Goods and Service Tax (GST)

GST 2017- Goods and Service Tax in India

What is GST?

GST stands for Goods and Service Tax. It is a kind of tax imposed on sale, manufacturing and usage of goods and services. Goods and Service Tax is applied on services and goods at a national level with a purpose of achieving overall economic growth. GST is particularly designed to replace the indirect taxes imposed on goods and services by the Centre and States.

Goods and Service Tax Definition:

Goods and Service Tax can be defined as a kind of Value Added Tax imposed by on various goods and services by different countries. The tax charged on goods and services may differ from country to country. Goods and service tax is imposed to collect revenues for the government. This tax is paid by the consumers of goods and services and collected and forwarded to the government by the business entities.

Goods and Service Tax in India:

In India, the Goods and Service Tax Bill was officially introduced in 2014 as The Constitution (One Hundred and Twenty-Second Amendment) Bill, 2014. The GST Bill in India proposes the implementation of nationwide Value Added Tax on sale, manufacturing and the use of different goods and services. The Goods and Service Tax act is expected to be operative in India from April, 2016.

Arun Jaitley - the Finance Minister of India announced The Constitution (One Hundred and Twenty-second Amendment) Bill, 2014 or the Goods and Service Tax in Lok Sabha on 19 December 2014. The Parliament passed the bill on 6th May, 2015, after it received 352 votes for and 37 against it.

Current Taxation System:

GST is a kind of indirect tax. Currently, Indian consumers have to pay indirect tax on goods and services such as Value Added Tax, Service Tax, Excise Duty, Customs Duty, etc. Under the current system, each State has a right to levy their own tax on the goods coming into their dominion for sale and consumption, while the Centre levies taxes on manufacture of the goods. All these direct taxes levied on the traders are passed down to the consumer.

The taxes levied by the State and Central Governments is given in the table below:

Central Government	State Government	Local Administration
Income Tax	Sales Tax	Property Tax
Excise Duty or Central VAT	Value Added Tax
Service Tax	Entertainment Tax
Customs Duty	Road Toll
Central Sales Tax	Professional Tax
	Stamp Duty
	Luxury Tax
	Octroi Duty
	Capital Gains Tax
	Entry tax

Of these, excise duty/CENVAT, customs duty, service tax, central and state sales tax, VAT, octroy, entry tax, road toll, luxury tax and entertainment tax are applicable to goods and services.

Let us take an example of a dress manufactured in Surat, Gujarat. At the spot of manufacture, an excise duty/Cenvat has to be paid to the Central Government. If the dyes for the dress are bought from Madhya Pradesh, then the manufacturer has to pay the state taxes applicable for the dyes in Madhya Pradesh while buying it, and also pay Gujarat’s “import duty” on the product. Similarly, if the buttons for the dress are bought from Rajasthan, then another set of taxes are added to the manufacturing cost. At the end of this chain, when the product reaches the market for sale, VAT is added to it. So all the taxes paid for the production of the dress so far gets added to the cost of the dress, which rises considerably from its actual manufacturing cost.

The current system is burdened with multiple taxation on the same object with no way to offset the taxes already paid at each stage of production-retailing-consumption. If Cenvat and service tax are paid at the manufacturing level, these can be offset against future payments, but none of the other taxes paid at any stage can be reclaimed.

How GST Works:

GST proposes to abolish the varying levels of taxation between States, and consider the country as a single whole organism when it comes to taxes on goods and services instead of as a segmented creature. All the sundry taxes will be clubbed into just 2 levels – Central GST and State GST. What a trader will essentially be able to do is claim a refund on the taxes already paid at different stages of value addition. The consumer who buys the product will have to pay only the GST charged by the last dealer in the supply chain, as everyone else would have the opportunity to set-off the taxes paid at the previous stages. If we take the example above under the GST system, the Cenvat on manufacturing the dress and the taxes paid on dyes and buttons can be offset at each level, thereby considerably reducing the total taxes paid.

GST will also prevent the multiple taxation occurring on certain goods, and ensure transparency with regards to the rate of taxation and the total amount that goes to the government as taxes on a product. Currently, a consumer is not aware of the total amount of taxes s/he pays for a product, apart from VAT which is mentioned on the bill.

