How to File Your GST Returns

Language:

Every registered taxable person has to furnish outward supply details in Form GSTR-1 (GST Returns-1) by the 10th of the subsequent month. On the 11th, the visibility of inward supplies is made available to the recipient in the auto-populated GSTR-2A. The period from 11th to 15th will allow for any corrections (additions, modifications and deletion) in Form GSTR-2A and submission in Form GSTR-2 by 15th of the subsequent month.The corrections (addition, modification and deletion) by the recipient in Form GSTR-2 will be made available to supplier in Form GSTR-1A. The supplier has to accept or reject the adjustments made by the recipient. The Form GSTR-1 will be amended according to the extent of correction accepted by supplier.

On 20th, the auto-populated return GSTR-3 will be available for submission along with the payment. After the due date of filing the monthly return Form GSTR-3, the inward supplies will be matched with the outward supplies furnished by supplier, and then the final acceptance of input tax credit will be communicated in Form GST ITC-1.

Also, the mismatch input tax credit on account of excess claims or duplication claims will be communicated in Form GST ITC-1. Discrepancies not ratified will be added as output tax liability along with interest. However, within the prescribed time, if it is ratified, the recipient will be eligible to reduce this output tax liability.

Let us understand GST return filing process with an example.

Process of uploading GSt Returns

 

About the author

Pugal T & Yarab A

90 Comments

Comment Moderation Guidelines Share your thoughts
  • This Illustration is very helpful.
    If a manufacturer supplies goods to the traders on the basis of GST thereafter trader will invoiced it to another party, isn’t it be double taxation coz every party needs to raise bill.

    • NO I WILL NOT CAUSE DOUBLE TAXATION, AS TAX PAID BY A PARTY WILL BE FULLY ALLOWED AS CREDIT TO OTHER PARTY.
      FOR E.G. IF A MANUFACTURER MR.M SELL GOODS TO A DEALER MR.D, AT RS. 1000+GST RS10 TOTALING TO RS.1010.
      NOW THE DEALER SOLD THE GOODS TO THE OTHER PARTY (COST TO MR. D = RS.1000, CREDIT TO BE AVAILED BY HIM RS.10) AT RS. 1200+ GST 12, TOTAL BILL AMOUNTING TO RS.1212. GST PAYABLE BY MR. D = (12-10)RS.2.

      SO THERE IS NO DOUBLE TAXATION

    • Currently, in the VAT regime, for purchase from unregistered dealer, the recipient has to pay the purchase tax. Under GST, it is likely that this will be under the reverse charge mechanism and the details of this should be furnished in Form GSTR-2. However, once the law and rules are finalised, clarity on this will be available.

  • We regularly sell the goods below the invoice price, since we receive the credit notes 1st or 2nd of week of next month. Based on market price equalisation. Hence our input credit accumulates higher than output tax. How can it be claimed back.

  • Sir, please let me know what would be the criteria of “Invoice Number/Bill No.” and how the uniqueness of the invoice numbers will be ensured? Is there any specific format given in GST to ensure the uniqueness of the invoice number because the key to the streamline GST process is ‘Invoice Number matching’. For example if the Tally Operator at Seller’s end puts in the duplicate invoice no. or enters it in absurd format like %%%%*## mistakenly then it may create a big problem for the buyer and GSTN too to accept the data type of the invoice number.

  • Very simple steps to understand. Appreciate your continuous support. simply file & modification all return details provide by you as nice we have supper tally blog. we are waiting for the GST education more help

  • GSTR 1 requires dealers to upload only Tax Invoice details, The Draft Law also prescribes the details required to be provided in the Tax invoice, From GST point view Commercial( Retail) Invoice can be in any format

    • CST is subsumed under GST and on interstate transactions, IGST will be applicable. The exiting declaration forms such as C form, H form and E1/E2 will be discontinued.

  • I have heard (but not sure whether it is correct or not) that an interface for import of bulk entries from an excel sheet can be made. This interface automatically picks up the data from excel sheet and takes it to Tally and automatically vouchers are created and entered. I don’t know whether this function already exists in Tally or developed/customised by Software developers. If this is included in next version of Tally It will tremendously help those users where no of outward/inward bills are too large. Any one who knows excel may punch that data in prescribed format and the rest of the work is done by technology ( As claimed by Tally ). Will wait for Tally’s response on this.

  • With the implication of GST, the type of Local Sales ( ie. within the State ) and Interstate Sales ( ie. outside the State ) will be eliminated as GST is One Nation One Tax. Kindly explain.
    If the sales happen on last week of the month from Gujarat State and the stocks reaches in Karnataka next succeeding month, then how buyer will account so as to reflect ( match ) in order to get the Input Tax. Kindly explain at the earliest. What will happen if the Buyer is in Karnataka State and the Seller is in Gujarat State OR vice versa.

    • The location of the supplier and the place of supply will determine whether it is Intra-state or Inter-state. For example, if the location of the supplier and place of supply is in the same state – CGST & SGST will be applicable. If the location of the supplier and place of supple are in two different states – IGST will be applicable. The rate of tax will be uniform for intra or interstate supply of goods.

      For the second part of your question, we need more clarity from the law maker on these exceptional cases. However, the outward supply dealer (seller) will be capturing the invoice detail in his Form GSTR-1 and it will be made available to the inward supply dealer(Buyer) from 11th in Form GSTR–2A. The same can be accepted and updated in the buyers books of account. Since, both the invoices are matched, Input credit will be available. The details of dispute mechanism, when made available, will throw more light on these exceptions. We shall keep our readers posted and build such use cases of exceptional transactions, once more details available.

