Sec 39 – Furnishing of returns

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Sec 39 – Furnishing of returns 2017-04-14T14:48:26+00:00
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  • Ashish BadalaCA Ashish Badala
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    (1) Every registered person, other than an Input Service Distributor or a non-resident taxable person or a person paying tax under the provisions of section 10 or section 51 or section 52 shall, for every calendar month or part thereof, furnish, in such form and manner as may be prescribed, a return, electronically, of inward and outward supplies of goods or services or both, input tax credit availed, tax payable, tax paid and such other particulars as may be prescribed, on or before the twentieth day of the month succeeding such calendar month or part thereof.
    (2) A registered person paying tax under the provisions of section 10 shall, for each quarter or part thereof, furnish, in such form and manner as may be prescribed, a return, electronically, of turnover in the State or Union territory, inward supplies of goods or services or both, tax payable and tax paid within eighteen days after the end of such quarter.
    (3) Every registered person required to deduct tax at source under the provisions of section 51 shall furnish, in such form and manner as may be prescribed, a return, electronically, for the month in which such deductions have been made within ten days after the end of such month.
    (4) Every taxable person registered as an Input Service Distributor shall, for every calendar month or part thereof, furnish, in such form and manner as may be prescribed, a return, electronically, within thirteen days after the end of such month.
    (5) Every registered non-resident taxable person shall, for every calendar month or part thereof, furnish, in such form and manner as may be prescribed, a return, electronically, within twenty days after the end of a calendar month or within seven days after the last day of the period of registration specified under sub-section (1) of section 27, whichever is earlier.
    (6) The Commissioner may, for reasons to be recorded in writing, by notification, extend the time limit for furnishing the returns under this section for such class of registered persons as may be specified therein:
    Provided that any extension of time limit notified by the Commissioner of State tax or Union territory tax shall be deemed to be notified by the Commissioner.
    (7) Every registered person, who is required to furnish a return under sub-section (1) or sub-section (2) or sub-section (3) or sub-section (5), shall pay to the Government the tax due as per such return not later than the last date on which he is required to furnish such return.
    (8) Every registered person who is required to furnish a return under sub-section (1) or sub-section (2) shall furnish a return for every tax period whether or not any supplies of goods or services or both have been made during such tax period.
    (9) Subject to the provisions of sections 37 and 38, if any registered person after furnishing a return under sub-section (1) or sub-section (2) or sub-section (3) or sub-section (4) or sub-section (5) discovers any omission or incorrect particulars therein, other than as a result of scrutiny, audit, inspection or enforcement activity by the tax authorities, he shall rectify such omission or incorrect particulars in the return to be furnished for the month or quarter during which such omission or incorrect particulars are noticed, subject to payment of interest under this Act:
    Provided that no such rectification of any omission or incorrect particulars shall be allowed after the due date for furnishing of return for the month of September or second quarter following the end of the financial year, or the actual date of furnishing of relevant annual return, whichever is earlier.
    (10) A registered person shall not be allowed to furnish a return for a tax period if the return for any of the previous tax periods has not been furnished by him.

    Priya MadrechaPriya Madrecha
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    39.1  Analysis
    This section deals with filing of GST Return under various class of registered persons
    A.    Return and due dates for payment of tax and filing of return for the registered person
    Section
    Ref – (A)     Person Liable – (B)      FORM –
    (C)     Rule – (D)     Due date for
    payment
    of tax –(E)     Due Date
    for filing of return – (F)     Periodicity – (G)
    39(1)     Regular
    Taxpayers (other than registered person covered under subsection 2, 3,4 & 5 of
    Section 39     GSTR-3     Return rule – 3     On or before the due date
    of filing of return – Ref column (F)     On or before 20th
    of the
    month succeeding such calendar month      Monthly
    39(2)     Compounding Taxable persons     GSTR-4     Return rule – 4     On or before the
    due date
    of filing of return – Ref column (F)     Within 18th days after end of such quarter     Quarterly
    39(3)     Any Registered person who is liable to deduct tax under section
    51     GSTR-7     Return rule – 7     On or before the due date
    of filing of return – Ref column (F)     On or before 10th
    of the
    month succeeding such calendar month     Monthly
    39(4)     Input Service Distributor     GSTR-6     Return rule – 6          On or before 13th
    of the
    month succeeding such calendar month     Monthly
    39(5)     Non-Resident Taxable person     GSTR-5     Return rule – 5     On or before the due date
    of filing of return – Ref column (F)     Within 20 days end of the calendar month or within 7 days after the last day of the period of registration specified in
    Section27(1) whichever
    is earlier
    B.    The extension of time limit for furnishing the returns
    The Commissioner may, for reasons to be recorded in writing, by notification, extend the time limit for furnishing the returns for any class of registered persons.
