An attempt to understand and present briefly law, procedure, relationship and flow of returns under GST regime. Last update date: 3rd July 2017

1. Law and procedure
GST Returns

2. Objectives
Brief overview of Act and rules
Category of return filers
Frequency and Timelines
Content, relationships and data flow of returns
Mismatches and credit reversal
Late fees and penalties
Slide No. 2

3. Brief overview of
Act and rules
Slide No. 3

4. Act and rules
Section of CGST Act Corresponding Rule
37 – Details of outward supply 1
38 – Details of inward supply 2 and 23
39 – Returns 3 to 8
40 – First Return Not required
41 – Claim of input tax credit and provisional acceptance 10
42 – Matching, reversal and reclaim of ITC 10 to 13 & 18
43 – Matching, reversal and reclaim of reduction in Output tax
liability
14 to 17 & 18
44 – Annual return 21
45 – Final return 22
46 – Notice to return defaulters 9
47 – Late Fees Not required
48 – GST Practitioners 24 and 25
Slide No. 4

5. Section 37 – Key takeaways
• Every registered taxable person to furnish details of
outward supply* electronically by 10th of following
month. This date can be extended for certain class of
persons.
• No outward supply details can be submitted* during
11th to 15th of following month.
• To Accept or Reject details of inward supply* entered
by recipient during 16th and 17th of following month –
Form 1A
• To rectify error/omission, due to mismatch for any
previous tax period(s) – Last date: earlier of filing date
of Annual return OR next September return.
Slide No. 5
*For previous taxable month

6. Section 38 – Key takeaways
• Every registered taxable person shall VERIFY,
VALIDATE, MODIFY or DELETE details of Outward
Supply* etc., furnished by Supplier u/s 37 – Form 2A
• MAY prepare and include details of INWARD supply*
not declared by supplier u/s 37
• Furnish electronically details of Inward Supplies*
covered under Reverse Charge, Import.
• Above actions can be done during 11th to 15th of
following month only.
• To rectify error/omission, due to mismatch for any
previous tax period(s) – Last date: earlier of filing date
of Annual return OR next September return.
Slide No. 6
*For previous taxable month

7. Section 39 – Key takeaways
• Separate monthly returns for TDS, TCS, ISD, Non-
Resident and Normal Supplies. Quarterly returns for
composition suppliers.
• All taxes to be mandatorily paid before filing of return.
• Return of previous tax periods are not pending
• Mandatory filing of NIL returns (All of them).
• May rectify error/omission, for any previous tax
period(s) , except as a result of scrutiny, audit,
inspection or enforcement – Last date: earlier of filing
date of Annual return OR next September return.
Slide No. 7
*For previous taxable month

8. Category of return
filers
Slide No. 8

9. Return filers
Normal Registered
Tax Payers
Composition
suppliers
Non-resident taxable
person and OIDAR
Input Service
Distributor
Tax Deductor
E-Commerce
Operator
Slide No. 9

10. Return filers
Normal Registered
Tax Payers
Composition
suppliers
Non-resident taxable
person and OIDAR
Input Service
Distributor
Tax Deductor
E-Commerce
Operator
Slide No. 10

11. Return filers
Slide No. 11
Normal Registered
Tax Payers
GSTR-1 : Outward sup p lies
GSTR-1A
GS TR- 2 : Inward sup p lies
GSTR-2A
GS TR- 3 : M onthly retur n
GS TR-9 : A nnual retur n
Returns to be filed

12. Return filers
Normal Registered
Tax Payers
Composition
suppliers
Input Service
Distributor
Tax Deductor
E-Commerce
Operator
Slide No. 12
Non-resident taxable
person and OIDAR

13. Return filers
Composition
suppliers
Slide No. 13
GSTR-4 : Quarterly return
GSTR-4A
GSTR-9A : Annual return
Returns to be filed

14. Return filers
Normal Registered
Tax Payers
Composition
suppliers
Non-resident taxable
person and OIDAR
Input Service
Distributor
Tax Deductor
E-Commerce
Operator
Slide No. 14

