Who needs to file GST?
Businesses whose aggregate turnover (aggregate value of all taxable supplies, exempt supplies, exports of goods and/or services) exceeds the prescribed threshold limit INR 40 lakhs for goods and INR 20 lakhs for services are required to register for GST. Special category States and Union territories, such as Jammu and Kashmir, Ladakh, and others, may have different threshold limits. Apart from businesses, individuals who have opted for the composition scheme (turnover of up to INR 1.5 crore) under the GST Act are also required to file GST returns and pay a fixed tax rate on their supplies. Entities below the threshold may opt for voluntary registration to avail input tax credit benefits and comply with the GST structure.
What is the threshold limit for GST registration?
The threshold limit of aggregate turnover for registration and payment of GST for suppliers of services is greater than INR 20 lakhs (INR 10 lakhs for States of Manipur, Mizoram, Nagaland and Tripura). The threshold limit of aggregate turnover for registration and payment of GST for suppliers of goods is greater than INR 40 lakhs (INR 20 lakhs in the States of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura and Uttarakhand) Persons having aggregate turnover below specified threshold limit may voluntarily get themselves registered.
What are the benefits of GST filing?
Key benefits of GST filing are: Elimination of the cascading effect of taxes at various stages Transparency in claiming ITC and reporting business transactions Facilitate business operations with increased efficiency and accuracy Regulation of unorganized sector under GST Digitization of business taxation Uniformity of tax rates and structures Improved tax monitoring and better control on tax leakage Relief in the overall tax burden on the consumers Contribution to boost nation’s economy
How and when should the returns be filed?
All taxpayers must file their GST returns every year. GST returns can be filed quarterly, monthly and annually based on the registration type and turnover.
Taxpayers can file their returns online directly on the common GST portal or through GST Suvidha providers (GSPs) which helps comply with all the procedural provisions of the GST law through their web platforms.
Following table covers the details on the 13 GST return types-
| GSTR RETURN | Description | Filing frequency | Due Date |
|---|---|---|---|
| GSTR-1 | Details of outward supplies of taxable goods and/or services affected. | Monthly | 11th of the month succeeding the financial period |
| GSTR-1 | Details of outward supplies of taxable goods and/or services affected. | Quarterly (QRMP Scheme) | 13th of the month succeeding the quarter |
| IFF | Details of B2B supplies of taxable goods and/or services affected | Monthly (for the first two months of the quarter) | 13th of the month succeeding the financial period |
| GSTR-3B | Summary return of outward supplies and input tax credit claimed, along with payment of tax by the taxpayer. | Monthly | 20th of the month succeeding the financial period |
| GSTR-3B | Summary return of outward supplies and input tax credit claimed, along with payment of tax by the taxpayer. | Quarterly (QRMP Scheme) | 22nd or 24th of the month succeeding the quarter |
| CMP-08 | Statement-cum-challan to make a tax payment by a taxpayer registered under the composition scheme under Section 10 of the CGST Act. | Quarterly | 18th of the month succeeding the quarter |
| GSTR-4 | Composition Taxpayer Return | Annually | 30th of the month succeeding a financial year. |
| GSTR-5A | Return to be filed by non-resident OIDAR service providers. | Monthly | 20th of the month succeeding the financial period |
| GSTR-6 | Return for an input service distributor | Monthly | 13th of the month succeeding the financial period |
| GSTR-7 | Return to be filed by registered persons deducting tax at source (TDS) | Monthly | 10th of the month succeeding the financial period |
| GSTR-8 | Return to be filed by e-commerce operators | Monthly | 10th of the month succeeding the financial period |
| GSTR-9 | Annual return by a regular taxpayer | Annually | 31st December of the next financial year |
| GSTR-9C | Reconciliation statement | Annually | 31st December of the next financial year |
| GSTR-10 | Final GST return filed by a business whose GST registration has been cancelled | On cancellation of registration | Within three months of cancellation of registration |
| GSTR-11 | Details of inward supplies provided by an individual with a UIN | Monthly | 28th of the month succeeding the financial period |
| ITC-04 | Statement to be filed by a principal/job-worker about details of goods | Annually (AATO<5CR) Half-Yearly (AATO>5cr) |
25th April
25th October |
What is the role of GST Suvidha Provider (GSP) in GST?
GSPs are third party agencies authorised by the Government of India to provide all user interfaces and convenience via desktop, mobile, other interfaces to taxpayers to interact with the GST system. These third-party applications will connect with GSTN network via secure APIs to transfer the taxpayer data to GSTN and vice versa with high levels of security, accuracy, and efficiency.
