GST Seminar

Hosted by :-
Akola Branch of WICASA of ICAI

Prepared By:
CA KEYUR S DEDHIA
SAGAR KAWNA & CO.
CHARTERED ACCOUNTANTS
Phone : 0724 - 2430283, +91-9011090524, +91-9823290524
E-mail : keyurdedhia@gmail.com
 Coverage

 Invoices under GST

Returns filling under GST

Background

Invoice? Invoice in simple terms is nothing but a

General document specifying list of goods sent or
parlance services provided and a statement of the sum
due against those items.

An invoice does not bring into existence a sale

agreement but merely records the terms of whatever
Tax arrangement that may have been entered into by the
parlance parties, involving the subject matter.
Therefore, an invoice can evidence not only a sale but
every other form of supply such as transfer, barter,
exchange, license, rental, lease or disposal.
 GST Invoice
• The Task Force on GST said the computation of CGST and SGST liability
should be based on the Invoice credit method i.e. allow credit for tax paid
on all intermediate goods and services on the basis of invoices issued by the
supplier.
• Invoice level detail is necessary for the reconciliation of tax deposits, and the
end-to-end reconciliation of ITC. An effective IGST implementation may also
require invoice-level details.
• A number of states are capturing invoice details even in the existing VAT
systems. It is proposed to follow a two-pronged approach with Dealer level
granularity of returns in the first phase followed by invoice level in the next
phase.
 Invoice under GST
 GST requires that a tax invoice or bill of supply to be issued before or on the
occurrence of certain event or within a prescribed time. Therefore, an invoice is
required for every other form of supply such as transfer, barter, exchange, license,
rental, lease or disposal.

 GST allows seamless flow of Input Tax Credits (ITC) across the supply chain. One of
the fundamental pillars of GST is checking the Input Tax Credit (ITC) Claims, for
which data of all Invoices to be uploaded and matched. Goods and Services Tax
Network (GSTN) seeks all registered dealers shall file Invoice wise details in order to
do such matching.
The new Format for Invoices to be issued for supply of goods under GST
 Tax Invoice: Requirements
• Every registered taxable person under GST supplying Goods or services is required to issue a tax invoice
for all supplies effected. However, government may notify some other document for certain category of
services. Example: Bus ticket, Bank Voucher etc.,

• Provided also that in case of export of goods or services, the invoice shall carry an endorsement
“SUPPLY MEANT FOR EXPORT ON PAYMENT OF INTEGRATED TAX” or
“SUPPLY MEANT FOR EXPORT UNDER BOND OR LETTER OF UNDERTAKING WITHOUT
PAYMENT OF INTEGRATED TAX”,
as the case may be, and shall, in lieu of the details specified should contain the following details:
(i) name and address of the recipient;
(ii) address of delivery; and
(iii) name of the country of destination:

• Provided also that a registered person may not issue a tax invoice in accordance with the provisions section
31(3)(b) subject to the following conditions, namely:-
(a) the recipient is not a registered person; and
(b) the recipient does not require such invoice, and shall issue a consolidated tax invoice for
such supplies at the close of each day in respect of all such supplies.
 When Tax Invoice shall be issued?

Before/at the time of:-

a) Removal of goods, if supply involves movement of
goods
Supply of b) Delivery of goods/making available to recipient, if
Taxable Goods supply doesn’t involve supply of goods
c) Issuance of successive statement accounts, if
supply is a continuous supply of goods
d) When recipient approves 6 months from the date of
Registered taxable removal, if supplied is on approval basis.
person shall issue
Tax Invoice a) Within 30 days from the date of provision of
services, in normal cases
b) On or before the due date for payment, in case of
Supply of continuous supply of services where due date
Taxable Services ascertainable
c) On or before the date of payment, in case of
continuous supply of services where due date is not
ascertainable
d) At the time of cessation, in case of continuous
supply of services where contract ceases
 Manner of issuing Tax Invoice

