GST and Type of GST Returns

GST & TYPES OF GST RETURNS

GST return is a document that will contain all the details of your sales, purchases, tax collected on sales (output tax), and tax paid on purchases (input tax). Once you file GST returns, you will need to pay the resulting tax liability (money that you owe the government). 

Who should file GST return?

All business owners and dealers who have registered under the GST system must file GST returns according to the nature of their business or transactions. 

Types of GST returns :

1. Regular Businesses –

• GSTR1
• GSTR2
• GSTR3
• GSTR3B
• GSTR9
• GSTR9C

2. Businesses registered under the composition scheme –

• GSTR4
• GSTR9A

3. Other types of business owners and dealers –

4. Amendments –

• GSTR1A

5. Auto-drafted returns –

• GSTR2A
• GSTR4A

6. Tax Notice –

• GSTR3A

OFFENSES AND PENALTIES:

OFFENCES:

There are 21 offenses under GST. The offenses  under GST are :

• FAKE/WRONG INVOICES

1. Supply goods/services without any invoices or issues a false invoice
2. Issues any invoice or bill without supply of goods/services in infringement of the provision of GST
3. Issues invoices using the identification number of another authentic taxable person

• TAX EVASION

4. Collects any GST but not submit it to the government within 3 months
5. Even if he collects GST in infringement of provisions, he still has to deposit it to government within 3 months, Failure to do so will be an offence under GST
6. Obtains refund of any CGST/SGST by fraud
7. Takes or utilized ITC without actual receipt of goods or services
8. He deliberately suppresses his sales to evade tax

• SUPPLY/TRANSPORT OF GOODS

9. Transport goods without proper documents
10. Supplies/transports goods which he knows will be confiscated
11. Destroys/tampers goods which have been seized

• FRAUD

12. Does not provide information/gives false information during proceedings
13. Submits false information while registering under GST
14. Submits fake financial records/documents or files fake returns to evade tax

• OTHERS

15. Not registered under GST although he is required to by law
16. Not deduct TDS or deducts less amount where applicable
17. Not collect TCS or collects less amount where applicable
18. Being an Input Service Distributor, he takes or distributes input tax credit in violation of the rules
19. He obstructs the proper officer during his duty (for example, he hinders the officer during the audit by tax authorities
20. He does not maintain all the books that he required to maintain by law
21. He destroys any evidence

PENALTY :

If any of the offenses are committed then a penalty will have to paid under GST. The principal on which these penalties are based on also mentioned by law.

FOR LATE FILING:

The late fees is Rs. 100 per day per Act. So it is 100 under CGST and 100 under SGST. Total will be 200 per day.  The maximum is Rs. 5000. There is no late fee on IGST in case of delayed filing.

Along with late fee, Interest has to be paid at 18% per annum. It has to be calculated by the taxpayer on the tax to be paid. The time period will be from the next day of filing to the date of payment.

FOR NOT FILING:

If you don’t file any GST return then subsequent return cannot be filed.

For example : if GSTR-2 return of July is not filed then the next return GSTR-3 and subsequent returns of August cannot be filed. Hence, late filing of GST return will have a cascading effect leading to heavy fines and penalty.

FOR 21 OFFENSES WITH NO INTENTION OF FRAUD OR TAX EVASION :

An offender not paying tax or making short payments must pay a penalty of 10% of the tax amount due subject to a minimum of Rs. 10000.

FOR 21 OFFENSES WITH INTENTIONALLY OF FRAUD OR TAX EVASION :

An offender has to pay a penalty amount of tax /short deducted etc., i.e., 100% penalty, subject to minimum of Rs. 10000.

Additional penalties as follows:

GST RETURN FILING DUE DATES IIN NOVEMBER 2020 :

The Government announces GST return filing due dates from time to time in order to maintain taxation in line with respective clearance.

As GSTR-1 & GSTR-3B is to be filed every month, there is a greater need of getting regular updates /notifications based on the GST due dates calendar for avoiding any interest and penalty.  Also, there is GST CMP 08 for the composition scheme dealers but it has to be filed every quarter lowering down the need for regular updates on GST due date filing calendar.

 NOTE :

• “Extension of due dates for FORM GSTR-3B, GSTR-7 and GSTR-1 for the month of July 2019 to January 2020 till 24^th March 2020 for registered person having principal place of business in the Union territory of Ladakh.”
• The revised due dates and above announcements have been implemented under official CBEC GST notification & latest GST circulars/order by Govt CBIC Department.