15. Return filers
Slide No. 15
Non-resident taxable
person and OIDAR
GSTR-5 : Non resident
taxable persons
GSTR-5A : Online
Information and
database access or
retrieval services
Returns to be filed

16. Return filers
Normal Registered
Tax Payers
Composition
suppliers
Input Service
Distributor
Tax Deductor
E-Commerce
Operator
Slide No. 16
Non-resident taxable
person and OIDAR

17. Return filers
Input Service
Distributor
Slide No. 17
Returns to be filed
GSTR-6 : ISD return
GSTR-6A

18. Return filers
Normal Registered
Tax Payers
Composition
suppliers
Input Service
Distributor
Tax Deductor
E-Commerce
Operator
Slide No. 18
Non-resident taxable
person and OIDAR

19. Return filers
Tax Deductor
Slide No. 19
GSTR-7 : Return
Returns to be filed

20. Return filers
Normal Registered
Tax Payers
Composition
suppliers
Input Service
Distributor
Tax Deductor
E-Commerce
Operator
Slide No. 20
Non-resident taxable
person and OIDAR

21. Return filers
E-Commerce
Operator
Slide No. 21
GSTR-8 : TCS return
GSTR-9B: Annual return
Returns to be filed

22. Other returns
Slide No. 22
GSTR-9C : Audit report cum
Reconciliation Statement – 2 Cr
GSTR-10: Final Return
GSTR-11: Inward supply
statement for UIN holders

23. Return timelines
Slide No. 23

24. Timelines for monthly returns
10th of next
month
15th of next
month
17th of next
month
20th of next month
Slide No. 24
GSTR-1
Outward
GSTR-2
Inward
GSTR-1A GSTR-3 / 5A
Payment
of taxes

25. Other monthly returns
10th of next
month
13th of next
month
20th of next month or
within 7 days of month of expiry of
registration
Slide No. 25
GSTR-7
TDS
GSTR-6
ISD
GSTR-5
NRTP
GSTR-8
TCS

26. Quarterly and Annual returns
18th Jul
Slide No. 26
GSTR-4
Q1
GSTR-4
Q3
18th Oct
GSTR-4
Q2
GSTR-4
Q4
GSTR-9
GSTR-9A
31st Dec
18th Jan
18th Apr
GSTR-9B
GSTR-9C

27. First time
extensions
Slide No. 27

28. Extended Timelines
1~5th Sep
6~10th Sep
16~20th Sep
21~25th Sep
Slide No. 28
GSTR-1
July
GSTR-2
July
GSTR-1
Aug
GSTR-2
Aug
3B +
Payment of
taxes (Aug)
20 Aug
3B +
Payment of
taxes (Jul)

29. Content,
relationships and
data flow of returns
Slide No. 29

30. Fundamental changes
No revision of
Tax returns
No revision in
Invoices post
transactions
Slide No. 30

31. Fundamental changes
No revision of
Tax returns
Slide No. 31
Any change
to information
in return to be
filed in any
next return*.
(subject to conditions)

32. Fundamental changes
No revision in
Invoices post
transactions
Slide No. 32
Any changes
in invoice
post
transaction to
be done via
Debit / Credit
Note
(subject to conditions)

33. Glossaries for return
Slide No. 33
Glossary From Supplier To Recipient
B2C A registered person
under GST
Any consumer or
business not registered
under GST
B2B A registered person
under GST
A registered person
under GST
U2B Any business not
registered under GST
or Unregistered person
A registered person
under GST

34. GSTR-1
Slide No. 34

35. GSTR-1
A Supplier Taxpayer is required to
prepare GSTR 1 wherein they will
report invoice level information.
Invoice Level
Information
An invoice can’t have two different
places of supply. POS is a mandatory
field in the inter-state invoice.
One Place of
Supply
Bulk upload facility is availableBulk Upload
Slide No. 35

36. GSTR-1 : Contents
Slide No. 36
B2B Outward Invoices (including supply to
UIN holders)
➢ Invoice level, rate-wise details to be furnished
➢ Separate sub-tables for supplies:
➢ Through E-commerce Operator (operator wise) (For
matching purpose)
➢ Attracting reverse charge (in the hands of recipient)
(as of now only services)
➢ Rest of B2B supplies (not covered above)
4
Taxable Inter State B2C (> 2.5 L)
➢ Invoice level, rate-wise details to be furnished
➢ Separate table for E-Com and Non E-Com supplies
5

