GST Filing in India
GST Filing in India
GST i.e. Goods and Services Tax is the most revolutionary tax reform that is being undertaken since the
time of independence. GST is a form of indirect tax which has replaced many of the indirect taxes in
India. The Goods and Service tax was passed on 29th march 2017 in the Parliament and came into effect
on 1st july 2017 with the aim of bringing together the state economies and to improve the overall
economic growth of the country. Before understanding GST, let’s first deal with the previous tax system
which was applicable in India.
Previously, the taxes which were paid to the government were in two forms i.e.: Direct tax and indirect
tax.
1) Direct tax- was the tax which was imposed on the person and was to be paid directly to the
government. For ex- Income Tax.
2) Indirect tax- it was the tax which was imposed on goods and services and was paid to the government
via third person. Ex- Service tax
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After the coming up of GST, the cascading effect on the sales of goods and services is removed. The
removal of cascading effect has in turn decreased the cost of goods by eliminating the tax on tax. GST is
basically technologically driven as all the activities like registration return filing, application for refund
and response to notice has be done online on GST portal.
1) CGST (Central Goods and Service Tax): It is collected by the Central Government on an intra- state
sale (e.g.: Transaction happening within Uttar Pradesh)
2) SGST (State Goods and Service Tax): It is collected by the State Government on an intra- state sale
(e.g.: Transactions happening within Uttar Pradesh)
3) IGST (Integrated Goods and Service Tax) : It is collected by Central Government for inter- state
sale (e.g.: Transactions happening between Uttar Pradesh and Madhya Pradesh)
Whosoever is registered in GST has to file GST return every month. GST return is basically a document
containing information regarding the tax which has to be informed to the tax department. It contains
details of income which each and every tax payer is required to file with the tax administrative
authorities. Under GST Return different types of information have to be provided which includes
information regarding the product or service which was sold, how much monthly sale received, how
much GST was made on that monthly sale, how much input was purchased and much GST input credited
on that purchase. All the return of GST is to be filed online on GST portal. In order to file GST return, GST
complaint sales and purchases invoices are required. The GST complaint invoices can be generated for
free on CLEAR TAX BILLBOOK. From the suppliers and the manufacturers to the consumers and the
dealers, all the taxpayers have to file their tax returns with the GST department each year. Under the
new regime of GST, the filing of tax return has become automated. Returns can be filed online by using
the software or app which are provided by the Goods and Service Tax Network (GSTN). Filing of GST
return is mandatory for registered businesses. Any business with a taxable supply turnover of over Rs.
20 Lakhs is required to register for GST in India. There is also a mechanism available for voluntary GST
registration to help claim input tax credit. The registration under GST must be obtained within 30 days of
exceeding the Rs. 20 lakhs turnover limit. No matter whether your business is active or not, you have to
file the returns. It means that there is no threshold limit for filing GST return just being registered is
necessary.
The system provides one the benefit that one has to manually enter details of just one monthly return
i.e. GSTR-1. The other two returns i.e. GSTR-2 and GSTR-3 will get auto-populated by deriving the
information which was previously entered under GSTR-1 which is already been filed. Separate returns
are required to be filed by special cases which come under the Composition Scheme. Now the question
arises what is composition scheme. A composition is an alternative method to pay tax under GST
designed to reduce compliance cost for small tax payers. Important feature of this scheme is that
whosoever has opted to pay tax under this scheme do not have to pay tax at normal rate every month,
rather they can pay tax at flat percentage of turn over every year. The composition is applicable to
manufacturers and traders if their taxable business turnover is up to Rs.1.5 crore and in case of
northeastern states it is reduced to 75 lakhs for service providers this scheme is applicable if there
turnover is upto Rs.50 lakhs. But the composition scheme can’t be opted by business with interstate
supplies manufactures of pan masala and tobacco manufacturing of ice cream and E-commerce players.
Also the dealers who are supplying goods through electronic commerce operator will be barred from
being registered under this scheme.
For ex- if somebody is selling their product through Amazon or through Myntra then him/her can’t opt
for tax composition scheme.
