Returns under GST GSTR-1 Statement of Outward Supplies 10th of next month GSTR-2 Statement of Inward Supplies 15th of next month GSTR-3 Return 20th of next month GSTR-4 Return for Compounding suppliers 18th of month in next quarter GSTR-5 Return for Non-resident suppliers GSTR-6 Return for ISD 13th of next month GSTR-7 Return for TDS Deductors GSTR-8 Supplies through E Commerce supplier GSTR-9/ 9A/9B Annual Return/ Composition Dealers / Reconciliation statement GSTR-10 Final Return GSTR-11 Inward supplies by UIN

Returns under GST Section 37 to 48 of Central Goods and Services Tax, Act, 2017 Rule 59 to 82 of Central Goods and Services Tax, Rules, 2017

Common Returns under GST GSTR-1 Up to 10th of next month 100% information to be provided by Registered person GSTR-2 During 15th to 15th , 90% information auto populated, System collects information from GSTR-1, remaining information if any to be filed by RP+ Reverse charge, GSTR-by 20th of next month All details generated by system. RP has to pay the liability only

Common Returns under GST GSTR-1 Up to 10th of next month GSTR-2 During 15th to 15th , GSTR-by 20th of next month 100% information to be provided by Registered person 90% information auto populated, System collects information from GSTR-1, remaining information if any to be filed by RP+ Reverse charge invoices All details generated by system. RP has to pay the liability only

Suppliers Another supplier Returns Suppliers Another supplier By 15th GSTR-1 GSTR-2 GSTR-2 GSTR-1 GSTR-2 By 10th GSTR-3 By 20th Liability Input credit Balance to be paid

Suppliers Another supplier Returns Suppliers Another supplier GSTR-1 GSTR-2 GSTR-2 GSTR-1 GSTR-2

Suppliers Another supplier Returns Suppliers Another supplier GSTR-1 GSTR-2 GSTR-2 GSTR-1 GSTR-2 This amount will be allowed as provisional credit Doesn’t agree

Suppliers Another supplier Valid Returns Suppliers Another supplier GSTR-1 GSTR-2 GSTR-2 GSTR-1 GSTR-2 GSTR-3 Return to be valid only if liability discharged Liability Input credit Balance to be paid

Statement of Outward Supplies-GSTR1 What information? Basic details –mostly auto-populated Invoice level details ; GSTIN of recipient Invoice details – Number, date, HSN/SAC, ….Value, Taxable value…. POS Tax – IGST, CGST, SGST – Rate and Tax amount Place of Supply (relevant for interstate supplies)

Statement of Outward Supplies-GSTR1 What is not required? Invoice level information for B2C invoice < Rs. 2.5 lacs HSN/SAC ….. < Rs.1.5 crore

GSTR1 What next? Where will information go? Auto-population in GSTR 2A/ GSTR 4A/GSTR 6A GSTR 2A Inward Supplies of recipient Any discrepancy / changes by recipient will be reflected in GSTR 1A of supplier GSTR 4A Composition Scheme GSTR 6A ISD Recipient

GSTR 2 Auto-populated from GSTR-1, GSTR-5 GSTR-6 GSTR- 7 GSTR-8

Information Flow for auto-population/ self feeding TCS GSTR 8 TDS GSTR 7 GSTR1s of the suppliers GSTR-6 ISD GSTR 2A GSTR 5 ?? Non Resident TP To be Fed by Taxpayer Reverse Charge receipts Receipts from composition dealer Imports

GSTR-3 Auto-populated based on GSTR-1 and GSTR-2 Outward Supplies B2B and B2C inter and intra state supplies Exports Revision of tax of previous periods Inward Supplies Inter and intra state supplies received Imports Amendment to tax of previous periods Credit to ITC Ledger Section 39 of the CGST ACT

GSTR-3 Tax Liability Tax on outward supplies Changes in output liability of previous periods Amount payable due to reversal of ITC Payment details Utilisation of credit (debit to ITC ledger) Cash (debit to cash ledger) Claim of Refund of ITC or cash ledger Credit to ITC Ledger Section 39 of the CGST ACT

