GST Update No.

04/2017/KMS

GST
THIS
WEEK
10th September, 2017

IN THIS UPDATE

Monthly Return filing process

Input Tax Credit Matching
Actions to be taken after matching process
Composition Scheme
Interlinkage between GSTRs and PMTs
Return Forms
GSTR 3B
Practical Issues

For Private Circulation only Page 1

 Monthly Return Filing Process

GSTR 1: Details of Outward GSTR 2A: Auto populated in

Supplies GSTR-2A of Recipient

GSTR 1A: The details of Inward GSTR 2: On the basis of above

supplies added, corrected,
deleted by the recipient shall
be made available to the
supplier.
GSTR-2A details of Inward
supplies added, corrected or
deleted by recipient to be
disclosed under GSTR-2,
including URD-RCM details

Supplier will accept or reject GSTR 1 will be amended to the

the modifications. extent modifications are
accepted by supplier.

Make Tax
Payment

GSTR-3

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 Input Tax Credit Matching

Start

VENDOR WILL
VENDORS
VENDOR UPLOAD IN
SYSTEM
GSTR 1

GST-N
MATCHING CONCEPT SERVER

CUSTOMER
CUSTOMERS
CUSTOMER WILL UPLOAD
SYSTEM
IN GSTR 2

Steps of the whole transaction:

1. The Vendor shall issue a tax invoice for the sale made to its customer.
2. The Vendor and Customer will then upload this invoice in their respective GSTR 1 and GSTR 2.
3. The GSTN server will match details of both the invoices uploaded by the Vendor and Customer.
4. Hence, if the details of the said invoice are not matched, the GSTR 1A and GSTR 2A shall be sent to
both the Vendor and Customer and for which one of the parties will have to modify the details of
GSTR 1 or GSTR 2, as the case may be.

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 Actions to be taken after matching process

Customer shall claim Input Tax credit in

GSTR 2

Is Input Tax Credit

claimed by
Customer matched?

Yes

Customer will get Final No

acceptance in Form GST-MIS-1

Vendor and Customer will be informed

in Form GST-MIS-1

Is Discrepancy
rectified by Vendor
Or Customer?
Yes No

No Action Such discrepancy

will be added in
output liability and
it will appear in
GSTR-3 of Customer

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 Composition Scheme

Normal Dealer
Normal Dealer will file GSTR
1 and purchase made by
CD will appear in GSTR 4A

Monthly
Composition Dealer
Return
Filing
Composition Dealer can make
Process
addition, correction and
deletion in GSTR 4A and he
will have to file GSTR 4

Customer

Annual Return Withdrawal from

Composition Scheme

GSTR 9A Annual File GSTR 4 for the

Return period prior to his
opting for payment

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 Interlinkage between GSTRs and PMTs

Start

(1.) (2.)
GSTR 1 PMT 1 Liability Ledger
(Supplier) (Supplier)

GSTR 2A PMT 2 Credit Ledger

(2.)
(Recipient) GSTR 3 (Recipient)

(3.)
GSTR 2 (1.)
(Recipient) PMT 6 Tax Challan
* (Supplier)

GSTR 1A
(2.) PMT 5 Cash Ledger
(Supplier)
(Supplier)
End

Notes: -

(1.) Part A shall be generated electronically based on GSTR 1 and GSTR 2.

(2.) On generation of GSTR 3, the liability ledger, cash ledger and credit ledger shall be updated.

(3.) Taxpayer shall credit the amount of tax paid in cash as per the details of GSTR 3.

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 Return Forms

Return
Type of Return Form Period Late Filing Fees
Frequency
Outward Supplies GSTR - 1 10th of next month Late fee of Rs. 100/-
Inward Supplies GSTR - 2 15th of next month per day subject to
Registered Taxable Person GSTR - 3 20th of next month maximum of Rs.
(Except Under Composition 5000/-
Monthly Scheme and Liable for TDS)
Return Non-Resident Taxable Person GSTR - 5 20th of next month
Input Service Distributor GSTR - 6 13th of next month
Person paying TDS GSTR - 7 10th of next month
Supplies affected through GSTR 8 10th of next month -
E-commerce operator.
Quarterly Person Paying Tax Under GSTR 4 18th of next monthLate fee of Rs. 100/-
Return Composition Scheme from the end of per day subject to
the quarter maximum of Rs.
5000/-
st
Annual Registered Taxable Person GSTR - 9 31 December Late fee of Rs.
Return (Except Under Composition from the end of 100/- per day
Scheme, Liable for TDS, Casual financial year subject to maximum
Taxable Person and Non- 0.25% of aggregate
Resident Taxable Person) turnover
Final Registered Taxable Person GSTR - 10 3 months from the Late fee of Rs.
Return applying for cancellation date of 100/- per day
cancellation subject to maximum
Or of Rs. 5000/-
Cancellation order
whichever is later
Special Details of taxable supply of GSTR - 11 At the time of -
Agencies goods and services filing of an
having UIN application for
Refund

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 GSTR 3B & Revised due dates for returns

To address the concerns of small taxpayers who are still maintaining manual records, the GST
Council has now proposed a relaxation in return filing for the month of July and August.

