GST Return Filing

Types Of Returns Applicable Under GST Law

GST returns can be filed using different forms. They are:

• GSTIN (which stands for Goods and Services Taxpayer Identification Number)
• Legal name of the registered person
• Previous financial year’s aggregate turnover
• Taxable outward supplies to a registered person
• Taxable outward supplies to a consumer
• Amendments to details of any outward supplies for previous periods

GSTR 2A: Details, Due Date, Return Filing, Format

GSTR 2A is an automatic return generated for a taxpayer from his seller’s GSTR-1.

Difference between GSTR-2A and GSTR-2B

How to file GSTR-2A?

What happens if the seller delays GSTR-1 or fails to upload invoices?

Comparison between GSTR-2A and GSTR-3B

4. Eligible ITC

• GST authorities have issued notices to a large number of taxpayers asking them to reconcile the ITC claimed in a self-declared summary return Form GSTR – 3B and auto-generated Form GSTR – 2A or GSTR-2B. Such notices are issued in Form GST ASMT – 10. The taxpayer would be required to reply to such notices or pay the differential amount.
• Action has also been taken against evaders claiming ITC on the basis of fake invoices.
• Reconciliation ensures that credit is being claimed only in respect of the tax which has been actually paid to the supplier.
• Ensures that no invoices have been missed/ recorded more than once etc.
• In case the supplier has not recorded the outward supplies in Form GSTR – 1, communication can be sent out to the supplier to ensure that the discrepancies are corrected.
• Errors committed while reporting details in GSTR-1 by suppliers or GSTR-3B by recipients can be rectified.

Reasons for non-reconciliation of GSTR – 2A or GSTR-2B and GSTR – 3B: The details disclosed in Form GSTR – 2A and Form GSTR – 3B may not reconcile on account of the following reasons:

• Credit of IGST claimed on the import of goods
• Credit of IGST on the import of services
• Credit of GST paid on reverse charge mechanism etc.
• Transitional credit claimed in TRAN – I and TRAN – II.
• ITC for goods and services received in FY 2020-21 but availed in FY 2021-22.

Details of GSTR-2A

• GSTIN – GSTIN of the dealer will reflect here.
• Name of the Taxpayer – Name of the taxpayer including legal and trade name

PART A

Part B

PART C

GSTR 2 B

Guide on GSTR-2B: Auto-drafted ITC Statement

Introduction to GSTR-2B

Importance and benefits of GSTR-2B

• The input tax credit is not availed twice against a particular document.
• The tax credit is reversed as per the GST law in their GSTR-3B, wherever required.
• GST is correctly paid on a reverse charge basis for the applicable documents, including import of services.
• The statement indicates the respective tables or columns of GSTR-3B under which the input tax credit of an invoice/debit note must be taken.

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How to access GSTR-2B on the GST portal?

• Part A (ITC Available):

• Part B (ITC not Available):

• Summary statement showing ‘ITC available’ and ‘ITC not available’ for every section.
• Advisory for every section clarifies the kind of action that taxpayers must take.
• Document-wise details such as invoices, credit notes, debit notes, etc. to view and download along with amendments.
• Cut-off dates and advisory for generating and using GSTR-2B.
• Import of goods and import from SEZ units/developers (available from GSTR 2B of August 2020 onwards).

The form GSTR-2B is classified into two categories:

• ITC is available: PART-A of ITC Available contains details of inward supplies, credit-debit notes (CDN), including amendments, and import of goods divided into four parts- ITC for supplies from registered persons, ITC from ISD, ITC towards inward supplies on reverse charge and import of goods. Whereas, PART-B is ITC Reversal has one part called ‘Others’ that contains details of credit notes and amendments.
• ITC is not available: PART-A of ITC Not Available has purchase invoice or CDN details, including any amendments, divided into three parts- All other ITC for supplies from registered persons, ITC from ISD and ITC towards inward supplies on reverse charge. Whereas, PART-B has CDN details and amendments under the ‘Others’ heading.

The input tax credit will be marked as ‘not available’ in the following scenarios:

• Where the time limit to avail input tax credit on an invoice or debit note has expired under section 16(4) of the CGST Act (earlier of 30th September of the year following the financial year or date of filing annual returns).
• The state of the supplier and place of supply is the same, whereas the recipient is located in another state.
• When the purchaser is not eligible for Input Tax Credit towards an invoice or debit note is issued for the supply of goods or services, or both.