    Extension of time limit notified by the State/UT Commissioner shall be deemed to be notified by CGST Commissioner.
    C.    Mandatory to file returns
    Every Registered person covered under section 39(1) & 39(2) shall furnish a return for every tax period whether or not any supplies of goods and/or services have been effected during such tax period.
    In other words the registered person covered under Section 39(1) and 39(2) are obliged to file “NIL RETURN” even when there is no transaction effected by them in any tax period. D.  Payment and Interest etc.
    (i)    All registered person who are required to file a return under Section 39(1), 39(2), 39(3), 39(4) & 39 (5) are allowed to rectify any omission or incorrect particulars filed in the return.
    (ii)    Any omission or incorrect particulars therein, can be rectified in the return to be filed for the month or quarter, during which such omission or incorrect particulars are noticed, subject to payment of specified interest as applicable.
    (iii)    Such rectification cannot be done when omission or incorrect particulars are discovered as a result of scrutiny, audit, inspection or enforcement activity by the tax authorities,
    (iv)    No such rectification of any omission or incorrect particulars shall be allowed after the due date for filing of return for the month of September or second quarter following the end of the financial year, or the actual date of filing of relevant annual return, whichever is earlier.
    E.    Non-submission of previous tax period returns
    The registered person shall not be allowed to furnish a return for a tax period if the returns for any pervious tax periods has not been furnished him.
    F.    Monthly return on the basis of finalization of details of outward supplies( FORM GSTR–1) and inward supplies (FORM GSTR–2)
    1. Return of regular taxpayer
    (i)    Every registered taxable person shall file his return in FORM GSTR-3 other than a taxable person registered under section 10 i.e. composition dealer, or under section 51 i.e. deductor of tax at source or section 52 i.e. a person liable to collect tax at source or an Input Service Distributor or a non-resident taxable person.
    (ii)    For every calendar month the registered person shall furnish return in FORM GSTR-3 electronically in the common portal: and it shall contain
    (a)    inward and outward supplies of goods and/or services,
    (b)    input tax credit availed,
    (c)    tax payable,
    (d)    tax paid and
    (e)    other particulars as may be prescribed
    This return should be filed on or before 20th of the month succeeding such calendar month or part thereof.
    Contents of FORM GSTR-3:
    FORM GSTR–3 return shall capture the following information:
    1.    Basic details of the Taxpayer i.e. Name and Address along with GSTIN
    2.    Period to which the Return pertains
    3.    Turnover Details including Gross Turnover, Export Turnover, Exempted Domestic Turnover, Nil Rated Domestic Turnover, Non GST Turnover and Net Taxable Turnover
    4.    Final aggregate level outward and inward supply information. These details will be autopopulated from FORM GSTR-1 and FORM GSTR-2.
    5.    There will be separate tables for calculating tax amounts on outward and inward supplies based on the information contained in various tables in the FORM GSTR-3 return.
    6.    There will be a separate table for capturing the TDS credit received and which has been credited to his cash ledger (the deductee).
    7.    Tax liability under CGST, SGST, IGST and cess if any
    8.    Details regarding revision of invoices relating to outward and inward supplies
    9.    Details of other liabilities (i.e. Interest, Penalty, Fee, others etc.).
    10.    Information about ITC ledger, Cash ledger and Liability ledger (these are running electronic ledgers maintained on the dashboard of taxpayer by GSTN). These would be updated in real time on an activity in connection with these ledgers by the taxpayer. Both the ITC ledger and the cash ledger will be utilized by the taxpayer for discharging the tax liabilities of the returns and others. Details in these ledgers will get autopopulated from previous tax period return (irrespective of mode of filing return i.e. online/ offline utility)
    11.    Details of ITC utilized against tax liability of CGST, SGST and IGST on supplies of goods and services.
    12.    Net tax payable under CGST, SGST, IGST and cess if any.
    13.    Details of the payment of tax under various tax heads of CGST, SGST, IGST and cess if any, separately would be populated from the debit entry in Credit/Cash ledger. GST Law may have provision for maintaining four heads of account for CGST, SGST, IGST and cess if any and at associated minor heads for interest, penalty, fee and others. Excess payment, if any, will be carried forward to the next return period. The 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. The return FORM would display all bank account numbers mentioned in the registration, out of which one will be selected by the taxpayer to which the refund will be credited.