Here’s a list of taxes that the GST will likely replace:

• Service Tax
• Cesses and surcharges related to supply of goods or services
• Central Excise Duty
• Excise Duties on medicinal and toilet preparations
• Additional Excise Duties on textiles and textile products
• Additional Excise Duties on goods of special importance
• Additional Customs Duties (CVD)
• Special Additional Duty of Customs (SAD)

These are the taxes that could be absorbed into the GST regime:

• Central Sales Tax
• State VAT
• Entry Tax
• Purchase Tax
• Entertainment Tax (not levied by local bodies)
• Luxury Tax
• Taxes on advertisements
• State cesses and surcharges
• Taxes on lotteries, betting and gambling

The exact rates of GST have not been decided yet. This will be done only after repeated consultations on the reports made by the GST Council. The rates being discussed as of now hover around 18%, which may be higher than the current system for certain goods and services, and lower for the others.

Advantages of GST:

• This is a federal law, which means that the states will no longer have the right to make new laws on taxation towards goods and services.
• It simplifies the tax system and makes it easier to understand as well as cheaper to implement at various levels.
• Tax evasion at various stages will be eliminated as tax offsets can be collected only if taxes have been paid originally. You will also be able to buy raw materials or constituent materials for production only from those who have paid taxes, in order to claim benefits.
• It will be cheaper to buy input goods and services for production from other states.
• The current supply and distribution chain may undergo a change with a change in taxation system that does away with excise and customs duties.
• The consumer will get the end-product at cheaper rates because of elimination of multiple taxes and the tax cascade.
• As of now, petroleum and petroleum products have been kept out of the GST regime until further notice.
• Sale of newspapers and advertisements are also likely to fall under the GST regime, allowing the government to increase its revenue considerably.
• While there will be central GST and state GST, the tax applicable on goods and services being exported and imported between states in India would fall under an Integrated GST (GST) system in order to avoid conflict of dominion.

Disadvantages of GST:

• GST is not good news for all sectors, though. In the current system, many products are exempted from taxation. The GST proposes to have minimal exemption list. Currently, higher taxes are levied on fewer items, but with GST, lower taxes will be levied on almost all items.
• GST is not applicable on liquor for human consumption. So alcohol rates will not get any advantage of GST.
• Stamp duty will not fall under the GST regime and will continue to be imposed by states.

GST Bill Approval Process:

The Constitution Amendment Bill for Goods and Services Tax (GST) was cleared by the Rajya Sabha on August 3, 2016. This Bill sanctions a modification in the Constitution to allow both the Centre and the States to levy goods and services tax.

The Bill was first introduced in the Lok Sabha in March 2011 and reports were submitted around it regularly. However, in 2014, the Bill lapsed as the Lok Sabha’s ongoing term ended. The Bill was passed by the Lok Sabha on May 6, 2015, and further reports were commissioned and presented.

After Rajya Sabha’s clearance of the Bill, the Lok Sabha will ratify the Bill again. At least 15 other states also have to support the Bill to go forward with its implementation as an Act. Once the ratifications are received, the President will constitute a GST Council comprising the Finance Minister, Minister of State in charge of Revenue, Minister in charge of Finance/Taxation, and other ministers nominated by states. This Council will make recommendations on the taxes to be absorbed and done away with, exemptions to GST and their threshold, laws governing the GST levies, actual GST rates and discounts, etc. A draft of the Bill is already available in the public domain. Once the changes are made and the final draft it ready it will be put up in public again and comments sought.

Once the GST Bill is fleshed out in detail, and the President approves it, the Parliament will pass a legislation on central GST and integrated GST, and all the states and union territories will pass legislations on the state GST. Once all legislations have been passed as Acts, a synchronised implementation of the Acts will be negotiated among the states and centre, and Goods and Services Tax will be officially active.

