Returns Under GST, Returns under Service tax Vs. Returns under gst

1. 02-10-2016 ABHISHEK AGARWAL ACA DISA www.caasa.org 1
•TAX INVOICE
•CREDIT AND
DEBIT NOTES
CHAPTER
VII
•RETURNS
CHAPTER
VIII

2. GST LAW
CHAPTER
VII
CREDIT AND
DEBIT NOTES
TAX INVOICE
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3. Sec.23
TAX INVOICE
Every registered taxable person shall at the time of supply , issue a
tax invoice for supply of taxable goods or taxable services.
• contain the description of goods/services, quantity and value of goods supplied,
• tax charged on the supply and such other particulars as may be prescribed.
Determining the time of supply is important for the time of
issuance of invoice.
• For supply of taxable goods, tax invoice shall be issued at the time of supply of
goods
• For supply of taxable services, tax invoice shall be issued within such time limit as
may be prescribed.
• In case of an intra-state supply of goods/services, the tax invoice will mention
CGST and SGST.
• In case of an inter-state supply of goods/services, the tax invoice will mention
IGST and Additional tax, if applicable.
• The tax invoices shall be raised by the registered taxable person.
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4. REGISTERED TAXABLE PERSON SUPPLYING
 NON-TAXABLE GOODS AND/OR SERVICES
 PAYING TAX U/S 8
SHALL ISSUE A BILL OF SUPPLY, INSTEAD OF A TAX INVOICE,
CONTAINING PARTICULARS AS MAY BE PRESCRIBED
TAX INVOIVE DEEMED TO INCLUDE A DOCUMENT
ISSUED BY AN INPUT SERVICE DISTRIBUTOR U/S 17
AND SHALL ALSO INCLUDE SUPPLEMENTARY OR
REVISED INVOICE ISSUED BY THE SUPPLIER IN RESPECT
OF SUPPLY MADE EARLIER
Sec.23 TAX INVOICE
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5. Sec. 24
CREDIT NOTES
Supplier Recipient
Supplier Recipient
Supply of goods/
services
Tax invoice is
issued
Scenario 1: Tax Charged/ Taxable Value > Tax Charged/ Taxable Value (w.r.t. that
supply), then
Issue credit note on or before 30th
day of September following the end
of the FY in Which the supply was
made OR date of filing of relevant
annual return whichever is earlier.
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6. Sec.24
DEBIT NOTES
Supplier Recipient
Supplier Recipient
Supply of goods/ services
Tax invoice is issued
Scenario 2: Tax Charged/ Taxable Value < Tax Charged/ Taxable Value (w.r.t. that supply),
then
Issue debit note on or before 30th
day of September following the
end of the FY in Which the supply
was made OR date of filing of
relevant annual return whichever
is earlier.02-10-2016 ABHISHEK AGARWAL ACA DISA www.caasa.org 6

7. RETURNS
GST
LAW
CHAPTER
VIII
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8. TYPES OF RETURNS
Monthly Return
Return for Composition Scheme
TDS Return
Return for Input Service Distributor
First Return
Annual Return
Final Return
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9. Sec. 25
FURNISHING DETAILS OF OUTWARD SUPPLIES
• Every registered
taxable person
shall furnish the
details of
outward supplies
of goods and /or
services effected,
in the manner
and forms as may
be prescribed
ELECTRONICALLY
• Details to be
communicated to
the RECIPIENT of
the supplies within
the time and
manner as may be
prescribed.
On or before the
TENTH DAY of the
month succeeding
the said tax period
• Input service
distributor
and a person
paying tax
under
section 8 or
section 37,
are not
required to
furnish a
return u/s 25
Section 8 -
Composition Levy
Section 37- Tax
Deduction At
Source
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10. RETURN OF
GOODS RECEIVED
IN RELATION
TO/IN
PURSUANCE OF
INWARD SUPPLY
EXPORT
INTER-
STATE
SUPPLIES
DETAILS
RELATING TO
ZERO RATED
SUPPLIES
EXPORT
SUPPLEMENTARY
INVOICES
DEBIT
NOTES
CREDIT NOTES
OUTWARD SUPPLIES
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11. Sec.26
FURNISHING OF INWARD SUPPLIES
Every registered taxable person other than input service distributor
and person paying tax u/s 8 or u/s 37, shall verify ,validate , modify or
delete the details furnished by the suppliers u/s 25.
The return is to be filed by the recipient on or before 15th day
of the month succeeding the tax period in such form and
manner as may be prescribed.
