Returns

Chapter 8 - Returns
General notes
● “Return” ordinarily means a statement of information (facts) furnished by the taxpayer, to tax administrators,
at regular intervals.
● The returns serve the following purposes:
○ Mode for transfer of information to tax administration.
○ Compliance verification program of tax administration.
○ Finalisation of tax liabilities of the taxpayer within a stipulated period of limitation.
○ Providing necessary input for taking policy decisions.
○ Management of Audit and anti evasion programs of tax administration.

Furnishing Details Of Outward Supplies [Section 37 Read With Rule 59 Of The CGST Rules]
Who is required to furnish the details of outward supplies?
The details of outward supplies of both goods and services are required to be furnished by every registered person
including casual registered person except the following
● input service distributor (ISD)
● non-resident taxable person
● person paying tax under composition scheme
● person deducting tax at source
● person collecting tax at source i.e., e-commerce operator (ECO), not being an agent
● supplier of online information and database access or retrieval services (OIDAR) located in non-taxable
territory and providing such services to non-taxable online recipient

What is the form for submission of details of outward supplies?

The details of outward supplies are required to be furnished, electronically, in Form GSTR-1 for the month or
quarter. Such details can be furnished through the common portal, either directly or from a Facilitation Centre
notified by the Commissioner.

Further, a Nil GSTR-1 can be filed through an SMS using the registered mobile number of the taxpayer.

What is the due date of submission of GSTR-1?

Quarterly filing of GSTR-1: As a measure of easing the compliance requirement for small taxpayers, GSTR-1 has
been allowed to be filed quarterly by small taxpayers with aggregate annual turnover up to ₹ 5 crore in the
preceding financial year under Quarterly Return Monthly Payment Scheme (QRMP Scheme).

The time limit for furnishing the details of outward supplies in Form GSTR-1 has been extended vide Notification
No. 83/2020 CT dated 10.11.2020 in the following manner:

Class of registered person Time limit for furnishing the details of outward supplies in Form
GSTR-1 for each quarter/tax period
Registered persons opting for QRMP scheme 13 th day of the month succeeding such tax period
Others 11 th day of the month succeeding such tax period

Invoice Furnishing Facility [IFF] for taxpayers opting for QRMP Scheme?
Invoice Furnishing Facility (IFF) is a facility provided to quarterly taxpayers who are in QRMP scheme, to file their
details of outward supplies in the first two months of the quarter, to pass on the credit to their recipients.

Invoice furnishing facility (IFF) is not mandatory, but an optional facility made available to the registered persons
under the QRMP scheme. At his option, a registered person may choose to furnish the details of outward supplies
made during a quarter in Form GSTR-1 only, without using the IFF.

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The facility of furnishing details of invoices in IFF has been provided so as to allow details of such supplies to be
duly reflected in the Form GSTR 2A and Form GSTR-2B of the concerned recipient. In case where a buyer has made
purchases from a person opting for QRMP scheme, he could not have claimed full ITC but due to introduction of IFF,
such delay will not occur as the details submitted using IFF will be reflected in the GSTR-2A, GSTR-2B, GSTR-4A or
GSTR-6A of the recipients, as the case may be.

Taxpayers opting for QRMP Scheme may furnish the details of such outward supplies to a registered person, as he
may consider necessary, for the 1st and 2nd months of a quarter, upto a cumulative value of ₹ 50 lakh in each of
the first 2 months of the quarter using IFF electronically on the common portal. However, invoices pertaining to the
last month of a quarter are to be uploaded in GSTR-1 only.

The invoices are to be furnished in IFF between the 1 st day of the succeeding month till the 13 th day of the
succeeding month. After 13 th of the month, this facility for furnishing IFF for the previous month would not be
available.The said facility would however be available, say for the month of July, from 1 st August till 13 th August.
Similarly, for the month of August, the said facility will be available from 1 st September till 13 th September.

The details of invoices furnished using IFF in the first 2 months of the quarter are not required to be furnished again
in GSTR-1 for the said quarter.

However, if a registered person does not opt to upload invoices using IFF, then he has to upload invoice details for
all the 3 months of the quarter in Form GSTR-1.

Details of outward supplies required to be furnished in IFF

In the IFF, the taxpayer has to submit the B2B (business to business) invoice details of both inter-State and
intra-State supply transactions along with debit and credit notes of the B2B invoices issued during the month.

What are the cases where a registered person is debarred from furnishing details of outward supplies in
GSTR-1/IFF?
● A registered person shall not be allowed to furnish the details of outward supplies for a tax period, if the
details of outward supplies for any of the previous tax periods has not been furnished by him.
● However, the Government may, on the recommendations of the Council, by notification, subject to such
conditions and restrictions as may be specified therein, allow a registered person or a class of registered
persons to furnish the details of outward supplies, even if he has not furnished the details of outward
supplies for one or more previous tax periods [Section 37(4)].

In this regard, rule 59(6) stipulates that:

1. a registered person shall not be allowed to furnish the details of outward supplies in Form GSTR-1, if he has
not furnished the return in Form GSTR-3B for the preceding month.
2. a registered person, opting for QRMP scheme shall not be allowed to furnish the details of outward supplies
in Form GSTR-1 or using IFF, if he has not furnished the return in Form GSTR-3B for preceding tax period.
3. a registered person, to whom an intimation has been issued on the common portal under the provisions of
Rule 88C(1) in respect of a tax period, shall not be allowed to furnish the details of outward supplies in
Form GSTR-1 or using IFF for a subsequent tax period, unless he has either deposited the amount
specified in the said intimation or has furnished a reply explaining the reasons for any amount remaining
unpaid, as required under the provisions of rule 88C(2).