Goods and Services Tax Bill:

The Goods and Service Tax Bill is officially known as The Constitution (One Hundred and Twenty-Second Amendment) Bill, 2014 which is formulated to create a pan-India tax system and end the number of multiple taxes charged by the Centre and the States on various goods and services. The key points of the GST bill are given below:

• It is an indirect, uniform tax that is levied on the goods and services throughout a particular country. Several developed countries add tax on sale, manufacture and consumption using single comprehensive tax.
• Surcharge on supply of goods, cesses, special ad-on duty of customs, add-on duties of customs and excise and central excise duty would be replaced by Central Taxes GST.
• Entertainment tax, entry tax, purchase tax, central sales tax, VAT, etc. would be replaced by State Tax GST.
• The primary objectives of GST is eliminating the excessive taxation.
• The 2014 bill deleted the 2011 bill provision that imposed certain restrictions on the states on taxation of the products that are important for inter-state commerce and trade.

  Goods and Services Tax Act:

  Goods and Service Tax act is one of the most remarkable tax reforms that has taken place in India so far. The GST act, which is also known as The Constitution (One Hundred and Twenty-Second Amendment) Bill, 2014, mainly focuses on changing the Constitution of India to simplify the process taxation on goods and services in India. The act bestows power on the Parliament and the State legislatures to make laws for imposing taxes on goods and services at the national level.

  Key Features of Goods and Service Tax:

  Listed below are the main features of the Goods and Service tax in India:
  • The Goods and Services Tax will include Central Indirect taxes such as Excise Duty, Service Tax, Special Additional Duty of Customs, Countervailing Duty , Central Surcharges and Cesses as long as they are related to the supply and consumption of goods and services.
  • It will also include State Value Added Tax or Sales Tax, Entertainment Tax, (excluding the tax charged by the local bodies), Entry and Octroi tax, Central Sales Tax (taxed by the Centre and collected by the State Government) , Purchase Tax, Luxury tax, Taxes on betting, lottery and State cesses and surcharges involved in the supply and consumption of services and goods.
  • Inclusion of the concept of ‘declared goods of special importance’ as per the Indian Constitution.
  • Will levy integrated Goods and Services Tax on inter-State transactions of goods and services.
  • Will levy additional tax of 1% on supply of goods in inter-State trade which will be collected by the Government of India for a period of two years and will be allocated to the states from where the supply comes.
  • Petroleum and petroleum products and alcohol have been kept out of the reach of GST.
  • The act will have two constituents - Central GST charged by the Centre and State GST charged by the states. But, in case of inter-state trade or commerce, only the Centre will levy tax and collect Goods and Service Tax, and the tax collected would be divided between the Centre and the State as per the provision made in the parliament.
  • Also an additional tax of 1% on inter-state trade in goods and services will be imposed and collected by the Centre and provided to the states for two years to compensate the loss ( of any) faced by the states for implementing the GST.
  • A Goods and Services Tax Council will be created to address the issues relating to goods and services tax and give recommendations to the Union and the States on areas such as rates, exemption list and threshold limits. The GST Council will constitute of the Union Finance Minister as chairman followed by the Minister –in-charge of Finance or Taxation or any other Minister nominated by each State Government. The GST Council will function under the Chairmanship of the Union Finance Minister and it will be a joint forum of the Centre and the States.
  The Impact:
  It is expected that the creation of the Goods and Service Tax act and its implementation will have a great impact on various aspects of business in India by changing the traditional pattern of pricing the products and services.
  The Goods and Service Act will also have a great impact on the tax system in India by reducing the unfavorable effect of tax on the cost of goods and services. GST is expected to change the whole indirect tax system by impacting the tax structure, tax computation, credit utilization and tax frequency. It will also help in supply chain optimization.
  As per the government notification, the Goods and Service Tax will be effective in India from April, 2016. The originators of the Goods and Service Tax believe that the implementation of this act would make the tax procedure more transparent, fair and efficient.
  Thus, the introduction of Goods and Services Tax or The Constitution (One Hundred and Twenty-Second Amendment) Bill, 2014 is a significant move taken the Indian Government to reform taxation in India. It will help in creating a single national market by merging several Central and State taxes under a one single tax procedure. No doubt, the implementation of GST will take time, but it is likely to create more employment opportunities and economic inclusion.

