(Last Updated On: September 1, 2016)

Returns under GST

Return is very important aspect of GST as all control over tax paid and input tax credit availed is on the basis of return filed by taxable person.

The returns are to be filed electronically.

Taxable person has to first furnish details of outward supplies within 10 days from close of month – clause 25 of GST Model Law, 2016.

Details of inward supplies are to be submitted within 15 days from close of month – clause 26 of GST Model Law, 2016.

Matching is done as per provisions of clause 29 of GST Model Law, 2016 and then only input tax credit can be availed.

Late fee for late filing of details and returns

Any registered taxable person who fails to furnish the details of outward or inward supplies required under section 25 or section 26, as the case may be, or returns required under section 27 or section 31 by the due date shall be liable to a late fee of rupees one hundred for every day during which such failure continues subject to a maximum of rupees five thousand – clause 33(1) of GST Model Law, 2016.

Any registered taxable person who fails to furnish the return required under section 30 (annual return) by the due date shall be liable to a late fee of rupees one hundred for every day during which such failure continues subject to a maximum of an amount calculated at a quarter per cent of his aggregate turnover [0.25% of aggregate turnover – it can be huge amount] – clause 33(2) of GST Model Law, 2016.

First Return

Every registered taxable person (except taxable person paying tax under composition scheme) shall furnish the first return containing the following details – (a) outward supplies under section 25 from the date on which he became liable to registration till the end of the month in which the registration has been granted (b) inward supplies under section 26 from the effective date of registration till the end of the month in which the registration has been granted – clause 27A(1) of GST Model Law, 2016.

A registered taxable person paying tax under the provisions of section 8 (composition scheme) shall furnish the first return for the period starting from the date on which he becomes a registered taxable person till the end of the quarter in which the registration has been granted.

Furnishing details of outward supplies within ten days

Every registered taxable person shall furnish, electronically, in prescribed form and manner, the details of outward supplies of goods and/or services effected, during a tax period on or before the tenth day of the month succeeding the said tax period – clause 25(1) of GST Model Law, 2016.

“Details of outward supplies” shall include details relating to zero-rated supplies, inter-state supplies, return of goods received in relation to/in pursuance of an inward supply, exports, debit notes, credit notes and supplementary invoices issued during the said tax period.

Such details shall be communicated to the recipient of the said supplies within prescribed time.

CBE&C or Commissioner of State GST can extend the time limit for furnishing such details by issuing notification. Any extension granted by CBE&C or Commissioner of State GST shall be deemed to be approved by Commissioner of State GST or CBE&C.

Input service distributor and a person paying tax under the provisions of section 8 (composition scheme) or section 37 (TDS) is not required to furnish such details.

Unmatched details to be rectified – The details of outward supplies are matched with details of inward supplies filed by recipient as per section 29 of GST Model Law, 2016. If these are not matched, the registered taxable person can rectify such omission. He shall pay the tax and interest, if any, in the return to be furnished.

Rectification of error or omission in respect of the details furnished is not allowed after filing of the return for the month of September following the end of the financial year to which such details pertain, or filing of the relevant annual return, whichever is earlier. – clause 25(2) of GST Model Law, 2016.

18.3-2 Furnishing details of inward supplies within 15 days

Details of outward supplies are communicated to recipient of goods and services, as per clause 25(1) of GST Model Law, 2016

Every registered taxable person shall verify, validate, modify or, if required, delete the details relating to outward supplies and credit or debit notes communicated to him under section 25(1) to prepare the details of his inward supplies and credit or debit notes. He may include therein, the details of inward supplies and credit or debit notes received by him in respect of such supplies that have not been declared by the supplier under section 25(1) – clause 26(1) of GST Model Law, 2016.

Input service distributor and a person paying tax under the provisions of section 8 (composition scheme) or section 37 (TDS) is not required to furnish such details.

Furnishing details of inward supplies within 15 days

Every registered taxable person shall furnish, electronically, the details of inward supplies of taxable goods and/or services, including inward supplies of services on which the tax is payable on reverse charge basis under this Act and inward supplies of goods and/or services taxable under the IGST Act, and credit or debit notes received in respect of such supplies during a tax period on or before the fifteenth day of the month – clause 26(2) of GST Model Law, 2016.

Monthly/Quarterly Return

Every registered taxable person shall file monthly return electronically within twenty days after the end of such month.

The return shall contain details of inward and outward supplies of goods and/or services, input tax credit availed, tax payable, tax paid and other prescribed particulars – clause 27(1) of GST Model Law, 2016.

A registered taxable person paying tax under the provisions of section 8 of this Act (composition scheme) shall file quarterly return within eighteen days after the end of such quarter.

Tax period – “Tax period” means the period for which the tax return is required to be filed – clause 2(95) of GST Model Law, 2016.

Return cannot be filed if earlier returns were not filed – A registered taxable person shall not be allowed to furnish return for a tax period if valid return for any previous tax period has not been furnished by him – second proviso to clause 27(1) of GST Model Law, 2016.

Due date for payment of tax – Every registered taxable person filing return shall pay the tax due as per such return on or before the last date on which he is required to furnish such return – clause 27(2) of GST Model Law, 2016.

Return not valid for input tax credit by recipient if tax not paid – If tax is due as per such return shall not be treated as a valid return for allowing input tax credit in respect of supplies made by the taxable person – clause 27(2) of GST Model Law, 2016.

Nil return mandatory even if no supplied made – Every registered taxable person shall furnish a return for every tax period, whether or not any supplies of goods and/or services have been effected during such tax period – clause 27(4) of GST Model Law, 2016.

Monthly return and payment before tenth in case of TDS – Every registered taxable person required to deduct tax at source shall furnish a return electronically, for the month in which such deductions have been made, along with the payment of tax so deducted, within ten days after the end of such month – clause 27(5) of GST Model Law, 2016.

Monthly Return by ISD within 13 days – Every Input Service Distributor shall file electronically, a monthly return within thirteen days after the end of such month – clause 27(6) of GST Model Law, 2016.

Revised return (rectification of return)

If any taxable person after furnishing a return discovers any omission or incorrect particulars therein, he can rectify such omission or incorrect particulars by filing revised return.

Interest is payable where applicable.

Such rectified return cannot be filed if mistake or short payment was found during scrutiny, audit, inspection or enforcement activity by the tax authorities.

Rectification of return is not allowed after the due date for filing of return for the month of September or second quarter, as the case may be, following the end of the financial year, or the actual date of filing of relevant annual return, whichever is earlier – clause 27(7) of GST Model Law, 2016.

Annual return

Every registered taxable person shall furnish an annual return for every financial year electronically in prescribed form on or before the thirty first day of December following the end of such financial year – clause 30(1) of GST Model Law, 2016.

An input service distributor, a deductor of tax under section 37 (GST TDS), a casual taxable person and a non-resident taxable person are not required to file annual return.

Annual return with audit report and reconciliation statement – Every taxable person who is required to get his accounts audited under section 42(4) of GST Model Law, 2016 shall furnish, electronically, the annual return along with the audited copy of the annual accounts. A reconciliation statement, reconciling the value of supplies declared in the return furnished for the year with the audited annual financial statement shall be filed – clause 30(2) of GST Model Law, 2016.

Final return after cancellation of GST registration

Every registered taxable person who applies for cancellation of registration shall furnish a final return within three months of the date of cancellation or date of cancellation order, whichever is later – clause 31 of GST Model Law, 2016.

Notice to persons defaulting in filing return

If a registered taxable person fails to furnish a return, a notice shall be issued requiring him to furnish such return within such time and in in prescribed form – clause 32 of GST Model Law, 2016.