37. GSTR-1 : Contents
Slide No. 37
Exports out of India, Supplies to SEZ
Unit/Developer (i.e. Zero Rated) and Deemed
Exports
➢ Invoice level, rate-wise details to be furnished
➢ Mandatory details of Shipping Bill and its date for export:
➢ 6 digits capturing port code + Number of shipping bill=
13 digits
➢ If not available immediately, can be updated later on
using amendment option, but before claiming refund /
rebate.
➢ “0” Tax amount to be entered for export transactions
effected under Bond / LUT
6

38. GSTR-1 : Contents
Slide No. 38
B2C Outward Supplies (Intra state and Less than
2.5 Lac inter-state)
➢ Net of Debit or credit notes issued to B2C customers
➢ No invoice level details to be entered in this table.
➢ Consolidated State wise and Rate wise supplies to be
entered
➢ Separate table for supplies effected through E-Com operator
➢ Negative values (because of issuance of credit notes) can
be entered in this table
7
NIL / Exempt / Non GST supplies
➢ Only consolidated figures to be entered
➢ Intra-state & Inter-State B2B and B2C supplies
8

39. GSTR-1 : Contents
Slide No. 39
Amendments to B2B, IS-B2C (>2.5L) & Zero
Rated & Deemed Export Outward Supply
Invoices of earlier periods
➢ Including Dr/Cr Notes, refund vouchers issued during current
periods and amendments thereof.
➢ Dr/Cr Note pertaining to Invoices issued in pre-GST period to be
reported here as well. See sec 142(2)
➢ Invoice level details
9
Amendments to B2C (others) Outward Supplies
furnished in earlier tax periods
➢ Only amendments to be reported here. Any effect of new
issuance of Dr/Cr Notes to be reported in earlier Table 7
➢ State wise, rate wise consolidated level details
10

40. GSTR-1 : Contents
Slide No. 40
• Consolidated statement of Advance Received
/ Advance adjusted in the current period.
• Amendments of information related to
Advance / Adjustment to advance furnished
in earlier tax period.
➢ No invoice level details to be entered in this table.
➢ State wise information for only those advances to be
entered, which is received during the month and for which
no invoice has been issued during tax period.
11

41. GSTR-1 : Contents
Slide No. 41
HSN Wise summary of outward supplies
➢ This is the table where HSN codes will appear
➢ Summary of supply supplies effected against a
particular HSN code to be reported only in this table.
➢ Optional for taxpayers having annual turnover upto
1.50 cr but they will need to enter Description of
goods.
➢ Following information to be captured:
➢ HSN, Description (if HSN not provided), UQC,
Total Qty, Total Value, Total Taxable Value, IGST,
CGST, S/UGST and cess
➢ See next slide for HSN level reporting
12

42. GSTR-1 : Indication of HSN codes
Slide No. 42
Instruction no. 11 to GSTR-1:
Category of taxable person
and turnover in the
preceding financial year
Any taxpayer, irrespective of his turnover, may use HSN code at
6- digit or 8-digit level if he so desires.
Aggregate Turnover is
< Rs 1.5 crores
• HSN/SAC is not mandatory for taxable person whose
aggregate turnover is less than 1.5 crores
• Either they can enter HSN or Description
• Hence, composition dealers may not be required to
specify HSN at 2-digit level also.
Rs 1.5 ~ Rs 5 crores • HSN – minimum of 2 digits – mandatory
> Rs 5 crores • HSN – minimum of 4 digits – mandatory

43. GSTR-1 : Contents
Slide No. 43
Documents issued during the tax period
• Serial Numbers (beginning to end)
• Total no. of New documents issued during tax
period
• Total no. of Cancelled documents during tax
period
• And Net (new (–) cancelled) documents during
the tax period
13

