A taxpayer is required to file a monthly return and an Annual Return.
Separate returns are prescribed for a person registered under Composition Scheme, Non-resident Tax Payer, Input Service Distributor, Persons liable to deduct and collect tax and a person granted Unique Identification Number.
Returns are required to be filed online using various methods viz. GSTN Portal (www.gst.gov.in), offline utilities provided by GSTN, GST Suvidha Providers.
A normal taxpayer is required to file three returns viz. GSTR-1, GSTR-2 & GSTR-3.
GSTR-1 is a statement of outward supplies. It signifies the tax liability of the supplier for the supplies effected during the previous month. It needs to be filed on 10th of every month for the supplies effected in the previous month.
GSTR-2 is a statement of inward supplies. It signifies the accrual of Input Tax Credit received during the previous month. It is auto populated from the GSTR-1 filed by the corresponding suppliers except certain fields such as imports, purchases from unregistered dealers etc. It needs to be filed by the 15th of every month.
GSTR-3 is a consolidated return. It is to be filed by the 20th of every month. It consolidates certain details such as outward supplies, inward supplies, ITC availed, Tax payable & Tax paid.
Payment of tax is required to be made on or before 20th of every month.
Annual Return is required to be filed by 31st of the next financial year i.e. for the financial year 16-17, Annual Return is required to be filed by 31st December of Financial Year 17-18.
No procedure for filing of revised returns. Errors/Omissions can be corrected in the subsequent returns. However, such rectification is not allowed after furnishing the return for the month of September following the end of the financial year to which such details pertain or furnishing of annual return, whichever is earlier.
Late fee of Rs.100/- per day for failure to file GSTR-1, GSTR-2 & GSTR-3 on dues dates subject to a maximum of Rs.5000/-
A return is considered to be a valid return only when the appropriate GST has been paid in full by the taxable person as shown in such return for a given tax period.
Failure to file valid return by the supplier may lead to denial of ITC in the hands of the recipient.
Matching of Credit:
It begins after the due date of filing of GSTR-3.
Details of inward supplies in Form GSTR-2 shall be matched with the corresponding details of outward supplies of the suppliers in their valid returns. In case, the details match, the ITC claimed by the recipient is finally accepted.
In case, ITC claimed by the recipient is in excess of tax declared by the supplier or where the details are not declared by the supplier in his valid return, the discrepancy will be communicated to both the supplier and the recipient.
In case of duplication of ITC, it would be communicated to the recipient.
The recipient is required to rectify the discrepancy of excess claim of ITC. If the supplier does not rectify the discrepancy communicated to him in his valid returns for the month in which discrepancy is communicated then such excess ITC claimed will be added to the output tax liability of the recipient in the succeeding month.
Duplication of ITC claimed shall be added to the output tax liability of the recipient in the month in which such duplication is communicated.
Interest would be payable on the excess ITC or duplicate ITC added in the output tax liability of the recipient from the date of availing ITC till the corresponding additions are made in their returns.
ITC reversed can be reclaimed by way of reducing the output tax liability. Such re-claim can be made by the recipient only in case the supplier declares the details of invoices/debit notes in his valid return within the prescribed timeframe. In such cases, interest paid by the recipient would be refunded in his Electronic Cash Register.