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GST Filing & Reconciliation Simplified

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Simplified and easy GST returns were proposed in the 28th GST council meeting. On 30th July 2018, the new formats and processes were aired for public comments. Let’s see the summarized version of the proposed GST monthly return.

1. What are the different terms used in the document?

2. Who are required to file GSTR – Monthly returns?

3. All about Monthly returns process

4. Comparison with the current system

5. Detailed Format of GSTR-Monthly Returns

1. What are the different terms used in the document?

Uploaded Invoices

The invoices which are uploaded by the supplier on the portal are called Uploaded Invoices. These invoices would be a valid document for availing input tax credit by the corresponding recipient. The invoices will be allowed to be uploaded continuously by the supplier and viewed by the recipients through ‘Viewing Facility’.

Accepted or Locked Invoice

The invoices which the recipients confirm after viewing are called Accepted Invoices. These invoices are the base for the input tax credit . The invoice which were not explicitly ‘rejected’ or marked as ‘pending’ shall be treated as an Accepted invoice.

Rejected invoice

For instance, When the supplier wrongly enters a GSTIN in the invoice then the invoice is available on the viewing facility of the taxpayer who is not allowed to take the credit . In such cases, recipient reject those invoices. Those are known as Rejected Invoice.

Pending Invoice

The invoices which have been uploaded in the portal but falls under these categories :

  • Supply not received by recipient
  • According to the recipient invoice needs to be changed
  • Recipient is not able to decide whether to take the input tax credit for the time being

Missing Invoices

The invoices which were not uploaded by the supplier but the recipient has claimed input tax credit are called as Missing Invoices. The supplier shall report these invoices in the main return of any tax period with interest or penalty if applicable.

Amendment Invoice

Any invoice can be amended by the supplier if the recipient has not availed the input tax credit on it and also the recipient has not accepted or locked it.

No amendment of the invoice will be done if the above conditions are contradicted.

Amendment Return

Amendment return is different from a regular return. If the taxpayer has made wrong entries in the return, he can amend the same in the Amendment return. The format will be very similar to the Table 9A of the GSTR-1.

2. Who are required to file GSTR – Monthly returns?

All the taxpayers registered under GST laws are required to file GSTR-monthly except the following :

a. Small Taxpayers (who have Turnover upto Rs. 5 Crore in last financial year and have not opted quarterly)

b. Composition Dealer

c. Input Service Distributor (ISD)

d. Non- Resident Registered person (NRI)

e. Person liable to deduct or collect tax under CGST Act

The above taxpayers may either have to continue filing the existing returns prevalent under the current system or may fall under the category of taxpayers required to file the quarterly GSTR.

3. All about Monthly returns process

When is Monthly GST Returns(MAIN Return) due?

a. All the Taxpayers except the ones specified above are required to file monthly GST returns. Due Date for filing the same will be 20th of next month.

How to prepare Monthly GST returns?

a. Most of the fields in the GST Returns will be auto-populated. There will be a separate continuous system of Invoice upload by suppliers and viewing facility available to the recipient of the supply who can accept or reject invoice.

b. Invoices uploaded by 10th of the next month will be auto-populated into the main return of the supplier.

c. Only the uploaded invoices by the supplier can be a valid document for availing Input tax credit.

d. The invoices uploaded which can be availed as Input tax credit shall be posted in the ITC table of the recipient’s return by 11th of the next month.

e. Invoices which has been uploaded by the supplier and made available to the recipient shall be deemed to have been locked when it has not been rejected or marked kept pending, once after the return for the relevant tax period has been filed by the recipient.

f. Accidental locking of the invoice can be unlocked only by the recipient but only after reversing the ITC.

g. All the pending invoices shall be reported by the recipients and no ITC will be availed on them.

h. Uploaded invoices on which no ITC is availed and not locked by the recipient can be amended. However, locked invoices cannot be amended. But a credit or Debit Note can be raised for amending an invoice.

i. Amendment of missing Invoices reported later by supplier shall be carried out through amendment return of the relevant tax period to which the Invoice pertains to.

For Eg: Invoice of April if uploaded in September shall get amended with the amendment of return for the month of April only

j. First 6 months will be the transitional phase, the recipient will be able to avail ITC on the self-declaration basis even on the invoices not uploaded by suppliers by 10th of the next month or thereafter.

k. Return filing status of the supplier will be visible to the recipient after the due date of filing return. The recipients will be aware of whether the supplier has discharged the tax liability on the purchases made by them or not.

l. To protect the interest of the recipients, a newly registered taxpayer and a taxpayer who has defaulted in tax payment for any previous time period will be allowed to upload invoices only up to a threshold amount or only after making the default good.

Is there option to revise Monthly GST Returns?

a. Yes, the filing of another return known as amendment returns is present. Not just that, for reporting of missing invoices, separate procedure is prescribed through the main return itself.

b. In case of any wrong entries made in the main return, the same can be amended by filing an amendment return. An amendment return can be filed twice for every tax period.

c. Amendment return can be filed on or before the due date for filing of return for the month of September following the end of financial year or actual date of furnishing annual return whichever is earlier.

d. In there will change in the liability of more than 10% through an amendment return, a higher late fee will be levied to ensure correct reporting.

e. But once Invoice is approved or locked by the recipient or on which credit has been availed by the recipient, no amendment of invoices shall be allowed. So, credit or debit note for the same can be issued by the supplier.

