So, let’s get started and go at length with types of GST returns.

1. GSTR-1

We all know that GSTR-1  is the return which is furnished for reporting details of all outward supplies of goods and services made within a  tax period. In simple words, it reports all the details of sales transactions made during a tax period. It also includes details of debit and credit notes, invoices and revised invoices issued during the tax period. If any amendments pertaining to sales invoices are made, even in regard to previous tax periods then they should also be reported in the GSTR-1 return.

GSTR-1 is to be filed by all the registered taxpayers. It is to be filed monthly, with an exception in the case of small taxpayers with a turnover up to Rs.1.5 crores in the previous financial year, who are allowed to file it quarterly.

2. GSTR-2

As we know it, GSTR-2 is the return wherein the reporting of the inward supplies of goods and services, that is,  the purchases made during a tax period. GSTR-2 return details are auto-populated from the Form GSTR-2A. The GSTR-2 return is editable unlike GSTR-2A.

GST Tip: The filing of GSTR-2 return has been suspended ever since the inception of GST.

3. GSTR-2A

GSTR-2A return is auto-populated from the GST portal based on data filed by the suppliers in their GSTR-1. It is non-editable and a read-only return. It is the return which has the details of all inward supplies of goods and services i.e. purchases made from registered suppliers during a tax period. The data is auto-populated based on data filed by the suppliers in their GSTR-1 return.

4. GSTR-3

As we discussed in the last article, GSTR-3 is a monthly summary return providing the summarized details of all outward supplies made, inward supplies received and input tax credit claimed, in addition to the details of the tax liability and taxes paid. The return is auto-generated based on the GSTR-1 and GSTR-2 returns that have been filed.

GST Tip: The filing of the GSTR-3 has been suspended ever since the inception of GST.

5. GSTR-3B

GSTR-3B is a monthly return containing details of tax collected on outward supplies and details of tax paid on input supplies. In simple words, it is a self-declaration containing the summarized details of all outward supplies made, input tax credit claimed, tax liability  and taxes paid. GSTR-3B is to be filed by all the registered taxpayers.

GST Tip: If there is no business activity for any period under tax, in such cases NIL return is to be filed.

6. GSTR-4 / CMP-08

GSTR-4 is the return that was to be filed by the registered taxpayers who opted for the Composition Scheme. But this return has now been replaced by CMP-08 return. The Composition Scheme is the scheme which requires taxpayers with turnover up to Rs.1.5 crores to opt into and pay taxes at a fixed rate on the turnover declared.

GST Tip: The CMP-08 return is a self-assessed statement-cum-payment done on a quarterly basis by the composition dealer.

7. GSTR-5

GSTR-5 is the GST return which is to be filed by non-resident foreign taxpayers, who carry out business transactions in India and are registered under GST. The return contains all business details from all of the outward supplies made to inward supplies received to credit/debit notes to  tax liability and taxes paid.

The GSTR-5 return is to be filed on a monthly basis, for each month the taxpayer is to be registered under GST in India.

8. GSTR-6

GSTR-6 is a monthly return which is to be filed by an Input Service Distributor (ISD). It contains the details of input tax credit received and distributed by the ISD. It also contains the details of all the documents issued for distribution of input credit and the manner of distribution. The return is to be filed before the 13th of next month.

9. GSTR-7

GSTR-7 is a monthly return to be filed by persons who are required to deduct TDS (Tax deducted at source) under GST. GSTR 7 contains all the details of TDS deducted, the TDS liability payable and paid and TDS refund claimed, if any.

10. GSTR-8

GSTR-8 is a monthly return to be filed by e-commerce operators under GST who are required to collect tax at source (TCS). GSTR-8 contains all the details of supplies made through the E-commerce platform, and the amount of TCS collected on such supplies.

11. GSTR-9

GSTR-9 is the annual return to be filed once in a year by the taxpayers registered under GST. It contains the details of all outward supplies made, inward supplies received during the year under different tax heads i.e. CGST, SGST & IGST and HSN codes. It also consists of all the details of taxes payable and paid. It is a consolidation of all the monthly or quarterly returns, i.e., GSTR-1, GSTR-2A, GSTR-3B filed during the year.

