NAME OF MEMBERS –: ARYAN DAS (A90821521010)

ARPIT TIWARI (A90821521037)

PROGRAM -: BBA-LLB ( H )
SEMESTER –: [ VI ]
COURSE TITTLE –: CORPORATE TAX AND PLANNING
COURSE CODE –: ACCT [ 304 ]
SUBMITTED TO -: PROF. DR MAINAN RAY
(ASSOCIATE PROFESSOR , AMITY UNIVERSITY LAW
SCHOOL KOLKATA)

‘‘UNVEILING GST RETURNS:

NAVIGATING THE LEGAL FRAMEWORK
AND COMPLIANCE IN INDIA’’

ACKNOWLEDGEMENT
We would want to express our sincere appreciation to Professor Dr Mainan Ray
for all of his invaluable advice, constant inspiration, and unwavering support
during this endeavour. This deep knowledge and wise guidance have greatly
impacted our understanding and approach. We truly appreciate his guidance and
steadfast dedication to supporting our academic growth.
 INDEX

SL.N TOPICS
O
1 INTRODUCTION
2 WHAT IS GST RETURN
3 WHAT IS GSTIN NUMBER
4 ABOUT ITC
(INTPUT TAX CREDITE)
5 ITC MATCHING AND AUTO-
REVERSAL
6 TYPES OF GST RETURNS
7 REVISIONS OF RETURNS
8 LATE FEE AND PENALTIES
INTRODUCTION

The implementation of the Goods and Services Tax (GST) in India on

July 1st, 2017 brought about a major change in the country's indirect
taxation system. GST replaced numerous existing taxes on goods and
services. Now, goods are taxed based on where they are sold, while
services are taxed based on where they are used. The concept of
transitioning to the GST model was initially proposed in the Budget
for Fiscal Year 2006-2007. The Empowered or Steering Committee of
Various State Finance Ministers (EC) was tasked with developing a
roadmap and comprehensive structure for the GST, building upon the
design of the Structured State VAT. Joint Working and Empowered
Groups consisting of state and central officials were then established
to thoroughly examine different aspects of the GST Model, focusing
on exemptions, thresholds, taxation of services, and taxation of inter-
State supplies. Similar to VAT, the goods and services tax is a value-
based tax imposed on goods and services that are produced and sold
for local consumption. The GST is paid at each stage of the supply
cycle by businesses involved in the chain, but the ultimate burden of
the tax falls on the end consumer. To prevent duplicate tax payments
on the same supply, countries like India have implemented GST with
the provision of Input Tax Credit (ITC). In India, GST is typically
levied on a wide range of consumable goods and services in
production.
WHAT IS GST RETURN

The basic features of the return mechanism in GST consist of electronic filing
of returns, uploading of invoice- level information, auto-population of ITC
related information from suppliers to recipient’s returns or invoices, matching
of invoice level information and auto-reversal of ITC in case of mismatch. The
returns mechanism is aimed at assisting tax payers to file returns and avail the
ITC. Under GST, a registered regular taxpayer should submit monthly returns
as well as one annual return. These taxpayers have their separate returns.
Different taxpayers have different types of returns including: those taxed on
composition scheme; non-resident; Input Service Distributor; persons required
to deduct or collect tax (TDS/TCS); persons liable to be granted Unique
Identification Number. Not all these types are filed by a taxpayer within one
year. In fact, there are various kinds of returns which are filed by the taxpayers
depending on their activities.

A GST return is an official record that includes information about all

purchases, sales, taxes paid on purchases, and taxes received on sales.
Following the submission of the GST returns, the person must settle their tax
debt. Check out the Clear GST software for GST return filing or GST filings
that can import data from various ERP systems like Tally, Busy, custom Excel,
to name a few. Tally users also have the option to use a desktop app to upload
data and files directly.
All the returns are to be filed online. Returns can be filed
using any of the following methods:

1. GSTN portal (https://www.gst.gov.in/)

2. Offline utilities provided by GSTN

3. GST Suvidha Providers (GSPs)

If a tax payer is already using the services of an ERP providers such as Tally,
SAP, Oracle etc, there is a high likelihood that these ERP providers would
provide inbuilt solutions in the existing ERP systems.
WHAT IS GSTIN NUMBER?
Registered taxpayers under the Goods and Services Tax (GST) are
required to file a GST return for each registered GST Identification
Number (GSTIN). To maintain an active GSTIN, regular return filing
is necessary. The 15-digit GSTIN has a unique structure: * **First 2
Digits:** State code * **Next 10 Digits:** Permanent Account
Number (PAN) of the taxpayer * **Thirteenth Digit:** Indicates the
number of registrations made by the taxpayer within the same state
using the same PAN * **Fourteenth Digit:** Default alphabet 'Z' *
**Last Digit:** Check code for error detection

