CHAPTER 1

INTRODUCTION TO GST
WHAT IS GST
Goods and services tax means a tax on supply of goods or services, or both, except taxes on
supply of alcoholic liquor for human consumption (Article 366 (12A) of Constitution of India).

● GST is a value added tax levy on sale or service or both.

● GST is a destination based consumption tax.

● GST offers comprehensive and continuous chain of tax credit.

● GST where burden borne by final consumer

● GST eliminate cascading effect of tax.

● GST brings uniform tax structure all over India.

ADVANTAGES OF GST
(a) One Nation One Tax.

(b) Removal of bundled indirect taxes such as VAT, CST, Service tax, CAD, SAD, and Excise.

(c) Removal of cascading effect of taxes i.e. removes tax on tax.

(d) Increased ease of doing business;

(e) Lower cost of production, increases demand will lead to increase supply. Hence, this will
ultimately lead to rise in the production of goods. Resultantly boost to make in India initiative.

(f) It will boost export and manufacturing activity, generate more employment and thus
increase GDP with gainful employment leading to substantive economic growth;
NEED FOR GST IN INDIA
The following deficiencies in the existing Indirect Tax Laws cause need to bring GST in India as a
cure for ills of existing Indirect Tax regime.

GST is a Cure for ills of existing Indirect Tax: The given statement is true. Cascading affect of tax
is one of the vital cause-to-cause ill of existing Indirect Tax. It means a tax that is levied on a
good at each stage of the production process up to the point of being sold to the final
consumer. It is also known as tax on tax. One of the fundamental features of GST is the
seamless flow of input credit across the chain (from the manufacture of goods till it is
consumed) and across the country.

Let us understand it in the following cases:

(1) Non-integration of VAT and Service Tax causes double taxation: In the present regime,
restaurant services provider is liable to pay VAT on sale of food and service tax on
supply of services. There is no set-off. It means VAT is not allowed as input tax credit
against service tax and vice versa.
(2) No CENVAT Credit after manufacturing stage to a dealer: In the present regime, a
manufacturer of dutiable goods charge excise duty and value added tax on intra-state
sale of goods or CST on inter-state sale of goods. VAT or CST is levied inclusive of excise
duty.
(3) Cascading of taxes on account of levy of CST Inter-state purchases:
(4) CONSTITUTION [101ST AMENDMENT] ACT, 2016
(5) Constitution (122nd Amendment) Bill, 2014 received the assent of the President of India
on 8th September, 2016 and became Constitution (101st Amendment) Act, 2016, which
paved the way for introduction of GST in India. Constitution (101st Amendment) Act,
2016 was enacted on 8th September, 2016, with following significant amendments:
(6) Concurrent powers on Parliament and State Legislatures to make laws governing goods
and services. It means there will be dual control of State and Central authorities for all
assesses
(7) As per Article 246A, the power to levy GST has been given to the Parliament as well as to
Legislature of every State. a. CGST – enacted by Central Government of India. b. IGST –
enacted by Central Government of India. c. SGST – enacted by respective State
Governments d. UTGST – enacted by Central Government of India
(8) IGST will be apportioned between Centre and the States in the manner provided by
Parliament by Law as per the recommendation of the GST Council.
(9) GST will be levied on all supply of goods and services except alcoholic liquor for human
consumption. (e) The explanation to Article 269A of Constitution of India provides that the
import of goods or services will be deemed as supply of goods or services or both in the course
of inter-State trade or commerce. In case of import of goods IGST will be levied along with the
Basic Customs duty. It means IGST is levied in replacement of CVD + Spl. CVD. In case of import
of services only IGST will be levied.

Principles for determining the place of supply and when a supply takes place in the course of
inter-state trade or commerce shall be decided by the Parliament.

The power to levy Central Excise duty on goods manufactured or produced in India is available
in respect of the following products: a. Petroleum crude; b. High speed diesel; c. Motor spirit
(commonly known as petrol); d. Natural gas; e. Aviation turbine fuel; and f. Tobacco and
tobacco products. However, once GST is imposed there will be no duty on manufacture of these
goods.

The power to impose tax on sale of the following products is still provided to the State
Governments: a. Petroleum crude; b. High speed diesel; c. Motor spirit (commonly known as
petrol); d. Natural gas; e. Aviation turbine fuel; and f. Alcoholic liquor for human consumption.

However, once GST Council is recommend the date from which GST is imposed on these
products (except alcoholic liquor for human consumption), and no sales tax will be imposed on
these products. As per definition given in article 366(12A), GST covers all the goods except
alcoholic liquor for human consumption. It means no GST can be levied on Alcoholic liquor for
human consumption. Present system of State Excise duty and sales tax on Alcoholic liquor for
human consumption will continue.

As a result, the following bills became an Act on 12th April 2017:

● Central Goods and Services Tax Bill, 2017

● Integrated Goods and Services Tax Bill, 2017

● Union Territory Goods and Services Tax Bill, 2017

● Goods and Services Tax (Compensation to States) Bill, 2017 The Central Government notified
1st July, 2017 as the date from which the much awaited indirect tax reform in
ONE NATION - ONE TAX
GST will extend to whole of India including the State of Jammu and Kashmir.

On 7th July, 2017, the Jammu and Kashmir Goods and Services Tax Bill, 2017 was passed by the
State Legislature, empowering the State to levy State GST on intra-state supplies with effect
from 8th July, 2017. Concomitantly, the President of India has promulgated two ordinances,
namely, the Central Goods and Services Tax (Extension to Jammu and Kashmir) Ordinance, 2017
and the Integrated Goods and Services Tax (Extension to Jammu and Kashmir) Ordinance, 2017
extending the domain of Central GST Act and the Integrated GST Act to the State of Jammu and
Kashmir, with effect from 8th July, 2017. With this, the State of Jammu and Kashmir has
become part of the GST regime, making GST truly a “one nation, one tax” regime.

