FAQ’s on RETURNS

Q1. What is the purpose of Return?

ANS:

a) Mode for transfer of information to tax administration;
b)Compliance verification program of tax administration;
c) Finalization of the tax liabilities of the taxpayer within stipulated period of limitation; to declare tax liability for a given period;
d) Providing necessary inputs for taking policy decision;
e) Management of audit and anti-evasion programs of tax administration.

Q2. Who is required to furnish the details of outward taxable supply? In what format, should such details be furnished? What is the due date for furnishing such details?

ANS: All registered taxable persons are required to furnish the details of outward supplies of goods and services effected during the tax period, except:

(a) Input Service Distributors

(b) Composition suppliers

(d) Persons liable to deduct tax at source as per Section 46

(e) Persons liable to collect tax at source as per Section 56

The details should be furnished electronically in the format prescribed in Form GSTR-1.

Such returns should be furnished on or before 10^th day of the month succeeding the tax period.

Q3. What are the details to be submitted while furnishing the details of outward supply in GSTR-1?

ANS. The supplier has to furnish the details of invoices, debit notes, credit notes and revised invoices issued in relation to outward supplies made during the tax period. Key points to be disclosed are as follows: -

Supplies made to registered persons and unregistered persons including consumers.
Inter-State supplies to a consumer (non-registered person) where invoice value is more than 2,50,000 should be separately captured.
Exempted supplies, Nil-rated supplies, Exports (including deemed exports) and non-GST supplies should each be captured, separately.
Tax liability arising in the current tax period where invoice is not issued in the current tax period (i.e., yet to be raised).
Invoices issued in the current tax period for which tax was already paid earlier (advances).
Supplies made through e-commerce portal of other companies to registered taxable persons and other consumers, separately.
The supplier has to mention the Harmonized System of Nomenclature for goods and Service Accounting Code.

Q 4. Whether the details uploaded by the supplier in GSTR-1 would be communicated to the receiver?

ANS. The details uploaded by the suppliers in GSTR-1 would be communicated to the recipient (Registered taxable person) in Part A of Form GSTR-2A, which is an auto-drafted form.

Q5. What is the procedure to be followed if the recipient finds that the details disclosed in Form GSTR-2A are incorrect?

ANS. The recipient can verify and validate/modify/delete such details and even add details, and thereafter submit the same in Form GSTR-2 before 15th of the succeeding tax period.

Q 6. What happens when the recipient modifies/deletes the details appearing in GSTR-2A?

ANS. If the recipient modifies/deletes any details, such modification/deletion will be communicated to the supplier in Form GSTR-1ANS. The supplier can accept/reject such modification/deletion before 17th of the succeeding tax period. To the extent of such modifications/ deletions, Form GSTR-1 of the supplier would stand amended.

Q7. On verification of GSTR-2A, if the recipient finds that certain inward supplies made by him are not reflected, can he add the details of such inward supplies manually

ANS. If the recipient finds that certain inward supplies made to him in the tax period are not reflected in the Form GSTR-2A, the recipient can manually add the details of such supplies in Form GSTR-2. Such additions will be communicated to the supplier in Form GSTR-1ANS. The supplier can accept/reject such modifications before 17th of the succeeding period, upon which, Form GSTR-1 filed by him would stand amended.

Q8. After filing of Form GSTR-1, the recipient has modified/deleted/added the details. What is the procedure to be followed by the supplier?

ANS. Where the recipient has modified/deleted/added any details in his Form GSTR-2, the supplier will receive a communication in Form GSTR-1ANS. The supplier can accept or reject such modifications/deletions/addition before 17th of the succeeding period. If the supplier accepts the modifications/deletions/addition, the details furnished by him in Form GSTR-1 will be amended automatically.

Q 9. Whether the details furnished under GSTR-1 and GSTR-2 can be rectified? Is there any time limit for revision / rectification of such details?

ANS. The details furnished in Forms GSTR-1 and GSTR-2 which have remained unmatched as per Section 37 or 38 can be rectified as and when the error or omission is discovered. However, no rectification is permissible after filing the annual return or the return for the month of September of the following year (whichever is earlier). It may also be noted that there is no concept of revision of a filed return under the GST regime.

