Returns – CA Final IDT Study Material

Returns – CA Final IDT Study Material is designed strictly as per the latest syllabus and exam pattern.

Returns – CA Final IDT Study Material

Question 1.
Mr. Anand Kumar, a regular taxpayer, filed his return of outward supply (GSTR-1) for the month of August, 2019 before the due date. Later on, in February, 2020 he discovered error in the GSTR-1 return of August 2019 already filed and wants to revise it. You are required to advise him as to the future course of action to be taken by him according to statutory provisions. [May, 2018, 5 Marks]
Answer:
Statutory Provisions:

The mechanism of filing revised return for any correction of errors/omission is not available under GST. The rectification of errors/omission is allowed in the subsequent returns.
However, as per section 37(3) of the CGST Act, 2017, no rectification of details furnished in GSTR-1 shall be allowed after:

(i) Filing of monthly return/GSTR-3 (Now : GSTR-3B) for the month of September following the end of the financial year to which such details pertain or
(ii) Filing of the relevant annual return, whichever is earlier.

In the given case:

Mr. Anand Kumar who discovered an error in GSTR-1 for August, 2019, cannot revise it.
However, he should rectify said error in the GSTR-1 filed for February, 2020 and should pay the tax and interest, if any, in case there is short payment, in the return to be furnished for February, 2020.
The error can be rectified by furnishing appropriate particulars in the “Amendment Tables” contained in GSTR-1.

Examiner’S Comment
The question requires the examinees to advise regarding course of action in case of discovery of error in details furnished in GSTR-1. Most of the examinees were found to be ignorant of the concept of rectification of error/omission in the subsequent return and thereby mentioned wrong answer.

Question 2.
Who is required to furnish details of outward supply?
Answer:
[Section 37(1) read with Rule 59(1) of CGST Rules]
The details of outward supplies (see definition) 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 (NRTP)
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
A supplier of online information and database access or retrieval services (OIDAR)

Question 3.
What is the due date of submission of GSTR-1?
Answer:
As per Section 37(1) of CGST Act, 2017 :-

GSTR-1 for a particular month is filed on or before the 10th day (But now 11th Day) of the immediately succeeding month.
In other words, GSTR-1 of a month can be filed any time between 1st and 10th day of the succeeding month. (But now registered person can file GSTR-1 till 11th day).

As a measure of easing the compliance requirement for small tax payers, GSTR-1 has been allowed to be hied quarterly by small tax payers with aggregate annual turnover up to ₹ 1.5 crore in the preceding financial year or the current financial year. As of now this facility has been given till the quarter January-March 2019. Tax payers with annual aggregate turnover above ₹ 1.5 crore will however continue to hie GSTR- 1 on a monthly basis. [Notihcation Nos. 57 & 58/2017 CT dated 15.11.2017, 71 & 72/2017 CT dated 29.12.2017, 17 & 18/2017 CT dated 28.03.2018, 32 & 33/2017 CT dated 10.08.2018],

Extension of last date:

The due date of filing GSTR-1 may be extended by the Commissioner/Commissioner of State GST/ Commissioner of UTGST for a class of taxable persons by way of a notihcation.

Note : * A taxpayer cannot hie GSTR-1 before the end of the current tax period.

However, following are the exceptions to this rule:
a. Casual taxpayers, after the closure of their business
b. Cancellation of GSTIN of a normal taxpayer

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

Question 4.
What are the precautions that a taxpayer is required to take for a hassle free compliance under GST?
Answer:
The following precautions are required to be taken by the taxpayer:
(a) Timely uploading of the details of outward supplies in Form GSTR-1

One of the most important things under GST is the timely uploading of the details of outward supplies in GSTR-1 by 10th of next month (Now 11th of next month).
How best this can be ensured will depend on the number of B2B invoices that the taxpayer issues.
If the number is small, the taxpayer can upload all the information in one go.
However, if the number of invoices is large, the invoices (or debit/credit notes) should be uploaded on a regular basis.