DUAL GST MODEL

India adopted a dual GST where tax imposed concurrently by the Central and States. Dual GST
model SGST

● State GST: Collected by the State Government CGST

● Central GST: Collected by the Central Government IGST

● Integrated GST: Collected by the Central Government on inter-state supply of Goods and
Services

Central Goods and Services Tax Act, 2017 (CGST):

CGST levied and collected by Central Government. It is a revenue source to the Central
Government of India, on intra-state supplies of taxable goods or services or both.

State Goods and Services Tax Act, 2017 (SGST):

SGST levied and collected by State Governments/Union Territories with State Legislatures
(namely Delhi and Pondicherry) on intra-state supplies of taxable goods or services or both. It is
a revenue source of the respective State Government.

Union Territory Goods and Services Tax (UTGST):

UTGST levied and collected by Union Territories without State Legislatures, on intra-state
supplies of taxable goods or services or both.
Note: India is a Union of States. The territory of India comprises of the territories of the States
and the Union Territories. Currently, there are 29 States and 7 Union Territories; of which, two
(Delhi and Pondicherry) are having Legislature.

GST in Union Territories without Legislature:

Supplies within such Union territory, Central GST will apply to whole of India and hence, it
would be applicable to all Union Territories, with or without Legislature. To replicate the law
similar to State GST to Union Territories without Legislature, the Parliament has the powers
under Article 246(4) to make such laws. Alternatively, the President of India may use his
general powers to formulate such laws. Hence, law same as similar to State GST can be
formulated for Union Territory without Legislature, by the Parliament.

The following are Union Territories without Legislature:

1. Chandigarh

2. Lakshadweep

3. Daman and Diu

4. Dadra and Nagar Haveli

5. Andaman and Nicobar Islands

Integrated Goods and Services Tax Act, 2017 (IGST):

IGST is a mechanism to monitor the inter-state trade of goods and services and ensure that the
SGST component accrues to the Consumer State. It would maintain the integrity of ITC chain in
inter-state supplies. The IGST rate would broadly be equal to CGST rate plus SGST rate. IGST
would be levied and collected by the Central Government on all inter-State transactions of
taxable goods or services. The revenue of inter-state sales will not accrue to the exporting state
and the exporting state will be required to transfer to the Centre the credit of SGST/UTGST
used in payment of IGST.
GOODS AND SERVICES TAX NETWORK (GSTN)
Goods and Services Tax Network (GSTN) is a [Section 8 of the Companies Act, 2013, (i.e. not for
profit companies), non-Government, and private limited company.

Technology backbone for GST in India:

GST being a destination based tax, the inter- state trade of goods and services (IGST) would
need a robust settlement mechanism amongst the States and the Centre. This is possible only
when there is a strong IT Infrastructure and Service back bone which enables capture,
processing and exchange of information amongst the stakeholders (including tax payers, States
and Central Governments, Accounting Offices, Banks and RBI). As a result Goods and Services
Tax Network (GSTN) has been set up

Functions of the GSTN (i.e. Role assigned to GSTN):

Creation of common and shared IT infrastructure for functions facing taxpayers has been
assigned to GSTN and these are:

• Filing of registration application,

• Filing of return,

• Creation of challan for tax payment,

• Settlement of IGST payment (like a clearing house),

• Generation of business intelligence and analytics etc. All statutory functions to be performed
by tax officials under GST like approval of registration, assessment, audit, appeal, enforcement
etc. will remain with the respective tax departments.
GST COUNCIL
As per Article 279A of the Constitution of India, the President of India is empowered to
constitute Goods and Services Tax Council. The President of India constituted the GST Council
on 15th September, 2016. The GST Council shall consist of Union Finance Minster as a
Chairperson, Union Minister of State in charge of Finance as a member, the State Finance
Minister or State Revenue Minister or any other Minister nominated by each State as a member
of the Council. The GST Council shall select one of them as Vice Chairperson of Council.

Guiding principle of the GST Council:

The mechanism of GST Council would ensure harmonization on different aspects of GST
between the Centre and the States as well as among States. It has been provided in the
Constitution (101st Amendment) Act, 2016 that the GST Council, in its discharge of various
functions, shall be guided by the need for a harmonized structure of GST and for the
development of a harmonized national market for goods and services.

Functions of the GST Council: GST Council is to make recommendations to the Central
Government and the State Governments on

• Tax rates,

• Exemptions,

• Threshold limits,

• Dispute resolution,

• GST legislations including rules and notifications etc.

IMPORTANT DEFINITIONS UNDER CGST LAW

“Business” includes:
(a) Any trade, commerce, manufacture, profession, vocation, adventure, wager (i.e. bet,
gamble) or any other similar activity, whether or not it is for a pecuniary benefit;

(b) Any activity or transaction in connection with or incidental or ancillary to sub-clause (a);

(c) Any activity or transaction in the nature of sub-clause (a), whether or not there is volume,
frequency, continuity or regularity of such transaction;

(d) Supply or acquisition of goods including capital goods and services in connection with
commencement or closure of business;

(e) Provision by a club, association, society, or any such body (for a subscription or any other
consideration) of the facilities or benefits to its members;

(f) Admission, for a consideration, of persons to any premises;

(g) Services supplied by a person as the holder of an office which has been accepted by him in
the course or furtherance of his trade, profession or vocation;

(h) services provided by a race club by way of totalisator (i.e. computer that registers bets and
divides the total amount bet among those who won) or a licence to book maker in such club;
and

(I) Any activity or transaction undertaken by the Central Government, a State Government or
any local authority in which they are engaged as public authorities; Note: Book maker means: a
person whose job is to take bets (especially on horse races), calculate odds, and pay out
winnings; the manager of a betting shop.