Filing of GSTR -1 Before Completion of Tax Period

A taxpayer cannot file GSTR-1 before the end of the current tax period. However, following are the exceptions to this
rule:
● Casual taxpayers, after the closure of their business
● Cancellation of GSTIN of a normal taxpayer

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A taxpayer who has applied for cancellation of registration will be allowed to file GSTR-1 after confirming receipt of
the application.

Contents of GSTR-1
Invoice wise and consolidated details
The registered person is required to furnish details of invoice and revised invoices issued in relation to supplies
made by him to registered and unregistered persons during a month in GSTR-1 in the following manner.

● B2B means business to business transaction. In such types of transactions, the recipient is also a
registered supplier and hence, takes ITC.
● B2C means business to consumer transactions. In such types of transactions, the recipient is consumer or
unregistered and hence, no question of credit is there.
● B2B Supplies : For such supplies, all invoices will have to be uploaded irrespective of whether they are
intrastate or interstate supplies. This is so because the recipient will take ITC and thus, invoice matching is
required to be done.
● B2C Supplies : For B2C supplies, uploading in general may not be required as the buyer will not be taking
ITC. However, still in order to implement the destination based principle, invoices of value more than Rs 2.5
lakh in inter-State B2C supplies will have to be uploaded.
○ For B2C inter-State invoices below Rs 2.5 lakh, State wise summary will be sufficient
○ For all B2C Intra-State invoices, only consolidated details will have to be given.
Invoice related details can be uploaded any time during the tax period and not just at the time of filing of GSTR-1.

Details related to Invoices can be modified/deleted any number of times till the submission of GSTR-1 of a tax
period. The uploaded invoice details are in a draft version till the time GSTR-1 is submitted and can be changed
irrespective of due date.

Indication of HSN details

The minimum number of digits of HSN code that a filer has to upload depend on his turnover in the last year.
The HSN would be disclosed as under

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Other Details

How are the details of outward supply furnished in prior periods amended?
● Tables 9, 10 and 11(II) of GSTR-1 provide for amendments in details of taxable outward supplies furnished
in earlier periods (hereinafter referred to as “Amendment Table”).

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● Ordinarily, in the Amendment Table, the supplier is required to give details of original invoice (No and Date),
the particulars of which have been wrongly entered in GSTR-1 of the earlier months and are now sought to
be amended.
● However, it may happen that a supplier altogether forgets to include the entire original invoice while
furnishing the GSTR1 for a particular month.
● In such cases also, he would be required to furnish the details of the said missing invoice which was issued
in earlier month in the Amendment Table only, as such type of errors would also be regarded as data entry
error.
● If the supplier discovers any error or omission, he shall rectify the same in the tax period during which such
error or omission is noticed, and pay the tax and interest, if any, in case there is short payment, in the return
to be furnished for such tax period.
● Suppose for some reason, the supplier could not make corrections at the time of filing of GSTR-1 for the
month of October then he can make such amendments in the subsequent periods.
● However, the maximum time limit within which such amendments are permissible is earlier of the
following dates
● 30th day of November following the end of the financial year to which such details pertain or
● Date of filing of the relevant annual return

Nil GSTR-1
● Filing of GSTR-1 is mandatory for all normal and casual taxpayers, even if there is no business activity in any
particular tax period.
● A Nil GSTR-1 does not have any entry.
● A Nil GSTR-1 for a tax period cannot be filed, if the taxpayer has made any outward supply (including
exempt, nil rated or non-GST supplies), or it has received supplies on which tax is payable under reverse
charge or an amendment needs to be made to any of the supplies declared in an earlier return or any credit
or debit notes is to be declared / amended etc.
● A Nil GSTR-1 can be filed through an SMS using the registered mobile number of the taxpayer. GSTR-1
submitted through SMS is verified by registered mobile number-based OTP facility.

Special Cases
● Taxpayers opting for voluntary cancellation of GSTIN will have to file GSTR-1 For active period.
● In cases where a taxpayer has been converted from a normal taxpayer to composition taxpayer, GSTR-1 will
be available for filing only for the period during which the taxpayer was registered as a normal taxpayer. The
GSTR-1 for the said period, even if filed with delay would accept invoices for the period prior to conversion

Form and manner of ascertaining details of inward supplies GSTR-2A and GSTR-2B - [Rule 60
substituted with a new rule]
The details of outward supplies furnished by the registered persons under section 37(1) and of such other supplies
as may be prescribed, and an Auto-Generated Statement containing the details of ITC shall be made available
electronically to the recipients of such supplies in such form and manner, within such time, and subject to such
conditions and restrictions as may be prescribed.
A. Details of inward supplies in respect of which ITC may be available to the recipient
B. Details of supplies in respect of which such ITC cannot be availed, whether wholly or partly, by the recipient,
on account of the details of the said supplies being furnished under subsection (1) of section 37
a. by any registered person within such period of taking registration as may be prescribed
b. by any registered person, who has defaulted in payment of tax and where such default has continued
for such period as may be prescribed.
c. by any registered person, the output tax payable by whom in accordance with GSTR-1 furnished by
him during such period, as may be prescribed, exceeds the output tax paid by him during the said
period by such limit as may be prescribed.
d. by any registered person, who has defaulted in discharging his tax liability in accordance with the
provisions of section 49(12) subiect to such conditions and restrictions as may be prescribed; or
e. by such other class of persons as may be prescribed

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Mechanism for dealing with difference in liability reported in statement of outward supplies
Rule 88C provides the mechanism for dealing with difference in liability reported in statement of outward supplies
between Form GSTR-1 and Form GSTR3B. Accordingly, where the tax liability as per Form GSTR-1 for a tax period
exceeds the tax liability as per Form GSTR-3B for that period by more than a specified extent, the registered person
would be intimated on the portal of such difference and be directed to either (i) pay the differential tax liability along
with interest, or (i) explain the difference, within 7 days' period.

Unless the taxpayer either deposits the amount specified in the said intimation or furnishes a reply explaining the
reasons for any amount remaining unpaid, such a person should not be allowed to file Form GSTR-1/ IFF for the
subsequent tax period.

