Goods And Service Tax
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GST refund applies to any taxpayer upon making extra GST payment in the form of tax, interest, penalty, fees or any others. For the refund process, the taxpayer shall apply through FORM GST RFD-01, as prescribed. To file FORM GST RFD-01, the individual can log in to GST Common Portal, GST Facilitation Centre or a registered organization. This article describes the procedure for claiming a GST refund in detail.
Claiming GST Refund
As per Section 54 of the GST Act, any of the following situations may necessitate a GST refund application to be filed by the taxpayer:
- Tax paid on zero-rated supplies of goods or services
- Export of goods or services
- Supplies made to SEZs units and SEZ developers
- Refund of tax on the supply of goods deemed as exports
- Refund of taxes on purchase made by UN or embassies etc.
- Providing refund on account of judgment, decree, order or direction of the Appellate Authority, Appellate Tribunal or any court
- Refund of accumulated Input Tax Credit on account of inverted duty structure
- Finalisation of provisional assessment
- Refund of pre-deposit
- Excess payment due to mistake
- Refunds to International tourists of GST paid on goods in India and carried abroad at the time of their departure from India
- Refund on account of issuance of refund vouchers for taxes paid on advances against which, goods or services have not been supplied
- Refund of CGST and SGST paid by treating the supply as intraState supply which is subsequently held as inter-State supply and vice versa
GST Refund Process
GST laws have standardised procedure for processing a GST refund claim across India. The taxpayer must file all GST refund applications online in a standardised form on the GST Common Portal. The person shall also file returns on a monthly basis for claiming refund amount in the credit balance. On filing a refund application, an acknowledgement for refund application would be provided within 14 days of the refund application is acceptable.
On receiving the refund request, the concerned Officer would have to convey the status of the application within 14 days. If there are any deficiencies in the application, the GST refund request would be sent back to the applicant along with the list of deficiencies and the applicant can refile the application. If there are no errors or deficiencies, the GST refund claims, if in the order must be sanctioned within a period of 60 days from the date of receipt of the claim. Officers are also not allowed to issue deficiencies memo after the 14 day period during when there are required to process the GST refund application.
Procedure for Filing Refund Request
Any taxpayer can claim a refund of any tax, interest, penalty, fees or any other amount paid by him by filing an application electronically in FORM GST RFD-01 through the GST Common Portal or through a GST Facilitation Centre. However, if a refund relates to balance in the electronic cash ledger, the taxpayer can use to claim the GST refund upon furnishing the returns for the relevant tax period in FORM GSTR-3, FORM GSTR-4 or FORM GSTR-7.
In a competitive environment where a business owner is riddled with Tax compliances and procedural formalities imposed on them by the authorities, one can easily get lost in the abyss and miss out on critical regulatory tasks. One such compliance comes in the form of GST Return filing. Our team consist of GST domain experts, Chartered Accountants and Lawyers who are dedicated heads over heals to serve you with the best GST Return filing solutions there exist.
What does a GST Return mean?
A GST Return is a document containing detailed information of tax collected and paid on all the outward and inward supplies of goods and services made by a taxpayer. This return is to be filed separately for each GSTIN as the Tax authorities use it for ascertaining net tax liability.
The main components of a GST Return filed by a registered dealer are
* Outward Supplies
* Inwards Supplies
* Output GST (On sales)
* Input Tax Credit (On Purchases)
Different types of GST Returns?
Out of 22 types of GST returns prescribed under the GST Rules, only 11 GST returns are active; the rest are either suspended or are of view only in nature.
The relevant types of returns for taxpayers are as follows:
GSTR-1 is the return used for reporting details of all outward supplies of goods and services made. It contains the invoices, debit/credit notes and any amendments made to previous sale invoices (even if they pertain to the last tax period).
The current frequency of filing GSTR-1 is as follows:
* Monthly, by 11th of every month - If the business either has an annual aggregate turnover of greater than Rs.5 crore or has not opted into QRMP Scheme
* Quarterly, by 13th of the month after the quarter has ended - If QRMP Scheme has been opted by the business.
GSTR-2A is a statement relevant for the recipient or buyer of goods and services that is view-only and dynamic in nature. The details of purchases made during a tax period from GST registered suppliers, i.e. inward supplies of goods and services produced, are furnished here.