“Consideration” in relation to the supply of goods or services or both includes––

(a) Any payment made or to be made, whether in money or otherwise, in respect of, in
response to, or for the inducement of, the supply of goods or services or both, whether by the
recipient or by any other person but shall not include any subsidy given by the Central
Government or a State Government;
(b) the monetary value of any act or forbearance, in respect of, in response to, or for the
inducement of, the supply of goods or services or both, whether by the recipient or by any
other person but shall not include any subsidy given by the Central Government or a State
Government: Provided that a deposit given in respect of the supply of goods or services or both
shall not be considered as payment made for such supply unless the supplier applies such
deposit as consideration for the said supply.

Electronic Commerce Operator means:

Any person, who owns, operates or manages digital or electronic facility or platform for
electronic commerce.

Goods means: Every kind of movable property other than money and securities but includes
actionable claim, growing crops, grass and things attached to or forming part of the land which
are agreed to be served before supply or under a contract of supply.

“India” means: The territory of India as referred to in Article 1 of the Constitution, its
territorial waters, seabed and sub-soil underlying such waters, continental shelf, exclusive
economic zone or any other maritime zone as referred to in the Territorial Waters, Continental
Shelf, Exclusive Economic Zone and other Maritime Zones Act, 1976, and the air space above its
territory and territorial waters;

“Non-taxable supply” means: a supply of goods or services or both which is not leviable to
tax under this Act or under the Integrated Goods and Services Tax Act;

Example 11: (1) Alcoholic Liquor for human consumption is Non-taxable Supply. (2) Sale of Land
etc.

“Person” includes—
(a) An individual;

(b) A Hindu Undivided Family;

(c) A company;

(d) A firm;

(e) A Limited Liability Partnership;

(f) An association of persons or a body of individuals, whether incorporated or not, in India or

outside India;
(g) any corporation established by or under any Central Act, State Act or Provincial Act or a
Government company as defined in clause (45) of section 2 of the Companies Act, 2013;

(h) Anybody corporate incorporated by or under the laws of a country outside India;

(I) a co-operative society registered under any law relating to co-operative societies;

(j) A local authority;

(k) Central Government or a State Government;

(L) Society as defined under the Societies Registration Act, 1860;

(m) Trust; and

(n) Every artificial juridical person, not falling within any of the above;

“Principal supply” means the supply of goods or services which constitutes the predominant
element of a composite supply and to which any other supply forming part of that composite
supply is ancillary;

“Recipient” of supply of goods or services or both, means—

(a) Where a consideration is payable for the supply of goods or services or both, the person
who is liable to pay that consideration;

(b) Where no consideration is payable for the supply of goods, the person to whom the goods
are delivered or made available, or to whom possession or use of the goods is given or made
available; and

(c) where no consideration is payable for the supply of a service, the person to whom the
service is rendered, and any reference to a person to whom a supply is made shall be construed
as a reference to the recipient of the supply and shall include an agent acting as such on behalf
of the recipient in relation to the goods or services or both supplied;

“reverse charge” means: The liability to pay tax by the recipient of supply of goods or
services or both instead of the supplier of such goods or services or both under sub-section (3)
or sub-section (4) of section 9, or under sub-section (3) or sub- section (4) of section 5 of the
Integrated Goods and Services Tax Act;

“services” means: Anything other than goods, money and securities but includes activities
relating to the use of money or its conversion by cash or by any other mode, from one form,
currency or denomination, to another form, currency or denomination for which a separate
consideration is charged;

“Supplier” in relation to: Any goods or services or both, shall mean the person supplying the
said goods or services or both and shall include an agent acting as such on behalf of such
supplier in relation to the goods or services or both supplied;

“Taxable person” means: A person who is registered or liable to be registered under

section 22 (i.e. registration required if turnover exceed threshold limit and so on) or section 24
(i.e. Compulsory registration under GST).

“Taxable supply” means: A supply of goods or services or both which is leviable to tax
under this Act;
GST Identification Number (GSTIN) Here’s a complete break-up of the proposed
GST Identification Number.
Each taxpayer will be allotted a state-wise PAN- based 15-digit Goods and Services Taxpayer
Identification Number (GSTIN).

The first two digits of this number will represent the state code as per Indian Census 2011

The next ten digits will be the PAN number of the taxpayer

The thirteenth digit will be assigned based on the number of registration within a state

The fourteenth digit will be Z by default

The last digit will be for check code

Input tax credit
When you buy a product/service from a registered dealer you pay taxes on purchase, while
making sales, tax is collected and periodically the same is adjusted with the tax you already paid
at time of purchase and balance liability of tax (tax on sales (minus) tax on purchase) is to be
paid to the government. This mechanism is called utilization of input tax credit (tax on purchase
adjustment against tax liability on output i.e. sales).
CHAPTER 2
GST RETURNS
What is GST Return
A return is a document containing details of income which a taxpayer is required to file with the
tax administrative authorities. This is used by tax authorities to calculate tax liability.
Under GST, a registered dealer has to file GST returns that include:

 Purchases
 Sales
 Output GST (On sales)
 Input tax credit (GST paid on purchases)

Who should file GST Returns?

In the GST regime, any regular business has to file two monthly returns and one annual return.
This amounts to 26 returns in a year.
The beauty of the system is that one has to manually enter details of one monthly return –
GSTR-1. The other returns GSTR 3B will get auto-populated by deriving information from GSTR-
1 filed by you and your vendors.
There are separate returns required to be filed by special cases such as composition dealers.
What are the different types of GST Returns?
Return Form Particulars Frequency Due Date

GSTR-1 Details of outward supplies of taxable Monthly 11th* of the

goods and/or services affected next
month with
effect from
October 2018

*Previously, the
due date was
10th

GSTR-2 Details of inward supplies of taxable Monthly 15th of the next

goods and/or services affected month
Suspended claiming the input tax credit.