ABOUT ITC (INPUT TAX CREDITE)

A series of uninterrupted and uninterrupted Income Tax Returns
(hereinafter referred to as “ITCs”); It is one of the main components
of Goods and Services Tax. ITC is a tool to avoid cascades the tax on
the. Cascading taxes are, simply put, ‘taxes on taxes’. In simple terms
GST paid by a registered person on the purchase of goods or services
used to further the business. Input tax credits can be used to offset
GST liability on goods or services supplied by a registered person.
Input Tax Credit or ITC enables businesses to reduce tax liability by
claiming credit and selling based on the amount of GST paid on the
business purchase. For example, let’s say you manufacture a product
and the tax payable on the outcome is Rs. 1500 while the tax on
deposit is Rs. 1000 square feet

The following requirements are mandatory in order to claim input tax

credit under GST -:
 One has to register under the GST law.
 A tax return or invoice issued by a registered issuer indicates the amount
of tax payable and the registered person must have access to the relevant
goods or services or both; The supplier would have to file with the
government and pay such tax on it Where parts or installments are
received, ITC may be claimed upon receipt of the final lot or installment.
 Where depreciation is included in the cost of inputs and the depreciation
of such depreciation is shown, no depreciation is allowed Tax credit will
not be allowed if the same is not received within the prescribed period.

Documents for claiming ITC:

 A registered dealer can claim income tax credit on the basis of
the following documents.
 Tax returns issued by a registered person
 A debit slip issued in respect of tax returns previously issued by
a registered supplier.
 An invoice issued by the recipient of goods or services which
paid tax under reverse duty mechanism
 A bill of entry or similar document in case of imports.
 An invoice or credit note issued by an Input Service Distributor.
ITC Matching and Auto-Reversal SEC - 43

 ITC Matching and Auto-Reversal is a crucial mechanism

implemented to prevent revenue leakage and ensure that eligible
and rightful Input Tax Credit (ITC) is availed by taxpayers. The
process of ITC Matching begins after the due date for filing
returns, which is the 20th of each month, and is carried out by
GSTN. The details of inward supplies provided by the recipient
in form GSTR-2 are matched with the corresponding details of
outward supplies furnished by the supplier in their valid return.

 If the details match, the ITC claimed by the recipient is

considered accepted and communicated to them. However, if the
supplier fails to file a valid return, the recipient may face denial
of ITC. In cases where the ITC claimed by the recipient exceeds
the tax declared by the supplier or if there are discrepancies in
the supplier's valid returns, both the supplier and recipient are
notified. The recipient is given an opportunity to rectify any
excess claim of ITC, and if the supplier fails to rectify the
discrepancy, the excess ITC claimed by the recipient is added to
their output tax liability in the following month. Similarly, if
there is duplication of ITC claimed by the recipient, it is also
added to their output tax liability in the month of
communication.

 The recipient will be responsible for paying interest on any

excess or duplicate Input Tax Credit (ITC) that is added back to
their output tax liability. This interest will be applicable from the
date the ITC is availed until the corresponding adjustments are
made in their tax returns.

 Re-claiming ITC refers to the process of reversing the ITC in

the recipient's Electronic Credit Ledger by reducing their output
tax liability. The recipient can only make this re-claim if the
 suppliers includes the invoice and/or Debit Notes details in their
valid return within the specified timeframe.

HOW MANY TYPES OF GST RETURNS?

There are 22 distinct types of GST returns outlined under the GST regulations.
Presently, only 11 of these returns are in effect, while 4 have been temporarily
suspended and 8 are solely meant for viewing purposes. The particular GST
returns that need to be filed by a business or professional are determined by
their taxpayer classification, which encompasses regular taxpayers, composition
taxpayers, e-commerce operators, and TDS deductors, non-resident taxpayers,
Input Service Distributors (ISD), casual taxable persons, and others.