Rule 88C Details

● Where the tax payable by a registered person, in accordance with the statement of outward supplies
furnished by him in Form GSTR-1 or using the IFF in respect of a tax period, exceeds the amount of tax
payable by such person in accordance with the return for that period furnished by him in Form GSTR-3B, by
such amount and such percentage, as may be recommended by the Council, the said registered person
shall be intimated of such difference.
● Such registered person shall be intimated in prescribed form, electronically on the common portal, and a
copy of such intimation shall also be sent to his e-mail address. (email address which registered person has
provided at the time of registration or as amended from time to time)
● In said intimation, the said difference between GSTR-1 and GSTR-3B will be highlighted and he will be
directed to:
a. pay the differential tax liability, along with interest under section 50, through prescribed form; or
b. explain the aforesaid difference in tax payable on the common portal,
○ within a period of 7 days.
● Such registered person shall, upon receipt of the aforesaid intimation, either:
a. pay the amount of the differential tax liability, as specified in intimation, fully or partially, along with
b. interest under section 50, and furnish the details thereof electronically on the common portal; or
furnish a reply electronically on the common portal, incorporating reasons in respect of that part of
the differential tax liability that has remained unpaid, if any,
○ within the period of 7 days.
Where any amount specified in the said intimation remains unpaid within 7 days’ period and where no explanation
or reason is furnished by the registered person in default or where the explanation or reason furnished by such
person is not found to be acceptable by the proper officer, the said amount shall be recoverable in accordance with
the provisions of section 79.

Furnishing Of Returns Under Section 39

Person required to file return, periodicity and form of return
Every registered person, other than
● an input service distributor or
● a non-resident taxable person or
● a composition taxpayer,
● a person deducting tax at source,
● a person collecting tax at source, i.e. an electronic commerce operator and
● supplier of OIDAR services located in non-taxable territory providing such services to non-taxable online
recipient
Is required to furnish a monthly return in such Form, in such manner, and within such time, as may be prescribed.
● However, the Government may, on the recommendations of the Council, notify a certain class of registered
persons who shall furnish a return for every quarter or part thereof, subject to the specified conditions and
restrictions.

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● Initially, return in Form GSTR-3 was notified as the return under section 39(1) which was to be filed by 20 th
day of the month succeeding the relevant calendar month or part thereof.
● However, GSTR-3 never became practically applicable as the filing thereof has been deferred by the GST
Council since the introduction of GST law. Therefore, in lieu of return in Form GSTR-3, return in Form
GSTR-3B has been notified.
● GSTR-3B is a simple return containing summary of outward supplies, inward supplies liable to reverse
charge, eligible ITC, payment of tax etc. Thus, GSTR3B does not require invoice-wise data of outward
supplies.
● GSTR-3B can be submitted electronically through the common portal, either directly or through a Facilitation
Centre notified by the Commissioner.
● Further, a Nil GSTR-3B can be filed through an SMS using the registered mobile number of the taxpayer.

Due date for filing return

● Monthly GSTR-3B -on or before 20th of the month succeeding the month for which return is furnished.
● Quarterly GSTR-3B- on or before 22nd or 24th of the month succeeding the quarter for which return is
furnished in case of a taxpayer opting for QRMP scheme.

Nil GSTR-3B
● Filing of GSTR-3B is mandatory for all normal and casual taxpayers, even if there is no business activity in
any particular tax period. For such tax period(s), a Nil GSTR-3B is required to be filed.
● A Nil GSTR-3B does not have any entry in any of its tables. For example, a Nil GSTR-3B for a tax period
cannot be filed, if the taxpayer has made any outward supply (including nil-rated, exempt or non-GST
supplies) or has received any supplies which are taxable under reverse charge or it intends to take ITC etc.
● A Nil GSTR-3B can be filed through an SMS using the registered mobile number of the taxpayer. GSTR-3B
submitted through SMS is verified by registered mobile number-based OTP facility
● Filing of returns for current month is possible only when returns of the previous month have been filed.
● A taxpayer needs to electronically sign the submitted returns otherwise it will be considered not-filed.
● Taxpayers can electronically sign their returns using a DSC (mandatory for all types of companies and
LLPs), E-sign (Aadhaar-based OTP verification), or EVC (Electronic Verification Code sent to the registered
mobile number of the authorised signatory).

Rectification of errors/omissions
● Omission or incorrect particulars discovered in the returns filed u/s 39 can be rectified in the return to be
filed for the tax period during which such omission or incorrect particulars are noticed.
● Any tax payable as a result of such error or omission will be required to be paid along with interest
● It is important to note that section 39(9) does not permit rectification of error or omission discovered on
account of scrutiny, audit, inspection, or enforcement activities by tax authorities.

Time limit for making rectification

The maximum time limit within which the rectification of errors/omissions is permissible is earlier of the following
dates:
● 30th day of November following the end of the financial year to which such details pertain or
● Actual date of filing of the relevant annual return

Ms. Saniya Khan Bhabhiji, a taxpayer registered under regular scheme, filed GSTR-3B for the month of October on 20th
November. After filing the return, she discovers that the value of a taxable supply has been under-reported in the GSTR 3B
mentioned above. Ms. Saniya Khan Bhabhiji now wants to file a revised GSTR-3B. Examine the scenario and give your
comments.
ANSWER
Under GST law, a return once filed cannot be revised. However, the details of those transactions that are required to be
amended can be changed in any of the future GSTR- 1s. For this purpose, specific tables are provided in GSTR-1 to amend
previously declared details.

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Thus, Ms. Saniya Khan Bhabhiji cannot revise GSTR-3B filed by her for the month of October. However, she can amend the
details of the taxable supply, which was underreported, in GSTR-1 for the month of November.
The tax payable on account of such error will be paid along with interest in GSTR-3B for the month of November.