Also if a taxable person has different segments of businesses such as textiles, groceries and electronic
accessories etc, under the same PAN they must register under all such businesses collectively under the
scheme or if they are not registering collectively then they must opt out of the scheme. All the tax
payers under composition scheme have to mention the words composition taxable person on every
notice or signboard displayed at their place of business. In order to opt for composition scheme taxpayer
has to file GST CMP-02 with the government. This can be done online by logging into GST portal. The
main restriction on the composition dealer is that he/ she cannot tax invoice, this is because
composition dealers cannot charge tax on their customers. Hence the dealer has to issue a Bill of
Supply. Following details must be mentioned in the Bill of Supply:-
3) Date of issue.
4) If the recipient is registered, then the name, address and GSTIN of the recipient.
7) Value of the goods and services after adjusting any discount or abatement.
1) Lesser compliance
3) High liquidity
1) Business territory gets limited, as the dealer is barred from carrying out inter-state transactions.
3) The tax-payers will not be allowed to supply goods through e- commerce portal.
1) GSTR-1
Every registered dealer has to file GSTR-1. It is a monthly or quarterly return that contains the details of
all outward supplies i.e. sales. If the registered person does not has any sale in that particular month
then too he/ she has to file GSTR-1. But there are certain registered dealers who are exempted from
filing GSTR-1 which include Composition dealers, input service distributors, supplies of online
information and database excess, non- resident taxable person, taxable payer liable to collect TCS,
taxable payers liable to deduct TDS.
Once the return is filed it cannot be rectified, it can only be rectified during the filing in the next month.
For filing the GSTR-1 the details of outward supplies of taxable goods and/ or services affected is
required.
2) GSTR-2
In GSTR-2 details of inward supply i.e. purchases of a tax period is to be provided by every registered
taxpayer. The details of all purchases transactions for a month of a registered dealer are contained in
GSTR-2. It also contains purchases on which reverse charges applies. The GSTR-2 filed by a registered
dealer is used to check with the sellers GSTR-1 for buyer- seller reconciliation by the government.
If GSTR- 2 is not filed then next return i.e. GSTR-3 cannot be filed. Hence late filing will lead to heavy
fines and penalty. For the filing of GSTR-2 return the details of inward supplies of taxable goods and/ or
services affected claiming the input tax credit is required. Every registered person has to file GSTR-2
irrespective of whether they have any transactions during that month or not. But there are certain
exceptions of who cannot file GSTR-2 are same as that of GSTR-1.
3) GSTR-3
GSTR-3 is a monthly return. IT contains summarized details of sales, purchases, sales during the month,
amount of GST liability. It is auto- generated from the information from GSTR-1 and GSTR-2.
If GSTR-3 is not filed then GSTR-1 of the next month cannot be filed. Hence, late filing of GST return will
lead to heavy fine. Every registered person is required to file GSTR-3 irrespective whether there is any
transaction during that month or not and the exception of those who do not have to file GSTR-3 is same
as that of GSTR-1 and GSTR-2. Any mistake in the filing of GSTR-3 cannot be revised; it can only be
revised during the filing of next month’s GSTR-1 and GSTR-2 returns. GSTR-3 is auto- generated.
4) GSTR-4
It is a quarterly return. It has to be filed by composition dealers. Unlike normal tax payer who needs to
file 3 monthly returns, a dealer who is opting for Composition scheme is required to file only one return
i.e. GSTR-4.
GSTR-4 cannot be revised after filing the return; it can only be revised in filing the next months return. A
penalty of Rs. 200 per day is levied is GSTR-4 is not filed on time.
5) GSTR-5
It is a return that has to be filed by a non-resident foreign taxpayer who is registered under GST for the
duration of their business transactions in India. This can be done either online or from a tax facilitation
center. GSTR- 5 has be filed every month.
6) GSTR-6
It is to be filed by Input Service Distributors every month. There are 11 sections in this return. It has all
the details of ITC received by Input Service Distributer and also distribution of ITC. The Details of all the
documents issued for distribution of Input Tax Credit and the way in which the distribution of credit and
tax invoice on which the credit is received is contained in GSTR-6.