GST Rates in India

Most of the commodities and services that are subject to GST have been categorised under four tax slabs, viz. 5%, 12%, 18%, and 28%. However, GST Rates is not applicable to some goods and services, such as jute, fish, eggs, fresh meat, milk, chicken, curd, fresh fruits, butter milk, vegetables, natural honey, bread, salt, besan, prasad, sindoor, printed books, bindi, judicial papers, newspapers, handloom, bangles, horn cores, bone meal, bone grist, horn meal, hoof meal, palmyra jaggery, cereal grains hulled, colouring and drawing books, etc.

GST Rates – Know what is GST and GST Bill Rates

GST stands for Goods and Services Tax. It is an indirect tax system introduced by the government of India. GST comprises of most of the existing indirect taxes such as VAT, Service Tax, etc. The GST bill was passed in the Lok Sabha in 2017.

Types of GST:

There are 3 types of GST:

• CGST – It is short for Central GST.
• SGST – It is short for State GST.
• IGST – It is short for Integrated GST.

CGST – Here, the tax will be imposed by the central government of India. It will replace excise duty, service tax, SAD (Special Additional Duty), CVD (Countervailing Duty), ADE (Additional Duties of Excise) and other indirect taxes levied by the central government. CGST will be applicable on supplies within a state and the tax revenue will go only to the central government.

SGST – Here, tax will be imposed by the state government. It will replace sales tax, VAT, entertainment tax, entry tax, luxury tax, Octroi, purchase tax and taxes on lottery. SGST will be applicable on supplies within a state and the tax revenue will go only to the state government.

Both CGST and SGST will be levied only if the annual turnover is more than Rs.20 lakhs. They both are applicable on free supplies. Registration for both is required only if the turnover is more than Rs.20 lakhs. Dealers can use the Composition Scheme to avail benefits, if the turnover is Rs.50 lakhs.

IGST – It will be imposed by state and central government together, but is collected by the central government. The revenue is shared by both central and state governments. It will replace Central Sales Tax (CST). It will be applicable on interstate import and supplies. No exemption limit has been defined by the government for this type of GST. If dealers supply in different states, then they have to register for this GST. It will also be applicable on free supplies. For this type of GST, the composition scheme is not available.

GST Rates in India 2017

The GST Council has proposed a four-tier tax structure wherein rates are either nil or very low so far as essential food items are concerned. The reason for this is that these food items constitute around 50% of the consume basket, and contributes significantly towards ensuring that widespread inflation is kept in check even after the revised tax slabs under GST have been implemented. Negative items and luxury goods, however, are expected to be taxed at a considerably higher rate in order to maintain revenue neutrality for state and central governments following the implementation of the new GST rates. Other precious metals are likely to see the implementation of an extra concessional GST tax slab as these metals are currently taxed at just 1% under VAT.

Following is a table of commodities and services and the GST rates applicable to them:

Commodities / Services	GST Rate
Items that are not listed in any other category, such as electrical appliances, oil, soaps, etc.	18%
All services like professional charges, fees, insurance, banking, restaurants, telecom, etc.	18%
Essential farm produced mass consumption items such as wheat, rice, food grains, etc.	NIL
Mass consumption and common use food items like mustard oil, tea, spices, etc., but not including processed foods	5%
Processed foods	12%
Cars and white goods	28%
De-merits and luxury goods and items that fall under the sin category, such as aerated drinks, tobacco, luxury cars, pan masala, etc.	28% + CESS

GST Registartion

The GST (Goods and Service Tax) Bill was approved by Narendra Modi, the Prime Minister of India, in an effort to replace all state or central government-imposed indirect taxes. As a result, it is now compulsory for entities engaging in the supply of goods and services across states to do GST registration online.

The GST bill was recently passed by the Lok Sabha on March 30th and it is going to directly affect everyone in the country. So, what is GST? GST stands for Goods and Services Tax. It will be imposed by the state and central governments and will be subsume most of the indirect taxes such as VAT, Service Tax, etc.

Anyone who has a valid PAN, is registered under the current Income Tax Law and crosses the turnover GST limit can register for GST. People who have to pay TDS, casual traders, etc., have to register for GST. Existing assesses have to get their provisional ID and password for GST portal from their state’s ACES or VAT website. After they login on to the GST portal, they will have to create a new user ID and password.