    14.    Details of other payments – Interest/Penalties/Fee/Others, etc. This will be autopopulated from the Debit entry in Cash ledger irrespective of mode of filing i.e. online / offline utility.
    15.    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. In case of net exporter or taxpayers dealing with inverted duty structure or similar other cases, where input tax credit is greater than output tax due on supply, the taxpayer would be eligible for refund. The return would have a field to enable the tax payer to claim the refund or to carry forward the ITC balance (CGST, SGST and IGST). The return form should display all bank account numbers mentioned in the registration, out of which one will be selected by the taxpayer to which the refund will be credited. To begin with GST law may provide that the refund will be processed quarterly.
    16.    Details of cash balance (CGST, SGST, IGST and cess) in personal ledger at the end of the tax period (this will be auto-populated irrespective of mode of filing return).
    17.    Information regarding quantity of goods (as per Unique Quantity Code) supplied will not be contained in the monthly return. However, the same would be submitted by the taxpayer in the annual return.
    The return (FORM GSTR-3) would be entirely auto-populated through FORM GSTR-1 (of counterparty suppliers), own FORM GSTR-2, ISD return (FORM GSTR-6) (of Input Service Distributor), TDS return (FORM GSTR-7) (of counterparty deductor), own ITC Ledger, own cash ledger, own Tax Liability ledger. However, the taxpayer may be allowed to fill the missing details to begin with.
    The return would be permitted to be filed both on online and offline mode. In case of offline mode, payment by debit to cash / ITC ledger can be done at an earlier date also and such debit entry number would be verified at the time of uploading of the return. In online mode, both debiting and filing can be done simultaneously.
    The return would be filed by 20th of the succeeding month. Late filing would be permitted on payment of late fees only.
    2.     Valid Return –
    Three returns are involved with respect to inward / outward supplies for each tax period. The following chart may be referred to in this regard

    Rule 3. Form and manner of submission of monthly return
    1.    Every registered person, other than an Input Service Distributor or a non-resident taxable person or a person paying tax under section 10 or section 51 or, as the case may be, under section 52 shall furnish a return specified under sub-section (1) of section 39 in FORM GSTR-3 electronically through the Common Portal either directly or through a Facilitation Centre notified by the Commissioner.
    2.    Part A of the return under sub-rule (1) shall be electronically generated on the basis of information furnished through returns in FORM GSTR-1, FORM GSTR-2 and based on other liabilities of preceding tax periods.
    3.    Every registered person furnishing the return under sub-rule (1) shall, subject to the provisions of section 49, discharge his liability towards tax, interest, penalty, fees or any other amount payable under the Act or these rules by debiting the electronic cash ledger or electronic credit ledger and include the details in Part B of the return in FORM GSTR-3.
    4.    A registered person, claiming refund of any balance in the electronic cash ledger in accordance with the provisions of sub-section (6) of section 49, may claim such refund in Part B of the return in FORM GSTR-3 and such return shall be deemed to be an application filed under section 54 .
    5.    Where the time limit for furnishing of details in FORM GSTR-1 under section 37 and in FORM GSTR-2 under section 38 has been extended, return in FORM GSTR-3B, in lieu of FORM GSTR-3, may be furnished in such manner as may be notified by the Commissioner.
    G.     Quarterly return by the composition supplier
    (i)    Registered persons paying tax under composition scheme shall furnish a return in FORM GSTR-4 for each quarter, electronically, within 18 days after the end of such quarter: The FORM GSTR-4 shall be prepared on the basis of the FORM GSTR-4A made available to him through the common portal.