(b) Regular uploading of invoices

GST common portal allows regular uploading of invoices even on a real time basis.
Till the statement is actually submitted, the system also allows the taxpayer to modify the uploaded invoices.
Therefore, it would always be beneficial for the taxpayers to regularly upload the invoices.
Last minute rush makes uploading difficult and comes with higher risk of possible failure and default.

The second thing would be to ensure that taxpayers follow up on uploading the invoices of their inward supplies by their suppliers.

This would be helpful in ensuring that the ITC is available without any hassle and delay. Recipients can also encourage their suppliers to upload their invoices on a regular basis instead of doing it on or close to the due date.

The system would allow recipients to see if their suppliers have uploaded invoices pertaining to them.

Question 5.
State the Form Number and the due date for its tiling under CGST Act, 2017 of the return by:
(i) a composition scheme taxable person
(ii) a registered person deducting tax at source
(iii) an input service distributor. [CS Professional, June 2018, 1 Mark each = 3 Mark]

FORM	DESCRIPTION	WHO FILES?	DATE OF FILING
i. GSTR-4	PRESCRIBED FORM Furnishing a statement in the prescribed form containing details of Payment of Self Assessed tax, for every quarter.	Taxable Person opting for Composition Levy	PRESCRIBED FORM 18th of the month succeeding the quarter
	GSTR-4 Return		GSTR-4 On or before 30th Day of April following the end of such Financial Year.
ii. GSTR-7	Monthly Return for authorities deducting tax at source	Tax Deductor	10th of the next month
iii. GSTR-6	Monthly Return for an Input Service Distributor (ISD)	Input Service Distributor	13th of the next month

Question 6.
Explain First Return?
Answer:

When a person becomes liable to registration after his turnover crossing the threshold limit of registration (10 lakhs/20 lakhs/40 lakhs as case may be), he may apply for registration within 30 days of so becoming liable.
Thus, there might be a time lag between a person becoming liable to registration and grant of registration certificate.
During the intervening period, such person might have made the outward supplies, i.e. after becoming liable to registration but before grant of the certificate of registration.

Now, in order to enable such registered person to declare the taxable supplies made by him for the period between the date on which he became liable to registration till the date on which registration has been granted so that ITC can be availed by the recipient on such supplies:

Firstly, the registered person may issue Revised Tax Invoices against the invoices already issued during said period within 1 month from the date of issuance of certificate of registration.

Further, section 40 provides that registered person shall declare his outward supplies made during said period in the first return furnished by him after grant of registration. The format for this return is the same as that for regular return.

Question 7.
Explain the provisions of Annual Return.
Answer:
The following are the important provisions of Annual Return.
(a) Persons required to Furnish Annual Return

All taxpayers filing return in GSTR-1, GSTR-2 and GSTR-3, are required to file an annual return.

(b) Persons not required to file Annual Return: The following persons are not required to file annual return:

Casual Taxable Persons.
Non-resident taxable person
Input Service Distributors and
Persons authorized to deduct/collect tax at source under section 51/52.
Persons supplying OIDAR services from a place outside India to a person in India, other than a registered person

The annual return needs to be filed by 31st December of the next financial year. For example : in respect of FY 2017-18, the Annual Return shall be filed by 31st December, 2018

(d) Prescribed Form for Annual Return

The Annual Return is to be filed electronically in Form GSTR-9 through the common portal. However, A person paying tax under composition scheme is required to file the Annual Return in Form GSTR-9A.

(e) Reconciliation Statement

Every registered person must get his accounts audited by a Chartered Accountant or a Cost Accountant if his aggregate turnover during a financial year exceeds ₹ 2 Crores. Such registered person is required to furnish electronically through the common portal along with Annual Return a copy of—

Audited Annual Accounts
A Reconciliation Statement, duly certified.

Reconciliation Statement will reconcile the value of supplies declared in the return furnished for the financial year with the audited annual financial statement and such other particulars, as may be prescribed.

