Standardised PPT on GST Indirect Taxes Committee The Institute of Chartered Accountants of India

Disclaimer and Copy right This presentation has been prepared to provide a standard ‘user presentation’. The views expressed in this presentation are those of Speaker(s). The Institute of Chartered Accountants of India may not necessarily subscribe to the views expressed by the speaker(s). The information cited in this presentation has been drawn from various sources. While every efforts have been made to keep the information cited in this presentation error free, the Institute or any office do not take the responsibility for any typographical or clerical error which may have crept in while compiling the information provided in this presentation. Further, the information provided in this presentation are subject to the provisions contained under different acts and members are advised to refer to those relevant provision also. For clarifications write to us at idtc@icai.in © The Institute of Chartered Accountants of India This standardised PPT may be used by any person with due acknowledgement to the Indirect Taxes Committee of ICAI. © Indirect Taxes Committee, ICAI

Returns © Indirect Taxes Committee, ICAI

Returns under GST FORM PARTICULARS DUE DATE APPLICABLE FOR GSTR1* Outward Supplies 10th of the next month Normal Taxpayer GSTR2* Inward Supplies 15th of the next month GSTR3* Monthly return [periodic] 20th of the next month GSTR3B* Monthly return (Summary return) GSTR4 Return by composition taxpayers 18th of the month next to the quarter Composition Taxpayer GSTR5 Return by non resident taxpayers [foreigners] 20th of the next month or within 7 days after expiry of registration, whichever is earlier Foreign Non-Resident Taxpayer GSTR6 Return by input service distributors [ISD] 13th of the next month Input Service Distributor *As per Press Release dated 4 May 2018, filing of Form GSTR 2 and GSTR 3 shall continue to remain suspended. Present system of filing Forms GSTR 1 and GSTR 3B shall continue for a period of 6 months. © Indirect Taxes Committee, ICAI

Returns under GST Annual Statement of TCS GSTR10 Final Return FORM PARTICULARS DUE DATE APPLICABLE FOR GSTR7 TDS** 10th of the next month Tax Deductor GSTR8 TCS** E-Commerce Operator GSTR9 Annual return 31st December of next FY Normal tax payer (other than ISD, casual taxpayer, foreigners) GSTR9A Composition Taxpayer GSTR9B Annual Statement of TCS GSTR9C Annual return along with the copy of audited annual accounts and a reconciliation statement Normal taxpayer having turnover more than 2 crore GSTR10 Final Return Within 3 months of the date of cancellation or date of order of cancellation, whichever is later Persons cancelling registration **Provisions with respect to TDS and TCS have been put on hold. For downloading formats of all Returns, please visit www.gst.gov.in (Downloads Section-Offline tools) © Indirect Taxes Committee, ICAI

Returns Process Upload GSTR 1 by 10th of next month Auto-drafted GSTR 2A based on details from GSTR 1 filed by other suppliers File GSTR 3B (Summary return) by 20th of next month and pay total GST liability either through cash or through ITC © Indirect Taxes Committee, ICAI

New Return filing process GST Council in its 27th meeting held on 4th May, 2018 approved principles for filing of new return design based on the recommendations of the Group of Ministers on IT simplification. Key elements of the new return design are: All taxpayers excluding exceptions like composition dealer shall file one monthly return Due dates shall be staggered on the basis of turnover to manage load on IT system Composition dealers and dealers having Nil transaction shall have facility to file quarterly return Seller shall upload invoices anytime during the month and on the basis of invoices uploaded by seller, input tax credit would be automatically calculated by the system for buyer User friendly interface and offline IT tool would be provided to upload invoices © Indirect Taxes Committee, ICAI

New Returns filing process B2B dealers to fill invoice wise details of outward supply, based on which Tax shall be calculated automatically HSN at four digit level or more to achieve uniformity in the reporting system In case of non-payment of tax by seller, no automatic reversal of ITC from buyer. In such cases, recovery shall be made from the seller generally. In exceptional situations like missing dealer, closure of business by supplier etc., ITC of buyer can be reversed by revenue authorities Recovery of tax or reversal of ITC shall be through online and automated process of issuing notice and order Unloading of invoices by the seller who has defaulted in payment of tax above a threshold amount shall be blocked to control misuse of ITC © Indirect Taxes Committee, ICAI

