In today’s blog, we will talk about GST Return, its types and how to file them. All registered businesses are required to file monthly, quarterly and/or annual GST Returns based on the type of business to take the benefit of Input Tax Credit. Let’s dive deeper in the coming sections.

What is a GST Return?

A GST return is a document containing details of income which a taxpayer is required to file with the tax administrative authorities. The detailed document is then used by tax authorities to calculate tax liability. In simple words, it showcases the income of the registered taxpayers.

As per the GST Act, a registered dealer has to file GST returns that include:

• Sales

• Output GST (On sales)

• Purchases

• Input tax credit (GST paid on purchases)

To file GST returns, a taxpayer needs to have GST compliant sales and purchase invoices.

Who all are required to file GST Returns?

Any regular business is required to file two monthly returns and one annual return in the GST regime. Hence, making it 26 returns in a financial year.

Now, with the advanced technology, a taxpayer only has to manually enter details of one monthly return – GSTR-1 and the other return – GSTR 3B will get auto-populated by deriving information from GSTR-1 filed by the taxpayers and his/her vendors.

However, there are special cases under GST who need to furnish separate returns and these include –

• Input Service Distributors

• Non-resident taxable persons

• Persons allotted with Unique Identification Number (UIN)

• Taxpayers registered under Composition Scheme

• Persons required to deduct TDS or collect TCS under GST

What are the various types of GST Returns?

Following is the list of all the returns to be filed as prescribed under the GST Law along with their purpose and frequency.

1. Form GSTR – 1 :  It contains the details of outward supplies of taxable goods or/and services affected. One needs to file it monthly.

2. Form GSTR – 2 :  It contains the details of inward supplies of taxable goods or/and services affected claiming the ITC. One needs to file it monthly.

3. Form GSTR – 3 :  It is a monthly return on the basis of finalization of details of outward and inward supplies along with tax payment. One needs to file it monthly.

4. Form GSTR – 3B :  It is a simple return in which summary of outward supplies along with ITC is declared and tax payment is affected by a taxpayer. One needs to file it monthly.

5. Form GSTR – 4 :  It is a return filed by a taxpayer registered under the composition levy. One needs to file it quarterly.

6. Form GSTR – 5 :  It is a return that is required to be filed by a Non-Resident foreign taxable person. On needs to file it on a monthly basis.

7. Form GSTR – 6 :  This is the return for an Input Service Distributor which requires a monthly filing.

8. Form GSTR –  7 :  It is a return to be filed for the authorities deducting tax at source and requires a monthly filing.

9. Form GSTR – 8 :  It is a simple return which contains the details of supplies effected through e-commerce operators and the amount of tax collected. One needs to file it monthly.

10. Form GSTR – 9 :  A very important and only return that requires annual filing for the financial year by a normal taxpayer.

11. Form GSTR – 9A :  It is also an annual return which needs to be filed by a taxpayer registered under the composition levy anytime during the year.

12. Form GSTR – 10 :  This return has to be filed only once, when GST registration is cancelled or surrendered and is a Final Return.

13. Form GSTR – 11 :  A return which has the details of inward supplies needed to be furnished by a person with UIN  and claiming a refund. One needs to file it monthly.

GST Tip: It is important to know that all the returns are not in function and some of these were introduced but were suspended.

What is the late fee for not filing returns on time?

As we know, there are always provisions for not following the prescribed time frame, so is the case with GST returns. If one misses the time limit and does not file them within the time then he/she would stand liable to pay interest and a late fee.

The interest is 18% per annum and is calculated by the taxpayer on the amount of outstanding tax that has to be paid. The time period for the interest starts from the very next day of the last day of filing to the date of payment.

The provisions for a late fee is Rs. 100 per day per Act, meaning it is Rs. 100 under CGST and Rs. 100 under SGST, making it a total of Rs. 200 per day. The maximum amount is Rs.500.

GST Tip: There is no late fee on IGST.

For more in-depth information on topics related to GST and GST Returns, stay tuned!

The post Brief Introduction: GST Return, Types and Filing first appeared on ITC Reconciliation, GSTR 2A Reconciliation - Digitax Automation.

Offences under the GST Act – 

Invoicing and Documentation related offences under the GST Act – 

1. Supplying goods and services without issuing an invoice or with issuing a false or incorrect invoice. 
2. Using GSTIN of a different GST registered person or entity for issuing invoice or document. 
3. Transporting taxable goods without the appropriate or correct documentation.
4. Issuing a GST invoice without supplying goods or services in reality. 
5. Failing to maintain relevant documents and records as per the requirements of the GST Act. 

 Tax Evasion related offences under the GST Act –

1. Tax evasion by deliberately under-reporting or suppressing overall turnover. 
2. Collecting the tax from a receiver of goods/services but failing to pay tax to the government within three months of the due date. 
3. Collecting the GST in contravention of provisions specified by the GST Act but failing to pay tax to the government within three months of the due date.
4. Trying to take and utilise the Input Tax Credit (ITC) without the actual receipt or supply of goods or services. 
5. Avoiding tax liability under subsection 2 of Section 52 of GST Act, i.e., Failing to deduct tax, or even if deducting tax, the amount deducted is less than the actual amount or not paying the tax owed to the government.
6. Avoiding tax liability under subsection 3 of Section 52 of GST Act,i.e., Failing to deduct tax, or even if deducting tax, the deducted amount is less than the actual amount deducted or not paying the tax owed to the government.
7. Breaching Section 20 and its sub-sections of GST Act by taking and utilising Input Tax Credit(ITC). 

 Fraudulent Intent related offences under the GST Act – 

1. Submitting false information at the time of GST registration or a later date.
2. Supplying fraudulent information to obtain a GST refund. 
3. Fabricating documents or records and provide incorrect information with the intention of tax evasion.
4. Avoiding registration under GST when it is necessary to do so as per the GST Act. 
5. Damaging and disposing of the goods that have been seized or detained under the GST Act.
6. Intentionally, supplying, transporting and storing the confiscated goods as per the GST rules. 

 Obstruction related offences under the GST Act – 

1. Obstructing any official from performing his/her duties as per the GST Act. For instance, hindering an officer during the audit by tax authorities. 
2. Meddling with or destroying material pieces of evidence or documents. 
3. Providing fabricated or false information to an officer during proceedings. 

GST Act – Minor Breach and Major Breach 

GST Penalties for the offences under the GST Act – 

In Case Of Fraud – 

• Abated someone in committing the fraud. 
• Acquired goods or services which are against the provisions of GST, even after having the information in this regard. 
• Failed in/to issuing/issue a genuine invoice.
• Failed to maintain the proper records or the books of accounts.
• Failed to appear before the ad rem authority upon a summon issued to his/her name.

1. If the amount of tax involved is up to Rs. 50 lakhs, then the person has to serve a jail term of 1 year along with paying the penalty.
2. If the amount ranges between Rs. 50 lakhs to Rs. 1 crore, then the jail term shall rise up to three years with the penalty. 
3. If the amount is more than Rs. 1 crore, then the person shall face a jail term up to 5 years plus the penalty.

Prosecution –

• Issuing an invoice without making a supply of goods or services.
• Claiming a refund of CGST/SGST by fraud.
• Abetting in the fraud under GST. 
• Submitting fake documents or returns.

The post Offences and Penalties under the GST Act first appeared on ITC Reconciliation, GSTR 2A Reconciliation - Digitax Automation.