GSTR 4, 4A Etc
Person eligible to file return, periodicity and form of return
● A registered person paying tax under composition levy (provisions of section 10), shall, for each financial
year or part thereof, furnish a return, electronically, of turnover in the State or Union territory, inward supplies
of goods and/or services, tax payable, tax paid and such other particulars in such form and manner, and
within such time, as may be prescribed.
● Every registered person paying tax under section 10, i.e. a composition supplier is required to file a return on
vearly basis in Form GSTR-4.
● GSTR-4 for a financial year or part of a financial year should be filed electronically through the common
portal either directly or through a Facilitation Centre notified by the Commissioner.

Quarterly statement for payment of self-assessed tax

● Every composition supplier shall pay to the Government, the tax due taking into account turnover in the
State or Union territory, inward supplies of goods or services or both, tax payable, and such other particulars
during a quarter, in such form and manner, and within such time. as mav be prescribed.
● The composition supplier are required to furnish a statement in the Form GST CMP-08 containing details of
payment of self-assessed tax, for every quarter (or part of the quarter), by 18th day of the month succeeding
such quarter.

Due date for filing Form GSTR-4 and Form GST CMP-08
● GSTR-4 for a financial year should be furnished by 30th April of the succeeding financial year.
● GST CMP-08 (quarterly statement for payment of self-assessed tax) should be furnished by 18th day of the
month succeeding such quarter.

What kind of details of outward supplies are required to be furnished in GSTR-4?

GSTR-4 shall include the-
a. invoice-wise inter-State and intra-State inward supplies received from registered and unregistered persons;
and
b. consolidated details of outward supplies made.

Auto-population of inward supplies

● The inward supplies of a composition supplier received from registered persons filing GSTR-1 will be auto
populated in FORM GSTR-4A for viewing.

Contents of GSTR-4
Basic Details
● GSTIN.
● Legal name and Trade name.
● TDS/TCS credit received.
● Tax, interest, late fee payable and paid.
● Refund claimed from Electronic cash ledger.

Details regarding Inward and Outward Supplies

● Invoice-wise details of all inward supplies (i.e., intra and interState supplies and from registered and
unregistered persons) including reverse charge supplies and import of services.
● Summary of self-assessed liability as per GST CMP-08 (Net of advances, credit & debit notes and any other
adjustments due to amendments etc.)
● Tax rate wise details of outward supplies/inward supplies attracting reverse charge (Net of advances, credit
& debit notes and any other adjustments due to amendments etc.) Consolidated details of outward
supplies.

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Consolidated details of outward supplies

● Composition taxpayers are neither entitled for any ITC nor entitled to pass on any ITC to its customers.
Therefore, composition taxpayers are required to provide consolidated details of outward supplies in
GSTR-4 and not invoice-wise details.
● However, details of inter-State and intra-State inward supplies received from registered and un-registered
persons are to be provided invoice-wise.

Tax liability
Since composition suppliers are not eligible to take ITC, they discharge their tax liability only by debiting electronic
cash ledger.
● Filing of GST CMP-08 is mandatory for all taxpayers who have opted to pay tax under composition scheme,
even if there is no business activity in any particular tax period. For such tax period(s), a Nil GST CMP-08 is
required to be filed
● A Nil GST CMP-08 does not have any entry in any of its tables. For example, a Nil GST CMP-08 for a tax
period cannot be filed, if the taxpayer has made any outward supplies or has received any supplies which
are taxable under reverse charge
● A Nil GST CMP-08 can be filed through an SMS using the registered mobile number of the taxpayer. A Nil
GST CMP-08 submitted through SMS is verified by registered mobile number-based OTP facility.

Statements/ return for the period prior to opting for composition scheme
If a registered person opts to pay tax under composition scheme from the beginning of a financial year, he will,
where required, furnish statements/return relating to the period prior to paying tax under composition scheme 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.
The composition supplier will not be eligible to avail ITC on receipt of invoices or debit notes from the supplier for
the period prior to their opting to pay tax under composition scheme.

GSTR-4 for the period prior to exiting from composition scheme

A registered person opting to withdraw from the composition scheme at his own motion or where option is
withdrawn at the instance of the proper officer will, where required, furnish-
● GST CMP-08 - relating to the period prior to his exiting from composition scheme till 18th of the month
succeeding the quarter in which the date of withdrawal falls
● GSTR-4 - relating to the period prior to his exiting from composition scheme - till 30th April following the end
of the financial year during which such withdrawal falls

Nil GST CMP-08 [Rule 67A]

GSTR-5 - Return for Non-Resident Taxable Persons [Section 39(5) read with rule 63 of the CGST Rules
Non-Resident Taxable Persons (NRTPs) are those suppliers who do not have a business establishment in India and
have come for a short period to make supplies in India.

Monthly return
A registered NRTP is not required to file separately the Statement of Outward Supplies and applicable return for a
normal taxpayer.
In place of the same, a simplified monthly tax return has been prescribed in Form GSTR-5 for an NRTP for every
calendar month or part thereof. The details of outward supplies and inward supplies of an NRTP are incorporated in
GSTR-5.

The last date of filing return

GSTR-5 should be furnished within 13 days after the end of the calendar month or within 7 days after the last day of
validity period of the registration, whichever is earlier.

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Payment of interest, penalty, fees or any other amount payable.

An NRTP should pay the tax, interest, penalty, fees or any other amount payable under the CGST Act or the
provisions of the Returns chapter under the CGST Rules, till the last date of filing GSTR-5.

GSTR-7 - Return for tax deducted at source [Section 39(3) read with rule 66]
Normally, whenever taxable goods or services or both are supplied to a Central/ State Government’s Department/
establishment or, local authority, or Governmental agencies, recipient is required to deduct tax at source under
section 51 where the total value of such supply exceeds ₹ 2,50,000.

