GST FAQs

What is the purpose of returns?

Ans.

a) Mode for transfer of information to tax administration;

b) Compliance verification program of tax administration;

c) Finalization of the tax liabilities of the taxpayer within stipulated period of limitation; to declare tax liability for a given period;

d) Providing necessary inputs for taking policy decision;

e) Management of audit and anti-evasion programs of tax administration.

Who needs to file Return in GST regime?

Ans. Every registered taxable person - who crosses the

threshold limit for payment of taxes. A supplier needs to be

registered when the aggregate turnover crosses Rs. nine

lacs but he become taxable person ONLY when he crosses

Rs. ten lacs. So he will be required to file returns when he

crosses the threshold limit of Rs. ten lacs. There are some

other class of persons who need to be registered and

therefore will have to file returns like interstate suppliers,

TDS deductors, e-commerce operators, suppliers supplying

goods through e-commerce operators etc (reference

Schedule-III and Question 6 of the Registration Chapter).

What type of outward supply details are to be filed in the return?

Ans. A normal registered taxpayer has to file the outward

supply details in GSTR-1 in relation to various types of

supplies made in a month, namely outward supplies to

registered persons, outward supplies to unregistered

persons (consumers), details of Credit/Debit Notes, zero

rated, exempted and non-GST supplies, exports, and

advances received in relation to future supply.

Is the scanned copy of invoices to be uploaded along with GSTR-1?

Ans. No, scanned copy of invoices is to be uploaded. Only

certain prescribed fields of information from invoices need

to be uploaded.

Whether all invoices will have to be uploaded?

Ans. No. It depends on whether B2B or B2C plus whether Intra-state or Inter-state supplies.

For B2B supplies, all invoices, whether Intra-state or Interstate supplies, will have to be uploaded. Why So? Because ITC will be taken by the recipients, invoice matching is required to be done.

In B2C supplies, uploading in general may not be required as the buyer will not be taking ITC. However still in order to implement the destination based principle, invoices of value more than Rs.2.5 lacs in inter-state B2B supplies will have to be uploaded. For intra-state invoices below Rs. 2.5lacs and all intra-state invoices, state wise summary will be sufficient.

Whether description of each item in the invoice will have to be uploaded?

Ans. No. In fact description will not have to be uploaded.

Only HSN code in respect of supply of goods and Accounting

code in respect of supply of services will have to be fed. The

minimum number of digits that the filer will have to upload

would depend on his turnover in the last year.

Whether value for each transaction will have to be fed? What if no consideration?

Ans. Yes. Not only value but taxable value will also have to

be fed. In some cases both may be different.

In case there is no consideration, but it is supply by

virtue of schedule 1, the taxable value will have to be

uploaded.

Can a recipient feed information in his GSTR-2 which has been missed by the supplier?

Ans Yes, the recipient can himself feed the invoices not

uploaded by his supplier. The credit on such invoices will

also be given provisionally but will be subject to matching.

On matching, if the invoice is not uploaded by the supplier,

both of them will be intimated. If the mismatch is rectified,

provisional credit will be confirmed. But if mismatch

continues even after intimation, the credit provisionally

allowed will be reversed.

Do the taxable person have to feed anything in the GSTR-2 or everything is auto-populated from GSTR-1?

Ans. While a large part of GSTR-2 will be auto-populated,

there are some details that only recipient can fill like

details of imports, details of purchases from non-registered

or composition suppliers and exempt/non-GST/nil GST

supplies etc.

What if the invoices do not match? Whether ITC given or denied? If denied, what action is taken against supplier?

Ans. If invoices in GSTR-2 do not match with invoices

in counter-party GSTR-1, the ITC will be reversed if the

mismatch continues even after it is made known to both

and still it is not rectified. Mismatch can be because of two

reasons. First, it could be due to mistake at the side of the

recipient, and in such a case, no further action is required.

Secondly, it could be possible that the said invoice was

issued by supplier but he did not upload it and pay tax on

it. In such a case, recovery action shall be taken against the

supplier. In short, all mismatches will lead to proceedings

if the supplier has made a supply but not paid tax on it.

What will be the legal position in regard to the reversed input tax credit if the supplier later realises the mistake and feeds the information?

Ans. At any stage, but before September of the next

financial year, supplier can upload the invoice and pay

duty and interest on such missing invoices in his GSTR-3 of

the month in which he uploaded the invoice. The recipient

will then automatically get ITC on that invoice. The interest

paid by the recipient at the time of reversal will also be

returned to the recipient through an automated system on

the GSTN.

What is the special feature of GSTR-2?

Ans. The special feature of GSTR-2 is that the details of

supplies received by a recipient can be auto populated

on the basis of the details furnished by the counterparty

supplier in his GSTR-1.

Whether the ITC denied can be restored?

Ans. If the supplier uploads the invoice at any time after

the reversal but by September of the next financial year,

the credit reversed earlier gets restored along with refund

of the interest paid during reversal.

Do tax payers under the composition scheme also need to file GSTR-1 and GSTR-2?