Filing of annual return under section 44( 1) made optional for small taxpayers [Notification No. 47/2019 CT dated 09.10.2019]

The filing of annual return (GSTR- 9) under section 44(1) of CGST Act for F.Ys. 2017-18 and 2018-19 made optional for small taxpayers whose aggregate turnover is less than ₹ 2 crores and who have not filed the said return before the due date. The annual return shall be deemed to be furnished on the due date if it has not been furnished before the due date.

Question 8.
Explain the provisions of Final Return.
Answer:
As per section 45, “Every registered person who is required to furnish a return under section 39(1) and whose registration has been cancelled shall furnish a final return within three months of the date of cancellation or date of order of cancellation, whichever is later, in such form and manner as may be prescribed.”

The provisions of section 45 read with rule 81 reveal the following:-

Persons liable to furnish Final Return:
Every registered person who is required to furnish return u/s 39( 1) and whose registration has been surrendered or cancelled shall file a Final Return electronically in Form GSTR-10 through the common portal.

Time Limit for Final Return:

Final Return has to be filed within 3 months of the :

Date of cancellation of registration
or
Date of order of cancellation whichever is later.

Question 9.
Briefly explain the provision of late fee for delay in filing returns
Answer:
(1) Late fee for delay in filing return:

Nature of Default

Any registered person who fails to furnish following by the due date:
(A) Statement of Outward Supplies [Section 37]
(B) Statement of Inward Supplies [Section 38]
(C) Returns [Section 39]
(D) Final Return [Section 45], shall pay a late fee.

Quantum of Late Fee

(a) ₹ 100 for every day during which such failure continues
OR
(b) ₹ 5,000 Whichever is Lower

(2) Late Fee for delay in filing ANNUAL RETURN

Nature of Default

Any registered person who fails to furnish the Annual Return by the due date shall be liable to pay a late fee.

Quantum of Late Fees

(a) ₹ 100 for every day during which such failure continues
OR
(b) 0.25% of the turnover of registered person in the state/UT. Whichever is Lower

Question 10.
Vishnu, a registered person under GST has filed GSTR-1, GSTR-2 and GSTR-3 for the concerned months in related with 2017-2018. The turnover was ₹ 21,60,000. Calculate the amount of late fee, if for FY 2017-18, the annual return has been filed on:
CASE 1. 25th July 2018
CASE 2. 18th Nov. 2018
CASE 3. 10th Jan. 2019
CASE 4. 21st March, 2019
Answer:
Cases 1 & 2: Calculation of late fee under section 47(2)
In respect of financial year 2017-18, the due date for filing Annual Return is 31 st December, 2018. Since, the return has been filed before 31st December, no late fee is payable under section 47(2).

Case 3 & 4: Calculation of late fee under section 47(2)

	Case 3	Case 4
Due Date	31-12-2018	31-12-2018
Date of filing	10-1-2019	21-3-2019
No. of days during which failure Continues	Jan. 10 days Total 10 days	Jan. 31 Days Feb. 28 Days Mar. 21 Days
		Total 80 Days
Late fee ₹ @ 100 per Day (A)	10 Days @ ₹ 100 = ₹ 1,000	80 Days @ ₹ 100 = ₹ 8,000
0.25% of turnover (B)	21,60,000 @ 0.25% = ₹ 5,400	₹ 5,400
Late fee [Lower of (A) & (B)]	₹ 1,000	₹ 5,400

Question 11.
Activities which can be undertaken by a GST practitioner?
Answer:
The following activities may be undertaken by the GST Practitioner:

Furnish details of outward and inward supplies.
Furnish monthly, quarterly, annual or final return
Make deposit for credit into the electronic cash ledger
File a claim for refund
File an application for registration amendment/cancellation
GSTP also allowed appearing 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.
Furnish information for generation of e-way bill
Furnish details of challan in the prescribed form
File an application for amendment or cancellation of enrolment under Rule 58
File an intimation to pay tax under composition scheme or withdraw from the said scheme.

Returns – CA Final IDT Study Material

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