What if no return is filed? Notice in the Format GSTR-3A to be issued for non-filers Best Judgment Assessment to be done by the proper officer If the taxable person files return with in 30 days, the assessment order shall be deemed to be withdrawn

Returns under GST GSTR-1 Statement of Outward Supplies 10th of next month GSTR-2 Statement of Inward Supplies 15th of next month GSTR-3 Return 20th of next month GSTR-4 Return for Compounding suppliers 18th of month in next quarter GSTR-5 Return for Non-resident suppliers GSTR-6 Return for ISD 13th of next month GSTR-7 Return for TDS Deductors GSTR-8 Supplies through E Commerce supplier GSTR-9/ 9A/9B Annual Return/ Composition Dealers / Reconciliation statement GSTR-10 Final Return GSTR-11 Inward supplies by UIN

GSTR-4 No ITC Available Details of inward supplies Invoice level – auto-populated and uploaded Details attracting reverse charge – auto-populated ones from registered / purchases from unregistered suppliers Details of import of goods and services Details of outward supplies – gross basis Tax liability and payment details

GSTR-4 Intra-state Supplies and Non GST Supplies GSTR-1 Supplier Composition Dealer GSTR-5 NR TP? Supplies from unregistered dealers/ RCM GSTR 7 (TDS)

GSTR-5, NON residents Tax Payers Backed by advance tax They can take credit of IGST on import and pass on credit on all supplies Credit of tax paid on imports Details of outward supplies Similar to GSTR-1 Details of tax paid – ITC ledger and cash ledger Closing stock of goods

GSTR-6, ISD Details of inward supplies Similar to GSTR-2 Auto-population GSTR 1 and GSTR 5 Details of credit distributed GSTIN of recipient Invoice details Credit distributed – IGST, CGST, SGST ITC account ITC received / distributed

GSTR-7/8, Return for TDS Deductors / E Commerce operator Auto-population? (None) Pertains to cash ledger and not credit ledger TDS details GSTIN of deductee Invoice details – number, date value TDS details – rate and amount – IGST, CGST, SGST Details of payment – only by cash ledger TDS amount cannot be paid by debiting ITC ledger

ITC Matching Reversal – Why at all? Seamless availability of credit in one State of tax paid in another State IGST Model Credit of IGST paid in one State available for payment of local tax in another State – Central Government to transfer funds to State Credit of local taxes paid in one State available for payment of IGST in another State – State Government to transfer funds to Centre No Government can transfer funds unless collection of tax is ensured But recipient have to be given an opportunity to claim ITC ITC matching and auto-reversal is the workable solution

What gets matched Tax invoices Debit and credit notes Issued for every supply by every taxpayer other than composition Including supplementary and revised invoices Debit and credit notes To be issued only against an invoice To be issued before end of September of next year Conditions and restrictions about discounts regulated by law ITC matching and auto-reversal is the workable solution

What gets matched All returns filed with payment of taxes are treated as valid return Self assessment – ITC to be allowed on filing of return Provisionally allowed for payment of taxes in that return as per his claim After filing of return ITC claims checked for duplication ITC claims matched with tax paid in valid returns Claims that come as a result of auto-population taken as matched if tax paid by supplier Uploaded invoices matched with supply invoices

ITC Matching and Reversal Duplicate claims communicated to recipient and unmatched claims communicated to both ITC claimed on duplicate invoice added in next return Unmatched invoices Either supplier owns up in next return and uploads it as part of his next month’s GSTR-1 – match in that return cycle Otherwise, ITC claim remains unmatched in next month return and gets added in next return

Suppliers Another supplier Returns Suppliers Another supplier GSTR-1 GSTR-2 GSTR-2 GSTR-1 GSTR-2 This amount will be allowed as provisional credit Doesn’t agree

Suppliers Another supplier Valid Returns Suppliers Another supplier Will be added to liability of C in Return of next month GSTR-2 GSTR-2 GSTR-2 A A files valid Return C GSTR-3 B B Doesn’t Return to be valid only if liability discharged C files valid Ret. Liability Input credit Balance to be paid