In TRIPLICATE

Supply of taxable a) Original for recipient

goods b) Duplicate for transporter
c) Triplicate for supplier

Tax invoice shall

be prepared
In DUPLICATE
Supply of
taxable services
a) Original for recipient
b) Duplicate for supplier
 BILL OF SUPPLY
Tax invoice is generally issued to charge the tax and pass on the credit.
Cases where a registered supplier needs to issue bill of supply:
 Supply of exempted goods or services
 Supplier is paying tax under composition scheme
A bill of supply is not eligible for claiming input tax credits.
Provided further that any Tax Invoice or any other similar document issued under any other Act for the
time being in force in respect of any non-taxable supply shall be treated as Bill of Supply for the time
being.
RECEIPT VOUCHER
A receipt voucher contains aspects similar to that of Bill of Supply.
Provided that where at the time of receipt of advance,
(i) The rate of tax is not determinable, the tax shall be paid at the rate of 18%;
(ii) The nature of supply is not determinable, the same shall be treated as inter-state supply
 Tax Invoice v/s. Bill of Supply
Tax Invoice Bill of Supply

Who has to issue ? Taxable supplier who is supplying Supplier of exempted goods or
Taxable goods or Taxable services . services and composition tax.

When need to be Need not issue a tax invoice if
issued? value of the goods or services
supplied is less than 200/- and
recipient is unregistered. (Need to
prepare one aggregate invoice for
each day)
Need to issue a bill of supply if the
value of the goods or services
supplied is less than 200/-. (Need to
prepare one aggregate BOS for
each day )

Can input tax Input tax credit ( ITC ) can be Input tax credit ( ITC ) cannot be
claimed ? claimed based on Tax Invoice claimed based on ‘Bill of Supply’.
 Particulars that are common under Tax Invoice, Credit Note, Debit Note,
Bill of Supply, Receipt Voucher, Refund Voucher, Payment Voucher, Tax
invoice in special cases

(a)Name, address and GSTIN of the supplier;

(b)Date of its issue;
(c) A consecutive serial number not exceeding sixteen characters, in one or multiple
series, containing aplhabets or numerals or special characters hyphen or dash and
slash symbolized as ”_” and “/” respectively, and any combination thereof, unique for
a financial year;
(d)Name, address and GSTIN or UIN, if registered, of the recipient;
(e)HSN code of goods Accounting Code of Services;
(f) Description of goods or services;
(g)Rate of Tax;
(h)Signature or digital signature of the supplier or his authorized signatory
 Rectification of error in invoice

Credit Note
Revised Invoice Debit Note
Will be issued in case
Will be issued for Will be issued in
of decrease
correcting clerical or case of increase in
in taxable value and
typographical errors taxable value and decrease in tax rate or
increase in tax rate in case of goods
returned
RETURNS under various Acts
 Returns under GST
• The taxpayer would need to submit periodical returns to both the
Central GST authority and to the concerned State GST authorities.
• ITC credit can also be verified on the basis of the returns filed and
revenues reconciled against Challan data from banks.
• Common standardized return for all taxes (with different account
heads for CGST, SGST, IGST) can come into picture.
• Common standardized Challan for all taxes (with different account
heads for CGST, SGST, IGST) can come into picture.
Returns Under Goods And Services Tax
GST is a self-assessed destination based taxation system. The submission and
processing of return is an important link between the taxpayer and tax administration.

Who Needs to File Return in GST Regime?

Every registered dealer is required to file return for the prescribed tax period. A return needs
to be filed even if there is no business activity (i.e. nil return) during the relevant tax period.
Government entities / PSUs , etc. not dealing in GST supplies or persons exclusively dealing
in exempted / nil rated / non-GST goods or services would neither be required to obtain
registration nor required to file returns under the GST law.
However, state tax authorities may assign departmental ID to such government departments
/ PSUs / other persons and will ask the suppliers to quote this ID in the supply invoices for all
inter-state purchases being made to them.
 Who needs to file Return in GST regime?

No Registration &
Nil Return no Returns
Every registered
A Return needs to for persons exclusively
dealer
be filed even if dealing in Exempted /
is required to file
there is no business Nil-rated or Non-GST
return for the
activity during the goods or
prescribed tax
said period of Services. (Govt
period.
return. Entities/PSU)