What is the procedure for reporting missing invoices and how to claim ITC?

a. Missing Invoices will be reported by the suppliers in any tax period along with interest and penalty wherever applicable. In addition, a recipient can report the missing invoices up to next 2 tax periods.

Example: Recipient received the goods in the month of July and also took the credit of the same, but the supplier has not uploaded the same, shall be reported by the recipient not later than return for the month of September filed in October.

b. Information about the missing invoices uploaded by the recipient shall be made available to the supplier.

c. Taxpayers filing quarterly returns will report the missing invoices in the next quarter return.

How will Exports and Imports be reported?

a. A table in the return will contain the details of the shipping bill. The taxpayer can fill the information at the time of filing the return or after filing the return also.

b. In case the registered person fills the information after filing the return, the same will not be considered as the filing of an amendment return.

c. Once the information of shipping bill is entered, the same is transmitted to the ICEGATE. There will be a separate facility for the exporters to transmit any further amendment in the information of the shipping bill to ICEGATE.

d. Credit on imports and supplies from SEZ can be availed on self-assessment basis till the information from ICEGATE is transmitted to input tax credit of the return.

Should one file Main Returns if there are no Sales or Purchase to report?

a. Nil Return can be filed once a Quarter but in month one and two of the quarter, such taxpayer shall report NIL transaction by sending an SMS. Alternatively to online filing, the facility for the filing NIL return quarterly shall also be available by an SMS.

b. This is applicable only if the taxpayer has no transactions made during the tax period, no Input tax credit to avail during the quarter or no output tax liability to pay.

4. Comparison with the current system

New Return
Old Return
Monthly Return has to be filed by taxpayers having turnover more than 5 crore in the last financial yearMonthly Return filed by taxpayer having turnover more than 1.5 crore in the last financial year
Only Uploaded Invoices by Supplier would be valid document for availing ITCThere is no matching concept present in current system, it is written in law but recipient could take credit for all such Invoices in GSTR-3B even not reported by supplier on self declaration basis
Recipient could also see the current filing status of SupplierIn GSTR-2A Recipient could see filed or not filed status for each uploaded Invoices by Supplier
Document summary is NOT requiredDocument Summary is required
Taxpayer can AMEND the main return 2 times in any tax periodTaxpayer only can amend the Invoices and CDN’s which has already been filed in earlier months
Amendment of Invoices can be possible only in these cases:
>> Where ITC has not been availed
>> Invoices has not been reported as locked by recipient
Amendment of Invoices can be possible for all type of supply which has been filed in earlier month returns
HSN Summary shall be captured at four digit or more in a separate table, similar as per old returnHSN Summary shall be captured at four digit or more in a separate table
Return format also includes “Annexure”of Invoices which shall auto populate the output liability table in the main returnIn Return format data is populating with the Invoices uploaded by Supplier, no “Annexure” is required
For change in liability of more than 10% through an Amendment Return, a HIGHER LATE FEE may be prescribedNA
For Export of goods taxpayer can fill “Shipping Bill” information at the time of filing of return or after filing the return at his optionFor Export of Goods taxpayer will have to fill shipping bill details at the time of filing the return
Separate facility for uploading shipping bill details at a later date shall be provided to the ExportersNo separate facility for exporter is available
Profile base return is possibleNo concept of Profile base return in present System
Taxpayer will have to submit all outward supplies including Inward supplies, with payment of taxes in SINGLE returnGSTR-3B (Summary Information for all sales and purchase)
GSTR-1 (For Outward Supplies)
GSTR-2 (For Purchases)
GSTR-3 (For settlement of liability)
An IT tool/facility for matching of the Invoices downloaded in XL format will be available from the “Viewing facility”No IT tool for matching of the Invoices is present
Missing Invoices shall be reported by the Supplier which has not been reported earlier, in the main return for any tax period with Interest and penalty as applicableWhere the input tax credit claimed by a recipient in respect of an inward supply is in excess of the tax declared by the supplier or the outward supply is not declared by the supplier in his valid returns, the discrepancy shall be communicated to both such persons
Reporting of missing Invoices can be delayed by the recipient upto TWO tax periods, taxpayer filing quarterly return shall report missing invoices in the next quarterNA
Facility for locking the Invoice by recipient shall be available before filing the returnNA
Where GSTIN of the recipient has been wrongly entered by the supplier while uploading invoice details, such invoices will be reflected on the ‘viewing facility’ of a wrong taxpayer. Such taxpayers will be able to take action by accepting or rejecting the particular invoice.Where GSTIN of the recipient has wrongly entered by supplier while filing GSTR-1, such invoices will appear in the auto-generated returns GSTR-2A of a wrong taxpayer. At present, the taxpayers are unable to take actions on GSTR-2A.
Recipient can also unlock the Invoices which have been locked earlierNA
Facility for payment of tax is available through amendment return as it will save Interest liabilityNA
Negative Liability arising from the Amendment Return shall be C/F to the next returnNA

5. Detailed Format of GSTR-Monthly Returns

Monthly Return

Annexure to Main Return Supplies

Questionnaire to Annexure to Main Return Supplies

Annexure to Inward Supplies

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