GST ( GOODS AND SERVICES TAX) T.Y B.COM

T.Y B.COM

GST (GOODS AND SERVICES TAX) - THEORY

SHORTNOTE ON GSTR1 

1. According to section 37 of CGST Act, 2017 

Every registered person, 

other than 

an Input Service Distributor, 

a non-resident taxable person

and a person paying tax under the provisions of section 10 or section 51(TDS) or section 52(TCS), shall furnish, electronically, in such form and manner as may be prescribed (Rule 59),

the details of outward supplies of goods or services or both effected during a tax period on or before the tenth day of the month succeeding the said tax period. 

2. As per Rule 59 of CGST Rules,

Every registered person,

other than 

a person referred to in section 14 of the Integrated Goods and Services Tax Act, 2017, (i.e supplier of OIDAR Service providing to NTOR)

required to furnish details of outward supplies of goods or services or both under section 37, shall furnish such details in FORM GSTR-1.

 3. As per Rule 59 of CGST Rules,

The details of outward supplies of goods or services or both furnished in FORM GSTR-1 shall include the-

(a) invoice wise details of all –

(i) inter-State and intra-State supplies made to the registered persons; and 

(ii) inter-State supplies with invoice value more than two and a half lakh rupees made to the unregistered persons; 

(b) consolidated details of all -

(i) intra-State supplies made to unregistered persons for each rate of tax; and 

(ii) State wise inter-State supplies with invoice value up to two and a half lakh rupees made to unregistered persons for each rate of tax; 

(c) debit and credit notes, if any, issued during the month for invoices issued previously.

4. GSTR 1 has been allowed to file quarterly by small tax payers with annual aggregate turnover upto 1.5 cr. In preceeding financial year or current financial year.

5. A taxpayer cannot file GSTR 1 before the end of current tax period.

However, the following are the exception to this rule:

-Casual taxable person, after the closure of their business

-Cancellation of GSTIN of normal Taxpayer.

6. Contents of GSTR 1 are as follows: 

Basic & Other Details such as:-

-GSTIN 

--Legal Name/Trade Name

--Aggregate Turnover in previous year,

--HSN wise summary of outward supply

--Details of documents issued

--Advances received/advances adjusted 

Outward supply details such as:-

--b2b

--b2c

--Zero rated 

--deemed export 

--Debit/credit note issued 

--nil rated/exempted/non gst

--Amendments for prior period.

7. As GST is destination based consumption tax, GSTR1 also captures information related to place of supply.

8. The minimum no. of digits of HSN code that a filer has to upload depend on his turnover of last year.

Annual turnover of preceding FY	No. of digits of HSN code
Up to 1.5 Cr.	Nil
1.5 to 5 Cr.	2
More than 5 Cr.	4

9. Details of outward supplies for a month furnished by the supplier are communicated and made available electronically to respective receipients in partA of GSTR 2A / GSTR4A after due date of GSTR 1.

10. Table 9,10,11 of GSTR 1 provide for amendment in details of outwards taxable supplies furnished in earlier tax periods. 

-- The details of original debit/credit notes, refund vouchers issued by the taxpayer in current tax period and also the revision in debit/credit notes, refund vouchers issued by the taxpayer in earlier tax periods are required to be shown in table 9 of GSTR1. 

-- In case supplier altogether forgets to enter the entire original invoice in the GSTR1 of the particular month. In such cases also he would be required to show the said missing invoice which was issued in earlier month in the amendment table of GSTR1 of present month, because such type of error can be called as data entry errors.

-- However, the maximum time limit within which the amendments can be made is earlier of the following dates

*Date of Filing Monthly Return for the date of September for the end of financial year to which such details pertain 

*Date of filing of relevant annual return.

11. GSTR 1 needs to be filed even if there is no business activity (Nil Return) in the tax period.

12. Taxpayer opting for voluntary cancellation of GSTN has to file GSTR 1 for the active period. 

13. in case where the tax payer has been converted from normal taxpayer from composition tax payer, GSTR 1 will be available for filing only for the period dunning which tax payer was registered as normal taxpayer even if filed with delay.