Exceptions to GSTR-9 are the taxpayers under the Composition Scheme, Casual Taxable Persons, Non-resident Taxable Persons, Input Service Distributors and the persons paying TDS under section 51 of the CGST Act.

GST Tip: The 37th GST Council meeting has decided GSTR-9 filing to be optional for the businesses with turnover up to Rs.2 crore in FY 17-18 and FY 18-19.

12. GSTR-9A

GSTR-9A is an annual return to be filed by the taxpayers who have opted for the Composition Scheme in a financial year. It consolidates the information of all the quarterly returns filed during the financial year.

GST Tip: The 37th GST Council meeting took the decision to waive off filing of GSTR-9A for Composition taxpayers for FY 2017-18 and FY 2018-19.

13. GSTR-9C

GSTR-9C is a reconciliation statement to be filed by all the registered taxpayers under GST whose annual turnover exceeds Rs.2 crores. The statement of reconciliation is between the figures as per audited financial statements of the taxpayer and the annual return GSTR-9 that has already been filed. It is certified by  a Chartered/Cost Accountant and is similar to that of a tax credit report provided under the Income-tax act.

GST Tip: GSTR-9C is to be filed for every GSTIN, thus, one PAN can have multiple GSTR-9C returns being filed.

14. GSTR-10

GSTR-10 is to be filed by a taxable person whose registration has been cancelled or surrendered under the GST. The return is also known as  final return and is required to be filed within 3 months from the date of cancellation or cancellation order, whichever is earlier.

15. GSTR-11

GSTR-11 is a return to be filed by persons who have been issued a Unique Identity Number(UIN) in order to get a refund under GST for the goods and services purchased by them in India. GSTR-11 contains the details of inward supplies received and refund claimed.

GST Tip: UIN is a classification especially made for the foreign diplomatic missions and embassies not liable to tax in India with the purpose of getting a refund of taxes.

So here are the types of GST returns and every extra information about them. Stay tuned for more such GST enhanced blogs.

The post All About Types of GST Returns first appeared on ITC Reconciliation, GSTR 2A Reconciliation - Digitax Automation.

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.

1. Those having an aggregate annual turnover of less than Rs. 5 crores can file GSTR-3B due in March, April and May 2020 by the last week of June 2020. There will be no interest, late fee, and penalty charged.

2. Those having an aggregate annual turnover of Rs. 5 crores or more can file GSTR-3B due in March, April and May 2020 by the last week of June 2020 but the same would attract a reduced rate of interest @9 % per annum from 15 days after the due date (current interest rate is 18 % per annum). There will be no late fee and penalty charged, if complied before till 30 June 2020.

3. The date for opting for composition scheme has been extended till the last week of June 2020.

4. The last date for making payments for the quarter ending 31st March 2020 and filing of return for the FY 2019-20 by the composition dealers has been extended till the last week of June 2020.

5. The date for filing GST annual returns of FY 2018-19, which is due on 31st March 2020 has been extended till the last week of June 2020.

6. The due date for issue of notice, notification, approval order, sanction order, filing of an appeal, furnishing of return, statements, applications, reports, any other documents, the time limit for any compliance under the GST laws where the time limit is expiring between 20th March 2020 to 29th June 2020 have been extended to 30th June 2020.

7. Necessary legal circulars and legislative amendments to give effect to the aforesaid GST relief would be followed with the approval of GST Council.

8. Payment date under ‘Sabka Vishwas Scheme’ has been extended up to 30th June 2020. No interest for this period would be charged if paid by 30th June 2020.

9. 24X7 Custom clearance will be allowed until the end of 30th June 2020.

10. The due date for issue of notice, notification, approval order, sanction order, filing of an appeal, furnishing applications, reports, any other documents etc., the time limit for any compliance under the Customs Act and other allied Laws where the time limit is expiring between 20th March 2020 to 29th June 2020 have been extended to 30th June 2020.

We hope the information provided turn out to be helpful for you. Use E-filing software to file GST to stay inside and safe. Use GRECS for smooth and easy GST filing. For more such articles on GST, stay tuned with Digitax Automation.