Q10. Who is required to furnish the details of inward taxable supply? In what format, should such details be furnished? What is the due date for furnishing such details?

ANS. All registered taxable persons are required to furnish the details of inward supplies of goods and services effected during the tax period, except:

(a) Input Service Distributors

(b) Composition suppliers

(d) Persons liable to deduct tax at source as per Section 46

(e) Persons liable to collect tax at source as per Section 56

The details should be furnished electronically in the format prescribed in Form GSTR-2. Such returns should be furnished after 10^thbut before 15th of the succeeding tax period.

Q11. What are the particulars to be submitted while furnishing the details of inward supply in Form GSTR-2?

ANS. The details regarding inward supplies will be auto-populated from GSTR-2ANS. However, the recipient can modify/delete/add details of inward supply. Key points to be disclosed are as follow:

Details of inward supplies from registered taxable persons.
Details of debit notes/ credit notes issued by the suppliers to the person.
Details of inward supplies attracting reverse charge.
Details of goods, capital goods and services procured from outside IndiAns. Further, the details of total eligible input tax credit and input tax credit available in the current tax period shall also be disclosed.
Supplies received from composition taxable person, unregistered persons and other exempt/nil/non-GST supplies shall be reported separately.
Input tax credit received from ISD, TDS credit and TCS credit.
Input tax credit received on an invoice on which partial credit was claimed earlier.
Where there is liability to pay tax under reverse charge mechanism even though the invoice has not been received.
Where tax has already been paid under reverse charge mechanism in the earlier period but invoice has been received in the current tax period.
Input tax credit reversed along with the reason for such reversal.

Q 12. What is Form GSTR-2A?

ANS. Form GSTR-2A is an auto-drafted form and contains [changes made by recipient in GSTR-1A the details of inward supplies made by the assessee, the details of which have been uploaded by the supplier. It also contains the input tax credit distributed by the Input Service Distributor, tax deducted at source under Section 46 and tax collected at source under Section 56. It is similar to the statement provided in Form 26AS issued under Income Tax Act, 1961. The details in GSTR-2A are auto populated.

Q13. A Supplier raises an invoice on 30.08.2017 and discloses the same in GSTR-1 for August 2017. The Recipient receives the goods and records the inward supply in his books of account on 01.09.2017. How will the inward supply of the recipient and outward supply of the supplier match?

ANS. As per Section 37, details of inward supply of the recipient should match with the outward supply declared by the supplier for the current tax period or for the earlier tax period. In this case, the inward supply of the recipient is filed for the period September 2017 and will match with the outward supply of the supplier filed for the period August 2017.

Q14. How should the assessee disclose the details of inward supplies on which he wishes to avail input tax credit?

ANS. In Form GSTR-2, against each inward supply, an option for eligibility of input tax credit is available. The assessee can select the option if he is eligible for input tax credit.

Q 15. After finalization of outward supplies and inward supplies, what is the next procedure?

ANS. After finalizing the statements for outward and inward supplies, a registered taxable person has to file the monthly return in Form GSTR-3. However, the following persons are not required to file the GSTR-3 return: -

(a) Registered taxable person paying taxes under Composition scheme (Form GSTR-4 shall be furnished instead)

(b) Input service distributor (From GSTR-6 shall be furnished instead)

(d) Person liable to deduct tax at source as per Section 46 (Form GSTR-7 shall be furnished instead, for the purpose of reporting the taxes deducted at source)

(e) Person liable to deduct tax at source as per Section 56 (Form GSTR-8 shall be furnished instead, for the purpose of reporting the taxes collected at source)

The return in GSTR-3 is auto populated from Forms GSTR-1 and GSTR-2. Further, the details of tax, interest and penalty paid have to be reported in Part B of Form GSTR-3. The return has to be filed by 20th of the succeeding tax period.

Q16. Whether an assessee under composition scheme is required to furnish details of inward supply and outward supply?

ANS. No. An assessee under the composition scheme is not required to furnish details of inward and outward supplies. Such assesses are required to file quarterly returns in Form GSTR-4 within 18 days from the end of the quarter.