TYPES OF RETURNS UNDER GST

TYPES ABOUT THE RETURN WHO FILES STANDARD
DATE FOR FILING
GSTR1 GSTR-1 is the return to be furnished for Normal registered 10th of the
reporting details of all outward supplies of person next month
goods and services made.
(Section 37 of the CGST Act, 2017).
GSTR2 GSTR-2 is currently a suspended GST Normal registered 15th of the
return, that applied to registered buyers to person next month
report the inward supplies of goods and
services, i.e. the purchases made during a
tax period. (Section 38 of the CGST Act,
2017).
GSTR3 GSTR-3 is again currently a suspended Normal registered 20th of the
GST return. It was a monthly summary person next month
return for furnishing summarized details of
all outward supplies made, inward supplies
received and input tax credit claimed, along
with details of the tax liability and taxes
paid (Section 39(1) of the CGST Act, 2017)
GSTR4 GSTR-4 is a crucial GST return that is Taxable Person opting 18th of the
required for composition dealers. Dealers for Composition Levy Month succeeding
who are registered under the Composition the quarter
Scheme are required to submit a single
annual return.
(Section 39(2) of the CGST Act 2017)
GSTR5 GSTR-5A prescribes the consolidated Non-resident 20th of the
information for creation of excisable goods Taxpayer/ month
and tax payable after provision of online Supplier of succeeding tax
information and database access or retrieval OIDAR period
service (OIDAR) under GST. Services
(Section 39(5) of the CGST Act, 2017)
GSTR6 GSTR-6 is a return to be filed by Input Input Service 13th of the
Service Distributor (ISD) on a monthly Distributor next month
basis. Additionally, it provides details of the
documents submitted for the transfer of the
deposit and the method of disbursement
( Section 39(4) of the CGST Act, 2017)
GSTR7 GSTR-7 is a monthly return to be filed by Tax Deductor 10th of the
persons required to deduct TDS (Tax next month
deducted at source) under GST. This return
will contain details of TDS deducted, the
TDS liability payable and paid and TDS
refund claimed if any
(Section 39(3) of the CGST Act, 2017)
E-Commerce 10th of the
GSTR-8 is a monthly return to be filed by Operator next month
GSTR8 e-commerce operators registered under the
GST who are required to collect tax at
source (TCS). It contains details of all
supplies made through the e-commerce
platform, and the TCS collected on the
same.
GSTR9 GSTR-9 is an annual return to be filed once Taxable Per- 31st December of
for each financial year, by the registered son opting for next
taxpayers who were regular taxpayers, Composition Financial Year
including SEZ units and SEZ developers. Levy
(section 44 of the CGST Act, 2017)
GSTR1 GSTR-10 is to be filed by a taxable person Taxable per- Within three
0 whose registration has been cancelled or son whose registration months of the date of
surrendered. This return is also called a has been cancellation
final return and has to be filed within three surrendered or
months from the date of cancellation or cancelled.
cancellation order, whichever is earlier.
(Section 45 of the CGST Act, 2017)
GSTR11 GSTR-11 is the return to be filed by Persons who 28th of the
persons who have been issued a Unique have been next month
Identity Number (UIN) in order to get a issued a
refund under GST for the goods and (UIN)
services purchased by them in India. UIN is
a classification made for foreign diplomatic
missions and embassies not liable to tax in
India, for the purpose of getting a refund of
taxes. GSTR-11 will contain details of
inward supplies received and refund
claimed.
REVISION OF RETURNS
Returning a revised return with any errors or omissions fixes completes the
procedure. Rather, people can fix any mistakes or omissions on their follow-up
visit the following month. But keep in mind that no maintenance is allowed
after the fiscal year ends and the report is filed by filing the September return or
the applicable annual return, whichever comes first.

PENALTY / LATE FEE (SECTION 47)

Penalty for delay in filing GSTR
 RS100 for CGST and RS100 for SGST per day
 Or
 RS 5,000 each CGST & SGST whichever is less

{ Maximum penalty should not exceeds 5,000 for CGST & SGST each }

Interest on Late GST Payment

An interest of 18 percent is levied on the late payment of taxes under the GST
regime. The interest would be levied for the days for which tax was not paid
after the due date.

Penalty for non-filing of GST Returns

In case a taxpayer does not file his/her return within the due dates, he/she shall
have to pay a late fee of Rs. 200/- i.e. Rs.100/- for CGST and Rs.100/- for
SGST per day (maximum of Rs. 5,000/-) from the due date to the date when the
returns are actually filed.
BIPLIOGRAPHY

 https://icmai.in/upload/Students/Syllabus2016/Inter/Paper-11-NEW-GST-
Revised.pdf

 https://cleartax.in/s/returns-under-the-gst-law

 https://old.cbic.gov.in/resources//htdocs-cbec/gst/
51_GST_Flyer_Chapter32.pdf

 https://nagpuricai.org/seminar-presentations/NEW-PRESENTATION-
2.pdf

 https://www.bankbazaar.com/tax/gst-returns.html