Mandatory GST Registration Online

All businesses whose turnover is above Rs.20 lakh, or Rs.10 lakh (for North-Eastern states), are expected to do GST registration as a regular taxable person. GST online registration is also mandatory for NRI taxable individuals, entities engaging in e-commerce, entities supplying goods and services via e-commerce operators, individuals who are eligible for TDS (Tax deducted at source), entities engaging in the provision of online information or retrieval services or database access, etc.

Most entities and businesses in the country are required to complete GST registration online. Even entities that are not mandated to complete GST online registration can do so on a voluntary basis as registration enables the entity to gain legal recognition as a supplier of goods and/or services, thereby allowing the entity to levy GST on customers who avail their goods or services. As such, entities that have completed GST registration online can be eligible to avail input tax credit.

How to do GST Online Registration

Here is a Step-by-Step Procedure to Complete GST Online Registration

• Log on to www.gst.gov.in.
• Click on the ‘Services’ tab on the menu at the top of the page.
• You will have three options, viz. ‘Registration’, ‘Payments, and ‘User Services’.
• Click on ‘Registration’ and select ‘New Registration’.
• You will be redirected to a new page wherein you will have to select whether you are a taxpayer or a GST practitioner before entering a few details such as the legal name of the business, the state and district in which the entity is located, Permanent Account Number, email address and mobile number. This is basically Part-A of the form.
• The details you have entered will have to be verified by the portal, so you will receive a one-time password or an email for confirmation.
• Based on the kind of business you are running, you will be required to upload a few documents as requested.
• Part-B of the form will then have to be filled in with a few details after which you will receive the Application Reference Number through email or SMS.
• Your application will then be verified by a GST officer and it could either be approved or you will be requested to provide some more details or documents until the authorities have all the required information to approve your application.

Separate registration has to be done for each state, if a trader has branches in multiple states. Businesses with more than 1 vertical can register separately for each of them.

As GST has just been introduced, it may take us a while to get used to it and understand it. At present, all assessees have been asked to register for GST and not procedure is in place for people who do not want to register for it. They can choose to cancel their registration after registering though.

Penalties for not Completing GST Online Registration

Offenders who do not pay tax or fail to make the full payment will face a penalty of 10% of the tax amount. The minimum amount of fine will be Rs.10, 000 if the 10% amounts to anything less. In case of deliberate tax evasions, offenders will be charged a penalty of 100% of the tax amount. The penalty will be 10% of the tax due in case of genuine errors.

GST Returns Filing

Goods and Services Tax is a single indirect tax levied on the supply of goods and services from the manufacturer to the consumer. Input tax credits paid at each stage will be made available in the following stage of value addition. GST is basically a tax levied on value addition at each stage. Therefore, the consumer has to pay only the GST charged by the last dealer or supplier in the supply chain.

All individuals registered under the GST Act has to furnish the details of the sales and purchases of goods and services along with the tax collected and paid. This can be done by filing online returns. GST Returns are the Goods and Services Tax Return forms that taxpayers of all types have to file with the income tax authorities of India under the new GST rules.

Implementation of a comprehensive Income Tax system like GST in India will ensure that taxpayer services such as registration, returns, and compliance are transparent and straightforward. Individual taxpayers will be using 4 forms for filing their returns such as the return for supplies, return for purchases, monthly returns, and annual return. Small taxpayers who have opted for composition scheme will have to file quarterly returns. All filing of returns will be done online.