Q 17. What is GSTR-4A?

ANS. Form GSTR-4A contains the details of inward supplies received by composition suppliers from registered taxable persons, debit/credit notes received and tax deducted at source. This statement is auto populated from Forms GSTR-1 (filed by persons paying tax under the normal provisions), GSTR-5 and GSTR-7 filed by other assesses.

Q 18.What are the returns to be furnished by a non-resident taxable assessee?

ANS. A non-resident taxable assessee is liable to file Form GSTR-5 for furnishing the monthly details of inward and outward supplies, debit/credit notes, tax paid details, details of closing stock and refund claimed, if any. The return should be furnished by 20th of the month succeeding the tax period, or within 7 days from the last day of the validity of registration.

Q 19. Whether Input Service Distributor is liable to furnish details of inward and outward supplies?

ANS. Input Service Distributor is not liable to furnish the details of inward and outward supplies. Input Service Distributor is liable to file return in GSTR-6 on or before 13th of the month succeeding the tax period. The details relating to input tax credit distributed is communicated to the recipient in Part B of GSTR-2ANS.

Q 20. What is GSTR-6A?

ANS. Form GSTR-6A contains the details of inward supplies received by Input Service Distributors from registered taxable persons and debit/credit notes received. This statement is auto populated from GSTR-1 and GSTR-5 filed by other assesses bearing the same PAN as the Input Service Distributor.

Q21. What are the returns to be furnished by a person notified under Section 46 of the GST Act to deduct tax at source?

ANS. Any person liable to deduct tax at source under Section 46 of the GST Act is liable to furnish returns in Form GSTR-7. The details in respect of tax deduced at source, as well as the details relating to tax payable and tax paid shall be disclosed. This apart, the person shall be required to furnish other returns in Forms GSTR-1, GSTR-2 and GSTR-3, to the extent not covered in Form GSTR-7.

Q22. What are the returns to be furnished by a person notified under section 56 of the GST Act to collect tax at source?

ANS. Any person liable to collect tax at source under section 56 of the GST Act is specifically liable to furnish returns in Form GSTR-8. The details in respect of tax collected at source, as well as the details relating to tax collected and tax paid shall be disclosed. This apart, the person shall be required to furnish other returns in Forms GSTR-1, GSTR-2 and GSTR-3, to the extent not covered in Form GSTR-8 above.

Q23. Whether returns have to be filed if the assessee has not effected any inward or outward supply during a tax period?

ANS. Section 34(8) specifies that the periodical return in Form GSTR-3 or GSTR-4 (as the case may be) shall be furnished whether or not any supplies have been effected during the tax period. Here, it is relevant to note that the term “supplies” includes both inward and outward supplies. However, a non-resident taxable person, an input service distributor, a person liable to deduct tax at source and person liable to collect tax at source would not be liable to furnish returns (in Forms GSTR-5, GSTR-6, GSTR-7 and GSTR-8, respectively) if they have not effected any supplies requiring them to furnish the respective forms (as mentioned above).

Q 24. Whether the details furnished under GSTR-3, GSTR-4, GSTR-5, GSTR-6, GSTR-7 and

GSTR-8 can be rectified?

ANS. As per section 34(9) of the Revised GST Law, if the assessee discovers any omission or incorrect particulars in Forms GSTR-3 or GSTR-4 or GSTR-6, the assessee can rectify such omission or incorrect particulars in a subsequent return, which is to be furnished for the tax period during which such omission or incorrect particulars are noticed. The entry would appear in the table showing amendment of reported in earlier returns. However, no such rectification shall be permitted after filing the annual return or the return for the month of September of the following year whichever is earlier). It may be noted that there is no provision for rectification of return filed by non-resident taxable person (GSTR-5), person liable to deduct tax at source (GSTR-7) and person liable to collect tax at source (GSTR-8). Example: - In the month of August 2018, the assessee notices that the furnished in Form GSTR-3 for the month of July 2017 are incorrect. While filing the GSTR-3 for August 2018, the assessee can make an entry in the table showing amendment to details of earlier tax periods and thereby rectify the details entered earlier in the return for July 2017, provided, the annual return.