    (ii)    Rule 4 – Form and manner of submission of quarterly return by the composition supplier
    (1)    Every registered person paying tax under section 10 shall, after adding, correcting or deleting the details in FORM GSTR-4A, furnish a quarterly return in FORM GSTR-4 electronically through the Common Portal, either directly or through a Facilitation Centre notified by the Commissioner.
    (2)    Every registered person furnishing the return under sub-rule (1) of Rule 4 shall discharge his liability towards tax, interest, penalty, fees or any other amount payable under the Act or these rules by debiting the electronic cash ledger.
    (3)    The return furnished under sub-rule (1) Rule 4 shall include, inter–alia:
    (a)    invoice wise inter-State and intra-State inward supplies received from registered and un-registered persons;
    (b)    import of goods and services made;
    (c)    consolidated details of outward supplies made; and
    (d)    debit and credit notes issued and received, if any;
    (4)    A registered person who has opted to pay tax under section 10 from the beginning of a financial year, shall furnish the details of outward and inward supplies and return under rule 1, rule 2 and rule 3 relating to the period during which the person was liable to furnish such details and returns till the due date of furnishing the return for the month of September of the succeeding financial year or furnishing of annual return of the preceding financial year, whichever is earlier.
    H.     Furnishing Return by any registered person who is liable to deduct tax at source
    (i)    Registered person required to deduct tax at source shall furnish a return in FORM GSTR-7 electronically, for the month in which such deductions have been made along with the payment of tax so deducted, within 10 days after the end of such month. The details furnished by the taxable person required to deduct tax at source in FORM GSTR-7 shall be made available to each of the supplier in Part-C of his FORM GSTR2A.
    (ii)    Contents of FORM GSTR – 7 (TDS Return)
    Refer discussion under section 51 with regard to deduction of tax at source.
    The return shall capture the following information:
    1.    Basic details of the Taxpayer i.e. Name along with GSTIN
    2.    Period to which the Return pertains
    3.    Details of GSTIN of the Supplier along with the invoices against which the Tax has been deducted. This will also contain the details of tax deducted against each major head i.e. CGST, SGST and IGST.
    4.    Details of other payments – Interest/Penalties/Fee/Others, etc. (This will be auto populated from the Debit entry in Cash ledger)
    This return should be filed by 10th of the succeeding month.
    (iii)    Rule 7 Form and manner of submission of return by a person required to deduct tax at source
    1.    Every registered person required to deduct tax at source under section 51 shall furnish a return in FORM GSTR-7 electronically through the Common Portal either directly or from a Facilitation Centre notified by the Commissioner.
    2.    The details furnished by the deductor under sub-rule (1) of Rule 7 shall be made available electronically to each of the suppliers in Part C of FORM GSTR-2A on the Common Portal after the due date of filing of FORM GSTR-7.
    3.    The certificate referred to in sub-section (3) of section 51 shall be made available electronically to the deductee on the Common Portal in FORM GSTR-7A on the basis of the return furnished under sub-rule (1) of Rule 7.
    I.     Furnishing of return by Input Service Distributor(ISD)
    (i)    Every Input Service Distributor(ISD) shall, for every calendar month or part thereof, furnish a return in FORM GSTR-6 electronically within 13 days after the end of such month. The FORM GSTR-6 shall be prepared on the basis of the FORM GSTR-6A made available to him through the common portal. The details of FORM GSTR-6A shall be verified, added, corrected or deleted for the purpose of preparing FORM GSTR-6.
    (ii)    Content of GSTR – 6 (Return for ISD)
    Refer discussion under section 20 with regard to distribution of credit by Input Service Distributor.
    The return shall capture the following information:
    1.    Basic details of the Taxpayer i.e. Name along with GSTIN
    2.    Period to which the Return pertains
    3.    Final invoice-level inward supply information pertaining to the tax period separately for goods and services on which the ITC is being claimed. This will be auto populated on the basis of FORM GSTR-1 filed by the Counterparty Supplier of the taxpayer. The same may be modified i.e. added or deleted by the Taxpayer while filing the ISD return. The recipient would be permitted to add invoices (not uploaded by the counterparty supplier) if he is in possession of invoices and has received the services.
    4.    Details of the Invoices along with the GSTIN of the receiver of the credit i.e. to whom the ISD is distributing credit.