As per the revised rules, a new form GSTR-3B has been introduced by the government.

Eventually, this GSTR-3 will be matched against GSTR-3B and any difference will be refunded or
needs to be paid, as the case may be. However, no penalty or late fees will be charged on the
difference.

Yesterday, Ministry of Finance has issued Press release, which comprises summary of
recommendations made by GST Council in the 21st Council meeting held at Hyderabad. Where
following decisions in respect of return filing is taken:

Taxpayers having aggregate turnover of more than Rs. 100 Crores, Due dates for filing GST
returns for the month July17:

Return type Revised due date

GSTR-1 03.10.2017
GSTR-2 31.10.2017
GSTR-3 10.11.2017

Taxpayers having aggregate turnover of Less than & equal to Rs. 100 Crores, Due dates for filing
GST returns for the month July17:

Return type Revised due date

GSTR-1 10.10.2017
GSTR-2 31.10.2017
GSTR-3 10.11.2017

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 Revised due dates for the composition dealers and taxpayers registered as ISD for the month
July17:

Return type Revised due date

GSTR-4 18.10.2017 (No change)
GSTR-4A Not auto-populated
GSTR-6 13.10.2017

Due dates for filing returns for the subsequent months will be notified later date by Ministry
after finalization with Council.

Till the time for the said months, taxpayers needs to file consolidated return i.e. Form GSTR-3B
for the subsequent periods. Probably the following will be the due dates for filing GSTR-3B for
the months of Aug17 to Dec17:

Month Due date

Aug17 20.09.2017
Sept17 20.10.2017
Oct17 20.11.2017
Nov17 20.12.2017
Dec17 20.01.2018

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 Practical Issues

Mr. X has filled return for the month of March. Mr. X has also filled Annual Return for the year ended
March in month of August. Now Mr. X come to know that he had made some mistake while showing
a particular transaction. Can Mr. X make such modification in said transaction?

As per proviso to section 39(9), registered person can rectify particular transaction upto the due date
for September month or date of filling annual return whichever is earlier.

Here in this case Mr. X has filled Annual Return in month of August. So now Mr. X can rectify such
transaction within the period ending August.

What is Input Tax Credit matching concept?

As per section 42 input tax credit claimed by Recipient will be matched with declaration made by
Supplier in respective return.

E.g. Mr. X has claimed more credit than supplier has shown in return. After that matching process will
be started and claim filled by Mr. X will be matched against declaration made by supplier. Here Mr. X
claimed more credit and hence notice will be given to both parties to rectify such error.

Is Input Service Distributor liable to file Annual Return?

As per section 44(1) and Return Rule 21, following persons are not liable to file Annual Return.

1. Input Service Distributor

2. Person liable to pay under section 51 or 52.
3. Casual Taxable Person
4. Non Resident Taxable Person

So as per above mentioned provision Input Service Distributor is not liable to file Annual Return.

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Is Casual Taxable Person liable to file monthly and annual return?

As per section 39(1), following persons are not liable to file monthly return.

1. Input Service Distributor (ISD)

2. Non-Resident Taxable Person (NRTP)
3. Person paying tax under section 10 or 51 or 52

Moreover ISD, NRTP and person paying tax under section 10 or 51 or 52 are having separate provisions
for filling of monthly return. Therefore, as per above mentioned provision a Casual Taxable Person is
liable to file monthly return.

As per section 44(1), following persons are not liable to file monthly return.
1. Input Service Distributor
2. Person liable to pay under section 51 or 52.
3. Casual Taxable Person
4. Non-Resident Taxable Person
So as per provision mentioned above a Casual Taxable Person is not liable to file annual return.

What is Goods and Service Tax Practitioner (GSTP) concept in GST?

GSTP is a person who is doing all the statutory work related to GST on behalf of the registered person.
In this concept, registered person shall give his consent to GSTP to perform work on his behalf.
Following are the works for which registered person can authorize GSTP.

1. Furnish the details of outward and inward supplies.

2. Furnish monthly, quarterly, annual or final return.
3. Make deposit for credit into electronic cash ledger.
4. File a claim for refund.
5. File an application for amendment or cancellation of registration.

For becoming a GSTP a person has to get himself registered on common portal then only he can work as
a GSTP.

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