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About GST Return

Goods and Services Tax (GST) is a type of indirect tax which is levied on Supply of goods as well as services. The adoption of Goods and Services Tax has been a major milestone in the indirect tax regime. The idea of GST Return was first mooted in the year 2000 and after years of intense deliberations and discussions, GST came into existence on 1st July, 2017 by subsuming numerous central and state level taxes and levies. The application of GST has ensured a uniform application of indirect tax laws and uniform policies and procedures throughout the country. All registered businesses have to file monthly, quarterly, and/or annual GST Return based on the type of business. The Process Of Filing GST return online is systematically handled by our team of experts.

About GST Return

GST is an indirect tax meaning thereby that the amount of tax is not paid by the supplier from his own pocket, rather the tax is collected from the customer and paid to the government. While paying tax to the government, the supplier is entitled to deduct the amount of tax paid by him/her on purchases made by the supplier. Let us assume that the supplier purchases an item costing Rs. 100 on which GST is chargeable at 5%. GST paid by the supplier comes out to be Rs. 5 (100*5%). Now the supplier sells the same item to the customer for Rs. 140. GST collected by the supplier from the customer will be Rs. 7 (140*5%). So the supplier will now be liable to pay Rs. 2 to the government while discharging GST liability which is basically the difference of Rs. 7 and Rs. 5.

Barring a few exceptions, it is the supplier who is responsible for collection of GST and for making payment to the government. Now the question arises is whether everyone who is engaged in some kind of trade required to collect GST or is it applicable in select instances?For collecting GST, the first requirement is getting registered under the GST Act. Read on to find out who all are required to be registered under GST.

Returns under GST

Return Frequency of Return Information supplied in Return Due date of filing Return
GSTR-3B Quarterly if opted for QRMP scheme and Monthly in other cases Summary return containing details of outward supply, tax on outward supply, inward supplies and input tax credit. Payment of tax is also done through this return. Refer chart below
GSTR-1 Quarterly if opted for QRMP scheme and Monthly in other cases Detailed return containing particulars of outward supplies and tax thereon. Details can be invoice-wise in case of B2B transaction (sale by one registered person to other) or state-wise in case of B2C transaction (sale by registered person to unregistered person) (a) In case of Monthly filing: 11th of the next month
(b) In case of Quarterly filing: 13th of the month following the end of quarter
GSTR-4 Annual Details of outward supplies and inward supplies in case of Composition Taxpayer. For payment of tax, a quarterly statement cum challan in Form CMP-08 is filed. 30th of April following the relevant financial year
GSTR-5 Monthly Details of outward implies and goods imported by a Non-Resident Taxable Person 20th of the next month or within 7 days after expiry of registration whichever is earlier
GSTR-6 Monthly Details of input tax credit received and distributed by an Input Service Distributor 13th of the next month
GSTR-7 Monthly Details of tax deducted at source and paid to the government by a TDS Deductor 10th of the next month
GSTR-8 Monthly Details of supplies made through an
E-Commerce Operator and tax collected at source 		10th of the next month
GSTR-9 Annual Annual return in case of a normal taxpayer 31st December of next financial year
GSTR-9B Annual Annual return in case of an e-commerce operator 31st December of next financial year
GSTR-10 One time Final return to be filed where registration has been cancelled Within 3 months of the date of cancellation or date of order of cancellation, whichever is later
GSTR-11 Monthly Details of inward supplies received by a person who has been granted Unique Identity Number (UIN) for claiming refund of GST paid on goods or services purchased by them in India 28th of the month following the month in which inward supply is received by the UIN holder

Chart depicting due date for filing of GSTR-3B




QRMP SCHEME

QRMP scheme stands for Quarterly Return Monthly Payment scheme. Regular taxpayers having annual turnover upto Rs. 5 crores in preceding financial year have the option to opt for QRMP scheme. Option to opt in or opt out of QRMP scheme is available in each quarter.