Different Types of Returns applicable under the new GST Law

Return form	Who should file the return and what should be filed?	Due date for filing returns
GSTR-1	Registered taxable supplier should file details of outward supplies of taxable goods and services as effected.	10th of the subsequent month.
GSTR-2	Registered taxable recipient should file details of inward supplies of taxable goods and services claiming input tax credit.	15th of the subsequent month.
GSTR-3	Registered taxable person should file monthly return on the basis of finalization of details of outward supplies and inward supplies plus the payment of amount of tax.	20th of the subsequent month.
GSTR-4	Composition supplier should file quarterly return.	18th of the month succeeding quarter.
GSTR-5	Return for non-resident taxable person.	20th of the subsequent month.
GSTR-6	Return for input service distributor.	13th of the subsequent month.
GSTR-7	Return for authorities carrying out tax deduction at source.	10th of the subsequent month.
GSTR-8	E-commerce operator or tax collector should file details of supplies effected and the amount of tax collected.	10th of the subsequent month.
GSTR-9	Registered taxable person should file annual return.	31 December of the next fiscal year.
GSTR-10	Taxable person whose registration has been cancelled or surrendered should file final return.	Within 3 months of date of cancellation or date of cancellation order, whichever is later.
GSTR-11	Person having UIN claiming refund should file details of inward supplies.	28th of the month, following the month for which the statement was filed.

Return Forms

GST return can be filed using different forms depending on the type of transaction and registration of the taxpayer. Return forms for normal taxpayers are:

GSTR-1

GSTR-1 return form has to be filed by a registered taxable supplier with details of the outward supplies of goods and services. This form is filled by the supplier. The buyer has to validate the auto-populated purchase information on the form and make modifications if required. The form will contain the following details:

• Business name, period for which the return is filed, Goods and Services Taxpayer Identification Number (GSTIN).
• Invoices issued in the previous month and the corresponding taxes collected.
• Advances received against a supply order that has to be delivered in the future.
• Revision in outward sales invoices from the previous tax periods.

GSTR-1 has to be filed by 10th of the following month.

GSTR-2

GSTR-2 return form has to be filed by a registered taxable recipient with details of the inward supplies of goods and services. The form will contain the following details:

• Business name, period for which the return is filed, Goods and Services Tax Identification Number (GSTIN).
• Invoices issued in the previous month and the corresponding taxes collected.
• Advances received against a supply order that has to be delivered in the future.
• Revision in outward sales invoices from the previous tax periods.

GSTR-2 has to be filed by 15th of the following month.

GSTR-3

GSTR-3 return form has to be filed by a registered taxpayer with details that are automatically populated by from GSTR-1 and GSTR-2 returns forms. The taxpayer has to verify and make modifications, if any. GSTR-3 return form will contain the following details:

• Details about Input Tax Credit, liability, and cash ledger.
• Details of tax paid under CGST, SGST, and IGST.
• Claim a refund of excess payment or request to carry forward the credit.

GSTR-3 has to be filed by 20th of the following month.

GSTR-4

GSTR-4 return form has to be filed by taxpayers who have opted for the Composition Scheme. Taxpayers with small business or a turnover of up to Rs.75 lakh can opt for the Composition Scheme wherein he or she have to pay tax at a fixed rate based on the type of business. Taxpayers under this scheme will not have input tax credit facility. GSTR-4 quarterly return form will contain the following details:

• The total value of consolidated supply made during the period of return.
• Details of tax paid.
• Invoice-level purchase information.

GSTR-4 has to be filed by 18th of the following month.

GSTR-5

GSTR-5 return form has to be filed by all registered non-resident taxpayers. This form will contain the following:

• Name and address of the taxpayer, GSTIN, and period of return.
• Details of outward supplies and inward supplies.
• Details of goods imported, any amendments in goods imported during the previous tax periods.
• Import of services, amendments in import of services
• Details of credit or debit notes, closing stock of goods, and refund claimed from cash ledger.

GSTR-5 has to be filed by 20th of the following month.

GSTR-6

GSTR-6 return form has to be filed by all taxpayers who are registered as an Input Service Distributor. This form will contain the following:

• Name and address of the taxpayer, GSTIN, and period of return.
• Details of input credit distributed.
• Supplies received from registered persons.
• The amount of input credit availed under the current tax period.
• Details of inward supplies will be auto-populated from GSTR-1 and GSTR-5 return forms.
• Details of the receiver of input credit corresponding to his or her GSTIN.
• Details of credit or debit notes.
• Input tax credit received, input tax credit reverted, and input tax credit distributed as SGST, CGST, and IGST.

GSTR-6 has to be filed by 13th of the following month.