Credit and debit
notes and such
other details
which has not
been declared
u/s 25
Inward supplies
liable for tax
payment on
reverse charge as
well as under IGST
ACT
Details of Inward
supplies
02-10-2016
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12. Sec.27
RETURNS
Furnish return even if no supplies effected during such period
Pay to the credit of the appropriate Government the tax due as per the return
within the date required to furnish the return.
within 20 days after the end of such month
Every registered taxable person shall furnish in a manner
and form ,as may be prescribed, an electronic return
consisting of :
Inward And
Outward
Supplies Of
Goods And/Or
Service
Input Tax
Credit Availed
Tax Payable Tax Paid
Other
Particulars As
May Be
Prescribed
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13. Sec. 8
COMPOSITION SCHEME
•Paying tax on quarterly basis,
electronically, in the manner as may
be prescribed
• within 18 days after the end of such
quarter
 No return , if valid
return for any
previous tax period
has not been
furnished
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14. Furnish return and pay the
tax so deducted,
electronically, in the form
and manner, as may be
prescribed.
For the month in which
such deductions have been
made, within 10 days after
the end of such month.
Tax
Deduction
At Source
Sec. 27(5)
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15. INPUT SERVICE
DISTRIBUTOR
•Furnish return every
calendar month or
part thereof
•electronically, in
prescribed form and
manner within 13
days after the end of
such month.
Sec. 27(6)
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16. ERRORS AND OMMISION
UPON DISCOVERY OF ERRORS OR
OMMISION
Subject to the provisions
of sections 25 and 26,
errors or omission can be
rectified upon discovery
other than result of
scrutiny, audit,
inspection or
enforcement activity by
the tax authorities
In the furnished return which has remained
UNMATCHED U/S 29, rectify it in the tax period
during which it was noticed in such manner as
may be prescribed and shall pay the tax and
interest, if any, in case of short payment,
Sec.25 Sec.26
No such rectification of any omission or incorrect particulars shall be allowed after the due date
for filing of return for the month of September or second quarter (as the case may be), following
the end of the financial year, or the actual date of filing of relevant annual return, whichever
is earlier
SEC.27
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17. After obtaining registration, the taxable person is
required to file his very first return. This section
provides for the aspects that need to considered
while filing this first return, namely:
Sec.27A
FIRST RETURN
Transaction to be reported Consideration involved
Outward supplies
From effective date of registration till end
of month* when
registration is granted
Inward supplies
From date of liability to register till the
end of month* when
registration is granted
* Up to the quarter in case of composition levy under section 8
Section 25[furnishing details of outward supplies], 26[furnishing details of inward supplies] and
27[returns], excluding than the provision pertaining to tax period, shall apply to the person
furnishing first return.
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18. Sec-28
CLAIM OF INPUT TAX CREDIT AND
PROVISIONAL ACCEPTANCE
THEREOF
Every taxable person shall be
entitled to take credit of input tax
in his return as self-assessed,
subject to conditions and
restrictions as may be prescribed
This amount is to be credited ,on a
provisional basis, to his electronic
credit ledger to be maintained in a
manner as may be prescribed
If a valid return not furnished
u/s 27, the taxable person will
not be allowed to utilize the
credit till discharges his self
assessed tax liability
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19. Sec-29 MATCHING, REVERSAL AND
RECLAIM OF INPUT TAX CREDIT
The details in a return of inward supplies of a recipient should be matched in
prescribed time and manner with:
• Outward supplies furnished by other party (supplier)
• Additional customs duty paid on goods imported
• Any duplicate claims of input tax credit
When the credit
availed by the
recipient matches
with the above, the
same shall be
finally accepted and
communicated to
the recipient even
in case of
duplication in the
manner as may be
prescribed
Where the credit
claimed is in excess
in respect of inward
supplies compared
to the tax
declared by the
supplier, the
discrepancies will be
communicated to
both parties
Duplication of
claims to be
communicated to
the recipient in
the manner as
may be
prescribed.
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20. Claim of input tax credit
in respect of invoices or
debit notes relating to
inward supply matches
with corresponding
outward supply subject
to section 16 and
communicated to the
recipient
Discrepancy communicated
but not rectified by the
supplier shall be added to the
output tax liability of
recipient for the month
succeeding the month when
discrepancy is
communicated.
Recipient
eligible to
reduce the
amount added
as above if
supplier
declares the
details within
the time
specified in
27(7)
A recipient to
pay interest at
the specified
rate on the
amount added
whereas on
reduction the
interest paid
shall be
refunded
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21. Ram Ltd supplies manufactured goods to Shyam Ltd for Rs 10000
in May 2017; CGST thereon is, say, Rs 1200. Unfortunately Ram
Ltd did not furnish these details in its outward supply to Shyam
ltd.
While matching the credit, Shyam Ltd failed to set this right and
went ahead with credit claim and utilized the credit against CGST
liability. Later, GST officer intimates this mismatch, say by August
2017. In the absence of Ram Ltd’s due response, Shyam Ltd may
pay back the credit with interest (for wrong credit).
Ram Ltd rectifies the outward return with details omitted earlier,
in October 2017. Accordingly, Shyam Ltd can certainly take back
the credit earlier reversed.