    • Answer to your second part of the question
      Let us say the sales takes place from Gujarat on 29th of April 2017 and reaches Karnataka on 5th of May 2017
      Seller needs to file GSTR1 for all his sales for the month of April 2017 on 10th of May 2017 including the above sale.
      Buyer cannot incorporate the above purchases in GSTR 2 for the month of April 2017 (to be filed on 15th May 2017) since goods are not reached him in the month of April 2017. (Input credits can be availed only on receipt of the Goods)
      On 20th of May 2017 (along with monthly return for April 2017 ) Seller pays the tax ( GST) for above transaction.
      On receipt of goods i.e in the month of May (GSTR 2 to be filed on June 15, 2017) buyer take credit of the input for the above transaction.
      For the above transaction Tax paid by seller for the month of April 2017 behalf of the purchaser, shall reflect as advance tax paid for which input tax is not availed, until the buyer avails the input tax (i.e month of May 2017)
      The above is applicable for Vice Versa also

  • Very good presentation for traders who want to claim input tax credit. What about those traders who are composite tax payers? Is there any change to the current system of paying VAT on total sales for a period. Please help.

  • Good Demonstration from tally Services, thanks and this system is time bounded within around of 5 day’ s but clarity from purchase and seller is most use full in calculation

  • That means Super Cars Ltd have to depend on Bill No. 50 of Shine Alumunium to upload the same. ( mercy on the supplier ) So that Super cars can file GST return on time. What will happen if the supplier send the invoice dated last day of month say from Ahmedabad to Bangalore

  • OK in current Senior we account for all our purchases on the date of receipt of goods irrespective of the date on which the goods is dispatched/ billed say for example Mr. X supplied the good son 25 June 2016 we received the goods on 4 July 2016. We enter the same in our books on 4 july 16 and file the return fo the month of July accordingly.
    In GST what will happen. When is the purchase is to be taken in books 25th June 16 or 4 July 16

    • We are awaiting more clarity from the law maker on these exceptional cases. However, the outward supply dealer (seller) will be capturing the invoice detail in his Form GSTR-1 and it will be made available to the inward supply dealer(Buyer) from 11th in Form GSTR–2A. The same can be accepted and updated in the buyers books of account. Since, both the invoices are matched, Input credit will be available. The details of dispute mechanism, when made available, will throw more light on these exceptions. We shall keep our readers posted and build such use cases of exceptional transactions, once more details available.

  • suppose the supplier is billed on 31st and supplied to dealer on next month suppose on 7th we are showing the purchase on 7th. In case of mismatch at GST the 1st person shown on 31st and the next party shown on receipt of item on next month – in GST return how it mismatch and any solution.

    • We are awaiting more clarity from the law maker on these exceptional cases. However, the outward supply dealer (seller) will be capturing the invoice detail in his Form GSTR-1 and it will be made available to the inward supply dealer(Buyer) from 11th in Form GSTR–2A. The same can be accepted and updated in the buyers books of account. Since, both the invoices are matched, Input credit will be available. The details of dispute mechanism, when made available, will throw more light on these exceptions. We shall keep our readers posted and build such use cases of exceptional transactions, once more details available.

  • If the supplier sends the material say end Apr & is reflected, where as the Purchaser receives the goods (thru Transport) as they aree located at 2 different states with considerable distance, the Goods may not have received at Purchaser end even by 10th May, how the same is taken care in GSTR. Pl. clarify.

    • We need more clarity from the law maker on these exceptional cases. However, the outward supply dealer (seller) will be capturing the invoice detail in his Form GSTR-1 and it will be made available to the inward supply dealer(Buyer) from 11th in Form GSTR–2A. The same can be accepted and updated in the buyers books of account. Since, both the invoices are matched, Input credit will be available. The details of dispute mechanism, when made available, will throw more light on these exceptions. We shall keep our readers posted and build such use cases of exceptional transactions, once more details available.

    • We need more clarity from the law maker on these exceptional cases. However, the outward supply dealer (seller) will be capturing the invoice detail in his Form GSTR-1 and it will be made available to the inward supply dealer(Buyer) from 11th in Form GSTR–2A. The same can be accepted and updated in the buyers books of account. Since, both the invoices are matched, Input credit will be available. The details of dispute mechanism, when made available, will throw more light on these exceptions. We shall keep our readers posted and build such use cases of exceptional transactions, once more details available.

    • Yes, Form GSTR-1 needs to uploaded for all outward supply including the retail and zero rate supplies. Technology plays a vital role to be compliant with GST. Having a right technology will ease your compliance task.

    • GSTR 1 requires dealers to upload only Tax Invoice details, The Draft Law also prescribes the details required to be provided in the Tax invoice, From GST point view Commercial( Retail) Invoice can be in any format

  • If Billing/Accounting Software like tally can communicate with GSTN on real time basis then all this return prepration and filling should not take any time because all forms will pull data from tally as you Bill or post purchase. I hope you are working on these lines

  • When GST is implemented a trader has to file his sales transaction only. His Purchase will be auto populated and he has to reconcile his purchase transactions. Like to know will Tally provide auto reconciliation of Purchase transactions in GST portal.

  • Very Nice. But I Have a Question?. Is GST final return will go with GST Payment? Beacause there may be a case where credit of 1-2 months need to given to customer while payments to vendor need to made immediately. will it not result in cash crunch. How a person will pay taxes untill he received the same

    • Yes, the auto-populated monthly return Form GSTR-3 should be submitted along with the payment of tax. In determining the point of taxation, shortly we are coming up with a more detailed blog on time of supply. Please do check back.

  • This type of Return filing will only increase work load. Earlier filing work can be done in one day. Now it is going to take 3 days. Consultants please note.

Comment Moderation Guidelines

Share your thoughts

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

© Tally Solutions Pvt. Ltd. All rights reserved - 2017