GSTR-3 Monthly return on the basis of Monthly 20th of the next

finalization of details of outward month
Suspended supplies and inward supplies along  
with the payment of tax.

GSTR-3B Simple Return in which summary of Monthly 20th of the

outward supplies along with Input next month
Tax Credit is declared  and payment
of tax is affected by taxpayer

GSTR-4 Return for a taxpayer registered Quarterly 18th of the

under the composition levy month
succeeding
quarter
GSTR-5 Return for a Non-Resident foreign Monthly 20th of the next
taxable person month

GSTR-6 Return for an Input Service Monthly 13th of the next

Distributor month

GSTR-7 Return for authorities deducting tax Monthly 10th of the next
at source. month

GSTR-8 Details of supplies effected through Monthly 10th of the next

e-commerce operator and the month
amount of tax collected

GSTR-9 Annual Return for a Normal Taxpayer Annually 31st December of

next financial year*

Annual Return a taxpayer registered Annually 31st December of

under the composition levy anytime next financial year*
GSTR-9A during the year

GSTR-10 Final Return Once, when Within three months

GST of the date of
Registration cancellation or date
is cancelled of cancellation order,
or whichever is later.
surrendered
GSTR-11 Details of inward supplies to be Monthly 28th of the month
furnished by a person having UIN following the month
and claiming a refund for which statement
is filed
GSTR1
What is GSTR-1
GSTR-1 is a monthly or quarterly return that should be filed by every registered dealer. It
contains details of all outward supplies i.e sales.
The return has a total of 13 sections.

When is GSTR-1 due

The due dates for GSTR-1 are based on your turnover.
Businesses with sales of upto Rs. 1.5 crore will file quarterly returns.
Other taxpayers with sales above Rs. 1.5 crore have to file monthly return.
Annual Turnover up to Rs 1.5 crore can opt for quarterly filing

Quarter Due date

Oct-Dec 2018 31st January 2019

Jan- Mar 2019 30th April 2019

Monthly GST Return

Annual Turnover of more than Rs 1.5 crore must file monthly

Period Dates

December 2018 11th January 2019

January 2019 11th February 2019

February 2019 11th March 2019

March 2019 11th April 2019

 
Who should file GSTR-1
Every registered person is required to file GSTR-1 irrespective of whether there are any
transactions during the month or not.
The following registered persons are exempt from filing the return:

 Input Service Distributors

 Composition Dealers
 Suppliers of online information and database access or retrieval services (OIDAR), who
have to pay tax themselves (as per Section 14 of the IGST Act)
 Non-resident taxable person
 Taxpayer liable to collect TCS
 Taxpayer liable to deduct TDS

 How to revise GSTR-1

Return once filed cannot be revised. Any mistake made in the return can be rectified in the next
periods (month/quarter) return. It means that if a mistake is made in September GSTR-1,
rectification for the same can be made in October’s GSTR-1.

 Late Fees and Penalty

Late Fees for not filing GSTR-1 is Rs. 200 per day of delay (Rs. 100 as per CGST Act and Rs. 100
as per SGST Act. The late fees will be charged from the date after the due date.
Latest Update: The late fees have been reduced to Rs. 50 per day and Rs 20 per day (for nil
return)
GSTR2
What is GSTR-2
Every registered taxable person is required to give details of Inward Supply, i.e., purchases for a
tax period in GSTR-2.

Why is GSTR-2 important

GSTR-2 contains details of all the purchases transactions of a registered dealer for a month. It
will also include purchases on which reverse charge applies.
The GSTR-2 filed by a registered dealer is used by the government to check with the
sellers’ GSTR-1 for buyer-seller reconciliation.

What is buyer-seller reconciliation

Buyer-seller reconciliation or invoice matching or is a process of matching taxable sales by the
seller with the taxable purchases of the buyer. 
It is vital because ITC on purchases will only be available if the details of purchases filed
in GSTR-2 return of buyer matches with the details of sales filed in GSTR-1 of the seller.
For example, Ajay buys 100 pens worth Rs. 500 from Vijay Stationery. Vijay Stationery must
show Rs. 500 sales in his GSTR-1. Ajay must show the same Rs. 500 purchase in GSTR-2 to claim
ITC. Unless the amounts match, Ajay will not be able to claim ITC.
Note: Most of the headings under GSTR-2 are auto-populated from counter-party GST return
so it will involve minimal time. 

When is GSTR 2 due date

As per the Act: GSTR-2 due date for Filing GSTR-2 is 15th of next month.
There is a 5-day gap between GSTR-1 & GSTR-2 filing to correct any errors and discrepancies.
For businesses with turnover less than 1.5 crores, quarterly returns are applicable whose due
dates will be announced later.

What happens if GSTR-2 is not filed

If GSTR-2 return is not filed then the next return GSTR-3 cannot be filed. Hence, late filing of
GST return will have a cascading effect leading to heavy fines and penalty.