EXAMPLE
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22. Sec-29A Matching, reversal and
reclaim of reduction in output
tax liability
Where the output tax is reduced by outward supplier by issuing a credit note, details of every
such credit note issued should be matched with:
• Corresponding reduction in the credit by the recipient of the amount involved in the credit note
in his valid return field for the current or subsequent tax period
• Any duplicate claims for reduction of output tax liability.
When claim for
reduction of output tax
liability by the supplier
matches with the
corresponding
reduction in input tax
credit by the recipient,
the same will be
accepted and
communicated to
the parties.
When claim for
reduction of output tax
liability by the supplier
exceeds, partly or
wholly, with
the corresponding
reduction in input tax
credit by the recipient,
the discrepancy will be
communicated to both
parties.
Duplication of claims for
reduction in output tax
liability to be
communicated to the
supplier in the manner as
may be prescribed
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23. Amount in which discrepancy is
communicated and is not rectified by
the recipient then it shall be added to
the output tax liability of the supplier,
in the manner as may be prescribed ,in
return for the month succeeding the
month of communication of
discrepancy
Supplier eligible to
reduce from his
output tax liability
the above added
amount if the
recipient declares
the details in his
return within the
time specified
When an amount is
added to the output
tax liability then the
supplier is liable to
pay interest at the
specified rate.
Any reduction in
output tax liability,
the interest paid
shall be refunded
by crediting the
amount in the
electronic cash
ledger in the
manner prescribed.
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24. Sec -30
ANNUAL RETURN
• Taxable persons who get their
accounts audited under section
42(4) are required to electronically
file annual return under this
section along with a copy of the
audited accounts as well as a
reconciliation statement
reconciling value of supplies
declared in the return furnished
for the year along with the audited
annual financial statement and
such other prescribed particulars.
Other than Input Service
distributor, deductor of
tax, casual taxable
person and Non-
Resident taxable person
ALL are required to
furnish annual return
for every Financial year
electronically on or
before 31st December.
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25. FINAL RETURN : Every registered
taxable person who applies for
cancellation of registration shall furnish a
final return within three months of the
date of cancellation or date of
cancellation order, whichever Is later, in
prescribed form and manner.
Notice to return defaulters:
Where a registered taxable person fails to
furnish a return under section 27 or section
31, a
notice shall be issued requiring him to furnish
such return within such time and in such
form
and manner as may be prescribed.
Sec- 31
Sec- 32
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26. Sec-33
Levy of late fee
Defaulted Return Late fee
Return on Outward Details (Ref: Sec 25)
Rs. 100 per day of delay
Maximum Rs. 5,000
Return on Inward Details (Ref: Sec 25)
Return on Input credit (Ref: Sec 27)
Final Return for prescribed three
months (Sec 31
Annual Return (Sec 30)
Rs. 100 per day of delay
Maximum = 0.25% on Aggregate
Turnover*
*Aggregate turnover does not include the value of supplies on which tax is
Levied on reverse charge basis and the value of inward supplies
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27. Sec- 34
Tax Return Preparers
The Appropriate Government may prescribe the eligibility conditions,
duties and obligations , manner of removal and such other conditions
as may be relevant for the functioning as a Tax Return Preparer.
However, in all cases registered Tax Payer continues to be liable for the
correctness of the return filed through Tax Return Preparer.
• Tax Return Preparer: means any person who has been approved to
act as a Tax Return Preparer under the scheme framed under section
34;[Section 2(99)].
• Appropriate Government: means the Central Government in case of
the IGST and the CGST, and the State Government in case of the
SGST;[Section 2(11)].
• A registered taxable person may, in the manner prescribed,
authorize approved Tax Return Preparer to furnish the details of
outward/inward supplies and furnish the return under section 27,
30[annual return] or section 31[final return], as case maybe, and
such other prescribed tasks.
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28. DUE DATES FOR FILING
S.
No.
1
2
3
4
5
6
7
8
Return
GSTR 1
GSTR 2
GSTR 3
GSTR 4
GSTR 5
GSTR 6
GSTR 7
GSTR 8
For
Outward supplies made by taxpayer(other
than compounding taxpayer and ISD)
Inward supplies received by a taxpayer
(other than a compounding taxpayer
Monthly return (other than compounding
taxpayer and ISD)
Quarterly return for compounding Tax
Payer
Periodic return by Non-Resident Foreign
Taxpayer
Return for Input Service Distributor (ISD)
Return for Tax Deducted at Source
Annual Return
To be filed by
10th of the next
month
15th of the next
month
20th of the next
month
18th of the month
next to Quarter
Last day of
registration
15th* of the next
month
10th of the next
month
By 31st December
of next FY
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29. 02-10-2016 ABHISHEK AGARWAL ACA DISA
CA ABHISHEK AGARWAL, ACA,DISA
abhishek@caasa.org
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