As per Notification No. 40/2021-Central tax dated 29th December 2021, GSTR-2A will be available on the portal only till December 2021. After that, the taxpayers can refer to GSTR 2B for availing the input tax credit-related services.
GSTR-2B is also a view-only but static statement significant for the recipient or buyer of goods and services.It provides eligible and ineligible Input tax credit (ITC), similar to GSTR 2A for each month, but it remains constant for a period. Data filed by the corresponding suppliers in GSTR-1/IFF, GSTR-5 and GSTR-6 returns act as a basis for the auto-population of the same in GSTR 2B. As it is a read-only return, one can perform no action regarding furnishing details and filing.
It is to be noted that the process of GSTR-2B generation starts after the ending of the GSTR-1/IFF, GSTR-5 and GSTR-6 due date. Hence, it is available to all Normal, Casual and SEZ taxpayers for each tax period on the 14th day of the succeeding month.
GSTR-3B is a monthly return filed for furnishing summarized details of ascertained tax liability, input tax credit claimed, outward supplies and payment of taxes.
All regular taxpayers registered under GST are required to file GSTR-3B. The details regarding outward supplies and input tax credit must be reconciled with GSTR-1 and GSTR-2B for every tax period before filing GSTR-3B to avoid GST notices in future or suspension of GST registration as well.
The current frequency of filing GSTR-3B is as follows:
* Monthly, 20th of every month - For taxpayers having an aggregate turnover of more than Rs. 5 crore in the previous financial year or have been otherwise eligible but still opted out of the QRMP scheme
* Quarterly, 22nd or 24thof the month following the end of quarter depending upon the category of states - For the taxpayers who are eligible and remain opted into the QRMP scheme along with an aggregate turnover equal to or below Rs 5 crore.
GSTR-4 is the annual return filed by 30th April following the relevant financial year by the taxable persons covered under Section 10 of CGST Act,2017 (Composition Scheme).
Before FY 2019-20, taxpayers used to file this return quarterly. After that, it got replaced by a simple challan in form CMP-08 filed by the 18th of the month, succeeding every quarter.
GSTR-5 is the return filed by non-resident foreign taxpayers registered under GST carrying out business transactions in India. The return contains details of all outward and inward supplies, credit notes, debit notes, tax liability and its payment. The filing of GSTR-5 return is carried out according to the GSTIN of the registered taxpayer in India by the 20th of each month succeeding the current tax period.
GSTR-6 is a monthly return filed by an Input Service Distributor (ISD). It contains details of all documents issued by the ISD for the distribution of input credit and the credit received along with its distribution pattern. 13th of every month succeeding the current tax period is considered the due date to file a GSTR-6 return.
GSTR-7 is a monthly return filed by persons required to deduct TDS (Tax deducted at source) under GST. This return contains details of TDS deducted, TDS refund claimed (if any), and the TDS liability payable and paid.10th of every month succeeding the current tax period is considered to be the due date of filing GSTR7.
GSTR-8 is a monthly return filed by e-commerce operators registered under the GST who fall under the gambit of collecting Tax at Source (TCS). It contains detailed information of all supplies made through the e-commerce platform and the TCS collected on the same.10th of every month succeeding the current tax period is taken as the due date to file a GSTR-8 return.
GSTR-9 is referred to the annual return to be filed by all taxpayers registered under GST. It is a coalition of all the returns, be it monthly or quarterly (GSTR-1, GSTR-2B, GSTR-3B) filed during that financial year. As per GST law, GSTR-9 is to be filed by 31st December of the year following the relevant financial year but the same is extended to 28th February 2022for the financial year 20-21.
However, a few exceptions include taxpayers who are input service distributors, non-resident taxable persons, casual taxable persons, have opted for the composition scheme, and persons paying TDS under section 51 of the CGST Act.
Note: Notification No. 31/2021 dated 30th July 2021 has exempted the registered persons with aggregate turnover up to INR 2 crores in FY 2020-21 from the filing of Form GSTR-9 for FY 2020-21.
GSTR-10 is also known as Final Return as it is filed by a taxable person who got his registration cancelled or has surrendered the same. It is to be filed within three months from the cancellation order or date of cancellation, whichever is earlier.