Ans. No. Composition tax payers do not need to file any

statement of outward or inward supplies. They have to

file a quarterly return in Form GSTR-4 by the 1st of the

month after the end of the quarter. Since they are not

eligible for any input tax credit, there is no relevance

of GSTR-2 for them and since they do not pass on any

credit to their recipients, there is no relevance of GSTR-1

for them. In their return, they have to declare summary

details of their outward supplies along with the details

of tax payment. They also have to give details of their 

purchases in their quarterly return itself, most of which

will be auto populated.

Do Input Service Distributors (ISDs) need to file separate statement of outward and inward supplies with their return?

Ans. No, the ISDs need to file only a return in GSTR-6 and

the return has the details of credit received by them from

the service provider and the credit distributed by them

to the subsidiaries. Since their return itself covers these

aspects, there is no requirement to file separate statement

of inward and outward supplies.

How does a taxpayer get the credit of the tax deducted at source on his behalf? Does he need to produce TDS certificate from the deductee to get the credit?

Ans. Under GST, the deductor will be submitting the

deductee wise details of all the deductions made by him

in his return in Form GSTR-7 to be filed by 10th of the

month next to the month in which deductions were made.

The details of the deductions as uploaded by the deductor

shall be auto populated in the GSTR-2 of the deductee.

The taxpayer shall be required to confirm these details

in his GSTR-2 to avail the credit for deductions made

on his behalf. To avail this credit he does not require to

produce any certificate in physical or electronic form.

The certificate will only be for record keeping of the

tax payer and can be downloaded from the Common Portal.

Who all need to file Annual Return?

Ans. All taxpayers filing return in GSTR-1 to 3 other than

casual taxpayers and taxpayers under composition scheme

are required to file an annual return. Casual taxpayers, nonresident

taxpayers, ISDs and persons authorized to deduct

tax at source are not required to file annual return.

Is an Annual Return and a Final Return one and the same?

Ans. No. Annual Return has to be filed by every

registered taxable person paying tax as a normal or a

compounding taxpayer. Final Return has to be filed only

by those registered taxable persons who have applied for

cancellation of registration. This has to be filed within

three months of the date of cancellation or the date of

cancellation order.

If a return has been filed, how can it be revised if some changes are required to be made?

Ans. In GST since the returns are built from details of

individual transactions, there is no requirement for having

a revised return. Any need to revise a return may arise

due to the need to change a set of invoices or debit/ credit

notes. Instead of revising the return already submitted, the

system will allow changing the details of those transactions

(invoices or debit/credit notes) that are required to be

amended. They can be amended in any of the future GSTR-

1/2 in the tables specifically provided for the purposes of

amending previously declared details.

How can taxpayers file their returns?

Ans. Taxpayers will have various modes to file the

statements and returns. Firstly, they can file their statement

and returns directly on the Common Portal online. However,

this may be tedious and time taking for taxpayers with

large number of invoices. For such taxpayers, an offline

utility will be provided that can be used for preparing the

statements offline after downloading the auto populated

details and uploading them on the Common Portal. GSTN

has also developed an ecosystem of GST Suvidha Providers

(GSP) that will integrate with the Common Portal.

What all should a diligent taxpayer ensure for a hassle free compliance under GST?

Ans. One of the most important things under GST will be

timely uploading of the details of outward supplies in Form

GSTR-1 by 10th of next month. How best this can be ensured

will depend on the number of B2B invoices that the taxpayer

issues. If the number is small, the taxpayer can upload all the

information in one go. However, if the number of invoices is

large, the invoices (or debit/ credit notes) should be uploaded

on a regular basis. GSTN will allow regular uploading of

invoices even on a real time basis. Till the statement is

actually submitted, the system will also allow the taxpayer to

modify the uploaded invoices. Therefore, it would always be

beneficial for the taxpayers to regularly upload the invoices.

Last minute rush will make uploading difficult and will

come with higher risk of possible failure and default. The

second thing would be to ensure that taxpayers follow up

on uploading the invoices of their inward supplies by their

suppliers. This would be helpful in ensuring that the input tax

credit is available without any hassle and delay. Recipients

can also encourage their suppliers to upload their invoices on

a regular basis instead of doing it on or close to the due date.

The system would allow recipients to see if their suppliers have

uploaded invoices pertaining to them. The GSTN system will

also provide the track record about the compliance level of a

tax payer, especially about his track record in respect of timely

uploading of his supply invoices giving details about the auto

reversals that have happened for invoices issued by a supplier.

The Common Portal of GST would have pan India data at one

place which will enable valuable services to the taxpayers.

Efforts are being made to make regular uploading of invoices

as easy as possible and it is expected that an enabling ecosystem

will develop towards this objective. Taxpayers should

make efficient use of this ecosystem for easy and hassle free

compliance under GST.

Is it compulsory for taxpayer to file return by himself?

Ans. No. A registered taxpayer person can also get his

return filed through a Tax Return Preparer, duly approved

by the Central or the State tax administration.

What is the consequence of not filing the return within the prescribed date?

A registered taxable person who files return beyond

the prescribed date will have to pay late fees of rupees one

hundred for every day of delay subject to a maximum of

rupees five thousand.

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