GSTR-7

GSTR-7 return form has to be filed by all registered taxpayers who are required to deduct tax at source under the GST rule. This form will contain the following:

• Name and address of the taxpayer, GSTIN, and period of return.
• TDS details and amendments in invoice amount, TDS amount or contract details.
• TDS liability will be auto-populated. Details of fees for late filing of return and interest on delayed payment of TDS.
• Refund received from Electronic Cash Ledger will be auto-populated.

GSTR-7 has to be filed by 10th of the following month.

GSTR-8

GSTR-8 return form has to be filed by all e-Commerce operators who are required to collect tax at source under the GST rule. This form will contain details of supplies effected and the amount of tax collected under Sub-section (1) of Section 43C of Model GST Law. Other details include:

• Name and address of the taxpayer, GSTIN, and period of return.
• Details of supplies made to registered taxable person and amendments, if any.
• Details of supplies made to unregistered persons.
• Details of Tax Collected at Source.
• TDS liability will be auto-populated. Details of fees for late filing of return and interest on delayed payment of TDS.

GSTR-8 has to be filed by 10th of the following month.

GSTR-9

GSTR-9 return form is filed by normal taxpayers with details of all income and expenditure for the year. This detail will be regrouped in accordance with the monthly returns. The taxpayer will have the opportunity to make modifications in the information provided if required. GSTR-9 has to be filed by 31st December of the following financial year along with the audited copies of the annual accounts.

GSTR-10

GSTR-10 return form has to be filed by any taxpayer who opts for cancellation of GST registration. This form will contain the following:

• Application Reference Number (ARN).

• Date of cancellation of GST registration.
• Unique ID of cancellation order.
• Date of cancellation order.
• Details of closing stock including amount of tax payable on closing stock.

GSTR-10 final return form has to be filed within 3 months of the date of cancellation or date of cancellation order, whichever is later.

GSTR- 11

GSTR-11 return form has to be filed by everyone who has been issued a Unique Identity Number (UIN) and claims a refund of the taxes paid on inward supplies. This form will contain the following details:

• Name of the government entity, UIN, and period of return.
• All inward purchases from GST registered supplier will be auto-populated.

Based on the above mentioned details, the tax refund will be made. GSTR-11 form has to be filed on 28th of the month, following the month for which supply was received.

How to File GST Returns Online?

From manufacturers and suppliers to dealers and consumers, all taxpayers have to file their tax returns with the GST department every year. Under the new GST regime, filing tax returns has become automated. GST returns can be filed online using the software or apps provided by Goods and Service Tax Network (GSTN) which will auto-populate the details on each GSTR forms. Listed below are the steps for filing GST returns online:

• Visit the GST portal (www.gst.gov.in).
• A 15-digit GST identification number will be issued based on your state code and PAN number.
• Upload invoices on the GST portal or the software. An invoice reference number will be issued against each invoice.
• After uploading invoices, outward return, inward return, and cumulative monthly return have to be filed online. If there are any errors, you have the option to correct it and refile the returns.
• File the outward supply returns in GSTR-1 form through the information section at the GST Common Portal (GSTN) on or before 10th of the following month.
• Details of outward supplies furnished by the supplier will be made available in GSTR-2A to the recipient.
• Recipient has to verify, validate, and modify the details of outward supplies, and also file details of credit or debit notes.
• Recipient has to furnish the details of inward supplies of taxable goods and services in GSTR-2 form.
• The supplier can either accept or reject the modifications of the details of inward supplies made available by the recipient in GSTR-1A.

File GST return with GSTN

The Goods and Service Tax Network will store information of all GST registered sellers and buyers, combine the submitted details, and maintain registers for future reference. Companies have to file 3 monthly returns every 3 months and one annual return in a financial year (37 returns in total). GSTN has launched a simple excel based template to make filing of returns easier for businesses. This excel workbook can be downloaded from the GST common portal free of charge. Taxpayers can use this template to collate invoice data on a regular basis. The details of inward and outward supplies can be uploaded on the GST portal on or before the due date. The data preparation can be done offline. Only while uploading the prepared file on the GST portal will the taxpayer need Internet.