What happens if GSTR-2 is filed late

If you delay in filing, you will be liable to pay interest and a late fee.
Interest is 18% per annum. It has to be calculated by the taxpayer on the amount of
outstanding tax to be paid. The time period will be from the next day of filing (16th of the
month) to the date of payment.
The late fee is Rs. 100 per day per Act. So it is 100 under CGST & 100 under SGST. Total will be
Rs. 200/day. The maximum is Rs. 5,000.There is no late fee on IGST. 
Who should file GSTR-2
Every registered person is required to file GSTR-2 irrespective of whether there are any
transactions during the month or not.
However, these registered persons do not have to file GSTR 2 –

 Input Service Distributors

 Composition Dealers
 Non-resident taxable person
 Persons liable to collect TCS
 Persons liable to deduct TDS
 Suppliers of online information and database access or retrieval services (OIDAR), who
have to pay tax themselves (as per Section 14 of the IGST Act)

 How to revise GSTR 2

GSTR 2 once filed cannot be revised. Any mistake made in the return can be revised in the next
month’s return. It means that if a mistake is made in September GSTR 2, rectification for the
same can be made in October’s GSTR 2.
What is GSTR-2A
When a seller files his GSTR-1, the information is captured in GSTR-2A. GSTR-2A is a purchase-
related tax return that is automatically generated for each business by the GST portal.
It takes information from the seller’s GSTR-1. You are required to verify (and amend) this return
before filing in on GST Portal.
GSTR3
What is GSTR3
GSTR-3 is a monthly return with the summarized details of sales, purchases, sales during the
month along with the amount of GST liability. This return is auto-generated pulling information
from GSTR-1 and GSTR-2.

Why is GSTR-3 important

GSTR-3 will show the amount of GST liability for the month. The taxpayer must pay the tax and
file the return.

What happens if GSTR-3 is not filed

If GSTR-3 return is not filed then the GSTR-1 of the next month cannot be filed.  Hence, late
filing of GST return will have a cascading effect leading to heavy fines and penalty.

What happens if GSTR-3 is filed late

If you delay in filing, you will be liable to pay interest and a late fee.
Interest is 18% per annum. It has to be calculated by the tax payer on the amount of
outstanding tax to be paid. Time period will be from the next day of filing (16th of the month)
to the date of payment.
Late fee is Rs. 100 per day per Act. So it is 100 under CGST & 100 under SGST. Total will be Rs.
200/day. Maximum is Rs. 5,000.There is no late fee on IGST.

Who should file GSTR-3

Every registered person is required to file GSTR-3 irrespective of whether there are any
transactions during the month or not.
However, these registered persons do not have to file GSTR-3–

 Input Service Distributors

 Composition Dealers
 Non-resident taxable person
 Persons liable to collect TCS
 Persons liable to deduct TDS
 Suppliers of online information and database access or retrieval services (OIDAR), who
have to pay tax themselves (as per Section 14 of the IGST Act)

 How to revise GSTR-3

GSTR-3 once filed cannot be revised. Any mistake made in the return can be revised in the next
month’s GSTR-1 and GSTR-2 returns. Direct revision in GSTR-3 is not possible as GSTR-3 is auto-
generated without provision for editing.
 
How will GSTR-3 and GSTR-3B be reconciled
GSTR 3B is a simple return form introduced by the CBEC for the month of July and August
2017. GSTR-3 will also have to be filed for July & August 2017.
On filing the GSTR 3, if actual liabilities are different from those declared in GSTR 3B, the system
will update the (difference) between GSTR 3B and GSTR 3 automatically. In case, actual
liabilities in GSTR-3 are higher than those declared and paid with GSTR-3B, you will have to pay
the extra amount tax along with interest on the extra amount.

Note:
GSTR-3 must be filed only after paying entire tax liability otherwise it will not be treated as valid
return.
If taxpayer has filed an invalid return and later on he wants to pay the remaining liability then
he has to file the Part B of GSTR-3 again.
GSTR3B
What is GSTR 3B
GSTR-3B is a monthly self-declaration that has to be filed a registered dealer from July 2017 till
March 2018. Points to Note:

 You must file a separate GSTR-3B for each GSTIN you have
 Tax liability of GSTR-3B must be paid by the last date of filing GSTR-3B for that month
 GSTR-3B cannot be revised

Who should file GSTR 3B

Every person who has registered for GST must file the return GSTR-3B including nill returns.
However, the following registrants do not have to file GSTR-3B

 Input Service Distributors & Composition Dealers

 Suppliers of OIDAR
 Non-resident taxable person

Late Fee & Penalty

Filing GSTR-3B is mandatory even for nill returns. Late Fee for filing GSTR-3B after the due date
is as follows:

 Rs. 50 per day of delay

 Rs. 20 per day of delay for taxpayers having Nil tax liability for the month

Interest @ 18% per annum is payable on the amount of outstanding tax to be paid.
**Late fee for July, August, and September has been waived
GSTR4
What is GSTR-4
GSTR-4 is a GST Return that has to be filed by a Composition Dealer. Unlike a normal taxpayer
who needs to furnish 3 monthly returns, a dealer opting for the composition scheme is required
to furnish only 1 return which is GSTR-4.
When is GSTR-4 due
GSTR 4 has to be filed on a quarterly basis.
The due date for filing GSTR 4 is 18th of the month after the end of the quarter.

Period Due Date

April-June 2018 18th July 2018

July-Sept 2018 18th Oct 2018

Oct-Dec 2018 18th Jan 2019*

Jan-Mar 2019 18th Apr 2019*

* subject to change in the GST Return Filing, as recommended in 27th GST council meeting

Who should file GSTR-4

A taxpayer opting for the Composition Scheme is required to file GSTR-4.

How to revise GSTR-4

GSTR-4 cannot be revised after filing on the GSTN Portal. Any mistake in the return can be
revised in the next month’s return only. It means that, if a mistake is made in the GSTR-4 filed
for the July-September quarter, the rectification for the same can be made only when filing the
next quarter’s GSTR-4.

Late Fees and Penalty

A penalty of Rs. 200 per day is levied if the GSTR-4 is not filed.
The maximum penalty that can be charged is Rs. 5,000.
Also, if the GSTR-4 is not filed for a given quarter, then the taxpayer cannot file the next
quarter’s return either.
As per Latest Notification No. 73/2017 – Central Tax late fees for GSTR-4 has been reduced to
Rs. 50 per day of default.  Also, the late fees for NIL return in GSTR-4 have been reduced to Rs.
20 per day of delay.
GSTR5
What is GSTR-5
Every registered non-resident taxable person is required to furnish a return in GSTR-5 in GST
Portal.