What are the prerequisites for filing GSTR 1?
Form GSTR-1 is a monthly/quarterly statement of Outward Supplies to be furnished by all normal and casual registered taxpayers making outward supplies of goods and services or both and contains details of outward supplies of goods and services.
Pre-requisites for filing Form GSTR-1 are:
The taxpayer should be registered and have an active GSTIN during the tax period for which Form GSTR-1 must be furnished.
The taxpayer should have valid login credentials (i.e., User ID and password) to login into GST Portal.
The taxpayer should have an active and non-expired/ revoked digital signature (DSC), in case the digital signature is mandatory.
In case taxpayer wants to use EVC, they must have access to the registered mobile number of the Primary Authorized Signatory.
What is form GSTR-3B Nil Return and when it can be filed?
Filing of Form GSTR-3B is mandatory for all normal and casual taxpayers, even if there is no business activity in any financial period. For such periods, the GSTR-3B return can be filed as NIL.
Nil Form GSTR-3B for a tax period can be filed if a taxpayer:
Have not made any outward supply
Do not have any reverse charge liability
Do not intend to take any Input tax credit
Do not have any liability for that particular or earlier tax period
A taxpayer may file Nil Form GSTR-3B, anytime on or after the 1st of the subsequent month for which the return is being filed for.
Should Form GSTR-9 and Form GSTR-9C be filed separately?
GSTR 9 is the Annual return filed by taxpayer, a summary of the taxpayer’s monthly/quarterly returns (GSTR 1, GSTR 2A, GSTR 3B).
GSTR-9C is a reconciliation statement between the annual returns in GSTR 9 for the relevant financial year and the figures mentioned in the audited annual financial statements of the taxpayer to be filed yearly by taxpayers whose aggregate turnover during a financial year exceeds five crore rupees.
The due date for filing the annual return GSTR 9 and 9C are the same. GSTR 9C must be filed by the registered taxpayer on or before 31st December of the year following the relevant financial year unless extended otherwise by CBIC.
What happens if GSTR-3B is not filed for 6 months?
Taxpayers must ensure to pay taxes and file GSTR-3B within the deadline. If they fail to do so, they are liable to financial and punitive consequences: Levy of Late Fees under Section 47 of the CGST Act, 2017 Interest @18 percent per annum on the delayed payment If a person has not furnished the returns for a consecutive period of two tax periods, then the generation of E-Way Bill will be restricted for all types of outward supply of that person. In case the return in Form GSTR-3B for the preceding month is not furnished, the registered person will not be allowed to furnish the return in Form GSTR-1 Suspension and subsequent cancellation of GST Registration under Section 29(2) of the VGST Act 2017 may be initiated after 6 Months of non-filing of GSTR 3B
What is the GSTR-4 annual return?
Form GSTR-4 (Annual Return) is a yearly return to be filed once, for each financial year, by the taxpayers who have opted for composition scheme during the financial year, or were in Composition scheme for any period, during the said financial year, from 1st April, 2019 onwards. Such taxpayers are required to furnish details regarding summary of outward supplies, inward supplies, import of services and supplies attracting reverse charge etc. in this form.
What are the conditions for ITC-04?
Form GST ITC-04 is a declaration form to be furnished by registered persons (Principal), showing the details of inputs or capital goods dispatched to or received from a job worker in an applicable tax period. It has to be filed either half yearly or yearly by the manufacturer (Principal). The following are the conditions for claiming credit of tax paid on goods sent to Job-worker as per Rule 45(3) of CGST rules : Goods to be sent from principal's place of Business or from Place of supply of supplier along with challan. Goods must be received back in 3 years in case of capital goods & 1 year in case of Input Goods.
Why do we need GST reconciliation?
The main of GST reconciliation is to enable the user to claim correct and accurate ITC which is possible only when the transactions recorded by the purchaser in their books of accounts and the transactions filed by the seller in their GSTR-1 (Reflected in GSTR 2A/2B) are devoid of any discrepancies.
Apart from this, performing reconciliation ensures the correctness of declaration made in the annual returns and avoid duplications.
What are the challenges faced during GST reconciliation?
Here are some of the common challenges faced by taxpayers with GST reconciliation. The purchaser’s invoice date does not match with that of the seller due to differences in the transaction recording date at either end. Recording of invoices by the supplier and purchaser in different return periods. The invoice number that a purchaser records in their books does not match with the invoice that the seller files in GSTR-2A/2B due to varying naming conventions. Difference in invoice values because of different rounding off conventions. Mismatch in the transaction because of different GSTIN. This could happen when the purchaser operates from multiple states, but the seller raises the invoice using the PRPL GSTIN. Difference in amounts when a credit note/debit note is issued against an invoice. There are multiple invoices between a purchaser and supplier where every invoice is of the same value at different dates and one of the parties has recorded invoices higher than the other. This happens in the case of regular fixed supply business. When only the invoice value matches between two parties and the date and invoice number do not match.