Q25. During inspection/audit/scrutiny/enforcement activity, the Department has pointed out certain omissions or incorrect particulars in the returns. Whether the assessee can rectify the returns to correct the omissions or incorrect particulars in its returns?

ANS. As per Section 34(9), where the omission / incorrect particulars are pointed out by the department during audit/inspection/scrutiny/enforcement, the assessee cannot rectify such omissions/incorrect particulars in the returns. However, due tax and interest shall be payable thereon.

Q26. Whether the tax payable under GST Act has to be paid to the Central Government or the State Government?

ANS. As per section 34(7), the tax payable in cash has to be paid to the ‘appropriate Government’ on or before the due date for filing the return. ‘Appropriate Government’ has been defined in Section 2(11) to mean the Central Government in respect of IGST and CGST and the State Government in respect of SGST.

Q27. ‘A’ was liable to get registered from April 12, 2017. ‘A’ got his registration only on August 16, 2017. How should ’A’ disclose the details of supplies effected during the period April 12, 2017 to August 16, 2017?

ANS. As per Section 35, a registered taxable person is required to file First Return to disclose the details of supplies effected during the period between the date on which he became liable to registration till the date on which registration is granted. Therefore, ‘A’ has to file First Return to disclose the supplies effected during the period April 12, 2017 to August 16, 2017.

Q28. What is meant by provisional input tax credit?

ANS. The input tax credit availed by the recipient in its return is allowed to the recipient on a provisional basis. Once the input tax credit availed by the recipient is matched with the corresponding details of outward supply furnished by the supplier or with the additional duty of customs paid by the recipient in respect of imported goods, the input tax credit will become final.

Q 29. What is meant by self-assessment?

ANS. Under the GST regime, the responsibility to compute the correct output tax liability, eligible input tax credit and output tax liability lies with the assessee. The assessee must determine the rate of tax, value of supply and the output tax payable. The assessee must also decide the eligibility of input tax credit in respect of the various inward supplies. The determination of turnover, rate of tax, value of supply, eligibility to input tax credit, reversal of input tax credit, etc. done by the assessee himself is called as self-assessment. Based on such self-assessment, the assessee has to file the various returns.

Q30. What is meant by matching of input tax credit?

ANS. As per Section 37(1), the details of inward supplies and input tax credit availed by the recipient and disclosed in Form GSTR-2 have to be matched with the following: -

(a) Corresponding details of outward supply furnished by the supplier in his valid return for the same tax period or earlier tax period,

(b) Additional duty of customs paid under section 3 of the Customs Act in respect of imported goods.

Further, duplication of claims of input tax credit would also be noted. This apart, the details of the GSTIN of the supplier, GSTIN of the recipient, invoice/debit note number, taxable value and the tax amount shall also be matched.

Q31. When will the input tax credit be finally accepted?

ANS. Once the details of inward supply and input tax credit are matched with the corresponding details of outward supply furnished by the supplier in his valid return for the same tax period (or earlier tax periods), or with the additional duty of customs paid by the person himself, the input tax credit shall be finally accepted. Once the input tax credit is finally accepted, the details of such acceptance will be communicated to the assessee in GST ITC-1.

Q32. The recipient has inadvertently claimed input tax credit twice on the same invoice. What are the consequences of such duplicate claims?

ANS. Section 37(4) of the Revised GST Law provides that duplicate claims of input tax credit will be communicated to the recipient in GST ITC-1. Such duplicate claim of input tax credit will be added to the output tax payable for the month in which such GST ITC-1 is communicated to the recipient, and interest shall be payable thereon.

Q33. If the input tax credit availed in respect of certain supplies does not match with the details uploaded by the supplier, what is the procedure to be followed?

ANS. If the input tax credit claimed by the recipient is in excess of the output tax declared by the supplier for the same supply or where the supplier does not declare such outward supply in the returns, the discrepancy will be communicated to the supplier as well as the recipient in GST ITC-1 on or before the last day of the month in which such matching is carried out. On receipt of such communication, either the supplier or the recipient can rectify the details to match the claim of input tax credit. Where the supplier rectifies the mistake, the amount claimed as credit shall be allowed, and the supplier shall be liable to pay due tax and interest thereon. However, where the supplier does not accept the excess input tax credit claimed by the recipient, such excess shall be added to the output tax liability of the recipient in the following month, and interest shall be payable on such amount by the recipient.