New Returns filing process Transition – from existing system to new system Stage I – for a period not exceeding 6 months Present system of filing of return GSTR 3B and GSTR 1 shall continue Filing of GSTR 2 and GSTR 3 shall continue to remain suspended Stage II – 6 months Facility for invoice-wise data upload and claiming ITC on self declaration basis, as in case of GSTR 3B now Recipients to be constantly given information about gap between ITC available as per invoices uploaded by sellers and the provisional credit being claimed by them Stage III The facility of provisional credit will get withdrawn and ITC will only be limited to the invoices uploaded by the sellers © Indirect Taxes Committee, ICAI

Critical points – GSTR – 1 and GSTR – 6 For taxpayers whose turnover is not exceeding INR 1.5 crores, GSTR 1 for the quarter April to June, 2018 shall be filed till 31st July, 2018 (Notification No. 17/2018-CT dated 28th March, 2018 Due date for filing GSTR 6 i.e. returns to be filed by ISD (input service distributors) from July, 2017 to June, 2018 is 31st July, 2018 (Notification No. 25/2018-CT dated 31st May, 2018) © Indirect Taxes Committee, ICAI

GST Returns – Important Points Presently, every registered person needs to furnish atleast GSTR1 and GSTR3B return/statement/s Return/statement/s can be prepared through online or offline mode Return/statement/s to be filed even if there is no business activity during the relevant period i.e. nil statement/return/s Error or omission may be rectified in subsequent return/statement/s but revision of return/statement/s is not allowed In GSTR 1 B2B transactions to be reported on invoice level – GSTIN, invoice no., invoice date, invoice value, rate of tax, taxable value, amount of tax and place of supply B2C transactions to be reported invoice wise only for inter-state transactions having invoice value above INR 2.5 lacs © Indirect Taxes Committee, ICAI

GST Returns – Important Points HSN codes to be reported for Goods and Services Separate Tables for Debit / Credit Notes / Input Service Distributor Credit / TDS etc. Common e-Return for CGST, SGST/ UTGST and IGST Shall not be allowed to furnish a return/statement/s for a tax period if the return/statement/s for any of the previous tax period has not been furnished by him © Indirect Taxes Committee, ICAI

GSTR – 1 : Furnishing details of outward supplies – Sec 37 This return form includes: A.)Invoice details of all outward supply of goods or services or both Registered Person All inter / Intra State Unregistered person Inter state Supply > Rs 2.5 lacs B.)Consolidated details of all- Intra state supplies for each rate of tax State wise inter state supplies < Rs 2.5 Lacs for each rate of tax C) Debit and credit notes

GSTR – 1 : Furnishing details of outward supplies – Sec 37 This return form includes: D) Zero rated supplies and deemed exports Zero rated supplies, deemed exports E) Tax Liability on advances received Tax liability arising on account of receipt of consideration for which invoices have not been issued F) Advance adjustments Adjustment of tax liability for tax already paid on advance receipt of consideration © Indirect Taxes Committee, ICAI

GSTR – 1 : Furnishing details of outward supplies – Sec 37 This return form includes: G) Nil rated, exempted and Non GST supplies Supplies on which rate of tax in NIL or exempt sullies or transactions which are out of the purview of GST H) HSN Summary HSN wise summary of goods/ services supplied during the period I) List of documents issued Details of various documents issued by the tax payer such as- invoice, debit/ credit notes, receipt voucher, payment voucher, refund voucher, delivery challan for job work, etc. © Indirect Taxes Committee, ICAI

Changes due to GST in day to day business Invoice Information In Return: A.) In case of Intra State Supply: Mr. A carried out following transactions during tax period- Sl No Buyer Registered or not Invoice value Rate of tax 1 B YES 1,000 5% 2 C NO 25,000 3 D 5,000 4 E 15,000 12% 5 H 3,00,000

Treatment In Return Seller Registration Status Value of invoice Invoice no. Value Tax B Registered 1000 Then invoice wise details of each invoice irrespective of invoice amount Yes C Unregistered 25000 Consolidated details of Each rate of tax-5% Rs. 30,000 D 5000 E 15000 Consolidate details of rate of tax of 12% Rs. 3,15,000 F 300000

Invoice Information In Return B.) In case of Inter State Supply- Mr. A carried out following transactions during tax period: Sl No Buyer Registered or not State Invoice value Rate of tax 1 Raj Yes Maharashtra 1,000 5% 2 Kamal No Gujarat 1,50,000 12% 3 Hirabai 50,000 4 Modi 5 Josef Goa 3,50,000