The notable features of GSTR-2B are as follows:

• To view and download the summary statement as a PDF file.
• Can obtain section-wise details or complete download of ITC instantly.
• Availability of section-wise advisory.
• Allows text search for all the generated records.
• Option to view, filter and sort data, as required.
• Hide/view the columns as per the user’s convenience.
• Where the file contains more than 1,000 records, options for a full download of GSTR-2B and an advanced search is available.
• An email or an SMS will be sent to the taxpayer informing them about the generation of GSTR 2B.
• Only documents filed by suppliers/ISD in their GSTR-1/5/6 are reflected.

Comparison of GSTR-2A with GSTR-2B

GSTR-2B vs GSTR-3B : Matching Purchase register with GSTR-2B

• Input tax credit cannot be taken twice for the same supply.
• Credit is reversed in GSTR-3B in accordance with the GST Act and Rules.
• Tax is charged on a reverse charge basis and paid to the government.
• Tax credit is being availed for the tax which has been actually paid to the supplier.
• The purchase invoices against which tax credit is going to be claimed in GSTR-3B is found in the GSTR-2B in compliance with Section 16 of the CGST Act.
• Until 31st December 2021, taxpayers could have arrived at the provisional amount of tax credit for GSTR-3B which is 5% of the available tax credit as per GSTR-2B, as per CGST Rule 36(4). From 1st January 2022, it is no longer available due to the amendment made to CGST Rule 36(4) vide the Central Tax notification no. 40/2021 dated 29th December 2021 and the Central Tax notification no. 39/2021 dated 21st December 2021. No excess tax credit is claimed, otherwise it must be paid back later on with an interest of 24% per annum.
• ITC belonging to a particular financial year towards purchase invoices or debit notes raised in that financial year must be availed before a deadline under the GST law. It is earlier of the due date of filing GSTR-3B for September of the year following that financial year or GST annual return filing date.
• No major mismatches exist between GSTR-2B and GSTR-3B that can lead to the cancellation of GST registration.

• GSTIN
• Document type
• Document number
• Document date
• Total taxable value
• Total tax amount should total up to the sum of IGST, CGST, SGST and CESS, if any
• Tax amount head wise

• Period of reporting the invoices by the supplier is different from the period of accounting in books by the buyer.
• Subsequent issue of debit or credit notes by supplier gone unaccounted for by the buyer.
• Amendments to filed GSTR-1 in subsequent period’s GSTR-1 by the suppliers. For instance, differences in sales details between the books of accounts and GSTR-1 is auto-populated from the e-invoicing system. Thus, the supplier amends returns later on.

How does Itax Fair GST help in GSTR-2B vs GSTR-3B vs Purchase books matching?

• A single-click import of the purchase data from Tally or any other ERP software
• Inbuilt validations for accurate upload of the purchase data without errors
• Optimised input tax credit by downloading multi-month GSTR-2B report
• Advanced filters and excel report summary to take actions and maximise ITC claims
• Supplier-level invoice mismatches can be identified for taking corrective actions.
• Instant comparison report for GSTR-2B versus GSTR-3B available on tap
• Enjoy 100% optimised ITC claims with ClearTax ITC optimisation calculator
• Get eligible ITC effortlessly as per Section 16(2)(aa) and Rule 36(4) with a single click
• Auto-prepare monthly/quarterly GSTR-3B accurately from the filed GSTR-1 and downloaded GSTR-2B
• Our inbuilt vendor communication tool to interact with clients and suppliers helps in faster work.

Frequently Asked Questions (FAQs)

GSTR-3B: Due Date, Late Fee, Format, Return Filing, Eligibility, Rules

What is GSTR 3B?

• The GST liability must be paid on or before the date of filing GSTR-3B, earlier of its due date
• The GSTR-3B once filed cannot be revised
• Even in case of a zero liability, GSTR-3B must be compulsorily filed

Who should file GSTR 3B?

