Return For Outward Supplies

SECTION : Returns & Matching of Input Tax Credit

DESCRIPTION
  • Lesson Objectives


    On completion of this lesson, you will be able to understand:

    ·     Purpose of Returns

    ·     Section 37 – Furnishing Details of Outward Supplies

    ·     Section 39 – Furnishing of Returns

    ·     Transaction Value

    ·     Details required in GSTR-1

     

    Please go through the First Video of Chapter 12.

    Returns - Introduction

     

    Purpose of returns

    a) Mode for transfer of information to tax administration

    b) Compliance verification program of tax administration

    c) Finalization of the tax liabilities of the taxpayer within stipulated period of limitation; to declare tax liability for a given period

    d) Providing necessary inputs for taking policy decision and

    e) Management of audit and anti-evasion programs of tax administration.

     

    Who needs to file Return in GST regime?

    Every registered taxable person - who crosses the threshold limit for payment of taxes, has to file a return. A supplier in the Special Category State needs to be registered when the aggregate turnover crosses Rs. Nine lakhs but he becomes taxable person ONLY when he crosses Rs. Ten lakhs.  So he will be required to file returns when he crosses the threshold limit of Rs. Ten lakhs. In states other than Special Category States it is 20 Lakhs.

     

    There are some other class of persons who need to be registered and therefore will have to file returns like interstate suppliers, TDS Deductors, E-commerce operators, suppliers supplying goods through E-commerce operators etc.

     

    GSTR-1: Outward Supply Details

    A normal registered taxpayer has to file the outward supply details in GSTR-1 in relation to various types of supplies made in a month, namely

    ·        Outward supplies to registered persons

    ·        Outward supplies to unregistered persons (consumers)

    ·        Details of Credit/Debit Notes

    ·        Zero rated

    ·        Exempted and

    ·        Non-GST supplies

    ·        Exports, and

    ·        Advances received in relation to future supply.

     

    Details Required

    Only certain prescribed fields of information from invoices need to be uploaded. No scanned copy of invoices is to be uploaded.

    ·        B2B supplies:-For B2B supplies, all invoices, whether Intra-state or Interstate supplies, will have to be uploaded. Because ITC will be taken by the recipients, invoice matching is required to be done.

    ·        B2C supplies:-In 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 lakhs in inter-state B2C supplies will have to be uploaded.

    ·        For inter-state invoices below Rs. 2.5 lakhs and all intra-state invoices, state wise summary will be sufficient.

     

    Description of items in the invoice

    Description will not have to be uploaded. Only HSN code in respect of supply of goods and Service Accounting code (SAC) in respect of supply of services will have to be fed. The minimum number of digits that the filer will have to upload would depend on his turnover in the last year.

     

    Transaction Value

    Transaction Value and Taxable Value should be fed. In some cases both may be different. In case there is no consideration, but it is supply by virtue of schedule 1, the taxable value will have to be uploaded.

     

    Furnishing details of Outward Supplies

    The due date of filing GSTR-1 FORM is 10th of the next month. The taxpayer shall not be allowed to furnish the details of outward supplies between the 11th and 15th of the month succeeding the tax period. Like that he should either accept or reject the details communicated under inward supplies, on or before the 17th but not before the 15th of the month succeeding the tax period.

     


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