Normal Casual Non Input Service Person E-commerce Person Persons

/ Regular Taxable Resident Distributor required to operator registered as having
Tax payer Person Taxable deduct tax required to composition unique
person at source collect tax at tax payer identity
source number
 Salient features of GST Returns
a) Filing of returns would only be through online mode. Facility of offline generation and
preparation of returns will also be available. The returns prepared in the offline mode will
have to be uploaded and filed online.
b) There will be a common e-return for CGST, SGST, IGST and Additional Tax.
c) A registered Tax Payer shall file GST Return at GST Common Portal either by himself
or through his authorised representative.
d) There would be no revision of returns. Any changes required should be done in
subsequent returns.
e) GST is a self-assessed destination based taxation system.
f) GST is based on transaction wise i.e. need to give bill wise details relating to sales and
purchases relating to goods and invoice-wise details relating to services.
g) System is so designed that the Input Tax Credit will be matched automatically.
h) Input Tax Credit which is unmatched will be auto-reversed.
 RETURNS UNDER GST AND THEIR DUE DATES
Sr. No FORM PARTICULARS DUE DATE
1 GSTR 1 Statement of Outward supplies 10th of next
month
1a GSTR 1A Details of inward supplies accepted, rejected, deferred,
corrected by recipient
2 GSTR 2 Statement of Inward Supplies 15th of next
month
2a GSTR 2A Details of outward supplies by suppliers will be
available in GSTR 2A
 Part A : Supplies by Regular tax payers
 Part B : Supplies by Input Service Distributors
 Part C : Details of Tax deducted at source
 Part D : Details of Tax collected at source
3 GSTR 3 Monthly Return 20th of next
 Part A: Details of GSTR 1 & 2 – auto populated month
 Part B: Tax liability - Cash/Credit ledger
 RETURNS UNDER GST AND THEIR DUE DATES
SR. FORM PARTICULARS DUE DATE
NO.
3a GSTR 3A Notice to non fillers (Monthly return /Final
return)
4 GSTR 4 Composition Dealer – Quarterly return 18th of next month to
quarter
4a GSTR 4A Details of inward supplies to composition dealer
5 GSTR 5 Return by Non resident taxable person 20th of next month or 7th
day after expiry of
registration, whichever
is earlier
6 GSTR 6 ISD - details of credit received and those issued 15th of next month

6a GSTR 6A Details of inward supplies to ISD

 RETURNS UNDER GST AND THEIR DUE DATES
SR. FORM PARTICULARS DUE DATE
NO.

7 GSTR 7 Return by person required to deduct tax at 10th of next month

source
7a GSTR 7A TDS certificate
8 GSTR 8 Return by e-commerce operator– TCS
9 GSTR 9 Annual return by registered taxable person 31st December of next
FY
9a GSTR 9A Annual return by composition dealers
9b GSTR 9B Audited annual account & reconciliation
statement (duly certified by CA/ICWA)
10 GSTR 10 Final Return 3 months from date of
cancellation
11 GSTR 11 Details of inward supplies by person having UIN
Process of Return Filing
 Normal/ Regular Tax Payers

• Normal / Regular taxpayers (including casual taxpayers) would have to file

 GSTR-1 (details of outward supplies)
 GSTR-2 (details of inward supplies) and
 GSTR-3 (monthly Return) for each registration.
 GSTR-9 (Annual return)
• Normal / Regular taxpayers with multiple registrations (for business verticals) within a
State would have to file GSTR-1, GSTR-2, GSTR-3 and GSTR-9 (Annual return) for
each of the registrations separately.
• A separate reconciliation statement, duly certified by a Chartered Accountant, will
have to be filed by those taxpayers who are required to get their accounts audited
under section 44AB of Income Tax Act 1961
 Key components of GSTR-1 (Outward supplies by Tax payers u/s 37)

• Basic details of the Taxpayer i.e. Name along with GSTIN

• Period to which the Return pertains
• Gross Turnover of the Taxpayer in the previous Financial Year. This information
would be submitted by the taxpayers only in the first year and will be auto-populated
in subsequent years.
• Final invoice-level supply information pertaining to the tax period separately for
goods and services which has to be submitted as follows:
1) For all inter-state B2For all B2B supplies (whether inter-state or intra-state)
invoice level specified details will be uploaded.
2) C supplies – invoice level details to be uploaded for invoices whose value is
more than INR 2,50,000. For invoices below this value, state-wise summary of
supply statement shall be filed.
 Key components of GSTR-1 (Outward supplies by Tax payers u/s 37)
• The consolidated details of all can be submitted in the following situation
1. For intrastate B2C supplies consolidation for each rate of tax to be given
separately
2. For interstate B2C state-wise supplies consolidation for each rate of tax in
case of invoices whose value is less than INR 25,0,000
• Whatever the details have been uploaded shall be communicated to the recipient
of the said supplies within the time and in the manner as may be prescribed.
(GSTR 2A)
• HSN Code – Mandatory for some tax payers based on the turnover in the
preceding financial year and for some it is optional and the dealer may use HSN
code irrespective of his turnover.
 Key components of GSTR-1 (Outward supplies by Tax payers u/s 37)