• Taxpayers registered under the Composition Scheme
• Input service distributors
• Non-resident suppliers of OIDAR service
• Non-resident taxable persons

Late Fee & Penalty

• Rs. 50 per day of delay
• Rs. 20 per day of delay for taxpayers having nil tax liability for the month

Due Dates for GSTR-3B Filing

• Up to December 2019: The due date is 20th of the subsequent month
• January 2020 onwards: The due dates have been staggered (as provided in the image)*
• Taxpayers opting for the QRMP scheme from 1st January 2021: The due date is 22nd or 24th of the month following every quarter, as per the State/UT of the principal place of business (list of States/UT given in the image).
• The following are essential points to note:
• Taxpayers must ensure to pay taxes and file GSTR-3B within the deadline.
• The late filing of GSTR-3B attracts a late fee and interest at 18% per annum.
• In case the tax was paid within the due date but the GSTR-3B was filed after the deadline, both late fees and interest will apply.
• Taxpayers (including those not opting for the QRMP Scheme) filing quarterly GSTR-1 returns must still pay tax and file GSTR-3B every month.

GSTR-3B vs GSTR-2A & GSTR-2B: Comparison

• Avoid notices due to excess input tax credit claims in GSTR-3B
• Be informed if any genuine input tax credit is missed out on
• Nudge the supplier to upload the invoice details in the GSTR-1, if not uploaded
• Stay GST compliant and improve the GST compliance rating!

GSTR-3B vs GSTR-1: Comparison

• Avoid interest & penalties due to the short payment of tax
• Know if any invoice is missed out on or duplicated
• Allow the recipient to claim an accurate input tax credit based on his GSTR-2A & GSTR-2B
• Stay GST compliant and improve the GST compliance rating!

Frequently Asked Questions

• GSTIN
• Legal name
• Inward supplies where tax is payable on reverse charge
• Amendments to details of inward supplies furnished in returns of previous periods

• GSTIN
• Legal name
• Imported goods
• Imported services
• Outward supplies made
• Details of debit credit notes

• GSTIN
• Legal name
• Amendment to distribution documents and credit or debit notes of previous periods
• Input tax credit received for distribution

• GSTIN
• Legal name
• TDS details
• Liability – payable and paid

• GSTIN
• Legal name
• Details of supplies made via e-commerce operator
• Tax paid and payable
• Details of interest

• Legal name
• Effective date of cancellation/surrender
• Cancellation order date
• Tax payable on closing stock

• Unique Identification Number
• Name of the person having UIN
• Details of supplies

Process of Filing GST Returns Online

What is GST Return? Who Should File, Due Dates & Types of GST Returns

What is a GST Return?

• Purchases
• Sales
• Output GST (On sales)
• Input tax credit (GST paid on purchases)

Who should file GST Returns?

How many returns are there under GST?

What are the different types of GST returns and the due dates to file them?

Late Fees and Interest on GST Return

Introduction to Late Fees under GST

Amount of late fees applicable

In GSTR-1 and GSTR-3B other than nil filing, maximum late fee is fixed based on annual turnover slab, as follows:

Late fee computation for GSTR-3B and GSTR-1

As per the GST Acts, for intrastate supplies, the late fee should be paid under both the CGST and SGST Act as follows:

The Nil return filers must pay the below mentioned late fee:

For GST annual returns (GSTR-9)

*CBIC issued notification no: 07/2023–Central Tax to reduce late fee for delayed GSTR-9 filing from FY 2022-23 onwards:

Up-to-date List of late fee notifications

GSTR-1

GSTR-3B

GSTR-4 (Annual)

GSTR-5

GSTR-5A

GSTR-6

How to deposit Late fees with Government

interest and late fee in GSTR-3B

cash ledger balance

Interest under GST & Calculation

Interest is applicable on late payment of GST liability on the net tax liability after reducing the input tax credit claims. The interest has to be paid by every taxpayer who:

• Makes a delayed GST payment i.e. pays CGST, SGST or IGST after the due date.
• Claims excess input tax credit
• Reduces excess output tax liability

If GST is not paid within the due dates of filing return Interest at following rates has to be paid:

For example, a taxpayer fails to make a tax payment of Rs. 10,000 for the month of December 2020, where the due date was 20th January 2021. If he makes the payment on 20th February 2021, the interest for the delay period (31 days: from 21st January till 20th February) will be calculated as follows:

Frequently Asked Questions (FAQs)