How to file GST Returns?
Here at MAG, we are committed to providing you with the Best GST Return Consultancy and making the filing of GST returns online in India a very seamless process for the client.
The process of filing GST Return 3B online is:
* Step:1 Visit the GST portal (www.gst.gov.in).
* Step:2 Ensure that you are registered under GST and have the 15 digits GST identification number that is based on the state code and PAN. It can be obtained by registering yourself online on the portal.
* Step:3 To file a return, go to ‘Returns dashboard’ in the 'Service’ column and fill in the financial year as well as the return filing period.
* Step:4 There, select the return you want to file and click on ‘Prepare online’. Enter all the values related to your return, including the amount of all outward and inward supplies made during the relevant tax period and the amount of late fee, interest or penalty, if any.
* Step:5 As all the details get filled up, click on ‘Save’, and a success message will pop up on your screen, after which you have to click on ‘Submit’ to file your return.
* Step:6 As the status of your return changes to ‘Submitted’, Click on the ‘Payment of Tax’ tile. Here you have to offset your liability with the available credit balance by mentioning the amount of ITC you want to use and then click on ‘Offset Liability’ to make the payment.
* Step:7 Lastly, you have to select the authorized signatory from the drop-down list and select among the two options ‘File form with DSC’ or ‘File form with EVC’ and click ‘Proceed’.
What is GST Registration?
Goods and Services Tax is an indirect tax used in India on the supply of goods and services. It is a comprehensive, multistage, destination-based tax: comprehensive because it has subsumed almost all the indirect taxes except a few state taxes. Multi-staged as it is, the GST is imposed at every step in the production process, but is meant to be refunded to all parties in the various stages of production other than the final consumer and as a destination-based tax, it is collected from point of consumption and not point of origin like previous taxes.
Turnover Threshold: The registration under GST is mandatory for the business entities based on the criteria of turnover or activities. The business dealing in goods and those providing service have to mandatorily apply for GST Registration if their aggregate turnover for a financial year exceeds Rs.40 Lakhs and Rs.20 Lakhs respectively. However, for business making supplies and providing services in the North Eastern States, the same is Rs. 20 lakhs and Rs. 10 lakhs respectively. To avail its benefits, many businesses also obtain voluntary registration under GST.
Benefits of GST:
1. Online Procedure under GST: The entire process under GST regime starting from registration to return filling is online. This would be quite advantageous for startup companies who do not have to opt for registration under various indirect tax regimes.
2. Composition scheme for small businesses: Composition Scheme is a simple and easy scheme under GST for taxpayers. Small taxpayers can get rid of tedious GST formalities and pay GST at a fixed rate of turnover. This scheme can be opted by any taxpayer whose turnover is less than Rs. 50 Lakhs.
3. Easy compliances: After obtaining registration, enterprise is liable to fulfil compliance in the form of return filing in a periodical manner. These compliance requirements are simplified under the GST regime. Further, enterprises having annual turnover less than Rs 1.5 are also eligible to opt for filing either monthly return or quarterly return.
4. Benefits of Input Tax Credit: Input credit means at the time of paying tax on output, you can reduce the tax you have already paid on inputs. Business entities can also avail credit of Gst paid on inputs.
DOCUMENTS AND INFFORMATION REQUIRED FOR GST REGISTRATION:
- Digital Signature
- Pan Card of entity
- PAN and Aadhar Card(linked with mobile number)
- Board Resolution or Letter of Authorization
- Address proofs for the Place of business(Electricity bills/water bills/utility bills)
- Rent Agreement( if rented)
- Bank Details
- Certificate of Registration
Steps for GST Registration:
- Preliminary Requirements
- Select a suitable package.
- Provide basic details & documents required for Registration.
- Make Payment through Secured Payment Gateway
- Application for Gst Registration
- Completion of Gst Registration
- Allotment of GSTIN.
*GSTIN will be allotted with 3-4 working days subject to the Government processing and approval.
Process of Gst Registration:
- Provide basic details & documents required for registration.
- Application for Gst registration.
- Allotment of GSTIN*
*GSTIN will be allotted with 3-4 working days subject to the Government processing and approval.