Under the GST law, a normal taxpayer will be required to furnish three returns monthly and one annual return. However, for certain categories of taxpayers, there are specific forms that need to be filed along with some specific disclosures.
In this article, we will limit our discussion to return filing compliance under GST by e-commerce operators and Suppliers.
Return Forms to be Filed by E-tailers and Suppliers
|Return Form||What to file?||By When?|
|GSTR-1||Details of outward supplies of taxable goods and/or services effected||10th of the next month|
|GSTR-2||Details of inward supplies of taxable goods and/or services effected claiming input tax credit||15th of the next month|
|GSTR-3||Monthly return on the basis of finalization of details of outward supplies and inward supplies along with the payment of amount of tax.||20th of the next month|
|GSTR-8||Details of supplies effected through e-commerce operator and the amount of tax collected||10th of the next month|
|GSTR-9||Annual Return||31st December of next financial year|
Let us see how things work through an example. Let’s assume Mr.A, a trader sells his handicraft products through e-commerce operator, Amazon
- On selling the products Mr. A, the supplier will file Form GSTR-1 (Outward supply details), consequently the buyer will be able to see the purchases in Form GSTR-2A(Inward supplies details) that gets automatically populated on filing of GSTR1 by the supplier.
- Buyer will show the details of all purchases and file GSTR 2
- The addition and modification done by the buyer, the recipient in Form GSTR-2 will be made available to the supplier in Form GSTR- 1A for his acceptance.
- If there is any mismatch between details supplied by supplier and recipient, the same will be communicated by the department
- Both the parties will then make necessary modification, additions (if any). according to the GST Rules.
- The TCS collected by Amazon will be deducted from output tax before calculating the tax liablity.
NOTE: Input credit will be available only when the Monthly returns (Form GSTR-3) are filed by the supplier along with payment tax. The final acceptance of Input Tax credit will be communicated in Form GST ITC-1.
The GST Rules lists specific provisions around particulars such as
- Norm and manner of submission of statement of supplies effected through e-Commerce [Rule 8]
- Matching of details furnished by the e-Commerce operator with the details furnished by the supplier
- Communication and rectification of discrepancy in details [Rule 20]
Let’s understand the various rules and their implications in greater detail in case of e-tailers and suppliers
A) Norm and Manner of submission of statement of supplies effected through e-Commerce [Rule 8]
(1) Every e-Commer operator who has to collect tax at source will have to furnish a statement in FORM GSTR-8. Here the operator will disclose the details of supplies(goods/services) effected through it and the amount of tax collected.
(2) The details so furnished by the operator will be made available electronically to each of the suppliers in Part D of FORM GSTR-2A(which is a mere auto population of counter-party i.e supplier’s GSTR1 where supplier must have disclosed his sales) on the Common Portal after the due date of filing of FORM GSTR-8.
B) Matching of details furnished by the e-Commerce operator with the details furnished by the supplier
Under GST law formulation, special focus has been on matching concept. The idea is to make sure that all the suppliers and recipients make full disclosure of the transactions effected in the chain(from the manufacture of goods till it is consumed) to keep a check on tax evasion by underreporting and also to ensure a seamless flow of input credit. Hence the return forms are also drafted accordingly making it mandatory for the return filers to provide the details.
The following details relating to the supplies made through an eCommerce operator, as declared in FORM GSTR-8, shall be matched with the corresponding details declared by the supplier in FORM GSTR-1
(a) GSTIN of the supplier
(b) GSTIN/UIN of the recipient, if the recipient is a registered taxable person
(c) State of place of supply
(d) Date of invoice of the supplier
(e) Invoice Number of the supplier
(f) Tax rate
(g) Taxable value
(h) Tax amount
In cases where the supplier is not required to furnish the details separately for each supply, the following details relating to such supplies made through an e-Commerce operator, as declared in FORM GSTR-8, needs to be matched with the corresponding details declared by the supplier in FORM GSTR-1
(a) GSTIN of the supplier
(b) State of place of supply
(c) Tax rate
(d) Total taxable value of all supplies made in the State
(e) Tax amount on all supplies made in the State
C) Communication and Rectification of Discrepancy in details [Rule 20]
If the department finds any discrepancy in the details furnished by the operator and those declared by the supplier, the same will be communicated to the parties electronically in FORM GST ITC-1 through the Common Portal on or before the last date of the month in which the matching has been carried out.
Rectification by Supplier:
In case, where there is a mismatch and rectification has to be made by supplier, he will be required to make suitable rectifications in the statement of outward supplies to be furnished for the month in which the discrepancy is made available.
Rectification by Operator:
An operator to whom any discrepancy is reported will have to make suitable rectifications in the statement to be furnished for the month in which the discrepancy is made available.
If the mismatch is not rectified by both the parties, the supplier will have an amount to the extent of discrepancy shall be added to the output tax liability of the supplier in his return in FORM GSTR-3 for the month succeeding the month in which the details of discrepancy are made available and such addition to the output tax liability and interest payable thereon shall be made available to the supplier electronically on the Common Portal in FORM GST ITC-1.