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You must be thinking, how is this even possible because the money passes through so many direct-indirect channels so its quite tedious task to do but in the advancing technological world everything is easy and can be done on a click. Just like using GRECS for ITC reconciliation to save time and money with a perk of doing it from home!

So, here we are to help you out with your doubt of how the government keeps a check on your tax credit claim. Let’s get started with the following pointers telling the exact method and process followed by the government. 

• Government is sitting on voluminous data in the GST regime.
• Earlier, the power of access to such huge data was unavailable.
• Government engages in the heavy use of Data Analytics with industry and sector benchmarking regarding ITC claim.
• Next comes the smart monitoring systems available with assessing officers configured with various kinds of analytical, graphical and ratio analysis.
• The advancing technology helps in keeping a close eye on unscrupulous refund claims.
• Availability of data trail enables the identification of circular trading transactions.
• Identification of fake entities and registrations using locational mapping techniques helps in tracking down the defaulters. 
• All India e-way bill system tracks the transportation of goods which is now linked with www.vahan.nic.in which provides transparency. Moreover, a proposed system of e-invoicing will further strengthen the control of the government.

With the increasing use of technology, there is less and less requirement of any human intervention in finding out the red flags among such big data. Hence, technology is being used in pinpointing the exact event of fraud and has increased the accuracy of anti-evasion measures undertaken by the department.

Do let us know in the comment section how do you like this piece of information. 

The post How GST department is monitoring your Tax Credit Claim? first appeared on ITC Reconciliation, GSTR 2A Reconciliation - Digitax Automation.

• Who all can opt-in for Composition:

• Steps to opt-in for Composition:

1. Log in to the Taxpayers’ Interface.
2. Go to Services > Registration > Application to opt for Composition Levy
3. Fill the form as per the form specification rules.
4. Click on Submit.

• Submission of Stock Intimation Details:

• Who comes under eligible taxpayers:

1. Rs. 1.5 Crore for normal taxpayers.
2. Rs. 75 lakh in the case of an eligible registered person, registered States, namely: –(i) Arunachal Pradesh, (ii) Manipur, (iii) Meghalaya,(iv) Mizoram,(v) Nagaland,(vi) Sikkim,(vii) Tripura,(viii) Uttarakhand.
3. For taxpayers dealing in only services or mixed supplies, this quantum is Rs. 50 Lakh.

• Who comes under non-eligible taxpayers:

1. any supply of goods which are not liable to be taxed under this Act.
2. inter-state outward supplies of goods.
3. supplies through electronic commerce operators who are required to collect tax under section 52.
4. a manufacturer of notified goods.
5. a casual dealer.
6. a Non-Resident Foreign Taxpayer.
7. a person registered as Input Service Distributor (ISD).
8. a person registered as TDS Deductor/Tax Collector.

• Return or Payment:

The post Advisory for Opting in for Composition – Filing of Form GST-CMP-02 for the Financial Year 2020-21 w.e.f. 1st April 2020 first appeared on ITC Reconciliation, GSTR 2A Reconciliation - Digitax Automation.

• Perks of GST for business and industry – 

1.    Easy compliance: A robust and comprehensive IT system is the core foundation of the GST regime in India. Henceforth, all the taxpayer services such as registrations, returns, payments, etc. are available to the taxpayers online, which make the compliance pretty easy and transparent.
2.  Removal of cascading: GST is providing a reduction in the hidden costs of doing business. Developed as a system of seamless tax-credits throughout the value-chain, and across boundaries of States, it ensures that there is minimal cascading of taxes. 
3. Uniformity of tax rates and structures: GST has increased the ease of doing business and certainty by ensuring that indirect tax rates and structures are common across the country. Basically, GST has made business in the country tax neutral, irrespective of the choice of place of conducting business.
4. Gain to manufacturers and exporters: GST has reduced the cost of locally manufactured goods and services which in turn has increased the competitiveness of Indian goods and services in the international market and giving a boost to Indian exports as the compliance cost has been reduced due to GST. 
5. Improved competitiveness: Due to the introduction of GST, there has been a significant reduction in the transaction costs of doing business which has eventually lead to an improved competitiveness for the trade and industry.