SHORT NOTE ON GSTR 3B 

1. As per section 39 of CGST Act, 2017,

 Every registered person,

other than

an Input Service Distributor or 

a non-resident taxable person or 

a person paying tax under the provisions of section 10(Compo.), section51(TDS), section 52(TCS) shall, for every calendar month or part thereof,

furnish, in such form and manner as may be prescribed(Rule 61),

a return, electronically, of inward and outward supplies of goods or services or both, input tax Cradit availed , tax payable, tax paid and such other particulars as may be prescribed,

on or before the twentieth day of the month succeeding such calendar month or part thereof. 

2. However, As per Rule 61(5)

The time limit for furnishing of GSTR 3 has been deferred, the return shall be furnished in FORM GSTR-3B electronically. 

3. GSTR 3B is the simple return containing summary of outward supplies, inward supplies liable to reverse charge, eligible ITC, payment of tax etc. Thus GSTR 3B doesn't require invoice wise data of outward supplies. 

4. CONTENTS OF GSTR 3B:- 

a. Basic details include: 

--GSTIN 

--Legal name of registered person

--Tax period 

b. Other details relating to supplies include: 

--Summarized details of outward supplies and inward supplies liable to reverse charge.

--Summarized details of interstate supplies made to unregistered persons, composition taxable persons, and UIN holders. 

--Eligible ITC

--Value of Exempt, NIL rated, Non GST inward supplies

--Payment of Tax 

--TDS/TCS Credit

SHORT NOTE ON GSTR 4

1. As per Saction 39(2) of CGST Act, 2017, 

A registered person paying tax under the provisions of section 10 (Composition taxpayer) shall, for each quarter or part thereof,

furnish, in such form and manner as may be prescribed (Rule 62),

a return, electronically, of turnover in the State or Union territory , inward supplies of goods or services or both, tax payable and tax paid

within eighteen days after the end of such quarter. 

2. As per Rule 62 of CGST Rules,

Every registered person paying tax under section 10 and person paying tax under notification 2/2019 (cormpostion for service provider)

on the basis of details contained in FORM GSTR-4A, and Where required, after adding, correcting or deleting the details

shall furnish the quarterly return in FORM GSTA-4 delectionicaily

through the common portal, either directly or through a Facilitation Centre notified by the Commissioner.

3. GSTR 4 shall include the-

(a) involce wise inter-State and intra-State inward supplies received from registered and unregistered person's and

(b) consolidated details of outward supplies made.

4. A registered person who has opted to pay tax under section 10 from the beginning of a financial year shall,

where required, furnish the details of outward and inward supplies and return under rules 59, 60 and 61

ralating to the period during which the person was liable to furnish such details and rerurns till

the due date of furnishing the return for the month of September of the succeeding financial year or furnishing of annual return of the preceding financial year, whichever is earlier. 

5.  A registered person opting to withdraw from the composition scheme at his own motion or where option is withdrawn at the instance of the proper officer shall,

where required, furnish the details relating to the period prior to his opting for payment at tax

under section 9 in FORM GSTR - 4

till

the due date of furnishing the return for the quarter ending September of the succeeding financial year or furnishing of annual return of the preceding financial year, whichever is earlier.

6. CONTENTS OF GSTR 4:- 

■ Basic & Other Details:

   GSTIN

   Legal name & Trade name 

   TDS Credit Received (table 9) 

   Tax payable & Paid (Table 10)

   Interest, late fees payable & paid (table 11)

  Refund claimed from electronic cash          ledger (table 12)

  Debit entries in electronic cash ledger for   cash/interest payment. (table 13)

■ Details of Inward & outward supplies: 

   Invoice wise details of all inward supplies (table 4) 

  Tax on outward supplies (net of advances  & goods returned) - consolidated details of outward supplies (table 6)

  Consolidated details pf advances paid/adjusted on receipt of supply (table 8)

  Amendment pertaining to inward/outward supply for earlier tax period (tables 5 & 7) 

7. FEATURES OF GSTR 4 

1. Consolidated details of outward supplies:- As composition taxpayers are neither entitled to any ITC nor entitled to pass on any credit to its customers. Thus, invoice wise details are not required for outward supplies. 

2. Details of only intra state outward supplies :- As per section 10, the person who makes any interstate outward supply is not eligible for compasition scheme. There for composition amount payable on outward supply will only be of CGST and SGST and will never consist of IGST.

3. Amendments in outward supply not to be reported invoice wise :- However, it would be necessary to mention relevant past quarter in which error had occurred and sought to be rectified. 

4. Tax Liability discharged only from cash Ledger as the composition taxpayer is not elegible for any ITC.

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