GSTR-6 has to be filed by every ISD irrespective whether there is any transaction or not. There is no
provision or revising GSTR-6 under GST, it can only be revised during the filing of GSTR-6 of the next
month.
7) GSTR-7
It is a monthly return that has be filed by the person who is required to deduct TDS i.e. Tax Deducted at
Source under source. GSTR-7 contains the details of TDS deducted, TDS liability paid and payable, TDS
refund claimed if any.
2) Local authority, or
3) Governmental agencies, or
Once GSTR-7 is filed it cannot be revised, it can only be revised on the filing of the next months return.
8) GSTR-8
It is a monthly return to be filed by e- commerce operators who are required to deduct TCS i.e. Tax
Collected at Source. It contains the details of supplies affected through e- commerce platforms and
amount of TCS collected on such supplies. E- Commerce operator as defined by GST Act as any person
who owns or manages a digital or electronic facility or platform for electronic commerce such as
Amazon etc. All such e- commerce operators as mentioned by the GST Act are required to obtain GST
registration as well as registration with TCS (Tax collection at source).
If the GSTR-8 is not followed on time then a penalty of Rs.200 of CGST and 100 SGST is levied on the
taxpayer. GSTR-8 once paid cannot to revised, it can only be revised on the payment of next month’s
GSTR-8.
9) GSTR-9
It is an annual return to paid by taxpayers’ registered under GST. It consists of details regarding outward
and inward supplies made or received during the relevant previous year under different tax heads which
include CGST, SGST & IGST and HSN codes. Basically, GSTR-9 is a consolidation of all the
monthly/quarterly returns which include GSTR-1, GSTR-2A and GSTR-3B filed in that particular year.
There are 4 types of annual return under GSTR-9 which are GSTR-9, GSTR-9A, GSTR9B, GSTR9C.
The late fee of not filing GST within the due date is Rs.100 per day, per act, which means 100 under
CGST and 100 under SGST.
10) GSTR-10
It is also called as final return. Under the GST Act any taxable person whose GST registration is
cancelled or surrendered has to file a return in GSTR-10. It has to be filed within three months from
the date of cancellation or date of cancellation order whichever is later. Any regular persons
registered under GST are not required to file return under GSTR-10, it has to be filed only by the
persons whose registration has been cancelled or surrendered under GST. If it is not filed within the
due date, a notice will be sent to the registered person who has not filed and the person will be
given 15 days time after that for filing the return with all the required documents. If the registered
person still fails to file the return then the tax officer will pass the final order for the cancellation
with the amount of tax payable along with interest/penalty.
11) GSTR-11
Those persons who have been issued a Unique Identity Number(UIN) in order to get refund under GST
for the goods and services purchased by them in India can only file return under GSTR-11 . The following
organizations can apply for a UIN:
The basic purpose of issuing UIN is that if any amount of tax is collected from the bodies or any
person holding UIN is refunded back to them.
Preparations of vegetables, fruits, nuts or other parts of plants, including pickle, murabba,
chutney, jam and jelly
Ketchups, sauces and mustard sauce but this excludes curry paste, mayonnaise and salad
dressings, mixed condiments and mixed dressings
Bari made of pulses
Menthol and menthol crystals, peppermint, fractionated/de-terpenated mentha oil,
dementholised oil, Mentha piperita oil and spearmint oil
All diagnostic kits and reagents
Plastic beads
Exercise books and also the note books
Glasses for corrective spectacles and flint buttons
Spoons, forks, skimmers, cake servers, fish knives, tongs
Fixed Speed Diesel Engines
Two-way radio i.e. Walkie talkie which is used by defence, police and paramilitary forces etc.
Intraocular lens
Corrective spectacles
Playing cards, chess board, carom board and other board games which also include ludo, etc.
Debagged/roughly squared cork
Items manufactured from natural cork
Agglomerated cork
5) Goods which come under 28% tax slab- no additional items were added to highest the
GST slab of 28%
GST on Services- Government has also imposed GST on Services with the same 4-tier tax
structure as that of goods.