Though Returns are to be filed on quarterly basis, payment of tax is to be done monthly in Form PMT-06 upto 25th of the next month. There are two methods of payment under QRMP scheme- Fixed Sum Method and Self Assessment Method. Under Fixed Sum Method, amount equal to 35% of tax paid in cash in last quarter is to be paid by way of a pre-filled challan in the first two months of the quarter and remaining liability is to be discharged in the last month of the quarter based on actual calculation along with the filing of GSTR-3B. In Self Assessment Method, taxpayer needs to calculate the actual tax payable by considering tax liability on outward and inward supplies and input tax credit available and according discharge the liability in each of the three months of the quarter.

Under QRMP scheme, Invoice Furnishing Facility (IFF) has also been provided as an optional tool wherein the taxpayers can upload B2B invoices and credit notes on a monthly basis for free flow of input tax credit to the purchaser. Filing of IFF can be done upto 13th of the next month with a limit of Rs. 50 lakhs on net value of invoices which can be uploaded via IFF. Invoices once uploaded in IFF need not to be uploaded again in GSTR-1.

When was GST made applicable?

Ans. GST came into force on 1st July, 2017 amalgamating various central and state level indirect tax laws

Ans. Every supplier having annual aggregate turnover of more than Rs. 20 lakhs of goods or services. Where supplier is engaged only in intra-state supply of goods, then registration required if turnover exceeds Rs. 40 lakhs. If supplier is engaged in supply of only those goods or services which are not chargeable to GST, then registration is not required. In some cases, registration may be required irrespective of turnover.

Ans. Yes, registration can be applied voluntarily even if aggregate turnover is below the prescribed limit. On obtaining voluntary registration, all provisions of GST Act shall be applicable to such supplier as they are applicable to any other person.

Ans. Yes, the supplier can collect GST from customers only after registration.

Ans. Yes, the registration must be applied within 30 days of becoming liable for registration. Casual Taxable Persons and Non-Resident Taxable Persons need to apply for apply at least 5 days before commencement of business.

Ans. Typical requirements include PAN card, Aadhar Card, Address Proof, Bank account details, Registration Certificate and Letter of Authorization.

Ans. GSTIN stands for Goods and Services Tax Identification Number. GSTIN is allotted post registration and is used for making tax payments, filing returns etc.

Ans. Composition scheme is available for small and medium businesses having turnover of goods or turnover from restaurant service upto Rs. 1.50 crores. In case of other services, maximum turnover can be Rs. 50 lakhs. A composition taxpayer is not allowed to make inter-state supply and is also not eligible to claim input tax credit on purchases done by it. The tax rate for manufacturers and traders is 1% and for restaurant service providers, it is 5%. In case of other services, tax rate is 6%. The composition tax is not collected from the buyers and is paid by the supplier. Option to pay tax under composition scheme must be intimated before the beginning of financial year. However, withdrawal from composition scheme can be done at any time during the year.

Ans. No, state-wise registration is done under GST. The first two digits of the GSTIN represent state code. Separate Registration is required in each state in which the organization is maintaining a place of business and carrying on its operations.

Ans. Yes, registration can be obtained for each business place within one state whether all such business places are carrying on same business or different lines of businesses.

Ans. In case of inter-state transactions, Integrated Goods and Services Tax (IGST) is charged. In case of intra-state transactions, Central Goods and Services Tax (CGST) and State Goods and Services Tax (SGST) are charged. For example, if an item attracts 18% GST rate, then IGST will be charged at the rate of 18% in case of inter-state transactions and 9% CGST plus 9% SGST will be charged in case of intra-state transactions.

Ans. HSN stands for Harmonised System of Nomenclature and SAC stands for Service Accounting Code. HSN is used for goods and SAC is used for services. These are used for classification and identification of goods or services. These are required to be mentioned on tax invoice upto 4 digits if turnover is less than or equal to Rs. 5 crores and 6 digits when turnover is more than Rs. 5 crores.

