Sep 252017
 

GSTR 2 & 2A

Role of GSTR -2 for the registered dealer:

GSTR – 2 is a return document used by GST portal for giving Input Tax Credit in GSTR – 3 to the dealer. Hence, it is a very important document and due care should be maintained in filing this form so that we get ITC for which we are eligible correctly.

Inter – linking of GSTR 2 and GSTR 2A:

GSTR 2 and 2A are inter-link document. GSTR 2 can’t be filed without all information is captured in GSTR – 2A. In case any purchases are made from registered dealer, same will be auto populated in GSTR – 2A after due date of filing of GSTR – 1 is over. Any missing or incorrect information in GSTR – 2A may be rectified in GSTR – 2 in case of these dealers. Thus, GSTR -2 document can be filed only after due date of filing GSTR -1 is over.

Who to file GSTR -2A & 2 under section 38(1) – Details of inward supplies:

PART A – Filing of fresh return:

Every registered person, other than:

  1. An Input Service Distributor or
  2. A non-resident taxable person or
  3. Composition supplier under section 10 or
  4. A person paying tax under the provisions of section 51 (TDS deductor) or
  5. A person paying tax under the provisions of section (TCS deductor) 52,

shall verify, validate, modify or delete, if required, the details relating to outward supplies and credit or debit notes communicated in GSTR – 2A to prepare:

  • The details of his inward supplies and
  • Credit or
  • Debit notes and
  • 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 in GSTR 1.

PART B – Rectification of return already filed:

Any registered person, who has furnished the details under sub-section (2) for any tax period and which have remained unmatched, shall, upon discovery of any error or omission therein, rectify such error or omission in the tax period during which such error or omission is noticed in such manner as may be prescribed, and shall pay the tax and interest, if any, in case there is a short payment of tax on account of such error or omission, in the return to be furnished for such tax period.

Errors or omission that can be rectified:

  1. Section 42: Discrepancy observed in the inward supply claimed by registered dealer with the corresponding details of outward supply furnished by corresponding registered person in the same tax period or earlier tax period.
  2. Duplication of ITC claimed
  3. Section 43: The details of every credit note relating to outward supply with corresponding reduction in claim for ITC by corresponding registered person.

Time limit for rectifying such errors or omission:

Provided that no rectification of error or omission in respect of the details furnished under sub-section (2) shall be allowed after furnishing of the return under section 39 for the month of September following the end of the financial year to which such details pertain, or furnishing of the relevant annual return, whichever is earlier

Form and manner of furnishing details of inward supplies:-

  1. Every registered person required to furnish the details of inward supplies of goods or services or both received during a tax period shall, on the basis of details contained in Part A, Part B and Part C of FORM GSTR-2A, prepare such details and furnish the same in FORM GSTR-2.
  2. Every registered person shall furnish the details of any mismatch electronically in FORM GSTR-2.
  3. The registered person shall specify the inward supplies in respect of which he is not eligible, either fully or partially, for input tax credit in FORM GSTR-2.
  4. The registered person shall declare the quantum of ineligible input tax credit on inward supplies which is:
    1. Relatable to non-taxable supplies or
    2. For purposes other than business and cannot be determined at the invoice level in FORM GSTR-2.
  5. The details of inward supplies of goods or services or both furnished in FORM GSTR-2 shall include the-
    1. Invoice wise details of all inter-State and intra-State supplies received from registered persons or unregistered persons;
    2. Import of goods and services made; and
    3. Debit and credit notes, if any, received from supplier
Sep 102017
 
Deadline for filing GSTR 1 extended to 10th October 2017
S.No.
GSTR Form No.
Tax Period
Revised Due Date
1
GSTR-1
July 2017
10-Oct-2017
1.1
GSTR-1
(Turnover more than 100 crore)
July 2017
3-Oct-2017
2
GSTR-2
July 2017
31-Oct-2017
3
GSTR-3
July 2017
10-Nov-2017
4
GSTR-4
July-September 2017
18-Oct-2017 (no change)
5
GSTR-6
July 2017
13-Oct-2017

 

Sep 082017
 

Accounting entry in case of export & import of goods under GST

Accounting entry in case export:

Accounting entry for exports of goods is based on your choice of procedure adopted for taxation of supplies. Export supplies under GST are Zero rated. Under section 16 of the act a taxable supplier have either of the following two ways for taxing export supplies –

Option 1:

He may supply goods or services or both under bond or Letter of Undertaking, subject to such conditions, safeguards and procedure as may be prescribed, without payment of integrated tax and claim refund of unutilised input tax credit.

Under this mechanism exports needs to pay any tax at the time actual exports of goods and / or services and hence a simple sale entry will be made in the account.

However, what every inputs he have used for such supplies he might have pay GST on such inputs which may be claimed by him appropriate government by debiting appropriate authority accounting and crediting relevant input expense account as expenses to that extent are deducted.

Option 2:

He may supply goods or services or both, subject to such conditions, safeguards and procedure as may be prescribed, on payment of integrated tax and claim refund of such tax paid on goods or services or both supplied, in accordance with the provisions of section 54 of the Central Goods and Services Tax Act or the rules made thereunder

Under scheme would work as follows

Step 1.           Pay tax at the time of export @ relevant IGST rate as application to goods / service.