Who is a Non-Resident Foreign Taxpayer

Non-Resident foreign taxpayers are those suppliers who do not have a business establishment
in India and have come for a short period to make supplies in India. Such a person is required to
furnish details of all taxable supplies in GSTR-5

Why is GSTR-5 important

It will contain all business details for non-resident (NR) including the details of sales &
purchases.
Information from GSTR-5 will flow into GSTR-2 of buyers.

When is GSTR-5 due

As per the GST Act, due date to file GSTR-5 is every 20th of next month.
For instance, the return of September 2018 will be due on 20th October 2018.

If the Non-Resident is registered u/s 27

This is a special certificate of registration issued to a casual taxable person or a non-resident
taxable person. The registration is of a temporary nature and is valid for the period specified in
the application or 90 days from the effective date of registration, whichever is earlier.
Such a person can make taxable supplies only after the issuance of the certificate of registration
In such a case, the NR must file GSTR-5 within 7 days after the last day of the period of
registration.

What happens if GSTR-5 is not filed

If GSTR-5 return is not filed then the next month’s return cannot be filed.  Hence, late filing of
GST return will have a cascading effect leading to heavy fines and penalty.

What happens if GSTR-5 is filed late

If you delay in filing, you will be liable to pay interest and a late fee.
Interest is 18% per annum. It has to be calculated by the taxpayer on the amount of
outstanding tax to be paid. The time period will be from the next day of filing (21st of the
month) to the date of payment.
A late fee is Rs. 50 per day and Rs. 20 per day if a nil return. The maximum late fees is Rs. 5,000.
GSTR6
What is GSTR 6
GSTR 6 is a monthly return that has to be filed by an Input Service Distributor.
It contains details of ITC received by an Input Service Distributor and distribution of ITC.
There are a total of 11 sections in this return.

Why is GSTR 6 important

GSTR 6 contains details of all the documents issued for distribution of Input Tax Credit and the
manner of distribution of credit and tax invoice on which credit is received.
GSTR 6 has to be filed by every ISD even if it is a nil return.

When is GSTR 6 due

The due date for filing of GSTR 6 as per GST Act is 13th of next month.
Late fees have been reduced to Rs. 50 per day. However, no provision for reduction is made
where NIL return is filed.

Who should file GSTR 6

GSTR 6 has to be filed by every Input Service Distributor.

How to revise GSTR 6

There is no provision under GST for revising GSTR 6. Any mistakes made in the return can be
corrected while filing GSTR 6 of the following month.

What is GSTR 6A
GSTR 6A is an automatically generated form based on the details provided by the suppliers of
an Input Service Distributor in their GSTR 1.
GSTR-6A is a read-only form. Any changes to be made in GSTR-6A have to be done while filing
GSTR-6.
GSTR7
What is GSTR-7
GSTR 7 is a return to be filed by the persons who is required to deduct TDS (Tax deducted at
source) under GST. GSTR 7 contains the details of TDS deducted, TDS liability payable and paid,
TDS refund claimed if any etc.

Who are required to deduct TDS under GST

As per GST law following people/entities need to deduct TDS:
1.      A department or establishment of the Central or State Government, or
2.      Local authority, or
3.      Governmental agencies, or
4.      Persons or category of persons as may be notified, by the Central or a State Government
on the recommendations of the Council.
As per Notification No. 33/2017 – Central Tax, 15th September 2017
The following entities also need to deduct TDS-

1. An authority or a board or any other body which has been set up by Parliament or a
State Legislature or  by a government, with 51% equity ( control) owned by government
2. A society established by the Central or any State Government or a Local Authority and
the society is registered under the Societies Registration Act, 1860
3. Public sector undertakings

The above deductor is required to TDS where the total value of supply under the contract
exceeds Rs 2.5 Lakhs. The rate for TDS is 2% (CGST 1% + SGST 1%) in case of intra state supply
and 2 % (IGST) in case of interstate supplies.
However, the TDS will not be deducted when the location of the supplier and place of supply is
different from the registration place (State) of the recipient.
NOTE: As per the 22nd GST Council meeting on 6th October 2017, the provisions of TDS has
been put on hold and will come into force later.

Why is GSTR-7 important

GSTR 7 shows the details of TDS deducted, amount of TDS paid and payable, any refund of TDS
claimed. The deductee i.e. the person whose TDS has been deducted can claim the input credit
of such TDS deducted and utilize for the payment of output tax liability. The details of TDS
deducted is available electronically to each of the deductees in PART ‘C’ of Form GSTR 2A after
the due date of filing of Form GSTR 7. Also the certificate for such TDS deducted shall be made
available to the deductee in Form GSTR 7A on the basis of return filed in GSTR 7.

When is GSTR 7 due

Filing of GSTR 7 for a month is due on 10th of the following month. For instance, due date of
filing GSTR 7 for October is 10th November

What is the penalty for not filing GSTR 7 on time

If the GST return is not filed on time, then penalty of Rs 100 under CGST & Rs 100 under SGST
shall be levied. The total will be Rs. 200/day. The maximum is Rs. 5,000 There is no late fee on
IGST in case of delayed filing.
Along with late fee, interest has to be paid at 18% per annum. It has to be calculated by the
taxpayer on the tax to be paid. The time period will be from the next day of due date of filing to
the date of payment.

