T.Y.

BBA - SEMESTER V [2021] INDIRECT TAXES UNIT - II

GST - UNIT II (Part III)

RETURNS UNDER GST

Filing of Returns under GST - Salient Features
GST is a self-assessed destination based taxation system. The submission and processing of
returns is an important link between the taxpayer and tax administration. Under GST regime
all control over tax paid and input tax credit availed is on the basis of return filed by taxable
person. The basic features of the returns mechanism in GST include electronic filing of
returns, uploading of invoice level information and auto-population of information relating
to Input Tax Credit (ITC) from returns of supplier to that of recipient, invoice-level information
matching and auto reversal of Input Tax Credit in case of mismatch.

Under GST, a regular taxpayer needs to furnish monthly returns and one annual return. There
are separate returns for a taxpayer registered under the composition scheme, non-
resident taxpayer, taxpayer registered as an Input Service Distributor, a person liable to
deduct or collect the tax (TDS/ TCS) and E-Commerce Operator.

The salient features of filing returns under GST are as under:

 The entire operation of the GST will be through the GST Network (GSTN). All Returns
under GST are to be filed electronically through GST Network. Filing of returns would only
be through online mode. Facility of offline generation and preparation of returns will also
be available. The returns prepared in the offline mode will have to be uploaded.
 GST Returns are to be filed at GST Common Portal either by taxpayer himself or by his
authorized representative or it may be done through Tax Return Preparers or Facilitation
Centres.
 There will be common e-Return for CGST, SGST and IGST.
 Every registered person is required to file a return for the prescribed tax period. Return
needs to be filed even if there is no business activity during the said tax period of return.
 Taxpayers with multiple registrations have to file separate returns for each registration.
 A registered person shall not be allowed to furnish return for a tax period if valid return
for any previous tax period has not been furnished by him.
 A return furnished by a taxable person without payment of tax due as per such return
shall not be treated as a valid return for allowing input tax credit in respect of supplies
made by such person. i.e. payment of due tax is must for filing valid return.
 There would be no revision of Returns. Changes to be done in subsequent Returns by
providing the revised information (through Debit/Credit Notes or Supplementary
Invoices)
 Maintenance of Electronic Cash Ledger, Electronic Credit Ledger and Electronic Liability
Register on continuous basis.

PREPARED BY : ALKA SHAH 1

T.Y.BBA - SEMESTER V [2021] INDIRECT TAXES UNIT - II

Types and Periodicity of GST Returns

Return Description Who Files Date for Filing

GSTR-1 Monthly Statement of
Outward supplies of Goods
or Services
GSTR-2 Monthly Statement of
Inward supplies of Goods or
Services
GSTR-3 Monthly Return for a
normal taxpayer
GSTR-4 Return for Financial Year for
a composition taxpayer
GSTR-5 Monthly Return for a non-
resident taxpayer
GSTR-6 Monthly Return for an
Input Service Distributor
(ISD)
GSTR-7 Monthly Return for
authorities deducting tax at
source
GSTR-8 Monthly Statement for
E-Commerce Operator
depicting supplies effected
through it and tax collected
GSTR-9 Annual Return
GSTR-10 Final Return
Taxable Person (being 10th of the next month
regular Taxpayer)
Taxable Person (being 15th of the next month
regular Taxpayer)
Taxable Person (being 20th of the next month
regular Taxpayer)
Taxable Person (who has 30th April of next Financial
opted for Composition Year
Levy)
Non-resident Taxpayer 20th of the month
succeeding the tax period
& within 7 days after expiry
of registration
Input Service Distributor 13th of the next month
Tax Deductor 10th of the next month
E-Commerce Operator 10th of the next month
Taxable Person (being 31st December of next
regular Taxpayer) Financial Year
Taxable Person whose Within three months of the
registration has been date of cancellation or date
surrendered or cancelled of order of cancellation,
whichever
is later.

Process of Filing GST Returns

All Returns under GST are to be filed electronically through GST Network. All Normal / Regular
taxpayers (including casual taxpayers) would have to file…………….
 GSTR-1 (details of outward supplies)
 GSTR-2 (details of inward supplies) and
 GSTR-3 (monthly Return) for each registration separately.
 GSTR-9 (Annual return)

GSTR 1, GSTR 2 and GSTR 3 Returns have most significance in the business routines pertaining
to availment of Input Tax Credit and payment of Net GST liability for the month.

