in
the GSTR-2 form.
 The supplier can either accept or reject the modifications of the details of the inward supplies
made available by the recipient in GSTR-1A.
 Late filing of GST return leads to penality and loss but there are certain benefits which are given to
those who file their GST return on time. Some of these benefits are:-

1) Easy loan approval- Filing GST return on time will not provide ease to your jobs and also protects
you from paying penalty but it also gives you advantage in the approval of loan. When an individual
applies for loan for 2- wheeler or 4 wheeler vehicle, then every major bank asks for a copy of GST return.
If all the returns are filed on time, then it creates a good impact of the person and this in return helps in
getting loan easier.

2) Claim tax return- Filing GST return on time also helps in claiming tax return, if the refund is due
from the Income Tax department, then one has file the tax return in order to claim the refund.

3) Income and Address prove- GST return can also be used as a income and address prove.

Important due dates of filing GST in July 2019

 1-07-19- Due date for filing GSTR-1 for the month of June 19 – Applicable for all the taxpayers
with the Annual Aggregate turnover of above Rs. 1.50/- Crore or opted to file monthly Return of rupees
one Crore Fifty Lacs only. Notification No. 44/2018 – Central Tax
 31-07-19- Due date for filing GSTR-1 for June QUARTER – Applicable for taxpayers with the
Annual Aggregate turnover of UPTO Rs. 1.50/- Crore (Rs. One Crore Fifty Lacs) only. Notification No.
44/2018 – Central Tax
 10-07-19- Due date for the filing of GSTR-8 which is to be filed by the by the e-commerce
operators required to deduct TDS under GST for the month of June 19.
 20-07-19- Due date for the filing of GSTR-5 and 5A which is to be filed by the Non-Resident
taxable person and OIDAR for the month of June 19.
 13-07-19- Due date for filing GSTR-6 which is to be filed by Input Service Distributor for the
month June 19. 
 20-07-2019- GSTR-3B for the month of June 19. Pay due Tax till this date.

FAQs regarding GST

1) Which authority will administer and levy on GST?

Ans: Central government administers and levies CGST & IGST while respective states or union territory
administers and levies SGST/ UTGST.

2) Why was the Constitution of India amended recently in the context of GST?
Ans: Now, the fiscal powers between the Centre and the States are clearly demarcated in the
Constitution with almost no overlap between the respective domains. The Centre has the powers to levy
tax on the manufacture of goods (except alcoholic liquor for human consumption, opium, narcotics etc.)
while the States have the powers to levy tax on the sale of goods. In the case of inter-State sales, the
Centre has the power to levy a tax (the Central Sales Tax) but, the tax is collected and retained entirely
by the States. As for services, it is the Centre alone that is empowered to levy service tax. Introduction of
the GST required amendments in the Constitution so as to simultaneously empower the Centre and the
States to levy and collect this tax. The Constitution of India has been amended by the Constitution (one
hundred and first amendment) Act, 2016 for this purpose. Article 246A of the Constitution empowers
the Centre and the States to levy and collect the GST.

3) GSTR-1 has be filed even if there is no sales in the month or not?

Ans: Yes, filing GSTR-1 is necessary. If the total sales is less than Rs. 1.5 crore then the return can be filed
on a quterly basis.

4) What is the guiding principle of GST Council?

Ans: The mechanism of GST Council ensures the harmonization on different aspects of GST between
Centre and States as well as among different States. It has been provided in the constitution amendment
Act, 2016 that the GST Council, in its discharge of various functions, shall be guided by the 15 need for a
harmonized structure of GST and for the development of a harmonized national market for goods and
services.

5) Whether the transaction in securities be taxable in GST?

Ans: Securities have been specifically excluded from the 21 definition of the goods as well as the
services. Thus, all the transaction in the securities shall not be liable to GST.

6) What is the meaning of Anti-Profiteering measure?

Ans: As per the section 171 of the CGST/SGST Act, any reduction in the rate of tax on any supply of
goods or services or the benefit of the input tax credit shall be passed on to the recipient by way of
commensurate reduction in prices. In pursuance of the powers conferred by this section, the
government has constituted the National AntiProfiteering Authority (NAA). NAA is required to examine
whether input tax credits availed by any registered person 23 or the reduction in the tax rate have
actually resulted in a commensurate reduction in the price of the goods or services or both supplied by
him. NAA has power to investigate cases against the registered person who has not passed on the
benefits by way of commensurate reduction in prices and order reduction in prices, cancel registration,
impose penalty and/or return to the recipient, an amount equivalent to the amount not passed on by
way of commensurate reduction in prices along with interest.

7) Can I revise a already filed GSTR-4?

Ans: No, there is no provision for revising GSTR-4 .So make sure that your GSTR-4 is thoroughly reviewed
before it.

By- Bharti Mishra