• Separate table for effecting modifications / correcting errors in the returns submitted
earlier.
• Revision / Rectification of original return - In case any outward supplies are not
matched with the respective recipients’ return of inward supplies the return for
outward supplies requires rectification the it will be allowed. Such rectification,
however, is not permitted after filing of annual return or the return for the month of
September of the following year whichever is earlier [u/s 32(3)]
• In case of rectification the taxpayer shall pay the tax and interest, if any, in case
there was a short payment of tax on account of such error, in the return to be
furnished for such tax period.
• Thus we can say that it is a sales register of goods and services.
 Key components of GSTR-2 (Inward supplies u/s 38)

• The information in GSTR-1 shall be auto-populated in concerned tables in GSTR-

2. The details mentioned can be verified / validate / modified / deleted by the
taxpayer while filing GSTR-2.
• All these details would be contained into Part A, B, C and D of FORM GSTR 2A.
• The details of inwards supplies would be auto-populated in the Input Tax Credit
(ITC) ledger on submission of GSTR-1 by the respective dealers.
• In GST we would be able to check our data as per seller return (GSTR-1) so
mismatch issue will be resolved easily.
• Separate table for submitting details in relation to ITC received on an invoice on
which partial credit has been availed earlier.
 Key components of GSTR-2 (Inward supplies u/s 38)

• The registered person shall specify the inward supplies in respect of which he is
not eligible, either fully or partially, for input tax credit in GSTR-2 where such
eligibility can be determined at the invoice level and shall also declare the quantum
of ineligible input tax credit which is relatable to non-taxable supplies and cannot be
determined at invoice level.
• Separate table for ISD credit and TDS credit received by taxpayer.
• Thus it is a comprehensive purchase register relating to purchase of services and
goods.
 Key components of GSTR-3 (Monthly Return u/s 39)
• In GST return, maximum data of this return is auto populated from sales and
purchase registers (GSTR-1 and GSTR-2). Only adjustment entries and challan
information will enter after these entries.
• Only details of payment of tax under various tax heads of CGST, SGST and IGST
separately would be populated from the debit entry in credit/cash ledger.
• Taxpayer will have the option of claiming refund of excess payment through the
return for which appropriate field will be provided in the return form.
• Details of ITC balance (CGST, SGST and IGST) at the end of the tax period will be
auto-populated in the ITC ledger irrespective of mode of filing return.
• Due Date - 20th of the next month
Key components of GSTR-4 (Quarterly Return for Compounding Dealers
u/s 39(2))
• This return is a quarterly return to be filled by the compounding dealer who is liable to
pay tax u/s 10.
• In this return, data will be automatically populated after filing of GSTR-1.
• As per draft GST law, following assesses are liable to file return in this form:
whose turnover is less than ` 50 lakhs and there is no interstate transaction.
• Due Date - 18th of the month next to quarter

Key components of GSTR-5 (Return for Non-Resident u/s 39(5))

 This return is to be filed by a Non-Resident Foreign Taxpayer.
 In this return HSN / SAC code should be mention because these will classify the
transaction as a sales and purchase of goods and services
 Due Date – 20th of next month or 7th day after expiry of registration, whichever is
earlier.
 Key components of GSTR-6 (Return for Input Service Distributor)
• This return will be filed by the Input Service Distributors (ISD).
• The details are given under provisions with regard to distribution of credit by Input
Service Distributor
• In this return form, input service distribution ledger will be maintained.
• In this ledger, credit of CGST, SGST and IGST will be maintained separately for each tax
amount.
• Due Date - 13th of the next month
Key components of GSTR-7 (TDS Return u/s 39(3))
 Tax deductor will be liable to file this TDS return.
 This return form is almost similar to TDS return of income tax (26Q/24Q etc) as in this
return deductee information and transaction information is mention with the related
challan in which the TDS amount is paid to department.
 Due Date - 10th of the next month
 Key components of GSTR-9 (Annual Return u/s 44)
• In this return the total annual return information will be matched by the department with
the monthly /quarterly return filled by the assessee.
• It is a detailed return and captures details of all income and expenditure of the taxpayer
and regroups them in accordance with the monthly returns.
• In this return auditors information will submitted. It is to be submitted along with the
audited copies of the Annual Accounts.
• A separate reconciliation statement (u/s 44(2)), duly certified by a Chartered
Accountant, will have to be filed by those taxpayers who are required to get their accounts
audited under section 44AB of Income Tax Act 1961.
• Annual return (GSTR-9) (Annexure-IX) will be filed by all normal / regular taxpayers. It
will be based on financial records. Compounding taxpayer will also file a simple annual
return.
• Due Date – 31st December of the next financial year.
 First Return u/s 40
• Every registered taxable person paying tax under the provisions of section 10 is
required to file his first return as soon as he obtains his registration. Following points
need to be considered:
Transaction to be reported Consideration involved
a) Outward supplies From date of liability to register till the end of month* when
registration is granted
b) Inward supplies From effective date of registration till end of month* when
registration is granted