44. GSTR-1 : Level of submission
Slide No. 44
Type Supplies made to Invoice Value Level of submission
Intrastate Registered Persons (b2b) Any Invoice level
Interstate
Registered Persons (b2b)or Zero
rated supplies
Any Invoice level
Intrastate Unregistered Persons (b2c) Any Consolidated
Interstate
Unregistered Persons (b2c) < Rs 250,000 Consolidated
Unregistered Persons (b2c) > Rs 250,000 Invoice level

45. GSTR-1 : Dr / Cr Notes
Details of
Credit/Debit
Notes
showing
reverse
charge and
non-reverse
charge
separately.
This will include
the details of
Credit/Debit
Note issued by
the suppliers
and the
differential value
impact and the
associated tax
payable or
refund/tax credit
sought.
Information
on Debit
and Credit
notes shall
be submitted
only if such
documents
are issued as
a supplier.
Slide No. 45

46. Amendment in invoices
Primary purpose of
amendment in
invoices is to rectify
clerical errors in
reporting invoice
details in any
pervious reporting
period, since there is
no provision to
revise return or
invoices.
Even invoice
number and date
if reported
erroneously can
be Amended,
hence the fields
in table 9.
Slide No. 46

47. GSTR-2
Slide No. 47

48. GSTR-2 / 2A
GSTR 2A contains an auto populated list of all invoices
received from all Suppliers Taxpayers’ corresponding
returns for the given tax period
Auto Populated
Receiver Taxpayer can Accept, Reject / Delete, Modify any
pending invoices in the GSTR-2A. Also receiver can park
items for next period & such items will roll over to next
month GSTR-2A
Action
(A|D|M|P)
Accepted & Modified invoices will flow to GSTR 2 & in case
of rejection only an intimation will be sent to Tax Payer.
Auto flow to
GSTR-2
Quantum of ineligible input tax credit, either fully or
partially, on inward supplies which is relatable to non-
taxable supplies, to be declared at invoice level, if
identifiable.
ITC
Slide No. 48

49. GSTR-2: Credits – Sec. 16(2)
Conditions to avail credit
Slide 49
1
2
3
4
Receive goods / services – Credit on
advances not available
Pay tax charged on which credit is
taken – Credit not to be available if
supplier has not paid tax to
Government
File the relevant returns – No credit in
case of invalid returns
Possess invoice/ credit note/ other tax
paying document

50. GSTR-2: Credits
If the supply is received in more than one lot, the
invoice information should be reported in the
return period in which the last lot is received and
recorded in the books of accounts.
To specify eligibility of
ITC as inputs or capital
goods or input services
or none
To reverse ITC at
invoice level, if
supply not eligible
for ITC
Slide No. 50

51. GSTR-2 : Contents
Slide No. 51
B2B Inward Supply Invoices
(other than for reverse charge and from
composite supplier)
➢ Invoice level, rate-wise details to be furnished
➢ Auto populated based on GSTR-1 or 5
➢ State of PoS to be furnished
➢ To Specify if purchase is an Input or Input Service or
Capital Goods or ineligible for ITC
➢ Amount of ITC to be specifically entered against each
invoice
3

52. GSTR-2 : Contents
Slide No. 52
Inward supplies on which tax to be paid
under reverse charge
➢ Invoice level, rate-wise details to be furnished
➢ Separate sub-tables for
➢ 4A: B2B supplies
➢ 4B: U2B supplies (Domestic – Goods and Services)
➢ 4C: Import of services
➢ In case of sub-table 4B and 4C, Reverse Charge
Invoice Numbers issued by recipient to be entered {see
section 31(3)(f)}
➢ Table 4A (B2B) supply shall be auto populated based
on GSTR-1 of supplier
➢ All details similar to table 3 to be entered
4

53. GSTR-2 : Contents
Slide No. 53
Input / Capital Goods Imported or Received
from SEZ on bill of entry
➢ Invoice level, rate-wise details to be furnished
➢ Mandatory details of Shipping Bill and its date :
➢ 6 digits capturing port code + Number of shipping bill=
13 digits
➢ Separate sub-tables for Imports and purchase from SEZ
against BoE.
➢ Purchase from SEZ w/o BoE to be reported in Table 3
only
➢ Other details like eligibility for ITC etc. similar to table 3
➢ In case of import, GSTIN of importer/recipient to be
entered
5