Reclaim of reversal Any invoice uploaded in a month that does not match with a supply invoice in a valid return gets reversed in two months Once reversed, recipient should not reclaim it again unless uploaded by supplier At any time it gets automatically reclaimed if supplier uploads the invoice Interest on reversal Refund of interest on reclaim – supplier to pay interest on delayed payment of tax

Valid Return A Return is valid only if self assessed tax is paid Only a valid return is taken up by system for matching If return is taken up for matching then receiver of goods and service will not get credit i.e credit already taken will be added as liability in next return

Correction in returns No provision for revised return All corrections are allowed with reference to previous returns Corrections can be made up to return to be filed for the Month of September of next F Y

Annual returns Account of taxes payable and paid Arrears of taxes Refunds Profit and Loss Reconciliation Statement Not to be filed by ISD, TDS Deductor, Casual Taxpayer, and Non resident taxpayer

First and Final returns First Return Required when the liability to register and pay tax arose before grant of registration Manual process To pay tax where supplies were made before registration To take credit on receipts that happened before registration Final Return On closure of business Reversal of credit on goods in stock

Temp Return for July and August Return 3B Calculate total value of supply Calculate total tax payable CGST, SGST, IGST Calculate total input credit admissible Pay balance amount by challan, online

Temp Return for July and August Return 3B If intends to file Trans -1, 28th August July If not filing Trans-1, 20th August August 20th Sept.

Actual Return for July and August GSTR-1 GSTR-2 GSTR-3 6th to 10th September 11th to 15th September 1st to 5th September July 21st to 25th September 26th to30th September August 16th to 20th September

Reverse charge mechanism As a normal rule every supplier is liable to pay Tax on value of supplies However Section 9(3) of empowers Governing Council TO reverse the system It can specify Supplies on which tax would be paid by RECIPIENT OF GOODS AND SERVICES

Reverse charge mechanism ACCORDINGLY, ON RECCOMENDATION OF GOVERNING COUNCIL, NOTIFICATION HAS BEEN ISSUED FOR PAYMENT OF TAX BY RECIPIENT OF SERVICES

Reverse charge mechanism Notification No. 13/2017 Central Tax(Rate) dated 28.06.17 Notifies 9 services on which GST is payable by recipient of Services

Reverse charge mechanism GTA If recipient is any one of following then they will pay GST on GTA services received by them Any factory registered under Factory Act Any Society registered under Society Reg Act, 1860

Reverse charge mechanism GTA (iii) Any Co operative Society established under any law (iv) Any person Registered under SGST, CGST, IGST or UTGST (v) Any body corporate (vi) Any Partnership Firm (vii) Any Casual Taxable person in taxable territory

Reverse charge mechanism 2. Individual Advocate or Firm of advocates Any Business entity located in taxable territory

Reverse charge mechanism 3. Arbitral tribunal Any Business entity located in taxable territory

Reverse charge mechanism 4. Sponsorship service Any Body corporate or partnership firm located in taxable territory

Reverse charge mechanism 5. Service provided by C.Govt,, State Govt. or UT (other than Renting of Imm. Property, Speed Post, Parcel Ins., Transport of goods or passengers, Ser related to Air craft, vessel Any Business entity located in taxable territory

Reverse charge mechanism 6. Service provided by Directors Any Company or Body corporate located in taxable territory

Reverse charge mechanism 7. Service provided by Insurance Agents Any person carrying on Insurance business

Reverse charge mechanism 8. Service provided by Recovery agents to Banking and Financial Institutions or Non Banking financial Co. Banking and Financial Institutions or Non Banking financial Co.

Reverse charge mechanism 9. Service by Author, Music Composer , Photographer, artists or like, who allows use of copy right Publisher, Music company, Producer or like located in taxable territory( who is allowed to use copy right)

Reverse charge mechanism Section 9(4) Goods and Services Received by Registered person from Un Registered person, Tax to be paid by Registered person

How to pay tax under Reverse charge mechanism Issue invoice for such supply Show details in(table 4) of GSTR-2

Thank you S.J.Rayalu Prashant Warkar