    5.    There will be separate ISD Ledger in the return that will detail the Opening Balance of ITC (to be auto- populated on the basis of previous return), credit for ITC services received, debit for ITC reversal and ITC distributed and Closing Balance.
    This return should be filed by 13th day of the succeeding month.
    (iii)     Rule 6. Form and manner of submission of return by an Input Service Distributor
    Every Input Service Distributor shall, after adding, correcting or deleting the details  contained in FORM GSTR-6A, furnish electronically a return in FORM GSTR-6, containing the details of tax invoices on which credit has been received and those issued  under section 20, through the Common Portal either directly or from a Facilitation Centre notified by the Commissioner.
    J.     Furnishing of return by Non Resident Taxable Person
    (i)    Every registered non-resident taxable person shall, for every calendar month or part thereof, furnish FORM GSTR-5 electronically, within twenty days after the end of a calendar month or within seven days after the last day of the period of registration specified under sub-section (1) of section 27, whichever is earlier.
    (ii)    Rule 5. Form and manner of submission of return by non-resident taxable person
    Every registered non-resident taxable person shall furnish a return in FORM GSTR-5 electronically through the Common Portal, either directly or through a Facilitation Centre notified by the Commissioner,
    The return shall include therein the details of outward supplies and inward supplies and shall pay the tax, interest, penalty, fees or any other amount payable under the Act or these rules within twenty days after the end of a tax period or within seven days after the last day of the validity period of registration, whichever is earlier.
    Summary of due of Filing of various returns

    If the Process “Return Filing” must be understood with due focus on practical aspects, the following Transaction Flow will help.

    Steps for Return Filing:
    Step 1: The taxpayer will upload the final FORM GSTR-1 return in the Common Portal or by uploading the file containing the said FORM GSTR-1 return FORM through Apps by10thday of month succeeding the month during which supplies has been made. The increase / decrease (in supply invoices) would be allowed, only on the basis of the details uploaded by the counter-party purchaser in FORM GSTR-2, upto 17th day of the month. (i.e. within a period of 7 days). In other words, the supplier would not be allowed to include any missing invoices on his own after 10th day of the month.
    GSTN will facilitate periodic (may be daily, weekly etc.) upload of such information to minimize last minute load on the system. GSTN will facilitate offline preparation of FORM GSTR-1.
    Step 2: GST Common Portal (GSTN) will auto-populate FORM GSTR-2A of the registered person based on the supply invoice details reported by the counter-party registered person (supplier) on a near real-time basis.
    Step 3: Recipient will accept / reject/ modify such auto-populated FORM GSTR-2A. (A registered person will have the option to download his provisional purchase statement from the Portal or through Apps using Application Programming Interface (APIs) and update / modify it off-line).
    Step 4: Recipient will also be able to add additional purchase invoice details in his FORM GSTR-2 which have not been uploaded by counter-party registered person (supplier) as described in Step 1 and 2 above, provided he is in possession of valid invoice issued by counter-party registered person and he has received such supplies.
    Step 5: Recipient will have the option to do reconciliation of inward supplies with counter-party registered person (suppliers) during the next 7 days by following up with their counter-party registered person for any missing supply invoices in the FORM GSTR-1 of the counter-party registered person, and prompt them to accept the same as uploaded by the Recipient. All the invoices would be auto-populated in the ITC ledger of Recipient. The Recipient would, however, indicate the eligibility / partial eligibility for ITC in those cases where either he is not entitled or he is entitled for partial ITC.
    Step 6: The registered person will finalize their FORM GSTR-1 and FORM GSTR-2 by using online facility at Common Portal or using GSTN compliant off-line facility in their accounting applications, determine the liability on their supplies, determine the amount of eligible ITC on their purchases and then generate the net tax liability from the system for each type of tax. Cash details as per personal ledger/ carried forward from previous tax period, ITC carried forward from previous tax period, ITC reversal and associated Interest/Penalty, taxes paid during the current tax period etc. would get auto-populated in the FORM GSTR-3.
    Step 7: Taxpayers will pay the amount as shown in the draft FORM GSTR-3 return generated automatically at the Portal post finalization of activities mentioned in Step 6 above.
    Step 8: Taxpayer will debit the ITC ledger and cash ledger and mention the debit entry No. in the FORM GSTR-3 return and would submit the same.

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