GST Returns Part I

After a long gap, I’m back with a new post. Meanwhile, GST celebrated its birthday on 1^st July. We also celebrated Chartered Accountants Day on the very same day. I still keep wondering is it a coincidence that two events occur on the same day?? Let’s keep it a suspense.

From this post onwards, we will try and discuss the types and the due dates of various returns. Now that a year has passed and the due dates and forms are fairly settled; it’s a ripe time to get to know about it. In last year many of the entrepreneurs could not abide by the timelines because of various reasons, but the most common reason was “I never knew I had to file this!!!” So let’s get to know what exactly are the timelines that one has to follow.

GSTR 1

If your Turnover is up to Rs. 1.50 Crores
Period (Quarterly)	Due date
July- September	30th October 2018

If your Turnover is more than Rs 1.50 Crores
Period (Monthly)	Due Date
June 2018	10th July 2018
July 2018	10th August 2018
August 2018	10th September 2018
September 2018	10th October 2018

These due dates are to be strictly observed. Otherwise, late fees are imposed; and you won’t be able to file your next return unless you pay the late fees. The late fees are imposed per day of the delay. Let us see what the late fees for late filing of GST Returns are: -

Type of Return	Late Fee
Normal Return	Rs. 50 per day of delay
Nil Return	Rs. 20 per day of delay

These late fees are same for GSTR 1, GSTR 3B, GSTR 4, GSTR 5, GSTR 5A, GSTR 6

This is all about the timelines of GSTR 1. But what exactly is GSTR 1?? We’ll see in my next post.

GST Tip: - As per the CGST Act, every taxpayer/registered person has to maintain books of accounts or other records for 72 months i.e. for 6 years from the due date of furnishing of the annual return.

Registrations under GST

Let us now move ahead and try to understand how’s, who’s and why’s of registration under GST

Whether you should get yourself registered under GST?

Yes, if you are any one of the followings

1.     If you are the supplier of goods and services and your turnover of Taxable goods and services is more than Rs. 20 Lacs

2.     If you were earlier registered for the State VAT or Service tax

3.     If you are Agent of a supplier & Input service distributor

4.     If you are paying tax under the reverse charge mechanism

5.     If you are a Person supplying via e-commerce aggregator

6.     If you are e-commerce aggregator

7.     If you are a Person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered taxable person

What is the procedure for Registration?

The biggest relief for the taxpayers is that the registration for the GST is totally online and the Registration Certificate is also received online. Unlike Service Tax where the taxpayers had to get the signature from the Registration officer. This has helped in reducing the corruption at the grass root level to a large extent.

Documents for registration

Keep the following things ready for registrations

Ø PAN of the Applicant

Ø Aadhaar card

Ø Proof of business registration or Incorporation certificate

Ø Identity and Address proof of Promoters/Director with Photographs

Ø Address proof of the place of business

Ø Bank Account statement/Cancelled cheque

Ø Digital Signature

Ø Letter of Authorization/Board Resolution for Authorized Signatory

GST registration is an 11-step online process where we have to upload the required documents

Why should I get registered?

• Provide input tax credit to customers– Since your business is legally recognized, you can issue taxable invoices. Buyers, in turn, can take input credit on their purchases. This will help expand the customer base and make it more competitive.

• Take input credit– If you voluntarily register, you can take the eligible Input Tax Credit on your own purchases and input services like legal fees, consultation fees, AMC fees etc. This will eventually increase your business margin and profitability.

• Make inter-state sales without many restrictions– If you are registered under GST, you can make inter-state sales without many restrictions. Thus, it widens the potential market for SMEs. SMEs can also opt for selling their goods online through the e-commerce platform.

• Be compliant and have a good rating– Registration for GST will ensure that your business is compliant and scalable without any barrier to future registration. Also, under GST, compliance rating will be maintained and if this is done correctly, it can attract additional business.