How to revise GSTR-7

GSTR 7 once filed cannot be revised. Any mistake made in the return can be revised in the next
month’s return. It means that if a mistake is made in October GSTR 7, rectification for the same
can be made in November GSTR 7 or in later months when the error or omission is identified.
GSTR8
What is GSTR-8
GSTR-8 is a return to be filed by the e-commerce operators who are required to
deduct TCS (Tax collected at source) under GST. GSTR-8 contains the details of supplies
affected through e-commerce platform and amount of TCS collected on such supplies.

 Who should file GSTR-8

Every e-commerce operator registered under GST is required to file GSTR-8. E-commerce
operator has been defined under GST Act as any person who owns or manages a digital or
electronic facility or platform for electronic commerce such as Amazon etc. All such e-
commerce operators are mandatory required to obtain GST registration as well as registered
for TCS (Tax collection at source).
 

Who classifies as an e-commerce operator

E-commerce operator is any person who owns or manages the digital or electronic facility or
platform for electronic commerce such as Amazon, Flipkart, etc. The e-commerce operator
provides a platform whereby the sellers can reach out to a large number of customers by
getting registered online on their platform. Customers also get benefits as they get access to
multiple sellers and competitive prices for the desired product.
 

Why is GSTR-8 important

GSTR-8 shows the details of supplies effected through the e-commerce platform and the
amount of TCS collected on such supplies. Currently, the Government has put the TCS
provisions on hold. It is going to be applicable from 1st Oct 2018 onwards. In case of TCS being
applicable, the supplier can take the input credit of such TCS deducted by the e-commerce
operator after filing of GSTR-8 by the e-commerce operator. The amount of such TCS will be
reflected in Part C of Form GSTR-2A of the supplier.
For instance, consider that Shanta Enterprises supplies garments worth Rs 20,000 through
Amazon. Now Amazon being the e-commerce operator will deduct the TCS @ 1%  and deposit
Rs 200 with the Government. The amount of Rs 200 will get reflected in GSTR-2A of Shanta
Enterprises after filing of GSTR-8 by Amazon.
 

When is GSTR-8 due

GSTR-8 filing for a month is due on 10th of the following month. For instance, the due date for
GSTR-8 for October is on the 10th of November.
 
What is the penalty for not filing GSTR-8 within the due date
If the GST return is not filed on time, then a penalty of Rs 100 under CGST & Rs 100 under SGST
shall be levied per day. The total will be Rs. 200/day. The maximum is Rs. 5,000. There is no late
fee on IGST in case of delayed filing.
Along with late fee, interest at 18% per annum has to be paid. It has to be calculated by the
taxpayer on the tax to be paid. The time period will be from the next day of filing to the date of
payment.
 
How to revise GSTR-8
GSTR-8 once filed, cannot be revised. Any mistake made in the return can be revised in the next
month’s return. It means that if a mistake is made in October GSTR-8, rectification for the same
can be made in November GSTR-8 or in later months when the error or omission is identified.
GSTR9
What is GSTR-9 annual return
GSTR 9 form is an annual return to be filed once in a year by the registered taxpayers under
GST. It consists of details regarding the supplies made and received during the year under
different tax heads i.e. CGST, SGST and IGST. It consolidates the information furnished in the
monthly or quarterly returns during the year.

Who should file GSTR 9 annual return

All the registered taxable persons under GST must file GSTR 9 form. However, the following
persons are not required to file GSTR 9

 Taxpayers opting Composition scheme as they must file GSTR-9A

 Casual Taxable Person
 Input service distributors
 Non-resident taxable persons
 Persons paying TDS under section 51 of GST Act.

What are different types of annual returns

There are 4 types of annual returns :

1. GSTR 9: GSTR 9 should be filed by the regular taxpayers filing GSTR 1, and GSTR

3B.
2. GSTR 9A: GSTR 9A should be filed by the persons registered under composition
scheme under GST.
3. GSTR 9B: GSTR 9B should be filed by the e-commerce operators who have
filed GSTR 8 during the financial year.
4. GSTR 9C: GSTR 9C should be filed by the taxpayers whose annual
turnoverexceeds Rs  2 crores during the financial year. All such taxpayers are also
required to get their accounts audited and file a copy of audited annual accounts
and reconciliation statement of tax already paid and tax payable as per audited
accounts along with GSTR 9C.

What is the due date of GSTR-9

GSTR-9 due date is on or before 31st December of the subsequent financial year.
*Latest Update as on 22nd December 2018: 31st GST Council meeting held on 22nd December
2018 recommended further extension for filing GSTR-9,GSTR-9A and GSTR-9C upto 30th June
2019. Also, certain changes were called for in the form GSTR-9 and GSTR-9C. Read more here
*Update as on 8th December 2018: Due date for filing GSTR-9, GSTR-9A and GSTR-9C is
extended till 31st March 2019 by CBIC for FY 2017-18
What is the Penalty for the late filing of GSTR-9 form
Late fees for not filing the GSTR 9 within the due date is Rs. 100 per day per act up to a
maximum of an amount calculated at a quarter percent of the taxpayer turnover in the state or
union territory. Thus it is Rs 100 under CGST & 100 under SGST, the total penalty is Rs 200 per
day of default. There is no late fee on IGST.

What are the details required in the GSTR-9 form

Sl no Parts of the Information required

GSTR-9

1 Part-I Basic details of the taxpayer. This detail will be auto-populated.

2 Part-II Details of Outward and Inward supplies declared during the financial
year(FY). This detail must be picked up by consolidating summary from all
GST returns filed in previous FY.

3 Part-III Details of ITC declared in returns filed during the FY. This will be
summarised values picked up from all the GST returns filed in previous FY.

4 Part-IV Details of tax paid as declared in returns filed during the FY.

5 Part-V Particulars of the transactions for the previous FY declared in returns of

April to September of current FY or up to the date of filing of annual
returns of previous FY whichever is earlier. Usually, the summary of
amendment or omission entries belonging to previous FY but reported in
Current FY would be segregated and declared here.