Step 2.           For paying IGST on such exports exported may utilized ITC available on inputs used for procuring / manufacturing such goods / service for exports.

Step 3.           When export is done such exporter may claim refund of export duty from appropriate government.

Accounting entries will be passed accordingly

Accounting entry in case of import of goods

Accounting treatment of tax paid on import of goods co-exists with the eligibility of importer to claim ITC on goods import by him. In case importer is eligible to claim ITC accounting treatment for the same may be given as under:

At the time of payment of IGST on import:

Advance IGST on import a/c                   Dr

To Bank a/c

 

At the time of receipt of goods in store:

Import Purchase a/c                               Dr

BCD a/c                                                Dr

Freight on import a/c                              Dr

Other import expenses a/c                      Dr

IGST on import                                      Dr

To XYZ inc party a/c

To Import expenses – advance a/c

To advance IGST on import

 

Sep 072017
 

GSTR – 1: Return of Outward supply

Why to file GSTR 1:

The need for filing GSTR 1 arises from section 37 of the CGST act and same is reproduced below:

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
  • A person paying tax under section 51 (Person deducting TDS) or
  • A person paying tax under section (Person collecting TCS) 52,
  • A person mentioned under section 14 of IGST act (supplier of online information and database access or retrieval services).

shall furnish, electronically, in such form and manner as may be prescribed, the details of outward supplies of goods or services or both effected during a tax period

  • on or before the 10th day of the month succeeding the said tax period and

such details shall be communicated to the recipient of the said supplies within such time and in such manner as may be prescribed:

Provided that the registered person shall not be allowed to furnish the details of outward supplies during the period from the 11th day to the 15th day of the month succeeding the tax period:

Provided further that the Commissioner may, for reasons to be recorded in writing, by notification, extend the time limit for furnishing such details for such class of taxable persons as may be specified therein. Hence, commissioner has extended the time limit for the months of July and August months

Provided also that any extension of time limit notified by the Commissioner of State tax or Commissioner of Union territory tax shall be deemed to be notified by the Commissioner

Hence, all taxable suppliers are liable to file GSTR 1 except those mentioned above including those cases where there is no sales in the relevant taxing month.

Meaning of details of outward supplies:

“details of outward supplies” shall include details of:

  1. Invoices,
  2. Debit notes,
  3. Credit notes and
  4. Revised invoices

Issued in relation to outward supplies made during any tax period

Importance of GSTR 1:

Normally every registered person required to furnished / validate following returns:

Return Forms GSTR – 1 GSTR – 1A GSTR – 2 GSTR – 2A GSTR -3
Activity recorded Outward supply Auto Drafted Inward Supply Auto Drafted GST Payment
Outcome GST liability Revise return ITC allowed Reconciled Monthly return
Basis of preparation Sales Invoice issued to recipient / consumer GSTR 2, 4 & 6 Part A, Part B and Part C of FORM GSTR-2A GSTR -1 of the corresponding suppliers from whom purchases are made GSTR 1 and GSTR 2

Thus, every other return except GSTR 1 is auto populated and needs to be validated by taxable registered person. Thus, every care must be made before filing the form as it would directly impact our taxable liability under
GSTR – 3.

When to file GSTR 1 (As extended vide notification no 29/2017):

Forms Notification number For July 2017 For August 2017 From Sep. Onwards
GSTR 1 18/2017 – Central Tax 1st to 10th September Up to 5th October 1st to 10th of next month

Classification of invoices for recording of transaction in GSTR 1:

All issued invoices during the tax period must be classified as given below for correct and complete recording of all transaction in GSTR 3:

Particulars Invoices
Classification of invoices Intra-state supply Inter-state supply Extant of details required
B2B Invoice wise and tax rate wise
Export Invoice x Invoice wise and tax rate wise
B2C large x Invoice value > Rs. 2.5 lacs Invoice wise, tax rate wise and state wise
B2C Invoice value < Rs. 2.5 lacs Consolidated

Modes of filing GSTR 1:

There are two modes of filing GSTR 1 as explained below:

  1. Online mode: The facility of filing GSTR 1 is provided on gst.gov.in online. In case where invoices in a particular month are upto 500 in number this facility can be used. However, numbers of invoices are more than 500 it is batter to prepare return in off line mode.
  2. Off line mode: You can prepare GSTR 1 offline and subsequently same can uploaded on GST portal subsequently. GSTR data can be prepared offline in any of following ways:
    1. Offline utility downloaded from GST portal.
    2. With the help of excel utility
    3. With the help of 3rd party vendor
    4. Through GSP

How to file GSTR 1:

Section Table no Details to be file
B2B 4A4B4C6B

6C

Used for entering taxable outward supplies to registered person.
B2C Large 5A5B Used for entering inter-state taxable outward supplies to unregister dealer having invoice value > Rs 2.5 lacs.
Debit / Credit Note 9A9B 9A – Debit note / Credit note issued to registered dealer.9B – Debit note / credit note issued to unregistered dealer.
Export 6A Details of export supplies.
B2C others 7 Taxable supplies net of debit note and credit notes to unregistered dealer not cover in 5A and 5B.
Nil rated, Exempted and non GST supply 8A8B8C8D Details of Nil rated, Exempted and non GST supply.
Advance received 11A(1)11A(2) Advance received during the tax period.
Adjustment of advance 11B(1)11B(2) Advance received during earlier tax period being adjusted from  supplies in current tax period.
HSN wise summery 12 HSN wise summery
Other information 13 Details of any of the following documents issued:i.        Invoices for outward suppliesii.        Invoices for inward supplies from unregistered personiii.        Revised invoices

iv.        Debit notes

v.        Credit notes

vi.        Receipt voucher

vii.        Payment voucher

viii.        Refund voucher

ix.        Delivery challan for job work

x.        Delivery challan for supply on approval

xi.        Delivery challan in case of liquid gas

xii.        Delivery challan in cases other than by way of supply

 

Sep 062017
 
Extension in date of filing GST Returns for July 17 and August 17
S.No. GSTR Form No. Activity July 2017 August 2017 Comments
1
GSTR 3B
Summary and Payment
25-08-2017
20-09-2017
The return for the month of July
17 can still be filed without attracting late fee
2
GSTR-1
Outward Supply
10-09-2017
05-10-2017
An official notification
is awaited for the announcement of these new dates, however the same has
been made public via the Twitter handle GST@GoI
3
GSTR-2
Inward Supply
25-09-2017
10-10-2017
4
GSTR-3
Summary
30-09-2017
15-10-2017
5
GSTR-6
Input Service Distributor
(ISD) Return
08-Sep-17
23-Sep-17
The dates for these returns have been notified vide notification no. 26/2017-Central Tax. However, we expect
these deadlines to move forward.

Courtesy: VERITA Knowledge Management Team

Sep 012017
 

Registration as Tax Deductor at Source

1. Who needs to register under GST as a TDS ?

TDS stands for Tax Deducted at Source (TDS). All Governments, Government undertakings, Local Authorities and other notified entities making contractual payments in excess of INR 2.5 Lakhs to suppliers need to register as a TDS under GST. In the GST regime, while making such a payment in excess of INR 2.5 Lakhs, the concerned Governments, Government undertakings, Local Authorities and other notified entities needs to deduct 1% under CGST Act and 1% under SGST Act; In case of inter-state transactions, 2% (under IGST Act) of the total payable amount and remit it into the appropriate GST account. Credit of such GST payments will be given to the suppliers.

2. How can register as TDS or TCS?

The Registration Application for Tax Deductor/Tax Collector can be filed by the applicant directly by themselves. In GST regime, the registration process is online and any person/entity wishing to register will have to access the GST system for the same.

Any person who wish to get registered as the Tax Deductor/Tax Collector needs to apply in the form prescribed.

3. Are there any preconditions I must fulfill before registering with GST as a TDS or TCS?

The preconditions are:

1. For Registration as Tax Deductor: Applicant has valid PAN or TAN.

2. For Registration as Tax Collector: Applicant has valid PAN.

3. Applicant must have a valid mobile number.

4. Applicant must have valid E-mail ID.

5. Applicant must have the prescribed documents and information on all mandatory fields as required for registration.

6. Applicant must have a place of business.

7. Applicant must have an authorized signatory with valid details.

4. Do I get registered automatically after submitting the registration application along with the prescribed documents?

No, Your registration application will be processed and approved by the relevant Tax Officer, only then will you be issued the registration certificate and GSTIN.

Registration as Tax Collector at Source

1. Who needs to register under GST as a TCS?

TCS stands for Tax Collected at source. In the GST regime, every e-commerce operator needs to collect 1% under CGST Act and 1% under SGST Act; In case of inter-state transactions, 2% (under IGST Act) on the net values of taxable supplies made through the e-commerce operator.

2. How can register as TDS or TCS?

The Registration Application for Tax Deductor/Tax Collector can be filed by the applicant directly by themselves. In GST regime, the registration process is online and any person/entity wishing to register will have to access the GST system for the same.

Any person who wish to get registered as the Tax Deductor/Tax Collector needs to apply in the form prescribed.

3. Are there any preconditions I must fulfill before registering with GST as a TDS or TCS?

The preconditions are:

1. For Registration as Tax Deductor: Applicant has valid PAN or TAN.

2. For Registration as Tax Collector: Applicant has valid PAN.

3. Applicant must have a valid mobile number.

4. Applicant must have valid E-mail ID.

5. Applicant must have the prescribed documents and information on all mandatory fields as required for registration.

6. Applicant must have a place of business.

7. Applicant must have an authorized signatory with valid details.

4. Do I get registered automatically after submitting the registration application along with the prescribed documents?

No, Your registration application will be processed and approved by the relevant Tax Officer, only then will you be issued the registration certificate and GSTIN.

5. I am an e-commerce operator; registered as a TCS under GST regime. I supply goods to multiple states. Do I need to register in each state?

Yes, You need to register separately in each state and appoint a person in each state/UT who will be liable to pay GST.

Courtesy: https://www.gst.gov.in/