• Better standing– A registered business will find it much easier in other business areas such as getting bank loans, renting premises.

What does the GSTIN stand for?

Registration Number under GST is called GSTIN and it a is the 15-digit number, the first 2 digits are for the state code, next 10 digits PAN, 13^th digit is for entity code, 14^th digit is Z by default and 15th digit is checksum digit.

GST Tip: - Taxes subsumed by State Goods and Services Tax are Value Added Tax, Entry Tax, Purchase Tax, Luxury Tax, Entertainment Tax, Octroi, Various Surcharges & Cess's


- CA Avadhoot R Gokhale
+ 91 9850 40 6622
arg@saarvam.in

Let’s Dive In….

This time around let us try to understand what really is the GST???

The Goods and Services Tax was introduced to subsume almost all the Indirect Taxes that existed in India. Indirect Taxes are the taxes which are levied on the manufacture and sale of a product or service. So, they are not directly charged to the customer but they are added to the final price of the product. So, whether we like it or not we end up paying them. Many of the State, as well as Central taxes, were subsumed in GST. Let us try to understand the GST without any legal jargons.

What is the need to bring Single Tax instead of multiple taxes?

The old India was economically fragmented, the new India will create one tax, one market and for one nation- Arun Jaitley

The first reason is to simplify the indirect tax structure in India. With so many different State as well as Central taxes to comply with; Indian businessmen especially the SME’s were finding it difficult to do the business with freedom.

In the Indian tax structure; as far as the Indirect Taxes were concerned; the right levy i.e. impose and right to collect the taxes on manufacturing was with the Central Government whereas the right to levy and collect taxes on trading of goods was with the States. In this scenario, the basic value of the product was considered as the base for imposing Central taxes. But for calculating the state taxes, the central taxes were also added to the basic value. So effectively amount of Central tax were also taxed by the State Governments. In legal terms, this is known as the cascading effect. The best way to avoid this was to impose one Central tax and do away with all other taxes. 

The GST will apply to the Sale of Goods as well as the provision of Services. Earlier the taxes on Services was levied and collected by the Central Government only. The idea is to make the input credit available across the industry. (We will learn more about Input Tax Credit soon)

There are many more reasons that can be listed but we can save them for later part.

In the next post, we will try to learn about the Procedural and Practical aspects of the Registrations under GST

GST Tip:- There is only one registration number per state in GST known as GSTIN (GST Identification Number)

The Beginning…….

1^st July will mark the First anniversary of a start of the new era in the Indian Taxation system. A new tax regime called “Goods and Services Tax” or the “GST” was introduced a year back. India witnessed a huge anxiety, fear, hope and many more things during past 12 months. 

Many people have many opinions about GST. It is quite natural too. After all, it was one of the biggest and most crucial reforms that were introduced in India since Independence. Now that finally the dust has been settled; it is ripe time to visit the most ambitious tax reform of our times. There is a need now; more than ever; to get acquainted with the law before us. This series is an attempt to understand, discuss and comprehend the GST Law.

This series will focus on different aspects of the GST. The primary objective of the series is to create awareness about the law before us. It’s an attempt to help people know more about the GST. The series will throw a light on different aspects of GST, the procedures, the compliances and many more things.

In the past one year, I felt the need to address many key issues which are not addressed as far as the GST is concerned. It was a reform that made more noise than required. The noise, I felt, was created more by the people who are least concerned about it. But amidst all this noise the real stakeholder of the GST, the entrepreneur, was mostly neglected. An entrepreneur, even if he disagrees with the statute, has to comply with it. He has no option to boycott the law of the land. He is the person who should be made more comfortable with the new regime.

This series is an attempt to help this stakeholder and all others with the GST law. This series will nowhere feature he political views or the rhetoric.  

Your suggestions and inputs are most welcome and We would definitely include the areas which you suggest.

To be Continued…...

CA Avadhoot R Gokhale

9850406622

arg@saarvam.in