Q34. Where there is a mismatch in input tax credit due to the incorrect details entered by the recipient of the supplies, what is the procedure to be followed by the recipient?

ANS. If there is a mismatch in the claim of input tax credit, a communication in GST ITC-1 will be sent to the supplier as well as the recipient of such supply. If the discrepancy is due to the incorrect entered by the recipient, then the recipient can rectify such discrepancy in its return for the month in which GST ITC-1 is communicated to him. Once the discrepancy is rectified and the input tax credit is matched, a communication in GST ITC-1 will be sent to the recipient and the claim of input tax credit will be finally accepted. However, if the recipient does not rectify the discrepancy in the month in which such discrepancy is communicated, the amount of tax payable on account of such discrepancy will be added to the output tax liability of the recipient for the month succeeding the month in which GST ITC-1 is communicated to the recipient.

Q35. If the mismatch in input tax credit is due to the incorrect details entered by the supplier, what is the procedure to be followed by the recipient?

ANS. If the supplier declares incorrect details in its GSTR-1 or does not declare a particular supply in GSTR-1, the recipient has an option of modifying/deleting/adding such details in GSTR-2. Once the recipient modifies/deletes/adds such details in its GSTR- 2, the supplier will be intimated of such modification/deletion/addition in GSTR-1ANS. The supplier has the option to accept or reject such modification/deletion/addition. If the supplier accepts such modification/deletion/addition, his GSTR-1 is also amended accordingly and the issue of mismatch of credit does not arise. However, if the supplier rejects such modification/deletion/addition, then there will be a mismatch in the claim of input tax credit availed by the recipient. Such mismatch in input tax credit will be communicated to the supplier as well as the recipient in GST ITC-1 on or before the last day of the month in which such matching is carried out. On receipt of such communication, either the supplier or the recipient can rectify the details to match the claim of input tax credit. If the supplier/recipient does not correct the discrepancy, the tax payable on account of such mismatch will be added to the output tax liability of the recipient in the month succeeding the month in which GST ITC-1 is communicated to the recipient.

Q36. Whether the recipient is liable to pay interest on the differential tax liability arising due to the mismatch of input tax credit or due to duplicate claim of input tax credit?

ANS. Yes, as per section 37(8) of the Revised GST Law, the recipient is liable to pay interest on the differential tax liability arising on account of mismatch of input tax credit or due to duplicate claim of input tax credit at the rate specified in section 45(1). The interest is liable to be paid from the date on which credit is availed till the date on which such differential tax liability is added to the output tax liability of the recipient.

Q37. On a perusal of the provisions relating to mismatch of input tax credit, it is noticed that the tax payable on account of mismatch of input tax credit is added to the output tax liability of the recipient. Why is the recipient penalised for such mismatch?

ANS. As per section 145 of the Revised GST Law, if any person claims input tax credit, then the burden of proving such claim is on him. Therefore, if the supplier does not declare the supplies or declares output tax lower than the amount claimed as credit, the recipient is burdened with the differential tax liability.

Q38. The discrepancy communicated in GST ITC-1 to the supplier has been rectified in subsequent return filed by the supplier. Should the recipient avail the credit once the supplier rectifies the return?

ANS. The input tax credit which remains unmatched is added to the output tax liability of the recipient in the month succeeding the month in which GST ITC-1 is communicated to the recipient. However, if the supplier rectifies the discrepancy till the due date for furnishing of return for the month of September or second quarter, as the case may be, following the end of the financial year, or the actual date of furnishing of relevant annual return, whichever is earlier, then the recipient is eligible to reduce the output tax liability to the extent of differential tax liability paid on account of such input tax mismatch.

Q39. Once the input tax credit mismatch has been rectified, whether the recipient of supply is eligible for refund of the interest paid on the differential tax paid due to input tax credit mismatch?

