gst compliances and returns

Goods and Services Tax (GST) Compliances and Retrurs
CA Narayan Lodha, Chartered AccountantPrivileged and Confidential
Good and Service Tax (GST)
The GST Council, the apex decision-making body for the new tax, has fixed the tax framework under the
Goods and Services Tax (GST) which is to be rolled out this July 1 2017. Tax rates have been finalised for
1,211 items with a majority of items being kept under the 18 per cent slab. The Council has broadly
approved the GST rates for goods at nil rate, 5%, 12%, 18% and 28%.
The GST Council has broadly also approved the rates of GST Compensation Cess to be levied on certain
goods.
On 19 May 2017 during the 14th GST Council meeting held at Srinagar, Jammu & Kashmir. The Council
has broadly approved the GST rates for services at Nil, 5%, 12%, 18% and 28%
With Goods and Service Tax (GST) coming into effect from July 1, 2017 it is very important to understand
the new tax returns structure. We should know that what shall be GST compliances and process of GST
return filings.
It is levied at the each stage of business. From manufacture to final retailers everyone are covered in
single tax net.
GST compliances and process of GST return filings.
 Every person registered under GST Act has to periodically furnish the details of sales, purchases,
tax paid and tax collected thereon by filing a GST return with the Authorities
 Such registered person shall also maintain true and correct accounts and records at the principal
place of his business.
 Under GST law, a normal taxpayer will be required to furnish majorly 8 (eight) returns monthly
and one annual return and one quarterly basis.
 In order to file returns, payment of tax due is a pre-requisite otherwise such return to be filed
will be invalidated.
 The Registered person has to file a Nil GST return even if no purchase or sales activity has been
carried out during the period under review for filing of returns.
 There will be Matching of supplier’s and recipient’s invoice details. Hence all the sale invoice has to
be uploaded on GSTN site.
 The return forms are common for CGST, SGST, IGST & Cess

Maintenance of Accounts and Records:
Every registered person shall keep and maintain, at his principal place of business, as mentioned in the
certificate of registration, a true and correct account of production or manufacture of goods, of inward
or outward supply of goods and/or services, of stock of goods, of input tax credit availed, of output tax
payable and paid, and such other particulars as may be prescribed in this behalf.
GST Compliances mandates, every registered taxable person is required to keep and maintain, at the
principal place of his business, a true and correct accounts and records as specified below:
Account/Records by Whom?
Under GST, a trader has to maintain the following a/c’s (apart from accounts like purchase, sales,
stock) –
 Input CGST a/c
 Output CGST a/c
 Input SGST a/c
 Output SGST a/c
 Input IGST a/c
 Output IGST a/c
 Electronic Cash Ledger (to be maintained on Government GST portal to pay GST)
 Electronic Credit Ledger (to be maintained on Government GST portal for input credit of GST)
Period for Retention
As per the GST law every registered taxable person who is required to keep and maintain books of
account or other records, will maintain the books for at least 72 months, counted from the last date of
filing of Annual Return i.e. December of following year, except in the Appeal or Revision cases.

Goods and Service Tax Return
For the GST compliances, depending upon the type of registration and transactions, different periods
have been specified for GST Returns. Monthly GST Return has to be filed by Regular, Foreign Non-
Residents, ISD and Casual Tax Payers whereas compounding taxpayers have to file quarterly returns as
specified.
The most common used return will be Goods and Service Tax Return. GSTR 1, 2,3, 4 & 9. GSTR 1, GSTR 2
and GSTR 3 is required to be filed on monthly basis, GSTR 4 is required to be filed on a quarterly basis
whereas GSTR 9 should be filed on an annual basis.
Major returns under GST are as under
Dealer Type Return Type Frequency Due Date
Regular & Casual Dealer GSTR 1 Monthly 10th day of succeeding month
Regular & Casual Dealer GSTR 9 Annual 31st Dec of next Fiscal
Compounding Tax Payer GSTR 4 Quarterly 18th day of succeeding month
Compounding Tax Payer GSTR 9A Annual 31st Dec of next Fiscal
Foreign Non-Resident
Taxpayer
GSTR 5 Monthly
20th day of succeeding month or
7 days after expiry of registration
Input Service Distributor GSTR 6 Monthly 13th day of succeeding month
Tax Deductor GSTR 7 Monthly 10th day of succeeding month
E-Commerce Operator GSTR 8 Monthly 10th day of succeeding month
Monthly return forms
GSTR-1: This return form will have details of outward supplies of taxable goods and/or services effected.
It needs to be filed by registered taxable supplier on 10th of the next month.
GSTR-2: This return form should include details of inward supplies of taxable goods and/or services
effected claiming input tax credit. It needs to be filed by registered taxable recipient on 15th of the next
month.
GSTR-3: The return form should include monthly return on the basis of finalization of details of outward
supplies and inward supplies along with the payment of amount of tax. It needs to be filed by registered
taxable person on 20th of the next month.
GSTR-5: The form should have details of return for Non-Resident foreign taxable person. It needs to be
filed by Non-Resident Taxable Person on 20th of the next month.
GSTR-6: The form should have details of return for Input Service Distributor and it needs to be filed by
them on 13th of the next month.

GSTR-7: The form should have return for authorities deducting tax at source. It needs to be filed by tax
deductor on 10th of next month.
GSTR-8: The return form should include details of supplies effected through e-commerce operator and
the amount of tax collected. It needs to be filed by E-commerce Operator/Tax Collector on 10th of next
month.
GSTR-11: The form should include details of inward supplies to be furnished by a person having unique
identification number (UIN). It needs to be filed by person having UIN and claiming refund on 28th of
the month following the month for which statement is filed.
Quarterly return form
GSTR-4: This is the only form which needs to be filed quarterly. It should include quarterly return for
compounding taxable person. It needs to be filed by composition supplier on 18th of the month
succeeding quarter.
Annual Return form
GSTR-9: This is an only annual return form which needs to be filed by registered taxable person on 31st
December of next financial year.
Final Return Form
GSTR-10: This will be the final return form which needs to be filed by taxable person whose registration
has been surrendered or cancelled. It should be filed within three months of the date of cancellation or
date of cancellation order, whichever is later.
All these returns are required to be filed digitally online through a common portal to be provided by
GSTN, non-government, private limited company promoted by the central and state governments with
the specific mandate to build the IT infrastructure and the services required for implementing GST.
So, before you file tax returns for the next financial year, do not forget to read about the new forms.

Other Detailed Presentation
For more details and reference please refer to my Presentations at Slide share
1) Presentation on GST https://www.slideshare.net/narayanlodha/a-presentation-on-gst
2) Input Credit under GST https://www.slideshare.net/narayanlodha/1-presentation-on-input-tax-
credit-under-gst
3) Illustrative guide how the transaction will take place good and service tax
https://www.slideshare.net/narayanlodha/ilustrative-guide-how-the-transaction-will-take-place-
good-and-service-tax
4) Chapter wise rate of GST on goods as on 18 05 2017
https://www.slideshare.net/narayanlodha/chapter-wiseratewisegstschedule18052017
5) GST Compensation Cess to be levied on certain goods
https://www.slideshare.net/narayanlodha/gst-compensationcessrates18052017
6) Chapter wise rate of Services under GST as on 19 05 2017
https://www.slideshare.net/narayanlodha/schedule-of-gst-rates-for-services
#economy, #goodsandservicetax, #governance, #gst, #gstindia, #gstimplementation, #gstrollout,
#indirecttax, #law, #narayanlodha, #taxation, gst, gstrates, india,

Disclaimer
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gst compliances and returns

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