How many types of reconciliation are there in GST?
Reconciliation is an imperative part of GST regime and various types of reconciliation can be performed to validate the transactions and claim accurate ITC:
Inward Supplies vs GSTR 2A
Inward Supplies vs GSTR 2B
Reconciliation between GSTR 1 and E-Way Bill
Reconciliation between GSTR 1 and E-Invoice
3-way reconciliation between GSTR 1, EWB and E-Invoice
GSTR 6 vs GSTR 6A
GSTR-1 vs GSTR-3B comparison
GSTR-2A/2B v/s GSTR-3B comparison
What is the time limit for GST reconciliation?
The frequency of reconciliation time limit under the GST law can be monthly or quarterly, depending upon the type of taxpayer registration. Apart from this, annual GST reconciliation also holds importance irrespective of the taxpayer type.
What are the consequences of non-compliance in GST reconciliation?
The onus of performing an accurate and timely reconciliation lies with every taxpayer and not with the government authorities as it ensures that correct tax liability is discharged, ITC claimed is valid and authentic and any flaws or inconsistencies in the reported data is identified in timely manner.
Periodic reconciliation is a very good practice that helps avoid unnecessary pressure while filing the GST annual returns and annual reconciliation statement after the completion of a financial. This helps identify and rectify any major discrepancies or deviations between GSTR-1 or GSTR-2B and GSTR-3B which can be effectively communicated to the vendor on time to expedite the reporting and amendment process in GST returns.
Non-compliance of this reconciliation requirement can lead to scrutiny notices from the department, suspension of GST registration and show cause notices to cancel registration in event of discrepancies that have not be timely addressed.
What is E-Way bill?
When is E-Way Bill applicable?
E-Way Bill is mandatory for transportation of goods as outward supply whether within the State or interstate, inward supply whether from within the State or from interstate including from an unregistered persons or for reasons other than supply.E-Way Bll is required to transport all goods except those exempted under the Notifications or rule. Movement of handicraft goods or goods for job-work purposes under specified circumstances requires an E-Way Bill even if the value of consignment is less than ₹ 50,000.
Why is E-Way Bill mandatory?
Section 68 of the Goods and Services Tax Act mandates that the Government may require the person in charge of a conveyance carrying a consignment of goods exceeding the specified amount. Government has issued a notification under rule 138 of Goods and Services Tax Rules, 2017 mandating to carry E-Way Bill for transportation of goods of consignment of value more than ₹ 50,000.
What are the GST rules for E-Way Bill?
E-Way Bill is governed through rule 138 of CGST Rules, 2017.
When is E-Way Bill not required?
In the following cases it is not necessary to generate E-Way Bill: The mode of transport is non-motor vehicle. Empty Cargo containers are being transported. Goods transported from Customs port, airport, air cargo complex or land customs station to Inland Container Depot (ICD) or Container Freight Station (CFS) for clearance by Customs. Goods transported under Customs supervision or under customs seal. Goods transported under Customs Bond from ICD to Customs port or from one custom station to another. Transit cargo transported to or from Nepal or Bhutan. Movement of goods caused by defence formation under Ministry of defence as a consignor or consignee. Consignor transporting goods to or from between place of business and a weighbridge for weighment at a distance of 20 kms, accompanied by a Delivery challan. Goods being transported by rail where the Consignor of goods is the Central Government, State Governments or a local authority. Goods specified as exempt from E-Way Bill requirements in the respective State/Union territory GST Rules. Transport of certain specified goods- Includes the list of exempt supply of goods, Annexure to Rule 138(14), goods treated as no supply as per Schedule III, Certain schedule to Central tax Rate notifications. Note: Part B of E-Way Bill is not required to be filled where the distance between the consigner or consignee and the transporter is less than 50 Kms and transport is within the same state.
When should the E-Way Bill be generated?
The E-Way Bill is required at the time of delivery of goods only. So, if the invoice is raised but goods are not delivered yet, then part-A can be generated on the E-Way Bill and Part-B details can be entered later on upon delivery. The validity of E-Way Bill begins when Part-B is entered.
Who should generate the E-Way Bill?