6 Part-VI Other Information comprising details of:

-GST Demands and refunds,

-HSN wise summary information of the quantity of goods supplied and

received with its corresponding Tax details against each HSN code,
-Late fees payable and paid details and

-Segregation of inward supplies received from different categories of

taxpayers like Composition dealers, deemed supply and goods supplied
on approval basis.
GSTR9A
What is GSTR-9A

The GSTR-9A is the annual return to be filed once in a year by taxpayers who have opted for the
Composition Scheme under GST for a particular financial year. It includes all the information
furnished in the quarterly returns filed by the composition taxpayers during that financial year.

Who should file GSTR-9A

All taxpayers registered under the composition levy scheme under GST should file GSTR-9A.

However, the following persons are not required to file this:

 Non-resident taxable persons

 Input service distributor
 Casual Taxable Person
 Persons paying TDS under section 51 of the Act
 E-commerce operator paying TCS under section 52 of the Act

When is GSTR-9A due

GSTR-9A has to be filed on or before 31st December* following the close of financial year. For
example, if the composition taxpayer is filing his annual return for the FY 2017-18, the taxpayer
should file it, on or before 31st December 2018*.

*Latest Update as on 22nd December 2018: Due date for filing all annual forms is further
extended till 30th June 2019 by CBIC for FY 2017-18

Update as on 8th December 2018: Due date for filing GSTR-9, GSTR-9A and GSTR-9C is extended
till 31st March 2019 by CBIC for FY 2017-18

What is the penalty for the late filing of GSTR-9A

Under CGST Under SGST/UTGST TOTAL

 Rs.100* per day of Rs.100* per day of default Rs.200 per day of
default default

*Maximum late fee per day cannot exceed 0.25% of Turnover in the State or Union territory
under CGST/SGST/UTGST.

Details to be provided in GSTR-9A

Sl. Parts of Details to be provided

No. GSTR-9A

1 Part-I Basic Details such as GSTIN, Legal Name, Trade Name of the taxpayer
that is auto-populated

2 Part-II Details of outward and inward supplies declared in GSTR-4 filed during
the financial year. This input consists of summary from all quarterly
returns filed during the FY.

3 Part-III Details of tax paid as declared in returns filed during the financial year.
Tax paid under different heads such as IGST, CGST, SGST, Cess, Interest,
Late Fee, Penalty has to be mentioned here.
4 Part-IV Particulars of the transactions for the previous FY declared in returns of
April to September of current FY or up to date of filing of annual return
whichever is earlier. This section consists of summary of amendments
or corrections relating to entries of previous FY. It may be additions or
omissions.

5 Part-V Other Information such as the following given below:

Particulars of Demands and Refunds. Here, details of any demands for

tax from the tax department, tax paid on the demand raised, any
balance to be paid shall be mentioned. Also, details of Refund claimed,
refund received out of the claim, pending refund shall be mentioned.

Details of credit reversed or availed – If a taxpayer switches from

regular to composition scheme or vice versa, ITC shall be reversed or
added respectively. Such details pertaining to ITC shall be entered here.

Late fee payable and paid – Late fee on account of late payment of tax
or late filing of returns shall be mentioned in this section.
GSTR10
What is GSTR-10

A taxable person whose GST registration is cancelled or surrendered has to file a return in the
form of GSTR-10. This return is called as final return.

When is GSTR 10 due

GSTR 10 must be filed within three months from the date of cancellation or date of cancellation
order whichever is later. For instance if the date of cancellation is 1st September, 2017, then
the GSTR 10 must be filed by 30th November, 2017

Who should file GSTR-10

GSTR 10 is required to be filed only by the persons whose registration under GST has been
cancelled or surrendered. The the regular persons registered under GST are not required to file
this return.

What is the difference between Final Return and Annual Return

Annual return has to be filed by every registered person paying tax as normal taxpayer under
GST. Annual return is to be filed  once a year in Form GSTR 9

Whereas Final return is required to be filed by the persons whose registration has been
cancelled or surrendered in Form GSTR 10.

What is the penalty for not filing GSTR 10 on time

If the GSTR 10 is not filed within the due date, a notice will be sent to the such registered
person. The person will be given 15 days time for filing the return with all the documents
required. If the person still fails to file the return, the tax officer will pass the final order for the
cancellation with the amount of tax payable along with interest/penalty.
GSTR11
What is GSTR-11

GSTR-11 is the return to be filed by the persons who has been issued a Unique Identity
Number(UIN) in order to get refund under GST for the goods and services purchased by them in
India.

Who are Unique Identity Number(UIN) holders under GST Act

Unique Identity Number is a special classification made for foreign diplomatic missions and
embassies who are not liable to taxes in Indian territory.

The following organizations can apply for a UIN:

 A specialized agency of the United Nations Organization

 A Multilateral Financial Institution and Organization notified under the United Nations
(Privileges and Immunities) Act, 1947,
 Consulate or Embassy of foreign countries
 Any other person or class of persons as notified by the Commissioner.

The above persons/organizations can apply for UIN using Form GST REG- 13.

Purpose of UIN

The purpose of issuing UIN is that any amount of tax collected from the bodies/person holding
UIN is refunded back to them. But in order to claim the refund of GST paid by them, they need
to file GSTR 11.

When is GSTR-11 due

GSTR 11 must be filed by the 28th of the month following the month in which inward supply is
received by the UIN holders. For instance if US embassy paid GST of Rs 45,000 on food, hotel
etc during his stay in India for the month of August, 2017, then he must file return in GSTR 11
by 28th September, 2017 in order to claim refund of such taxes paid.
CHAPTER 3
GST RETURN FORMS