Ans. Input Tax Credit (ITC) represents the tax paid by the supplier on purchases and input services which can be deducted while discharging the output tax liability. ITC is claimed by the supplier on a self-declaration basis in GSTR-3B and should not exceed 105% of ITC appearing in GSTR-2B/2A. In GST, ITC is allowed for inputs, input services and capital goods used in the course of or furtherance of business. ITC on personal expenditure can’t be claimed. Also there are certain good and services on which ITC can’t be claimed even though they are used for the purposes of business like food and beverages, motor vehicles, free samples, construction material etc. ITC can be claimed only if the outward sale made using those inputs or input services or capital goods is not exempt under GST.

Ans. In simple terms, aggregate turnover means aggregate value of all taxable supplies (excluding inward supplies on which tax is payable on reverse charge basis), exempt supplies, export of goods or services or both and inter-state supplies persons having same PAN to be computed on all India basis excluding the amount of tax. Thus, while deciding the need for registration, exempt and non-taxable supplies also need to be taken into account while calculating the amount of turnover.

Ans. Reverse charge means a situation where the liability to pay tax is on the recipient of goods or services instead of the supplier of goods or services. Such liability can be discharged only by payment in cash. ITC can’t be used for paying tax under Reverse Charge.

Ans. Casual taxable person means a person who occasionally undertakes transactions involving supply of goods or services whether as a principal, agent or in any other capacity, in a state or Union Territory where he has no physical presence.
Non-resident taxable person means a person who occasionally undertakes transactions involving supply of goods or services whether as a principal, agent or in any other capacity, but who has no fixed place of business or residence in India.

Ans. Exempt supplies consist of:

  • Nil-rated supplies attracting 0% tax rate as per GST schedules
  • Supplies which are wholly exempt under Section 11 of CGST Act or Section 6 of IGST Act
  • Non-taxable supplies which are outside the purview of GST namely High-Speed Diesel, Motor Spirit (Petrol), Petroleum Crude, Natural Gas and Aviation Turbine Fuel.

    • ITC is not available in respect of such supplies.

Ans. Zero-rated supplies refer to export of goods or services or supply made to a SEZ developer or SEZ unit. The supplier has the option not to pay IGST on such supply by making supply under Bond/Letter of Undertaking and later claim refund of Accumulated ITC on inputs or input services used in making such supplies. Alternatively, supplier can pay IGST on such supply and later get refund of IGST paid on such supply.

Ans. GST return is basically a statement showing various transactions of your business during a particular tax period. The main components of a GST Return include Sales, Purchase, Output Tax and Input Tax Credit.

Ans. In case of composition taxpayer, CMP-08 which is a statement and challan needs to filed on a quarterly basis and annual return in form GSTR-4 need to be on an annual basis.
In case of regular taxpayers who have opted for QRMP (Quarterly Return Monthly Payment) scheme, GSTR-1 and GSTR-3B is to be filed on quarterly basis along with monthly payment of tax in Form PMT-06. Other Regular taxpayers have to file GSTR-1 and GSTR-3B on monthly basis. Regular taxpayers whose turnover in preceding financial year was upto Rs. 5 crores are eligible to opt for QRMP scheme.

Ans. Yes, a NIL return needs to filed even if there are no transactions during the tax period.

Ans. Late fees will be levied equal to Rs. 20 per day in case of NIL return and Rs. 50 per day in any other case. Also interest at the rate of 18% p.a. shall be charged if tax is not paid on time.

Ans. DSC of authorized signatory is required where the registered person is a company or LLP.

Ans. B2B means business to business. Here the customer is also registered under GST.
B2C Small means business to consumer transaction where customer is not registered under
GST. B2C Large means business to consumer transaction where customer is not registered and also
the transaction involves inter-state supply and invoice value is more than Rs. 250000.
B2B and B2C Large invoices are reported invoice-wise in GSTR-1 whereas B2C Small Invoices are reported state-wise in GSTR-1.

Ans. There is no mechanism for filing a revised return be it GSTR-3B or GSTR-1 once it has been filed. However where any detail of B2B or B2C invoice or credit note has been incorrectly reported in GSTR-1, in that case amendment of incorrect details can be done in any subsequent GSTR-1.