Every registered person who causes movement of goods of consignment value ₹ 50,000 in relation to supply or reasons other than supply or inward supply from unregistered person shall generate E-Way Bill. It means, the consignor or consignee, as a registered person or a transporter of the goods can generate the E-Way Bill. The unregistered transporter can enroll on the NIC E-Way Bill portal and generate the E-Way Bill for movement of goods for his clients. Any person can also enroll and generate the E-Way Bill for movement of goods for his/her own use.
How is E-Way Bill generated?
User needs to exchange the document data in respective E-Way Bill template/format of system through upload/SFTP/API method, post which, data gets validated and if found valid from sanity and business checks perspective, E-Way Bill gets generated automatically in case of SFTP/API and it can be generated by user manually when using Portal/upload option.
What is Part A and Part B in an E-Way Bill?
Part-A Slip is an entry made by user to temporarily store the document details on the E-Way Bill system. Once the goods are ready for movement from the business premises and transportation details are known, the user can enter the Part-B details and generate the E-Way Bill for movement of goods.
How do I download my E-Way Bill?
E-Way Bill PDF can be downloaded by user from TCS iON E-Way Bill Solution using View/Generate E-Way Bill functionality. Users can download E-Way Bill PDF from this screen for single record as well as for bulk records with one click.
Why is generation of E-Way Bill blocked, and how can we unblock it?
Blocking of E-Way Bill generation means not allowing the taxpayer to generate E-Way Bills if he /she has not filed GST Return (GSTR-3B) for previous two consecutive months (in case of monthly filer) and previous two consecutive quarters (in case of quarterly filer). The main intention of the government behind this step is to track down the non-filers of GST returns and make them compliant. Only when a taxpayer files their pending GSTR-3B, the E-Way Bill generation will get unblocked on the next day of filing.
What is the validity of E-Way Bill?
Validity period of E-Way Bill is the time window within which the concerned consignment must reach to the destination address reported into that E-Way Bill. Validity of the E-Way Bill or consolidated E-Way Bill depends upon the distance the goods have to be transported. The validity is one day upto 100 KM and for every 100 KM or part thereafter it is one additional day for a regular vehicle and is one day upto 20 KM and for every 20 KM or part thereafter it is one additional day for an over dimensional vehicle.
Can we extend the validity of E-Way Bill due to vehicle breakdown or other circumstances?
Yes. Validity of an E-Way Bill can be extended by furnishing required details before 8 hours from expiry of E-Way Bill and after 8 hours of E-Way Bill.
What happens if E-Way Bill is generated but goods are not transported?
E-Way Bill can be cancelled within 24 hours if: Either goods are not transported. Goods are not transported as per the details furnished in the E-Way Bill.
What happens if multiple consignments are transported in one vehicle or if goods are transferred from one vehicle to another vehicle in the course of transit?
When multiple consignments are being transported into a single vehicle, a consolidated E-Way Bill should be generated by the transporter and the serial number for each consignment should be separately indicated. In case the goods are transferred from one vehicle to another in the course of transit, the transporter needs to generate a new E-Way Bill in the Form GST EWB- 01 before such transfer.
Can E-Way Bill be cancelled or edited if there is a mistake or wrong entry?
Once an E-Way Bill is generated, it CANNOT be edited or deleted. It can only be cancelled and that too only within 24 hours from its date and time of generation by the generator of that E-Way Bill.
Is there any restriction for raising E-Way Bill again after cancelling it?
No. After cancelling an E-Way Bill, taxpayer can regenerate a new E-Way Bill against that same document.
Who can accept or reject the E-Way Bill?
The person who causes transport of goods shall generate the E-Way Bill specifying the details of other person as a recipient of goods. There is a provision in the common portal for the other party to see the E-Way Bill generated against his/her GSTIN. As the other party, one can communicate the acceptance or rejection of such consignment specified in the E-Way Bill within 72 hours from the time of generation of E-Way Bill or before the time of delivery of goods whichever is earlier. Beyond thisit will be deemed that the recipient has accepted the details.
What is E-Invoicing under GST?
What is the role of a GSP in E-Invoicing?
Taxpayers with aggregate turnover between Rs. 5 crores to Rs. 100 crores and those who want to automate their E-Invoicing operations using API based mechanism but do not have direct access of E-Invoicing API from Invoice Registration Portals (IRPs) can avail the services of GSP to integrate their respective accounting system/ERP with E-Invoicing System of IRP. Using GSP Services for E-Invoicing, they can get the other associated value-added benefits from GSP as well e.g. auto preparation of GSTR-1 based on E-Invoice data, access to E-Invoice data forever, custom E-Invoice PDF format and lot more.