54. GSTR-2 : Contents
Slide No. 54
Amendments to details of inward supplies of
earlier periods (related to table 3, 4 & 5)
➢ Including Dr/Cr Notes issued by suppler during current
period and their subsequent amendments.
➢ Dr/Cr Note pertaining to Invoices issued in pre-GST period
to be reported here as well. See sec 142(2)
➢ Invoice level details
➢ Separate table for B2B and Import / SEZ inward supplies
6

55. GSTR-2 : Contents
Slide No. 55
Composition / NIL / Exempt / Non GST
inward supplies
➢ Only consolidated gross figures to be entered
➢ Intra-state & Inter-State supplies separately for
inward supplies from:
a. Composition taxable person
b. Exempt Supply
c. Nil Rated supply
d. Non GST supply
7

56. GSTR-2 : Contents
Slide No. 56
TDS and TCS
credit received
• Tax Amount is
auto populated
based on GSTR-
7/8
9ISD credit received
• Auto populated
based on GSTR-6
• ISD credit
receiver to re-
determine
eligibility as well
as amount of ITC
8

57. GSTR-2 : Contents
Slide No. 57
• Consolidated statement of Advance Paid/
Advance adjusted in the current period.
• Amendments of information related to
Advance Paid / Adjustment to advance
furnished in earlier tax periods.
➢ Similar to table 11 of GSTR-1
➢ No invoice level details to be entered in this table.
➢ State wise information for only those advances to be
entered, which is received during the month and for which
no invoice has been issued during tax period.
10

58. GSTR-2 : Contents
Slide No. 58
Input tax credit Reversal / Reclaim (and
amendments thereof for previous periods)
11
Rule of ITC Purpose or reversal or reclaim
2 (2) Payment not made within / made after 180 days to
supplier
4(1)(j)(ii) Credit note received by ISD – apportionment to each
unit
7(1)(m) Credit attributable to exempt supplies and non-
business purpose – Provisional each month
7(2)(a) / (b) Credit attributable to exempt supplies and non-
business purpose – Annual
8(1)(h) Credit for Capital Goods used for exempt/non-business
Any other Residual entry

59. GSTR-2 : Contents
Slide No. 59
Addition and reduction of amount in output tax
for mismatch and other reasons (Auto populated)
12
Action Due to
Add ITC claimed on mismatched/duplication of invoices/debit
notes
Add Tax liability on mismatched credit notes
Reduce Reclaim on account of rectification of mismatched
invoices/debit notes
Reduce Reclaim on account of rectification of mismatched credit
note
Reduce Negative tax liability from previous tax periods
Reduce Tax paid on advance in earlier tax periods and adjusted
with tax on supplies made in current tax period

60. GSTR-3
Slide No. 60

61. GSTR-3: Features
Slide No. 61
Summary of various type of
business transactions
Part A auto populated based
on GSTR-1 and GSTR-2
Impact of amendments in
invoices/Dr Note / Cr note
etc. pertaining to previous
tax periods is auto
populated.
Output tax added / reduced
on account of non-
rectification / rectification of
communicated mismatches.
Auto population of tax, interest and
late fees basis debit entry made in
Cash and ITC ledger.

62. GSTR-3 : Remember
Slide No. 62
✓ GSTR 3 can be generated only when GSTR-1 and GSTR-
2 of the tax period have been filed.
✓ ‘Generation’ of GSTR-3 and ‘Filing’ of GSTR-3 are two
different processes.
✓ GSTR-3 filed without discharging complete liability will not
be treated as valid return.
✓ If taxpayer has filed a return which was not valid earlier
and later on, he intends to discharge the remaining liability,
then he has to file the Part B of GSTR-3 again.
✓ Any debit entry made to e-Cash or e-Credit ledger can not
be reversed and any excess paid shall be adjusted in next
return automatically.