(a) Monthly return

Deductor shall furnish a monthly return in Form GSTR-7.

(b) Last date of filing return

The details in GSTR-7 should be furnished on/before 10th of the month succeeding the calendar month in which
tax has been deducted at source.

(c) TDS details available to deductee on common portal

The details of TDS furnished by the deductor in GSTR-7 shall be made available electronically to each of the
deductees on the common portal after filing of Form GSTR-7. The supplier can take this amount as credit in his
electronic cash ledger after validation and use the same for payment of tax or any other liability.

(d) Tax Deduction at Source (TDS) Certificate

A TDS certificate is required to be issued by deductor (the person who is deducting tax) in Form GSTR-7A to the
deductee (the supplier from whose payment, TDS is deducted), within 5 days of crediting the amount to the
Government. It contains the details pertaining to value on which tax has been deducted, rate of deduction, amount
of tax deducted at source and amount paid to the Government.

First Return- Section 40

● Every registered person who has made outward supplies in the period between the date on which he
became liable to registration till the date on which registration has been granted shall declare the same in
the first return furnished by him after grant of registration.
● In simple words, the details in the first return shall generally include the details of outward supplies effected
from the date on which the taxable person becomes liable to get registered till the date on which
registration is granted.
● It is to be noted that there is no separate form or return prescribed for the first return.
● Illustration: Mr. Aam Aadmi became liable for registration on 27th July 2023, however, he got the registration
on 18th August 2023. The details of outward supply made during 27th July 2023 to 18th August 2023 will
be furnished by him in the return for the month of August 2023.

GSTR – 8 - Statement for tax collection at source [Sub-sections (3), (4), (6) and (7) of section 52 read
with rule 67]
(a) Monthly statement
● An ECO liable to collect tax at source shall furnish a monthly statement in Form GSTR-8 electronically
through the common portal. Form GSTR-8 contains the details of supplies of goods or services or both
effected through ECO, including the supplies of goods or services or both returned through it and the
amount of tax collected at source.
(b) Last date of filing statement and for deposit of tax collected at source
● The details in GSTR-8 should be furnished on/before 10th of the month succeeding the calendar month in
which tax has been collected at source.

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● The due date of filing GSTR-8 may be extended by the Commissioner/Commissioner of State
GST/Commissioner of UTGST for a class of taxable persons by way of a notification.
● Further, the amount of tax collected by ECO (TCS amount) is also required to be deposited by the 10th of the
month succeeding the calendar month in which tax has been collected at source.

(c) TCS details available to suppliers on common portal and claiming of TCS by suppliers
● The details of TCS furnished by the ECO in GSTR-8 shall be made available electronically to each of the
suppliers who supplied goods and/or services through ECO on the common portal after filing of GSTR8. The
supplier can take this amount reflected in GSTR-8 as credit in his electronic cash ledger after validation and
use the same for payment of tax or any other liability.

(d) Rectification of errors/omissions in GSTR-8

● If after submission of GSTR-8, the ECO discovers any discrepancy therein on his own - not being the result
of any scrutiny, audit, inspection or enforcement proceedings - he should rectify such discrepancy in GSTR-8
to be filed for the month during which such discrepancy is noticed, subject to payment of interest under
section 50.
● The rectification is not allowed after 30th November following the end of the financial year or the actual
date of filing of the relevant annual statement [GSTR-9B], whichever is earlier.

GSTR – 9/9A and GSTR-9B - Annual Return [Sections 44, 52(5) read with rule 80]
Who is required to furnish the annual return and what is the due late for the same?
● All registered persons are required to file an annual return. However, following persons are not required to
file annual return
○ Casual taxable persons
○ Non-resident taxable person
○ Input service distributors
○ Persons authorized to deduct/collect tax at source under section 51/52, and
○ The Commissioner may, on the recommendations of the Council, by notification, exempt any class of
registered persons from filing annual return under this section.r.
The annual return for a financial year needs to be filed by 31st December of the next financial year.

What is the prescribed form for annual return/statement?

● The annual return is to be filed electronically in Form GSTR-9 through the common portal.
● Person registered under composition levy: A person paying tax under composition scheme is required to file
the annual return in Form GSTR-9A.

ECO
An ECO required to collect tax at source is required to file an annual statement referred to in section 52(5) in Form
GSTR-9B (yet to be notified). The statement for a financial year needs to be filed by 31st December of the next
financial year

Self-certified reconciliation statement?

Self-certified reconciliation statement will reconcile the value of supplies declared in the return furnished for the
financial year with the audited annual financial statement.
1. All registered persons are required to furnish a self certified reconciliation statement along with annual
return if their aggregate turnover during a financial year exceeds ₹ 5 crores. However, following persons are
not required to file self-certified reconciliation statement:
a. Casual taxable persons
b. Non-resident taxable person
c. Input service distributors

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d. Persons authorized to deduct/collect tax at source under section 51/52, and

2. Such registered person should furnish, electronically, the annual return along with a copy of self-certified
reconciliation statement, duly certified, in Form GSTR-9C.
The department of the Central/State Government or a local authority, whose books of account are subject to audit
by the Comptroller and Auditor-General of India or an auditor appointed for auditing the accounts of local
authorities under any law for the time being in force, are exempt from the requirement of furnishing an annual
return including self-certified reconciliation statement.

Final Return - Section 45 read with rule 81 of the CGST Rules.

Every registered person who is required to furnish return u/s 39(1) and whose registration has been surrendered or
cancelled is required to file a final return electronically in Form GSTR10 through the common portal.
The final return has to be filed within 3 months of the:
● date of cancellation or
● date of order of cancellation
whichever is later.

Details of inward supplies of persons having UIN - Rule 82 of the CGST Rules
When UIN is issued for claiming refund of taxes paid on inward supplies
Such person shall furnish the details of the inward supplies of taxable goods and/or services on which refund of
taxes has been claimed, in Form GSTR11, along with the application for such refund claim.