ANS. As per section 37(9), once the supplier rectifies the discrepancy in the input tax credit mismatch and such rectification is accepted, then the recipient is eligible to refund of interest paid earlier. The maximum interest refundable is equivalent to the interest paid by the recipient. The recipient has to make a claim for such refund in GSTR-3. The interest to be refundable will be credited to the electronic cash ledger in Form GST PMT-3 and will be available for any future payment of interest. Alternatively, the recipient can claim the refund of such amount by following the procedure set out in section 48 of the GST Act.

Q40. Explain ITC mismatch with an illustration.

ANS.

Goods supplied by A to B in the month of April 2017
Value of goods = ` 1,000/-
GST = ` 200/-
‘A’ does not declare the details of such supplies in GSTR-1.
‘B’ claims input tax deduction of ` 200 by adding the details of such supply inGSTR-2.
‘A’ rejects the communication in GSTR-1ANS.
The Department issues GST ITC-1 to the supplier as well as recipient in the month of May 2017.
The supplier does not rectify the discrepancy by May 2017
The Department adds `200 to the output tax liability of ‘B’ for the month of June 2017.
‘B’ is liable to pay ` 200 along with interest for the period April 2017 to June2017.
‘A’ rectifies the discrepancy in the month of December 2017.
‘B’ can reduce output tax liability for January 2017 by `200. ‘B’ will also be eligible for refund of interest paid earlier.

Q41. Whether the credit note issued by the supplier also has to be matched?

ANS. As per Section 38, the details of credit notes issued by the supplier in respect of outward supply and claimed as reduction in output tax liability has to be matched with a corresponding reduction of input tax by the recipient of the supply. Further, the credit note issued shall also be matched for duplication of reduction of output tax liability.

Q42. The assessee has inadvertently reduced its output tax liability twice on the same credit note. What are the consequences of such duplicate claims?

ANS. As per Section 38(1) of the GST Act, all claims of reduction in output tax liability on account of credit notes will be matched so as to ensure that the supplier does not claim such deduction more than once for a particular credit note. Where the supplier claims such deduction more than once, such discrepancy will be communicated to the supplier in GST ITC-1. Such duplicate claim of reduction of output tax liability will be added to the output tax payable by the supplier for the month in which such GST ITC-1 is communicated to the supplier.

Q43. Deduction of output tax liability claimed on account of credit notes issued does not match with the corresponding reduction of input tax by the recipient? What is the procedure to be followed?

ANS. If the reduction in output tax liability claimed by the supplier does not match with the corresponding reduction of input tax by the recipient, then such discrepancy will be communicated to the supplier as well as the recipient in GST ITC-1 on or before the last day of the month in which such matching is carried out. On receipt of such communication, either the supplier or the recipient can rectify the details so as to match the claim of reduction in output tax liability and corresponding reduction of input tax credit.

Q44. The mismatch in reduction in output tax liability is due to the incorrect details entered by the recipient of the supplies. What is the procedure to be followed by the supplier?

ANS. If there is a mismatch in the claim of reduction of output tax liability, a communication in GST ITC-1 will be sent to both the supplier as well as the recipient of such supply. If the discrepancy is due to the incorrect particulars entered by the recipient, then the recipient can rectify such discrepancy in its return for the month in which GST ITC-1 is communicated to him. Once the discrepancy is rectified and the reduction in output liability is matched, a communication in GST ITC-1 will be sent to the supplier and the claim of reduction in output tax liability will be finally accepted. However, if the recipient does not rectify the discrepancy in the month in which such discrepancy is communicated, the amount of tax payable on account of such discrepancy will be added to the output tax liability of the supplier for the month succeeding the month in which GST ITC-1 is communicated to the recipient.

Q45. Whether the supplier is liable to pay interest on the differential tax liability arising due to the mismatch of reduction in output tax liability or due to duplicate claim of reduction of output tax liability?

ANS. As per Section 38(8) of the GST Act, the supplier is liable to pay interest on the differential tax liability arising on account of mismatch of reduction in output tax liability or due to duplicate claim of reduction in output tax liability at the rate specified in Section 45(1) of the GST Act. Interest is liable to be paid from the date on which reduction in output tax liability is claimed till the date on which such differential tax liability is added to the output tax liability of the supplier.