• Perks of GST for Central and State Governments – 

1. Better controls on leakage: GST has resulted in better tax compliance due to a strong IT infrastructure. And the seamless transfer of input tax credit (ITC) from one stage to another in the chain of value addition, there is an in-built mechanism in the design of GST that has incentivized tax compliance by traders.
2. Simple and easy way to administer: Multiple indirect taxes at the Central and State levels have already been replaced by GST. With a strong end-to-end IT system, GST has made it simpler and easier to administer it than all other indirect taxes of the Centre and State that had been levied so far.
3. Higher revenue efficiency: GST has resulted as an effective measure in decreasing the cost of collection of tax revenues of the Government, and, therefore, has lead to higher revenue efficiency.

• Perks of GST for the consumer – 

1. GST turn out to be a transparent tax proportionate to the value of goods and services: GST has helped in removing the hidden tax on the commodities which has made transparency possible between the manufacturer and consumer, leading a way of paying one tax to the final consumer.
2. A big relief in overall tax burden: Due to the efficiency gains and prevention of leakages, the overall tax burden on most commodities have come down benefitting the consumers.

The post Benefits of Goods and Services Tax first appeared on ITC Reconciliation, GSTR 2A Reconciliation - Digitax Automation.

Nowadays, the GST portal has started showing monthly summary reports of Liability declared and credit claimed by the registered persons in a financial year. Following reports can be viewed in the GST site – 

1.   Liability statement other than export and reverse charge

2.   Liability due to reverse charge

3.   Liability due to export and SEZ supplies

4.   ITC credit claimed and due.

Out of these 4 reports, the ITC credit claimed and due report is one of the most important reports which is useful in the preparation of ITC related information in GSTR-9.

This report shows a monthly summary of ITC claimed in 3B and appearing in GSTR-2A auto-populated for that month.

Case Study

The following is a sample view of ITC credit claimed and due report of a particular case.

        ITC Credit Claimed and Due Report

However, when we see the auto-populated figure in point no. 8 of GSTR-9 of the same GSTIN, that figures are slightly different from the above report. The following is what appears on the screen. 

                Auto populated figures in point no. 8 of GSTR-9

As you can see that the auto-populated figures of 2A as showing in point number 8 of GSTR-9 and figures as showing in the ITC Credit claimed and due report, there is a difference in IGST figure. Total of IGST in ITC claimed and due report is 63,43,276.76 whereas in point no. 8 of GSTR-9 it is shown as 61,91,525.11. There is a difference of Rs. 1,51,751.65 in these 2 figures.

One may think, how this can be possible, where one report on the GST site shows one figure and the same GST site is showing another figure in another report.

How Digitax helps in finding this difference?

In Digitax G-Recs ITC reconciliation software you can see the consolidated 2A report for the whole financial year in various formats.

1.   Invoice Wise 2A report classified into Regular Invoices, Amended Invoices, Credit Note Debit Notes and Reverse Charge Invoices

2.   GSTIN Wise 2A report

3.   GSTIN wise 2A summary

4.   Month wise 2A Summary

Now, let’s see in the above case, how the difference can be easily seen.

When we see the invoice wise 2A report for the financial year in Digitax, the software classifies the Regular Invoices, Credit Notes, Debit Notes, Amended Invoices and Reverse Charge Invoices appearing in 2A for the whole financial year.

In the above case, when we see the 2A report for the FY 2017-18, the following classification comes.

From above it becomes clear that in the point no. 8 of GSTR-9, the auto-populated figures of ITC does not include Reverse Charge Invoices on which tax is liable to be paid on reverse charge basis. However, the credit claimed and due report, the credit of reverse charge invoices is included.

Sorting out the above difference without the help of any tool is quite challenging, whereas, with the right tool, you can save your valuable time and energy while preparing for GSTR-9.

For more information on Digitax G-Recs ITC reconciliation software, you can write to support@digitaxindia.com.

Stay tuned for more such information about GST and G-RECS.

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