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

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


Dec 052016


 What is migration?

Under GST regime various central level taxes and state level taxes are summoned into one tax. Hence, for the smooth transition it is essential to migrate all existing assesses under various acts under GST regime.

Now, as same assesses may have registration under different acts with different information in different states. However, under GST model one assessee will be provided with one registration. So following issues will arise in this process:

  1. Data validation issue: Different information about contact no, address, authorize person about same assessee is available under state vat acts, entertainment tax, luxury tax, service tax, excise etc. There information needs to be validated before complete transition to GST.
  2. Data duplicate issue: Any duplicate data available with government needs to be removed.
  3. Data redundancy issue: Any irrelevant data with the department, which is of no use in modern GST regime, shall be removed.

So under para 142 of modern GST draft act provisions as to migration of exiting taxpayers are made as below:

(1) On the appointed day, every person registered under any of the earlier laws shall be issued a certificate of registration on a provisional basis in such form and manner as may be prescribed.

(2) The certificate of registration issued under sub-section (1) shall be valid for a period of six months from the date of its issue:

Provided that the said validity period may be extended for such further period as the Central/State Government may, on the recommendation of the Council, notify.

(3) Every person to whom a certificate of registration has been issued under subsection (1) shall, within the period specified under sub-section (2), furnish such information as may be prescribed.

(4) On furnishing of such information, the certificate of registration issued under sub section (1) shall, subject to the provisions of section 19, be granted on a final basis by the Central/State Government.

(5) The certificate of registration issued to a person under sub-section (1) may be cancelled if such person fails to furnish, within the time specified under sub-section (2), the information prescribed under sub-section (3).

(6) The certificate of registration issued to a person under sub-section (1) shall be deemed to have not been issued if the said registration is cancelled in pursuance of an application filed by such person that he was not liable to registration under section 19

So, in essence all existing tax payers will be issued a provisional registration certificates based on the data available with the department. The data will be validated by tax payer and relevant documents will be furnished. Final registration will be issued once the data gets validated. The above process is complete technology driven and minimal human interface. The main points of this process are as below:

  1. Existing registrants either with States or with Centre to be migrated to GSTIN – Process already initiated and state wise target dates are provided in the table below.
    1. VAT registration data to be used for migration of dealers in goods
    2. Service Tax registration data to be used for migration of service providers
  2. Registration is mandatory in case turnover is more than Rs 20 lacs
  3. Validation of existing registration information by GSTN (Goods and Service Tax Network)
  4. Verification / updating of migrated data by existing registrants within a specified period
  5. Issuance of GSTIN by GSTN
  6. Verification by Centre/State Authorities after issuance of GSTIN

The process of registration is already started and state wise start and end target dates are also given to all states and the same are enumerated below:

States Start Date End Date
Puducherry, Sikkim 08/11/2016 23/11/2016
Maharashtra, Goa, Daman and Diu, Dadra and Nagar Haveli, Chhattisgarh 14/11/2016 30/11/2016
Gujarat 15/11/2016 30/11/2016
Odisha, Jharkhand, Bihar, West Bengal, Madhya Pradesh, Assam, Tripura, Meghalaya, Nagaland, Arunachal Pradesh, Manipur, Mizoram 30/11/2016 15/12/2016
Uttar Pradesh, Jammu and Kashmir, Delhi, Chandigarh, Haryana, Punjab, Uttarakhand, Himachal Pradesh, Rajasthan 16/12/2016 31/12/2016
Kerala, Tamil Nadu, Karnataka, Telangana, Andhra Pradesh 01/01/2017 15/01/2017
Enrolment of Taxpayers who are registered under Central Excise Act/ Service Tax Act but not registered under State VAT 01/01/2017 31/01/2017
Delta All Registrants (All Groups) 01/02/2017 20/03/2017

For pre-preparedness following steps shall be taken by all existing assessee:

  • All existing tax payers shall ensure that they have updated their email ids and password in vat / service tax registrations. Your provisional ID and password will be sent on mail ids and mobile nos available with department. Password and Email IDs of tax professionals will not work.
  • Bank account no and IFSC code.
  • Keep ready with following documents to upload on GST portal:
    1. Proof of constitution – partnership deed / other registration certificate depending on the type of constitution of business.
    2. Photograph of promoters/partners/Karta of HUF
    3. Proof of appointment of authorize signatory
    4. Photograph of authorize signatory
    5. Opening page of passbook / bank statement

Stages of registration:

Stage Name Remarks
1 Provisional Initial status of the Provisional ID that is communicated by department before appointed date
2 Provisional pending signature Once GST enrollment form is filled with all relevant fields and document and form is saved.
3 Migrated After signing and submitting the form status will change to migrated. You can not change the application once it is submitted.
4 Active Auto change to active status on appointed date.
5 Suspended After six month from the appointed date, all provisional IDs that are not electronically sign will be suspended.


Dec 012016


The biggest reform in the Indirect tax is now a step forward. Everyone is trying to know how his business process are going affected due to its likely upcoming from 1st April 2017. Here is an attempt to analyse the same in view of modal GST laws.

Dual control

Since, GST is collected simultaneously by state government and central government so is the assessment? If so, will the same assessee may receive notices / orders from central government and as well as state government(s)

The answer is no. There will a clear demarcation of powers between central government and state government. There will a threshold limit, to say Rs 400 lacs, below which assessee will be assessed by state government and rest above it are assessed by central government. So for an assessee there will be no confusion. Either is answerable to state government or central government.