When UIN is issued for purposes other than refund of taxes paid.
Such person shall furnish the details of inward supplies of taxable goods and/or services as may be required by the
proper officer in Form GSTR-11.

UIN stands for Unique Identification Number, a special class of GST registration for foreign diplomatic missions
and embassies that are not liable to taxes in the Indian territory. Any amount of tax collected from such bodies is
refunded back to them.

As per Entry no. 59 of Notification no. 12/2017 Central Tax (Rate) Dated 28-6-2017 Services provided by foreign
diplomatic missions (Located in India) to any Person are exempt. Service received by foreign diplomatic missions
is not exempt , however FDM can take refund of GST paid.

Notice to return defaulters – Section 46

46. Where a registered person
● fails to furnish a return under section 39
○ or section 44 or
○ section 45,
● a notice shall be issued
● requiring him to furnish such return
● within fifteen days in such form and manner as may be prescribed.

Levy of late fee. - Section 47

● Late fee is applicable for delay in furnishing of return / details of outward supply as per the provision of
section 47
● Delay in filing any of the following by their respective due dates, attracts late fee as given hereunder:
○ Statement of Outward Supplies (Section 37)
○ Returns (including returns under QRMP Scheme) (Section 39)
○ Final Return (Section 45)
○ TCS Statement (Section 5)
An equal amount of late fee is payable by such person under the respective SGST/UTGST Act as well.

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Rationalisation of late fees for delayed filing of Forms GSTR-1, GSTR-3B, GSTR-4, GSTR-7 and GSTR-9
For delayed filing of GSTR-1 and/or GSTR-3B
Amount of late fee payable under section 47 by the registered person who fail to furnish Form GSTR-1 and/or Form
GSTR-3B by the due date, shall be as follows:

For delayed filing of GSTR-4

Amount of late fee payable under section 47 by a composition supplier who fails to furnish Form GSTR4 by the due
date, shall be as follows:

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For delayed filing of GSTR-9

Delayed Filing Of GSTR-7 (Return By TDS Deductor)

In case of delayed filing of GSTR-7, LOWER of the following two amounts is required to be paid as late fee u/s 47 of
the CGST Act
● ₹ 25 for every day during which such failure continues; or
● ₹1,000.
Same amount will also be levied under SGST/UTGST Act as well.

Goods and services tax practitioners - Section 48

● A registered person may authorise an approved GSTP to furnish information, on his behalf, to the
Government. The manner of approval of GSTPs, their eligibility conditions, duties and obligations, manner of
removal and other conditions relevant for their functioning have been prescribed in the rules 83, 83A and 84
of the CGST Rules.
● GSTN provides a separate user ID and Password to GSTP to enable him to work on behalf of his clients
without asking for their user ID and passwords.
● A taxpayer may choose a different GSTP by simply unselecting the previous one and then choosing a new
GSTP on the GST portal.
● A GSTP enrolled in any State or Union Territory shall be treated as enrolled in the other States/Union
territories.

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Eligibility criteria for GSTP

An application in FORM GST PCT-01 may be made electronically through the common portal either directly or
through a Facilitation Centre notified by the Commissioner for enrolment as goods and services tax practitioner by
any person who,
1. is a citizen of India;
2. is a person of sound mind;
3. is not adjudicated as insolvent;
4. has not been convicted by a competent court
and satisfies any of the following conditions, namely:—
a. that he is a retired officer of the Commercial Tax Department of any State Government or of the Central
Board of Indirect Taxes and Customs, Department of Revenue, Government of India, who, during his service
under the Government, had worked in a post not lower than the rank of a Group-B gazetted officer for a
period of not less than two years; or
b. that he has enrolled as a sales tax practitioner or tax return preparer under the existing law for a period of
not less than five years;
c. he has passed,
i. a graduate or postgraduate degree or its equivalent examination having a degree in Commerce, Law,
Banking including Higher Auditing, or Business Administration or Business Management from any
Indian University established by any law for the time being in force; or
ii. a degree examination of any Foreign University recognised by any Indian University as equivalent to
the degree examination mentioned in sub-clause (i); or
iii. any other examination notified by the Government, on the recommendation of the Council, for this
purpose; or
iv. has passed any of the following examinations, namely:—
1. final examination of the Institute of Chartered Accountants of India; or
2. final examination of the Institute of Cost Accountants of India; or
3. final examination of the Institute of Company Secretaries of India.

Other steps for enrolment

- The Application will be scrutinised and a GSTP certificate will be granted in the prescribed form.
- In case, the application is rejected, proper reasons need to be given.
- The enrolment once done remains valid till it is cancelled.
- No person enrolled as a GSTP is eligible to remain enrolled unless he passes such examination conducted
at such periods by NACIN (National Academy of Customs Indirect Taxes and Narcotics)
- Any person who has been enrolled as GSTP by virtue of him being enrolled as a Sales Tax Practitioner or
Tax Return Preparer under the earlier indirect tax laws can remain enrolled only for a period of 30 months
from the appointed date unless he passes the said examination within the said period of 30 months.

What are the activities which can be undertaken by a GSTP?