Treatment In Return Seller Registration Status Value of invoice Invoice no. Value Tax Raj Registered 1,000 Then invoice wise details of each invoice irrespective of invoice amount Yes Kamal Unregistered 1,50,000 Consolidated details of Each rate of tax-12% for each state Rs 1,50,000 Hirabai 50,000 Consolidate details of rate of tax of 5% for each state i.e Gujarat Modi 2,00,000 Josef 3,50,000 As value is more than 2.5 lacs , individual details of invoice yes

GSTR – 3B : Summary monthly return Who is required to file GSTR 3B? Registered person other than non resident taxable person, ISD and composition person When is it required to be filed? 20th of the following month Following consolidated details to be filled up: All types inward and outward supplies of goods/services Value of exempt, nil rated, non-GST supplies ITC available, ITC reversed and ineligible ITC Tax payable Tax paid Interest and Late fee, if any © Indirect Taxes Committee, ICAI

First, Annual and Final Return First Return (Sec 40) Every registered person, who has made outward supplies, between the date of liability to register till the end of the month* when registration is granted, has to file his first return after grant of registration *Up to the quarter in case of composition levy Final Return (Sec 45) Every registered person whose registration has been cancelled shall furnish a final return within 3 months of date of cancellation or date of order of cancellation, whichever is later, in Form GSTR 10 Annual Return (Sec 44) Every registered person to furnish annual return by 31st December of next financial year in Form GSTR 9 except: ISD Casual taxable person Non-resident taxable person Person paying TCS/TDS Every registered person who is required to get his accounts audited shall furnish annual return along with the copy of audited annual accounts and a reconciliation statement, duly certified in Form GSTR 9C. Composition tax payers to submit GSTR – 9A © Indirect Taxes Committee, ICAI

GST Return – Important Points RECTIFICATION (Sec 39) allowed till due date for furnishing return of September or second quarter of next year or date of filing annual return, whichever is earlier NON FILING Cancellation of registration for non filing of returns for 3 consecutive tax periods for composition dealer or 6 months continuously for other taxable persons LATE FEES-NON FILING OF GSTR 3B (Sec 47) Late Fees: INR 50 per day subject to a maximum of INR 10,000 Late fees for nil return – INR 20 per day subject to a maximum of INR 10,000 LATE FEES – NON FILING OF ANNUAL RETURN GSTR 9 (Sec 47) Late Fee - Annual Return INR 100 per day subject to a maximum of 0.25 % of the turnover of the State or Union Territory © Indirect Taxes Committee, ICAI

Goods and Service Tax Practitioners – Sec 48 Can authorize authorized GST practitioner to furnish GSTR 1, GSTR 2 and 3 (If becomes operative), GSTR 3B, GSTR 9 and GSTR 10 Responsibility for correctness of particulars lies with Registered person Registered Person GST practitioner © Indirect Taxes Committee, ICAI

Goods and Service Tax Practitioners – Sec 48 Eligibility a citizen of India; a person of sound mind; not adjudicated as insolvent; has not been convicted by a competent court Satisfies any of the following conditions he is a retired officer of the Commercial Tax Department of any State Government or of the CBEC, DoR, GoI, who had worked in a post not lower than the rank of a Group-B gazetted officer for a period of not less than 2 years; or he has enrolled as a STP or TRP under the erstwhile laws for a period of not less than 5 years (Such GST Practitioner shall pass examination within 18 months from 1st July, 2017; or © Indirect Taxes Committee, ICAI

Goods and Service Tax Practitioners – Sec 48 He has passed, a graduate or postgraduate degree or its equivalent exam having a degree in Commerce, Law, Banking including Higher Auditing, or Business Administration or Business Management from any Indian University established by any law for the time being in force; or a degree examination of any Foreign University recognised by any Indian University as equivalent to the degree examination mentioned above; or any other examination notified by the Government, on the recommendation of the Council, for this purpose; or has passed any of the final examinations of the ICAI/ ICSI/ ICWAI © Indirect Taxes Committee, ICAI

Goods and Service Tax Practitioners – Sec 48 Authorised officer, shall, after making enquiry either enrol as GST practitioner and issue a certificate or Reject the application GST practitioner may have to pass examination at regular intervals, if so notified Enrolment shall be valid until cancelled Duties prepare the statements with due diligence; and affix his digital signature on the statements prepared by him or electronically verify using his credentials © Indirect Taxes Committee, ICAI

Thank You For any Clarification, Please Contact Indirect Taxes Committee of ICAI Email: idtc@icai.in, Website: www.idtc.icai.org © Indirect Taxes Committee, ICAI