How is E-Invoicing different from the current practice of invoicing?
There is not much difference between the current practice and E-Invoicing. Registered persons will continue to create their GST invoices on their own Accounting/Billing/ERP Systems. These invoices will now be reported to Invoice Registration Portal (IRP). On reporting, IRP returns the E-Invoice with a unique Invoice Reference Number (IRN) after digitally signing the E-Invoice and adding a QR Code. Then, the invoice can be issued to the receiver (along with QR Code). A GST invoice will be valid only with a valid IRN.
What are rules for E-Invoicing?
E-Invoicing is governed mostly through rule 46, rule 48 (4) to rule 48 (6) of CGST Rules, 2017.
What are the benefits of E-Invoicing?
E-Invoice has many advantages for businesses such as Auto-reporting of invoices into GST return, auto-generation of E-Way Bill (where required). E-Invoicing also facilitates standardization and inter-operability leading to reduction of disputes among transacting parties, improves payment cycles, reduces processing costs and improves overall business efficiency.
Who is eligible/applicable for E-Invoicing under GST?
For Registered persons whose aggregate turnover (based on PAN) in any preceding financial year from 2017-18 onwards, is more than prescribed limit (as per relevant notification), E-Invoicing is mandatory. Current threshold limit is AATO more than 5 crore (w.e.f 1st Aug 2023). Supplies to registered persons (B2B), Supplies to SEZs (with/without payment), Exports (with/without payment), Deemed Exports, by notified class of taxpayers are currently covered under E-Invoicing.
Who need not comply with E-Invoicing?
a. Special Economic Zone Units
b. Insurers
c. Banking companies or financial institutions, including a non-banking financial company (NBFC)
d. Goods Transport Agency (GTA) supplying services in relation to transportation of goods by road in a goods carriage
e. Suppliers of passenger transportation service
f. Suppliers of services by way of admission to exhibition of cinematograph films in multiplex screens
g. Persons registered in terms of Rule 14 of CGST Rules (OIDAR)
h. Reporting B2C invoices by notified persons is not applicable/allowed currently. E-Invoicing is also not required for Nil rated or wholly exempt supplies.
What documents are covered under E-Invoicing?
i. Tax Invoices ii. Credit Notes iii. Debit Notes, when issued by notified class of taxpayers (to registered persons (B2B) or for the purpose of Exports) are currently covered under E-Invoice. Financial/commercial credit notes are not required to be reported to IRP for E-Invoicing purposes.
What happens if you fail to issue an E-Invoice?
As per Rule 48(4), notified person has to prepare invoice by uploading specified particulars in FORM GST INV-01 on Invoice Registration Portal and after obtaining Invoice Reference Number (IRN). As per Rule 48(5), any invoice issued by a notified person in any manner other than the manner specified in Rule 48(4), the same shall not be treated as an invoice. So, the document issued by notified person becomes legally valid only with an IRN.
What is the end-to-end workflow of E-Invoicing?
User needs to exchange the invoice data in respective E-Invoice template/format of system through upload/SFTP/API method, post which, data gets validated and if found valid from sanity and business checks perspective, E-Invoice gets generated automatically in case of SFTP/API and it can be generated by user manually when using Portal/upload option.
What is the Invoice Registration Portal (IRP)?
Invoice Registration Portal (IRP) is the website for uploading/reporting of invoices by the notified persons. Vide notification no. 69/2019-Central Tax dated 13.12.2019, ten portals were notified for the purpose of preparation of the invoice in terms of Rule 48(4). The first six Invoice Registration Portals (IRP) are active and can be accessed at https://einvoice1.gst.gov.in/ to https://einvoice6.gst.gov.in/.
What does the E-Invoice look like?
GST invoice contains details like IRN , Acknowledgment date, seller and buyer details including GSTIN, goods details with price.
How to download the E-Invoice?
E-Invoice PDF can be downloaded from system using View/Generate E-Invoice functionality. User will be able to access and download E-Invoice data as well as PDF forever unlike IRP Portals where data gets archived every 2 days post which old data can not be accessed by the user.
Is bulk upload of invoices possible?
E-Invoice and E-Way Bill PDFs can be downloaded in bulk with one click from TCS iON E-Invoicing Solution.
Can E-Invoice be amended / cancelled if a mistake or incorrect entry is made?
Once an E-Invoice is generated, it can only be cancelled within 24 hours from date and time of its generation. It cannot be edited or amended as such. However, once this time limit of 24 hours is passed for cancellation, user can directly edit values of this invoice into GSTR-1 once it is auto populated on GSTN Portal from E-Invoice data.