Sudindra V R
Government of India hurled Goods and Services Tax on July 1st 2017, which is a paramount decision in the history of Tax and Economics reforms in India. GST is not merely a change in tax it is an overhaul in the way, which indirect taxes will levy. Unless traditional indirect tax regime, the GST is levied on point of Supply. Supply includes transfer, exchange and barter, rental, lease and a supply made to an agent or to a branch. If anyone or business engaged in any of the supplies which mentioned above mandates to file GST. However, the government from time to time notifies some goods and services which will be not be considered as supply and exempted from filing GST. GST is structured efficient tax collection system that submerged 8 Central and 4 State indirect taxes with objectives of reducing corruption and leakage, easy interstate movement of goods, creating common market and boosting economic activities.
Regular businesses does not include: composite dealer, returns for non-resident foreign taxable person, returns for input service distributor, returns for authorities deducting tax at sources, supplies affected through e commerce operators and inward supplier of UIN holder.
Filing GST returns is very crucial as non-compliances and delay may result in penalties, imprisonment, reducing compliance rating and timely refund. Every business carrying out supply of goods and services with turn over exceeds the threshold limit of Rs. 20 lakhs (Rs. 10 lakhs in some cases) is require to obtain GST registration number as a normal taxable person. However business registered under any pre-existing GST law (VAT, Excise/Service tax), anyone who drives interstate supply of goods, agents and suppliers, input service distributors, E-commerce operations and aggregators, person who supplies via E-commerce aggregator and person supplying online information, database access or retrieval services need to register irrespective of turnover.
GST registration takes approximately 20 days of time and one can obtain GSTIN-Goods and Services Tax Identification Number at no expenses for future use in all the transaction. GSTIN is a 15-digit code, which consists of first 2 letter, is state code, next 10 digit of Permanent Account number of taxpayer, 13thdigit will be assigned based on the number of registration within a state, 14thdigit will be default Z and the last digit will be for check code.
TYPES OF GST RETURNS FOR REGULAR BUSINESSES:
Any regular business has to file 3 monthly returns: GSTR 1, 2 & 3 and 1 annual return GSTR 9 which comes to 37 returns per annum. Updating GSTR 1 manually will help in auto-populated information for GSTR 2 & 3 filed by business entity and vendors.
Note: as per the latest update business with annual turnover up to 1.5 crore will submit quarterly return effective from October 2017.
GSTR 1:this is a monthly return filed by all registered persons on all sales/outward supply (excluding applicable exempted businesses) on or before 10thof every month irrespective of transaction done or not on particular month. Revision cannot be done once GSTR 1 filed by registered person, but any rectification can be made in the next filing.
Important information required in GSTR 1 which include: GSTIN number, legal name, aggregate turnover in the preceding financial year and April to June 2017 period, taxable outward supplies, taxable outward interstate supplier to un registered person, zero rated supplies and deemed exports, rate wise supply of all sales made during the year, nil rate/exempted/non GST outward supplies, amendment in 4-6, amendment to un registered person, consolidated statement and document issued during the tax period.
GSTR 2: this is a monthly return filed by all registered person on all inward/purchase supply (excluding applicable exempted businesses) on or before 15thof every month. This will help the government to check buyer seller reconciliation. Not filing GSTR 2 will affect filing GSTR 3 and attracts 18% per annum interest and late fee as a penalty.
Important information required in GSTR 2 which include: GSTIN number, name of the tax payer, inward supply from registered taxable person, inward supplies on which tax is to be paid on reverse charges, input/capital goods received from overseas/SEZ, amendments to 3-5 , supplies from exempt/nil rated/non GST supplies, ISD credit received, TDS/TCS (tax deducted at source/tax collected at source) credit received, consolidated statement of advance paid, input tax credit reversal, additional of amount and HSN ( Harmonized System of Nomenclature) summary of inward supply.
Note: GSTR 2 information is auto populated once any registered person files GSTR 1 and allowed some changes/modification.
GSTR 3: this is a monthly return with summarised details of sales, purchases, sales during the month along with GST liability filed on or before 20th of every month. Not filing GSTR 2 will affect filing of next month GSTR 1 and attracts 18% per annum interest and late fee as a penalty. GSTR 3 information is auto populated once any registered person files GSTR 1-2 and allowed some changes/modification under GSTR 3 B.
Important information required in GSTR 3 which include: GSTIN number, name of the tax payer, turnover, outward supplies, inward supplies, input tax credit, addition/reduction of amount, total tax liability (CGST, SGST & IGST), credit of TDS/TCS, interest liability, late fee, tax payable and paid, interest/late fee/any other amount, refund claimed and debit entries in electronic cash/credit ledge for tax / interest payment.
GSTR 9: this is an annular return filed through online portal under GST law on or before 31stDecember of next financial year.
Information required in GSTR 9 includes: GSTIN, name of the taxable person, whether liable to statutory audit, auditors, details of expenditures, details of income, return reconciliation statement, profit/loss statement and other auto populated amount payables.
Conclusion: any regular business has to file 3 monthly returns and 1 annual return as per GST law, which is most crucial as noncompliance and delay attracts penalties. Filing GSTR 1 within 10th of every month is require utmost good care, as it is not revisable in the same month. Proper filing GSTR1 leads to easy processing of GSTR 2 & 3 as it is auto populated based on first process. GSTR 9 is an annual return filed through online portal within 31st December of next financial year. Central government revises the rules and regulation from time-to-time basis this leads to ambiguity while filing GST for the businesses. Education institutions, skill development agencies and government-sponsored agencies need to create more awareness among the business community to avoid hefty interest and late fee.