63. Inter return relationship per se
Slide No. 63
gstr
1
gstr
2 gstr
3
gstr
4
gstr
6
gstr
5
Composition
Regular
ISD
NRTP
InwardOutward
TDS
gstr
8
E-Commerce
A
B
C
C
A
gstr
7

64. GSTR-3: Return flow
Slide No. 64
Supplier Buyer
gstr
1
gstr
2A
gstr
2
gstr
1A Mismatch process
Not
reflected
in 2A
1
10th of
Month
15th of
Month
2
3
4
15th of
Month
17th of
Month

65. Mismatches and
credit reversal
Slide No. 65

66. Section 59 – Self assessment
Every registered person
shall self assess the taxes
payable under this Act and
furnish a return for each
tax period as specified
under section 39.
Slide No. 66

67. Matching by GSTN
Purchaser is
informed
ITC Finalised
Information to
both parties
2 months to
reconcile
Reconciled
?
ITC Reversal + Interest for
purchaser
Slide No. 67
Mismatches
Matched
?
No
Yes
Yes
No

68. Matching fields - ITC
(a) GSTIN of the supplier
(b) GSTIN of the recipient
(c) Invoice/Debit Note date
(d) Invoice/Debit Note number
(e) Tax amount
Taxable value
Slide No. 68

69. Matching fields – Reduction in
Output tax liability
(a) GSTIN of the supplier
(b) GSTIN of the recipient
(c) Credit Note date
(d) Credit Note number
(e) Tax amount
Taxable value
Slide No. 69

70. Matching fields – E-Commerce
State of place of
supply
Net Taxable value
Slide No. 70

71. Remember…
If the supplier
a. has not paid the tax and / or
b. not filed a valid return,
c. the return filed by him shall not be
treated as a valid return
for the purposes of the above matching
exercise.
71

72. Matching scenarios
Slide No. 72
Situation Result
Input credit details of recipient
=
Output tax as stated by supplier
Matched
(since no scenario of loss to
revenue)
Input credit details of recipient
<
Output tax as stated by supplier
Matched
(since no scenario of loss to
revenue)
Input tax credit is duplicated by
the recipient
Mismatch
(scenario of loss to revenue)
shall be communicated to both
registered person in FORM GST
MIS-1/MIS-2

73. Matching scenarios
Slide No. 73
Situation Result
Claim for input tax credit
>
Output tax as stated by supplier Mismatch
(scenario of loss to revenue)
Shall be added to the output
tax liability of the recipient if
not rectified
Claim for input tax credit
>
Output tax as stated by supplier
(because the supplier has not
furnished a particular
transaction)

74. Matching scenarios
Slide No. 74
Situation Result
Claim for reduction in output tax
=
Reduction in ITC by recipient
Matched
(since no scenario of loss to
revenue)
Claim for reduction in output tax
>
Reduction in ITC by recipient
Mismatch
(scenario of loss to revenue)
shall be communicated to both
registered person in FORM GST
MIS-3/MIS-4

75. Late fees and
penalties
Slide No. 75

76. Notice to non-filers of returns
Notice in
Form 3A
shall be issued to
registered person
Who fails to furnish return
Slide No. 76

77. Late Fees – Section 47
Type Late Fees Upper Limit
Monthly and Quarterly Rs. 100/- per day Rs. 5000/- per statement / form
Annual Rs. 100/- per day 0.25% of Annual Turnover in the
State or UT
Slide No. 77
Sec 2(112) –Turnover in the State or UT :
Sum total of:
a. Taxable Outward supplies and Outward Exempt supplies within State /
UT
b. Export supplies made from state / UT
c. Inter state supplies made from state/UT – Will include supplies made to
other units / branches in other states/UT
Less: CGST, SGST and IGST
 Late fees, separately under State Act and Central Act

78. Penalty for non-compliance
Slide No. 78
General Penalty u/s 125 of CGST Act
₹ 25,000/-

79. Questions
Slide No. 79

80. Thanks for your
time!

81. Contact us
Intellia Advisors, LLP
211-212, Amba Towers
Sector 9, Rohini
Delhi 110085
Ph: +91-11-4563 8630
Mpb: +91-9810 575 565
Email: gst@intellia.in
Slide No. 81