10 days left to file your first GST return. This is how you do it
August, 10th 2017
Filing of monthly returns, GSTR 1 and GSTR 2, has been deferred till September, but in the month of August you will have to file a simpler return in the form of GSTR-3B.
The deadline to file GSTR-3B for the month of July is August 20 and it is important for every business to get this done in the next 10 days.
"With the objective of ensuring smooth rollout of GST and taking into account the concerns expressed by the trade and industry regarding filing of the returns in GST regime, it has been decided that, for the first two months of GST implementation, the tax would be payable based on a simple return (Form GSTR-3B) containing summary of outward and inward supplies which will be submitted before 20th of the succeeding month," said a government press note.
So, what is GSTR-3B and how does one go about filing it?
GSTR-3B starts with the year and the month (July in this case) for which returns are being filed. Once you put the GSTIN, the form will automatically populate the name.
Under field 3.1, you will have to fill all the details of outward supplies and inward supplies liable to reverse charge. Reverse charge under GST is the liability of the recipient to pay taxes instead of the supplier and is applicable for both goods and services. Very simply, this is total taxable value of both intrastate and interstate of supplies with details like: a) Outward taxable supplies (other than zero rate, nil rate and exempted) b) Outward taxable supplies (zero rated) c) Other outward supplies (nil rated and exempted) d) Inward supplies (liable to reverse charge) e) Non-GST outward supplies
Please note along with the total taxable value, you have to also give the details of tax under IGST, CGST, SGST or UTGST. Value of Taxable Supplies = Value of invoices + value of Debit Notes - value of credit notes + value of advances received for which invoices have not been issued in the same month - value of advances adjusted against invoices
In GST, you have registered person (those with a GSTIN) and then there are unregistered person. Under column 3.2, one needs to give the break-up of the interstate outward supplies made to Unregistered Persons, Composition Dealers and UIN Holders. These details are related to what you have filled under figure 3.1 (a), related to outward table supplies (other than zero rate, nil rate and exempted). The details need to mention the place of supply (State or UT), total taxable value and amount of Integrated Tax.
The next part is divided into four parts and is one of the most important parts of the form. Part 4 is about Input Tax Credit (ITC) and is divided into ITC available, ITC to be reversed, the Net ITC available and ineligible ITC:
1) Under ITC Available (whether in full or partially), you will have to provide the break-up of inward supplies or supplies that came into your business and for which the ITC was availed. It is further subdivided into: a) Import of Goods: Here you will fill up the tax credit of IGST paid when you receive any goods. b) Import of Service: Here you will fill up the tax credit of IGST paid when you receive any services.
c) Inward supplies liable to reverse charge: If you have made any payment in basis of reverse charge you can claim ITC on the GST paid. For example, inward supplies liable for reverse charge include sponsorship services, services provided or agreed to be provided by an individual advocate or firm of advocates, services by an arbitral tribunal, radio taxi service among others. d) Inward Supplies from ISD: If you have received any goods through the Input Service Distributor (ISD), route, you can fill the details of input tax credit received here. e) All other ITC: Any other ITC can be added in this column. 2) Under ITC Reversed, the first part pertains to Rules 42 and 43 of the CGST Rules. Rule 42 lays down the manner of determination of input tax credit in respect of inputs or input services and its reversal. This can be inputs being partly used for the purposes of business and partly for other purposes, or partly used for effecting taxable supplies including zero rated supplies and partly for effecting exempt supplies,
Rule 43 on the other hand talks about the manner of determination of input tax credit in respect of capital goods and its reversal. Like the earlier rule it talks about inputs being partly used for the purposes of business and partly for other purposes, or partly used for effecting taxable supplies including zero rated supplies and partly for effecting exempt supplies.
Any other ITC reversed can be added in the column after that. After this you would need to subtract ITC Reversed from ITC Available (1-2) to reach Net ITC Available.
Lastly, we need to include the ITC, which is ineligible. As per Section 17(5) inputs like motor vehicles and other conveyances and membership of a club, health and fitness centre among others cannot be used for ITC purposes.
In this part you have to enter the value of exempt, mil-rated and non-GST inward supplies separately for interstate and intrastate supplies. This will either be from a composition dealer or inward supplies at nil rate and exempt. For any non-GST inward supplies, the value has to be entered in the next column.
This part pertains to the payment of taxes under the different heads like IGST, CGST, SGST, UTGST, and Cess. You have to enter the tax payable, the ones you have paid through ITC, tax paid through TDS/TCS, taxes or cess paid in cash, interest liability and lastly late fees if any.
Lastly, if any credit is available to you because you have picked work from a department or an establishment of the Central Government or State Government, local authority or Governmental agencies, the value has to be inserted here under the column TDS.
TCSBSE -0.44 % on the other hand, pertains to ecommerce industry. TCS refers to the tax which is collected by the electronic commerce operator when a supplier, supplies some goods or services through its portal and the payment for for that supply is collected by the electronic commerce operator.
The government has said there would be no late fees and penalty for the interim period, but it would be prudent to get you GSTR-3B filed by August 20. E-filing has been opened on August 5 and can be done by login in to the GST Portal here .