PREPARED BY : ALKA SHAH 2

T.Y.BBA - SEMESTER V [2021] INDIRECT TAXES UNIT - II

The steps involved in filing GST Returns are as under:

 Every normal / regular taxpayers (including casual taxpayers) is required to furnish the
details of outward supplies i.e. invoice wise details of supplies of goods and/or services
made during the month in Form GSTR-1 electronically through the Common Portal by
10th of the following month. The “details of outward supplies” shall include details of
invoices, debit notes, credit notes and revised invoices issued in relation to outward
supplies made during a tax period.

 Every normal / regular taxpayers (including casual taxpayers) is required to furnish,

electronically, the details of inward supplies of taxable goods and/or services made
during the month in Form GSTR-2 by 15th of the following month. The “details of inward
supplies” shall include…….
 inward supplies of taxable goods and/or services
 inward supplies of goods and/or services on which the tax is payable on reverse
charge basis under the Act
 inward supplies of goods and/or services taxable under the IGST Act or on which IGST
is payable under section 3 of Customs Tariff Act, 1975
 credit or debit notes received in respect of such supplies during a tax period.

 The GST Common Portal will generate the GSTR-2A of the taxpayer automatically on the
basis of the details of the outward supply reported by the counter-party supplier in
GSTR-1. Auto generated GSTR-2A shall be reviewed and modified by the purchasing
taxpayer (i.e. recipient of supply). He has the option to verify, validate, modify, add or
delete the details auto generated in provisional GSTR-2A (between 11th to 15th of the
following month) and based on the same GSTR-2 is to be filed by him by 15th of the
following month.

 On submission of GSTR-2 by the recipient of supply, the GSTR-1A of supplier will be auto
generated, consisting of all modifications, additions or deletion made by the recipient.
The supplier shall accept or reject the modifications, additions or deletion made by the
recipient on or before 17th of the following month. The relevant corrections/
amendments shall be incorporated in the original details filed by the supplier in GSTR-1,
which will be considered as final details.

 Every normal / regular taxpayers (including casual taxpayers) will then submit his
Monthly Return in form GSTR-3, declaring the inward and outward supply of goods
and/or services, input tax credit availed, tax payable, tax paid and such other particulars
as may be prescribed, on or before 20th of the following month. Part A of GSTR-3 would
capture the aggregate level outward and inward supply information which will be auto
populated through GSTR-1 and GSTR-2. The details of payment of tax under various tax
heads of CGST, SGST and IGST separately would be populated from the debit entry in
Electronic Credit Ledger and Electronic Cash Ledger and debit entry no. is to be
mentioned in the Part B of GSTR-3 return.

 Where the time limit for furnishing of details of outward supplies in Form GSTR-1 and
details of inward supplies in Form GSTR-2 has been extended and the circumstances so
warrant, return in form GSTR-3B, in lieu of Form GSTR-3, may be furnished in such
manner and subject to such conditions as may be notified.

PREPARED BY : ALKA SHAH 3

T.Y.BBA - SEMESTER V [2021] INDIRECT TAXES UNIT - II

 Every normal / regular taxable person is also required to submit Annual Return of GST in
GSTR-9. This is intended to provide 360 degree view about the activities of the taxpayer.
Consolidated statement of purchases and supplies based on monthly returns filed by the
taxpayer can be made available to taxpayers by GSTN common portal as a facilitation
measure for enabling him to prepare annual return. GSTR-9 is to be submitted by 31st
December following the end of the financial year for which it is filed. Every taxable person
whose turnover during a financial year exceeds Rs.2 crore is required to get his accounts
audited. Such person shall furnish Annual Return in Form GSTR-9 along with the copy of
audited annual accounts and a separate reconciliation statement duly certified by a
Chartered Accountant.

Rectification of Mistakes in GST Returns

 If any taxable person after furnishing a return of any tax period discovers any omission
or incorrect particulars, other than a result of scrutiny, audit, inspection or enforcement
activity by the tax authorities, he shall rectify such omission or incorrect particulars in the
return to be filed for the month or quarter, during which such omission or incorrect
particulars are noticed, subject to payment of interest as applicable.

 No such rectification of any omission or incorrect particulars shall be allowed after –

(a) the due date for filing of return for the month of September or for the quarter ending
September, following the end of the financial year, or
(b) the actual date of filing of relevant annual return,
whichever is earlier.

PREPARED BY : ALKA SHAH 4