Chargeable services offered on Basic Savings Bank Deposit (BSBD) account opened under the
Pradhan Mantri Jan Dhan Yojana (PMJDY).
Rail transportation of goods in containers from a third party other than that of Indian Railways
Air travel excluding economy class travel
Food or drinks at restaurants without AC/heating or liquor license
Renting of accommodation for more than Rs.1000 and less than Rs.2500 per day
Chit fund services by foremen
Construction of a building for the purpose of sale
IP rights on a temporary basis
Movie Tickets less than or equal to Rs. 100
Entertainment events-amusement facility, water parks, theme parks, joy rides, merry-go-round,
race course, go-carting, casinos, ballet and other sporting events like IPL
Race club services
Gambling
Foods and drinks at AC 5-star hotels
Accommodation in 5-star hotels or above
Earlier Service Tax was been levied on Loans but it has now been replaced by GST which would
now be levied on loans. Previously, the rate of service tax was 15% but after the replacement
with GST, the rate of GST is 18%. On Personal Loan, Home Loan and Car Loan 18% GST is
charged. For the loan of car GST range from 29% to 50% whereas on gold loan GST range from
3% to 5%.
Now the question arises that how one can file GSTR. As we already know that right from
manufacturers and suppliers to dealers and consumers, all the taxpayers have to file their tax
returns with the GST department every year. So, there are certain steps which are listed below
for the filing GST returns online by using the software or apps provided by Goods and Service
Tax Network (GSTN):-
1) Easy loan approval- Filing GST return on time will not provide ease to your jobs and also protects
you from paying penalty but it also gives you advantage in the approval of loan. When an individual
applies for loan for 2- wheeler or 4 wheeler vehicle, then every major bank asks for a copy of GST return.
If all the returns are filed on time, then it creates a good impact of the person and this in return helps in
getting loan easier.
2) Claim tax return- Filing GST return on time also helps in claiming tax return, if the refund is due
from the Income Tax department, then one has file the tax return in order to claim the refund.
3) Income and Address prove- GST return can also be used as a income and address prove.
1-07-19- Due date for filing GSTR-1 for the month of June 19 – Applicable for all the taxpayers
with the Annual Aggregate turnover of above Rs. 1.50/- Crore or opted to file monthly Return of rupees
one Crore Fifty Lacs only. Notification No. 44/2018 – Central Tax
31-07-19- Due date for filing GSTR-1 for June QUARTER – Applicable for taxpayers with the
Annual Aggregate turnover of UPTO Rs. 1.50/- Crore (Rs. One Crore Fifty Lacs) only. Notification No.
44/2018 – Central Tax
10-07-19- Due date for the filing of GSTR-8 which is to be filed by the by the e-commerce
operators required to deduct TDS under GST for the month of June 19.
20-07-19- Due date for the filing of GSTR-5 and 5A which is to be filed by the Non-Resident
taxable person and OIDAR for the month of June 19.
13-07-19- Due date for filing GSTR-6 which is to be filed by Input Service Distributor for the
month June 19.
20-07-2019- GSTR-3B for the month of June 19. Pay due Tax till this date.
2) Why was the Constitution of India amended recently in the context of GST?
Ans: Now, the fiscal powers between the Centre and the States are clearly demarcated in the
Constitution with almost no overlap between the respective domains. The Centre has the powers to levy
tax on the manufacture of goods (except alcoholic liquor for human consumption, opium, narcotics etc.)
while the States have the powers to levy tax on the sale of goods. In the case of inter-State sales, the
Centre has the power to levy a tax (the Central Sales Tax) but, the tax is collected and retained entirely
by the States. As for services, it is the Centre alone that is empowered to levy service tax. Introduction of
the GST required amendments in the Constitution so as to simultaneously empower the Centre and the
States to levy and collect this tax. The Constitution of India has been amended by the Constitution (one
hundred and first amendment) Act, 2016 for this purpose. Article 246A of the Constitution empowers
the Centre and the States to levy and collect the GST.