GST Returns – FAQs

What should you know about the GST return?

There is confusion among the business community, tax professionals, and tax authorities. Few of them are aware of the process of GST implementation. In this article, we will discuss the FAQ on GST returns.

Q.1) What is the objective of GST returns?

  • Mode for supply of information to tax authorities
  • Ensure proper compliance rating
  • Calculation of tax liability within a given time period
  • Providing necessary details for input tax credit for the purchase
  • Tax management, collection of data for policy decision

Q.2) Who needs to file a return in GST law?

Ans.- Every person registered under GST law will have to file tax returns by or before the due date.  The due date of filing of GST returns depend upon of category of GST registration.

Q.3) What detail has to be provided in GSTR-1 for an outward supply of goods or services?

Ans.- A normally registered taxpayer has to file the outward supply of goods/ or services in GSTR-1. The taxpayer has to differentiate the type of supply into registered and unregistered, separate details for exempted supply, or details of advances received for future supply of goods or services.

Q.4) Is a scan copy of the invoice required to submit with GSTR-1?

Ans.- No. only the basic details of the invoice are required to uploaded GSTIN, ie, number of purchases, invoice amount, tax amount.

Q.5) When do I need to upload an invoice on the GST portal?

 Ans.- In a few cases, a scan of an invoice for a supply of goods or services has to be uploaded, as in a case of B2B supply for providing input tax credit to the purchaser and in the case of IGST supply above Rs. 2.5 Lac. In the case of B2C supply, there is no requirement to upload the invoice on GST portal.

Q.6) Does product description in the invoice have to be uploaded?

Ans.- No, only HSN / SAC has to be uploaded to product or services supplied.

Q.7 What needs to be provide in the case of supply goods without any consideration?

Ans.- If supply goods are without consideration, it is supplied by virtue of schedule 1, then a taxable value of goods has to be calculated and an invoice has to be uploaded on the GST portal.

 Q.8) Can a recipient of goods or services claim an input tax credit in his GSTR-2 even if the supplier has not provided the details of the supply made to a recipient in his GSTR-1?

 Ans.- Yes, a recipient can add his details of goods or services received from a supplier by giving his GSTIN number, invoice number, invoice amount, and tax amount. The GST system of government will grant a provisional credit of input tax subject to a matching of invoice. Both supplier and recipient shall be intimated for rectification of mismatch. If the mismatch is rectified, a provisional credit will be confirmed. If the mismatch is unconfirmed, the amount will be added to the output tax liability of the recipient in subsequent month returns.

Q.9) Does the taxable person have to fill anything in GSTR-2 or is it auto-populated from the supplier GSTR-1?

Ans.- Most of the details in GSTR-2 will be auto-populated from GSTR-1 of the respective supplier while taxpayers will have to provide the details of other inward supply of goods or services, for instance, the detail of import purchase of goods or services, purchases from unregistered taxable person, details of exempted purchase, statement of purchase from a taxable person registered under composition scheme.

Q.10) If an input tax credit is denied by the supplier during the process of matching the invoice or in a response to GST department, then what action should be taken against the supplier?

Ans.- if a supplier of goods or services has not matched the invoice for the input tax claimed by the recipient, then in such circumstances, the recipient can complain to the GST administration about the intent of supplier and intention of tax evasion.

Q.11) What will be the legal position if a supplier later realizes that earlier reversed input tax has not been shown in GSTR-1? No rectification has been done even after intimation from a department.

Ans.- Before 30th September of the following end of the financial year, the supplier can upload the missing invoice and can pay tax with interest. The recipient will be eligible for input tax credit along with interest paid by the recipient at the time of reversal shall be reversed to cash ledger of the recipient.

Q.12) What is the monthly compliance under GST for the input service distributor?

Ans.- Every input service distributor has to submit one combined GSTR- 6 with the details of credit received from a service provider and input distributed to the recipient units. For an input service distributor, there is no requirement to file the statement of inward or outward supply.

Q.13) What is the process for the input tax credit for amount TDS/ TCS deducted by a deductor under GST Act?  Is there any requirement to submit a certificate to claim TDS or TCS under GST Act?

Ans.- As per the GST Act, every tax deductor has to submit details of deductions made by him in GSTR-7 by the 10th of the following month. Such details shall be auto-populated in the GSTR-2 of the deductee.  The certificate can be stored for record keeping and it can be downloaded from the GST portal.

Q.14) What is the process of revision of returns under GST Act?

Ans.- Once the returns is filled, it cannot be revised; however, if there is any difference in the value of supplier of goods or services can be amended by issuing or accepting a debit note or credit note. Such difference can be accommodated in GSTR 1 or GSTR 2.

Q.15) What steps are needed to take for hassle free compliance under GST?

  • Real-time uploading of invoice for supply of goods or services
  • File GSTR by 10th of following month
  • Adjust debit note / Credit note against invoice only
  • Do not pass credit note or debit on account basis
  • Track your sales return period as the recipient has liability to return the goods within the time period specified in the law.
  • File GSTR 2 & 3 on time
  • Respond to the department notice on time to maintain higher compliance rating
  • Follow-up with the department query during invoice mismatching

Q.16) What is the consequence for not filling GST returns on time?

Ans. If a registered person failed to file the GST returns within the prescribed time period, then he will have to pay the penalty Rs. 100 per day subject to maximum Rs. 5000. In case failure to file annual returns beyond the prescribed time period then further may be a penalty of 0.25% of the quarterly sales in a state.