A goods and services tax practitioner can undertake any or all of the following activities on behalf of a registered
person if so authorised by him to—
a. furnish the details of outward and inward supplies;
b. furnish monthly, quarterly, annual or final return;
c. make a deposit for credit into the electronic cash ledger;
d. file a claim for refund; Confirmation from the registered person shall be sought
e. file an application for amendment or cancellation of registration; Confirmation from the registered person
shall be sought
f. furnish information for generation of the e-way bill;
g. file an intimation to pay tax under the composition scheme or withdraw from the said scheme:

Also allowed to appear as authorised representative before any officer of Department, Appellate Authority or
Appellate Tribunal, on behalf of such a registered person provided he is enrolled as GSTP under rule 83

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Furnishing returns through GSTP:

When a registered person opts to furnish his return through GSTP, such registered person:

● Gives his consent in a prescribed form to any GSTP to prepare and furnish his return.
● Before confirming the submission of any statement prepared by GSTP, ensure that the facts mentioned in
the return are true and correct.
● Thus, the responsibility for the correctness of any particulars furnished in the return or other details filed by
the GSTP continues to rest with the registered person on whose behalf such return and details are
furnished.
● The registered person before confirming should ensure that the facts mentioned in the return are true and
correct before signature.
● However, failure to respond to a request for a confirmation is treated as deemed confirmation.

Other points
● A registered person gives his consent and authorises a GSTP in the prescribed form by listing the
authorised activities in which he intends to authorise the GSTP. The GSTP accepts the authorisation in Part
B of the same form.
● The registered person may, at any time, withdraw such authorization.
● Any statement furnished by the GSTP is made available to the registered person on the common portal. For
every statement furnished by the GSTP, a confirmation is sought from the registered person over email or
SMS.
● The GSTP should prepare all statements with due diligence and affix his digital signature on the statements
prepared by him or electronically verify using his credentials.
● If the GSTP is found guilty of misconduct, his enrolment will be liable to be cancelled and a show-cause
notice would be issued to him.

QRMP - Scheme Law

Background
Proviso to section 39(1) of the CGST Act, 2017, inserted with effect from 10.11.2020, empowers the Government to
notify certain class of registered persons who shall furnish return on quarterly basis.

Further, section 39(7), amended with effect from 10.11.2020, provides that a person so notified to furnish quarterly
return shall pay taxes due during a month within prescribed time and manner.

In terms of above provisions, with effect from 01.01.2021, a Quarterly Return Monthly Payment (QRMP) Scheme
has been introduced as a trade facilitation measure and in order to further ease the process of doing business.

In Nutshell
QRMP Scheme is an optional return filing scheme, introduced for small taxpayers having aggregate annual turnover
(PAN based) of upto ₹ 5 crore in the preceding financial year to furnish their Form GSTR-1 and Form GSTR-3B on a
quarterly basis while paying their tax on a monthly basis through a simple challan.

Opting for the QRMP scheme is GSTIN wise.

Distinct persons can avail QRMP scheme option for one or more GSTINs. It implies that some GSTINs for a PAN
can opt for the QRMP scheme and remaining GSTINs may not opt for the said scheme.

Eligibility for QRMP scheme

● Registered persons ,
● having an aggregate turnover up to ₹ 5 crore in the preceding financial year, and
● who have opted to furnish quarterly returns under QRMP scheme.

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For computing aggregate turnover, details furnished in returns for tax periods in the preceding financial year shall
be taken into account.

A registered person shall not be eligible to opt for QRMP scheme if he has not furnished the last return due on the
date of exercising such option.

NOT ELIGIBLE
Supplier of online information and database access or retrieval services (OIDAR) located in non-taxable territory
and providing such services to a non-taxable online recipient.

​Manner of exercising option of QRMP scheme [Rule 61A]

A registered person intending to opt for QRMP scheme for any quarter shall indicate his preference for furnishing of
return on a quarterly basis from 1 st day of the 2 nd month of the preceding quarter till the last day of the 1 st
month of the quarter for which the option is being exercised.

However, where such option has been exercised once, the said registered person shall continue to furnish the return
on a quarterly basis for future tax periods, unless he–
a. becomes ineligible for this scheme as per the conditions and restrictions notified in this regard; or
b. opts for furnishing of return on a monthly basis, electronically, on the common portal.

Lapse
● Option of QRMP scheme to lapse
○ In case where a registered person’s aggregate turnover crosses ₹ 5 crore during a quarter in a
financial year, he shall not be eligible for furnishing of return on quarterly basis from the first month
of the succeeding quarter.
○ He shall opt for furnishing of return on a monthly basis, electronically, on the common portal, from
the first month of the quarter, succeeding the quarter during which his aggregate turnover exceeds ₹
5 crore.
○ The facility for opting out of the scheme for a quarter will be available from 1 st day of 2 nd month of
preceding quarter to the last day of the 1 st month of the quarter.

Invoice furnishing facility (IFF)

Taxpayers opting for QRMP scheme
● may furnish the
● details of
○ such outward supplies to a registered person,
○ as he may consider necessary,
● for the 1st and 2 nd months of a quarter,
● using invoice furnishing facility (hereafter referred to as the “IFF”).

Invoices pertaining to the last month of a quarter are to be uploaded in GSTR-1 only.

The facility of furnishing details of invoices in IFF has been provided so as to allow details of such supplies to be
duly reflected in the Form GSTR-2A and Form GSTR-2B of the concerned recipient.
The IFF is not mandatory, but an optional facility made available to the registered persons under the QRMP scheme.

At his option, a registered person may choose to furnish the details of outward supplies made during a quarter in
Form GSTR-1 only, without using the IFF.
● Taxpayers using IFF can upload the invoice details upto a cumulative value of Rs. 50 lakh in each of the first
2 months of the quarter.

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● The invoices are to be furnished in IFF between the 1st day of the succeeding month till the 13 th day of the
succeeding month. After 13 th of the month, this facility for furnishing IFF for previous month would not be
available

The details of invoices furnished using IFF in the first 2 months of the quarter are not required to be furnished again
in GSTR-1 for the said quarter.

In the IFF, the taxpayer has to submit the B2B (business to business) invoice details of both inter-State and
intra-State supply transactions along with debit and credit notes of the B2B invoices issued during the month. The
details of outward supplies furnished using IFF shall include the –
a. Invoice wise details of inter-State and intra-State supplies made to the registered persons;
b. debit and credit notes, if any, issued during the month for such invoices issued previously.
However, if a registered person does not opt to upload invoices using IFF, then he has to upload invoice details for
all the 3 months of the quarter in Form GSTR-1.