Q46. The discrepancy communicated in GST ITC-1 to the supplier has been rectified in subsequent return filed by the recipient. Can the supplier avail the reduction in output tax liability after the recipient rectifies the return?

ANS. The reduction in output tax liability which remains unmatched is added to the output tax liability of the supplier in the month succeeding the month in which GST ITC-1 is communicated. However, if the discrepancy is rectified within the date for filing the return for the period of September of the succeeding financial year or before the annual return is submitted by him, then the supplier is eligible to reduce the output tax liability to the extent of differential tax liability paid on account of such mismatch.

Q47. Once the reduction in output tax liability mismatch has been rectified, whether the supplier is eligible for refund of the interest paid on the differential tax paid due to such mismatch?

ANS. As per Section 38(9), once the discrepancy in the reduction of output tax liability is rectified and such rectification is accepted, the supplier is eligible to refund of interest paid earlier. The maximum interest refundable is equivalent to the interest paid by the recipient. The supplier has to make a claim for such refund in GSTR-3. The interest to be refundable will be credited to the electronic cash ledger in Form GST PMT-3 and will be available for any future payment of interest. Alternatively, the supplier can claim the refund of such amount by following the procedure set out in Section 48 of the GST Act.

Q48. Who is required to file an Annual Return? In what format, such return should be furnished? What is the due date for furnishing such return?

ANS. All registered taxable persons are required to furnish an Annual Return for a financial year, electronically, in Form GSTR-9. A registered taxable person paying opting to pay tax under the composition scheme is required to file the annual return in Form GSTR- 9ANS. However, the following registered taxable persons are not required to file an Annual Return: -

(a) Input Service Distributor

(b) Person liable to deduct tax at source as per Section 46 (for the purpose of TDS)

(d) Casual taxable person

(e) Non-resident taxable person

Every registered taxable person, except the ones mentioned above, shall furnish an annual return for every financial year electronically on or before the 31st December following the end of such financial year.

Q49. Whether the Annual Return is required to be audited by Chartered Accountant / Cost Accountant?

ANS. If the turnover of the registered taxable person exceeds ` One crore, then the Annual Return is required to be audited by a Chartered Accountant or Cost Accountant. Further, they also have to submit reconciliation statement in Form GSTR-9B. If the turnover does not exceed ` One crore, the registered taxable person can himself compile the details in Form GSTR-9 and submit the return.

Q50. Who is required to furnish Final Return?

ANS. Any registered taxable person who has applied for cancellation of registration is required to file Final return in Form GSTR-10. The return has to be filed within three months from the date of cancellation or date of order of cancellation, whichever is later.

Q51. What are the consequences of not filing any particular return?

ANS. If the registered taxable person fails to furnish the return in Form GSTR-3 or GSTR-4 or GSTR-5 or GST 6 or GSTR-7 or Annual return in Form GSTR-9 or Final return in Form GSTR-10, the Department will issue a notice in Form GSTR-3A asking the registered taxable person to furnish the particular return within 15 days.

Q52. What are the consequences if the return is filed belatedly?

ANS. Where any return is filed belatedly, the registered taxable person shall be liable to pay a late fee of one hundred rupees for each day of delay subject to a maximum of five thousand rupees.

Q53. Who is a Tax Return Preparer? Whether the Tax Return Preparer can file returns of behalf of the registered taxable persons?

ANS. Tax Return Preparer is a person who has been approved to act as a Tax Return Preparer as per Section 43 of the GST Act. He has to satisfy the conditions and eligibility as prescribed under the Rules to act as a Tax Return Preparer. A registered taxable person can authorise a Tax Return Preparer to file the returns in Form GSTR-1, GSTR-2, GSTR-3, GSTR-4, GSTR-5, GSTR-6, GSTR-7, Annual return in GSTR-9 and Final return in GSTR-10, and also to perform other tasks as may be prescribed. In respect of returns filed by the Tax Return Preparer, the registered taxable person will be responsible for the correctness of the details furnished in the returns.

Frequently Aksed Questions

FAQ’s on RETURNS