GST being an Indirect Tax has replaced various Indirect taxes in India such as VAT, CST, Service Tax and Excise duty etc. (except that for some goods excise is still in force) The Goods and Service Tax Act was passed in the Parliament on 29th March 2017 and came into effect on 1st July 2017.
Goods and Services Tax Law in India is a comprehensive, multi-stage, Destination-Consumption based tax that is levied on every value addition. GST is a single domestic Indirect tax law for the entire country.
There are three components under GST system: CGST, SGST/UTGST & IGST.
- CGST: It is the tax levied by the Central Government on an Intra-state (within a state) Supply (e.g., Supply of Goods or Services within Maharashtra,)
- SGST / UTGST: It is the tax levied by the State Government / Union Territory on an Intra-state supply (e.g., Supply of Goods or Services within Maharashtra)
- IGST: It is a tax levied by the Central Government for an Inter-state supply (e.g., Maharashtra to Tamil Nadu)
- GST Registration is required if Turnover of a Business Exceed a certain limit as prescribed under GST Laws. The Turnover Limits varies with Category of Supply (i.e. Supply of Goods or Supply of Services) and also varies for some states for example Nagaland, Tripura, Mizoram etc. called as special category states. (list of these states given under GST Law). For Further detail refer Section 22 of CGST Act 2017.
- However In Certain Cases, Registration under GST is Compulsory irrespective of Turnover Limit, For Example E-Commerce Operators (ECO). List of all such cases is given under Section 24 of CGST Act 2017.
- If the organization carries on business (i.e. making supply which was liable to GST) without getting registered under GST, it will be an offence under GST and shall be liable to pay heavy penalties.
What is GST Return (GSTR)?
- GST return is a document that will contain all the details of your sales, purchases, tax paid to be on sales (output tax), and tax already paid on purchases (input tax) and net tax liability in cash and other information as required under specific GSTR Forms.
- Thus GST Returns are mode of transfer of Information to Tax Authorities, so as to enable them to do proper administration of Tax and finalization of Tax Liabilities.
- It is very important to file timely and correctly GST Returns, Because To Avoid any interest, penalties and it has direct impact on Tax Liabilities of the Other Party with whom Transaction is Effected. For Example, Purchaser eligible for utilization of ITC on Goods Purchased only after Seller has furnished his GSTR-1 on time and in correct manner.
Types of GST Returns:
| Return | Particulars |
| GSTR-1 | Monthly Return To Furnish Details of Outward Supplies of Goods (Sales) or Services or both.
However, for Small Taxpayers i.e. Whose Turnover not exceed a certain limit as prescribed under GST Law, Option given to file Quarterly Return. |
| GSTR-2 | Contains Details of Inward supplies of Taxable Goods or Services or both for Claiming Input Tax Credit and to determine the eligibility of ITC (While at present this form is not made effective).
However, GSTR-2A (View Only Form) is in force for the time being, which reflects the Inward Supplies and available ITC. It is Important to Highlight that Taxpayer should claim Only Eligible ITC from that reflected ITC. Because For Example Some ITC reflected in GSTR-2A, but May be restricted under Section 17(5) of CGST Act 2017. Hence To assist taxpayers to claim ITC in correct manner, An Auto Generated ITC Statement in Form GSTR-2B is launched from August 2020 Onwards. |
| GSTR-3B | Monthly Summery Return containing Details of Outward Supplies along with ITC Claimed and Payment of tax, Inward Exempt Supplies by the taxpayer.
However w.e.f. 01-01-2021, an Optional QRMP Scheme has been introduced for Small taxpayers to file GSTR-3B Quarterly, and to Pay Tax on Monthly Basis (as computed on self assessment basis or Fixed % basis prescribed under GST Laws |
| CMP-08 | Quarterly Statement of Self Assessed Tax, to be filed by Composition Scheme Taxpayers. |
| GSTR-4 | Annual Return to be filed by Composition Scheme Taxpayers.
Earlier it was filed on quarterly basis, However after introduction of CMP-08, now GSTR-4 is required to be filed annually. |
| GSTR-5 | Monthly Return to be filed by Non-Resident Taxable persons (NRTP), to be filed during the period they carrying on the business in India, containing business details, Sale, Purchase, Goods Received from foreign country. |
| GSTR-6 | Monthly Return to be filed by Input Service Distributor (ISD), containing details of ITC received, ITC Distributed and Manner of Distribution with document issued for distribution.
GSTR-6A (View only form) is Similar to GSTR-2A. (Reflects available ITC to ISD) |
| GSTR-7 | Monthly Return to be filed by persons liable to deduct tax at source (TDS under GST). TDS Rate and threshold limits are specified under GST Laws |
| GSTR-8 | Monthly Return to be filed by E-Commerce Operator (ECO), who are liable to collect tax at source (TCS under GST), for Example Amazon. TCS Rates are specified under GST Laws.
An ECO is liable to collect TCS while paying consideration to Suppliers Who Supplied Goods or Services through E-Commerce Platform |
| GSTR-9 | Annual Return to be furnished by Regular Taxpayer (i.e. Who files GSTR-1 and GSTR-3B). It contains the consolidated details of Outward Supplies, Inward Supplies, ITC availed, Payment of Tax, Interest, Late Fee. |
| GSTR-9A | Annual Return to be furnished by Composition Scheme Taxpayer |
| GSTR-9B | Annual Return to be furnished by E-Commerce Operator (ECO) |
| GSTR-9C | Form GSTR-9C is a Reconciliation Statement, duly certified by a CA/CWA. (in Case GST Audit Applies to Taxpayer)
A registered person whose Annual Turnover Exceeds Rs 2 crores during the financial year, need to file a statement of reconciliation between the annual returns in GSTR-9 and the figures mentioned in the audited financial statements. Such person is also required to get their accounts audited and file a copy of audited annual accounts and reconciliation statement of tax already paid and tax payable as per audited accounts along with GSTR 9C. |
| GSTR-10 | Final return to be filed by a taxpayer whose GST registration is cancelled / surrendered, within 3 months from date of Order of Cancellation. However it can be filed only after discharge of whole GST Liabilities if any due. |
| GSTR-11 | Return to be filed by UIN holders (Example Embassy of foreign country). It contains Details of Inward Supplies, So as to enable them to claim refund of Taxes Paid. |
Our GST Related Services Includes
- Registration under GST, Revocation, Surrender of GST Registration
- Return Preparation and Filing.
- Advisory, Support in Compliance of Provisions of GST Law in relation to ITC, Refunds, E-Way Bills etc.
- Certification from Chartered Accountants on ITC Availment, Refund Applications, GST Audit