Cases where a registered person shall not be allowed to furnish details of outward supplies in GSTR-1/IFF
A registered person shall not be allowed to furnish the details of outward supplies in Form GSTR-1, if he has not
furnished the return in Form GSTR-3B for preceding two months.

A registered person, opting for QRMP scheme shall not be allowed to furnish the details of outward supplies under
Form GSTR-1 or using IFF, if he has not furnished the return in Form GSTR-3B for preceding tax period.

A registered person, who is restricted from using the amount available in electronic credit ledger to discharge his
liability towards tax in excess of 99% of such tax liability under rule 86B of the CGST Rules, shall not be allowed to
furnish the details of outward supplies in Form GSTR-1 or using IFF, if he has not furnished the return in Form
GSTR-3B for preceding tax period. - Study it after Rule 86B

Form and manner of filing return – GSTR-3B - Rule 61 substituted with a new rule.
Every registered person,
● other than an input service distributor or
● a non-resident taxable person or
● a composition taxpayer,
● a person deducting tax at source, a person collecting tax at source, i.e. an electronic commerce operator
and
● supplier of OIDAR services located in non-taxable territory providing such services to nontaxable online
recipient,
is required to furnish a return in Form GSTR-3B, electronically.

Due date for filing return

● In case of a taxpayer opting for QRMP scheme - Quarterly GSTR3B on or before 22 nd or 24 th of the month
succeeding the quarter for which return is furnished.
● In case of other taxpayers - Monthly GSTR-3B on or before 20th of the month succeeding the month for
which return is furnished.

State wise due dates.

Chhattisgarh, Madhya Pradesh, Gujarat, Dadra and Nagar Haveli, Daman 22nd of the month succeeding such
and Diu, Maharashtra, Karnataka, Goa, Lakshadweep, Kerala, Tamil Nadu, quarter
Puducherry, Andaman and Nicobar Islands, Telangana and Andhra
Pradesh

Jammu and Kashmir, Ladakh, Himachal Pradesh, Punjab, Chandigarh, 24th of the month succeeding such
Uttarakhand, Haryana, Delhi, Rajasthan, Uttar Pradesh, Bihar, Sikkim, quarter

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Arunachal Pradesh, Nagaland, Mizoram, Manipur, Tripura, Meghalaya,

Assam, West Bengal, Jharkhand and Odisha

Payment of Tax
Every registered person under QRMP scheme shall pay the tax due under proviso to section 39(7) , for each of the
first 2 months of the quarter, by depositing the said amount in Form GST PMT-06, by the 25 th day of the month
succeeding such month.

However, the Commissioner may, on the recommendations of the Council, by notification, extend the due date for
depositing the said amount in Form GST PMT-06, for such class of taxable persons as may be specified therein.

At the time of filing the return for the said quarter in Form GSTR 3B, the amount deposited by the registered person
in the first 2 months of the quarter shall be debited.

This amount is debited solely for the purposes of offsetting the liability furnished in that quarter’s Form GSTR-3B.

However, any amount left after filing of that quarter’s Form GSTR-3B may either be claimed as refund or may be
used for any other purpose in subsequent quarters.

Methods of payment of tax

The QRMP person can use any of the following two options provided below for monthly payment of tax during the
first 2 months –

Fixed sum method

If a taxpayer chooses this option,
● A facility is available on the GST portal for generating an auto-generated / pre-filled challan in Form GST
PMT-06.
● The challan amount is calculated by the system which cannot be edited.
● The amount is equal to:
○ 35% of the tax paid in cash in the return for the preceding quarter where the return was furnished
quarterly; or
○ tax liability paid in cash in the return for the last month of the immediately preceding quarter where
the return was furnished monthly.
● However, no such amount may be required to be deposited-
○ for the 1 st month of the quarter, where the balance in the electronic cash ledger/electronic credit
ledger is adequate for the tax liability for the said month or where there is nil tax liability;
○ for the 2 nd month of the quarter, where the balance in the electronic cash ledger/electronic credit
ledger is adequate for the cumulative tax liability for the 1 st and the 2 nd month of the quarter or
where there is nil tax liability
Fixed sum method not available
● Monthly tax payment through this method would not be available to those registered persons who have not
furnished the return for a complete tax period preceding such month.
● A complete tax period means a tax period in which the person is registered from the first day of the tax
period till the last day of the tax period.

Self-Assessment Method
A QRMP person can pay the tax due by considering the tax liability on inward and outward supplies and the input
tax credit available, in Form GST PMT-06.
The registered person under QRMP is free to avail either of the two tax payment methods above in any of the two
months of the quarter.

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Applicability of interest
For registered person making payment of tax by opting Fixed Sum Method
● No interest would be payable in case the tax due is paid in the first 2 months of the quarter by way of
auto-calculated fixed sum amount by the due date.
● In case Form GSTR-3B for the quarter is furnished beyond the due date, interest would be payable as per the
provisions of section 50 of the CGST Act for the tax liability net of ITC.

For registered person making payment of tax by opting Self-Assessment Method

● Interest amount would be payable as per the provision of section 50 of the CGST Act for tax or any part
thereof (net of ITC) which remains unpaid / paid beyond the due date for the first 2 months of the quarter.
● Interest payable, if any, shall be paid through Form GSTR-3B.

Applicability of late fee

Late fee is applicable for delay in furnishing of return / details of outward supply as per the provision of section 47
of the CGST Act.
● As per the QRMP scheme, the requirement to furnish the return under the proviso to section 39(1) of the
CGST Act is quarterly.
● Accordingly, late fee would be applicable for delay in furnishing of the said quarterly return/ details of
outward supply.
It is clarified that no late fee is applicable for delay in payment of tax in the first 2 months of the quarter.

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