Return to be file

Under GST regime there will be in total 8 returns as provided below:

Type Description Who will file Due date
GSTR – 1 Details of outward supplies of taxable goods and/or services effected All taxable person except those who are opting for compounding scheme or ISD suppliers 10th of next month
GSTR – 2 Details of inward supplies of taxable goods and/or services claiming input tax credit 15th of next month
GSTR – 3 Monthly return on the basis of finalization of details of outward supplies and inward supplies along with the payment of amount of tax 20th of next month
GSTR – 9 Annual return 31st Dec of next financial year from the end of relevant year
GSTR – 7 Return for authorities deducting tax at source Person mandated by central government or state government to deduct TDS, to say:1.     Department of central government or state government2.     Establishment of central government of state government

3.     Local authority

4.     Government agencies

5.     Other persons as recommend by central government or state government

10th of the next month
GSTR – 4 Quarterly Return for compounding Taxable persons Registered taxable person having turnover does not exceed Rs 50 lacs and opted for compounding scheme 18th of the next month from the end of relevant quarter
GSTR – 5 Return for Non-Resident (foreign) taxable person Non-Resident (foreign) taxable person 20th of the next month
GSTR – 6 ISD return Input Service Distributor 15th of the next month

All the above returns are technology driven. The above returns may be furnished by taxable person directly on the GST common portal or through the facilitation centre as may be notify by government. Here we will discuss GSTR – 1 in detail:

GSTR -1:

Sr. No. Description Remarks
1 GSTIN A PAN based 15 digit unique alphanumeric GSTIN to be write here. The structure of GSTIN is given below:1.     First 2 digits are state code2.     Next 10 digits are PAN no of taxable person

3.     13th digit – Business vertical of the entities with same PAN in same sate

4.     14th digit left blank for future use

5.     15th digit is check digit

This is auto fill on log in.

2 Name of the Taxable Person This is auto fill on log in.
3 Aggregate Turnover of the Taxable Person in the previous FY Turnover of previous financial year shall be mentioned here. For example for year 2017-18, aggregate turnover for 2016-17 shall be mentioned.This is manually punch in only for the first year. From next year this is auto fill based on annual return file in the previous year.
4 Period Since GSTR is a monthly return. Here needs to mentioned for which month and year return is being filled. For example, for return for the month of Apr 2017 – write here as Month 04 Year 2017
5 Taxable outward supplies to a registered person For B2B supplies: Supplies made to registered taxable person shall be given in this table. The following details needs to be given under this table:1.     GSTIN / UIN (Column 1): In case sale is made to registered taxable person write GSTIN. In case sale is made special category person such as UNO, diplomats, foreign embassies etc. then write Unique Identification Number (UIN).2.     Invoice details (Column 2-13): There write Invoice no, Date, value, Goods / Service, HSN / SAC code, Taxable value, IGST, CGST, SGST.

3.     Point of supply (POS) (Column 14): To be fill the state code of receipt of service / goods only if recipient is located at different place.

4.     Column 15: if supply attract reverse charge

5.     Column 16: Check Box in case tax is paid under provisional assessment.

5A Amendments to details of Outward Supplies to a registered person of earlier tax periods In case there is any change in details furnished under Sr. No. 5 of earlier tax period the details shall be furnished here.
6 & 6A Taxable outward supplies to a consumer where Place of Supply (State Code) is other than the State where supplier is located (Inter-state supplies) and Invoice value is more than Rs 2.5 lakh For B2C supplies: Use when following conditions are met:1.     Inter-state supply of goods / services2.     Invoice value is > Rs 2.5 lacs

3.     If there is any amendment in invoices issued in earlier tax period use table 6A.

7 & 7A Taxable outward supplies to consumer (Other than 6 above) This is rest category. If any supply is not fit in 5 and 6 mentioned it here.Note: In this table invoice wise value need not be given. Provide on aggregate basis.
8 & 8A Details of Credit/Debit Notes If any debit note or credit note issued by supplier furnishing the return the details of the same shall be mentioned here.
9 Nil rated, Exempted and Non GST outward supplies Taxable person supplier has the option to furnished NIL rated, Exempted and non GST outward supply in relevant table no 5, 6, and 7 as the case may be.If the details are not mentioned under above table then aggregate value shall be mentioned in this table.


If the details of “nil”” rated and “exempt” supplies have been provided in Table 5, 6 and 7, then info in column (4) may only be furnished

10 & 10A Supplies Exported (including deemed exports) An additional column = “ Description” is mentioned in this table. Here we have to segregate all export / deemed export supplies under – with payment of GST and without payment of GST
11 & 11A Tax liability arising on account of Time of Supply without issuance of Invoice in the same period. In case of advance payment or where point of supply is completed but invoice is not issued in the same tax period. Such cases shall be mentioned here.A transaction id would be generated by system for each transaction on which tax is paid in advance/on account of time of supply. In future tax period such transaction ID shall be motioned when invoice is actually issued in table no 12 to avoid double taxation.
12 Tax already paid (on advance receipt/ on account of time of supply) on invoices issued in the current period Tax liability in respect of invoices issued in this period shall be net of tax already paid on advance receipt/on occurrence of time of supply
13 Supplies made through e-commerce portals of other companies