Dec 082016
 

GST – Return submission and verification procedure

 Everyone have lot of expectations from GST with is expected to subsist in the upcoming financial year 2017. There are expectation of transparent governance, ease of doing business and free movement of information under shadow of IT governance. Here an attempt is made to explain how technology is going to impact return filing, submission and verification of return:

Procedure for authentication of GSTR-1:

Under GST regime a common IT portal is enabled to process all returns electronically under IT enable environment and direct business to business communication of relevant information for cross verification. All required information is available to relevant taxpayer under pull mode. This is evident from below:

Sr. No. Activity Outward supplier Processing at GST common portal Inward supplier
Input Process Output
1 E-filing the details of outward supplies Sales of goods and/or services effected during a tax period (of a month) FORM GSTR-1 The details in GSTR – 1 will be filter by recipient wise and electronically disseminated to all recipient Part A of FORMGSTR-2A The taxpayer at receiving end may verify GSTR – 2A and add, correct or delete any of its retail
2 Verification of return by counter party i.e. by receiverAND 

E – filing Inward Supplies/Purchases Received

Inward supplier may accept, add or correct details in GSTR – 2A and furnished for GSTR -2 FORM GSTR-2 that is filed by inward supplier The supplies added, deleted or corrected are made available outward supplier FORM GSTR-1A
3 Verification of return by outward supplier supplier may either accept or reject the modifications FORM GSTR-1A Supplies to the extent accepted will be modified in GSTR-1 Modified FORM GSTR-1

Filing GSTR – 2:

The following points shall be noted while preparing GSTR -2:

  1. GSTR -2 shall be prepared on the basis of information contained in Part A of GSTR – 2A.
  2. The taxpayer may accept or reject or correct the details contained in GSTR -2A. The details the extent accepted by taxpayer will be auto populated in GSTR -2.
  3. If taxpayer wants to add more details, it can be added in non auto populated fields of GSTR -2.

Further, taxpayer has to furnish the following other information in GSTR -2:

(This information is required to calculate tax payable in GSTR -3)

  1. Inward supplies in respect of which he is not eligible, either fully or partially, for input tax credit
  2. Declare the quantum of ineligible input tax credit on inward supplies which is relatable to non-taxable supplies or for purposes other than business and cannot be determined at the invoice level
  3. Details of invoices furnished by an Input Service distributor (auto populated from GSTR – 6)
  4. TDS u/s 37 (auto populated from GSTR – 7)
  5. TCS u/s 43C (auto populated GSTR -8)

Filing and Processing of GSTR -3 (Monthly return):

After cross verification and purchases and sales for the month, its time ascertain tax liability and payment of tax. For computation of tax liability following details are required with are already given in GSTR -1 / GSTR -2 will be auto populated there from:

Sr. No. Detail Auto populated from
6 Outward Supplies Inter-state supplies to Registered Taxable PersonsIntra-State Supplies to Registered Taxable PersonsInter-State Supplies to Consumers

Intra-State Supplies to Consumers

Exports (including deemed exports)

Revision of supply invoices/Credit notes/Debit notes and others

 

GSTR – 1
6.7 Total tax liability on outward supplies Calculated from above table
7 Inward supplies Inter-State supplies received Intra-State supplies receivedImports

Revision of purchase invoices/Credit note/Debit note and other details

Total Tax liability on inward supplies on reverse charge

ITC Reversal

Output tax added/reduced on account of non-rectification/rectification of communicated mismatches

GSTR -2
8 Total Tax liability for the month Calculated from above table
9 Tax Paid Details TDS credit received during the monthTCS credit received during the month GSTR – 2
The below information will now be added by taxpayer to calculate tax payable:
10 ITC received during the month
11 Tax, interest, late fee and penalty paid
12 Refunds claimed from cash ledger
12 Bank details for payment of tax due

 

Sensys

  2 Responses to “GST – Return submission and verification procedure”

  1. Send goods with multiple invoices in a single shipment. Know how!

    Consolidated e-way bill is one of the biggest advantages of e-way bill implementation. Earlier, transportation & logistic trucks/vehicles used to carry invoices for different products with different way bills. Instead of carrying separate document for each consignment the process is enhanced by introducing consolidate e-way bill. Government intends to improve the verification efficiency while simultaneously tightening the shipment compliance.

    Foreemore details : https://www.udyogsoftware.com/send-goods-with-multiple-invoices-in-a-single-shipment-know-how/

  2. It’s really a great and useful piece of info. I am glad that you shared this useful information with us. Please keep us informed like this. Thanks for sharing.

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