Key Components of GSTR-10 (Final Return u/s 45)

 Every registered taxable person who applies for cancellation of registration shall furnish
a final return along with the application for cancellation of registration in such form and in
such manner as may be prescribed.
 Due Date – Three months from date of cancellation or date of cancellation order
whichever is earlier
 Steps for Return Filing

Final GSTR-1 : Upload final GSTR-

Provisional GSTR-2 : GST
1 return form directly through the
Common Portal Network (GSTN)
data entry at the GST Common
will auto-draft the provisional
Portal. The changes (in supply
GSTR-2 of taxpayer based on
invoices) would be allowed, only on
supply invoice details reported by
the basis of the details uploaded by
the supplier on a near real-time
the counter-party purchaser in
basis.
GSTR-2, up to 20th of the month

Taxpayer will have an Taxpayer can add

Purchasing
option to download his additional purchase
taxpayer will
accept / reject / provisional purchase invoice details in GSTR-2
modify such an statement from the Portal which have not been
auto drafted or through Apps using uploaded by the supplier,
provisional APIs and update / modify provided:
GSTR-2. Valid Receipt of
it offline.
Invoice Goods
 Steps for Return Filing

Option to reconcile Finalize their GSTR- 1, Taxpayer will then

inward supplies with GSTR-2 through: pay the amount as
their suppliers because : shown in the draft
1) All invoices are auto
1) online facility at
Common Portal or GSTR-3 return
populated in ITC ledger
2) GSTN compliant offline generated
and
2) To indicate full / partial facility in their accounting automatically at the
eligibility of ITC. applications. portal..

Taxpayer will debit the ITC Final acknowledgement

ledger and cash ledger of receipt of return will be
and mention the debit entry generated after submission
No. in the GSTR-3 return and validation of data is
and would submit the same. completed.
 Number of Returns
TAXPAYER TOTAL RETURNS
Regular registered Tax payer 3 returns * 12 months = 36
+ 1 Annual return =1
Total = 37
Regular registered Tax payer with TDS & ISD 5 returns * 12 months = 60
+ 1 Annual return =1
Total = 61
Regular registered Tax payer with TDS, TCS & 6 returns * 12 months = 72
ISD +1 Annual return =1
Total = 73
 To be filled for each state separately
 through common single login
 within 20 days of next month
 with no provision for revision of return
 Validity of Returns

• If a return is filed without paying related tax, such return shall not be treated as a valid
return and the ITC related to such supplies will not be allowed to the recipient [defined
u/s 2(109)].
• E – Return is allowed to be uploaded, even in case of short payment for the limited
purpose of having the information about self assessed tax liability even though not paid.
However, it will be treated as invalid return.
• Any invalid return (including the one not supported by full payment) will merely be
recorded with unique transaction ID, but not accepted in the system.
• A registered taxable person shall not be allowed to furnish return for a tax period if return
for any previous tax period has not been furnished by him.
 Levy of Late Fees u/s 47
• Any registered taxable person who fails to furnish the details of outward or inward supplies
required under section 37 or section 38 or section 39, as the case may be, or returns
required under section 44 or section 45 by the due date shall be liable to a late fee.
• For Late filling of return, the following late fee shall be levied:

Defaulted Return Late Fees

Return on Outward Details (Ref: Sec 37) Rs. 100/- per day of delay
Maximum Rs. 5,000/-
Return on Inward Details (Ref: Sec 38) same as above
Return on Input credit (Ref: Sec 39) same as above
Final Return for prescribed three months (Sec same as above
45)
Annual Return (Sec 44) Rs. 100/- per day of delay
Maximum = 0.25% on Turnover in
the State