Deadlines for filing three GST returns are near, know more about them

It's been two months since new tax regime Goods and Service Tax (GST) has been rolled out. As expected, with its implementation, the taxpayers had to file 37 returns every year.

The deadline for the first GST return (GSTR) Form-3B has already been crossed. Now, the shift is towards three GSTR forms which taxpayers need to file in next 13 days. 

Ministry of Finance, on Saturday tweeted saying, "GSTR 1 is to be filed by all taxpayers by 5th of September 2017. GSTR 2&3 to be filed by all taxpayers by 10th&15th of Sept 2017 respectively."

GSTR 1 is to be filed by all taxpayers by 5th of September 2017.GSTR 2&3 to be filed by all taxpayers by 10th&15th of Sept 2017 respectively

— Ministry of Finance (@FinMinIndia) September 2, 2017

This means, taxpayers have only three days to file GSTR1, eight days for GSTR-2 and 13 days for GSTR-3. These returns are for the month of July. 

What is GSTR-2?

Every registered taxable person is required to give details of Inward Supply, i.e., purchases for a tax period in GSTR-2. 

GSTR-2 contains details of all the purchases transactions of a registered dealer for a month.

It will also include purchases on which reverse charge applies.

The GSTR-2 filed by a registered dealer is used by the government to check with the sellers’ GSTR-1 for buyer-seller reconciliation.

Buyer-seller reconciliation or invoice matching or is a process of matching taxable sales by the seller with the taxable purchases of the buyer. 

How to file?

There are 13 headings in GSTR-2 format prescribed by the government. 

1.GSTIN – Each taxpayer will be allotted a state-wise PAN-based 15-digit Goods and Services Taxpayer Identification Number (GSTIN).

2. Name of the Taxpayer – Name of the taxpayer including legal and trade name (will be auto-populated)

3. Inward Supplies from Registered Taxable Person: Most of the purchases from a registered person will be auto-populated here from GSTR-1 filed by the seller. It will have all details of type, rate and amount of GST, whether ITC is eligible, amount of ITC.

4. Inward supplies on which tax is to be paid on reverse charge: Certain goods and services attract reverse charge, i.e., the buyer is liable to pay GST. A registered dealer purchasing more than Rs. 5,000 per day from an unregistered dealer is liable to pay reverse charge.

5. Inputs/Capital goods received from Overseas or from SEZ units on a Bill of Entry: Any kind of import of inputs (items used to manufacture finished goods) or capital goods received against a Bill of Entry must be reported under this head. Goods received from SEZ are also reported here.

6. Amendments to details of inward supplies furnished in returns for earlier tax periods in Tables 3, 4 and 5

7. Supplies received from composition taxable person and other exempt/Nil rated/Non-GST supplies received: This head will include purchases from composition dealer and other exempt/nil/non-GST supplies.

8. ISD credit received: Details of the input tax credit received from a registered Input Service Distributor (ISD) (usually a head office which has transferred its ITC to all its branches). This data will be auto-populated from GSTR-6 filed by ISD.

9. Tax Deduction at Source and TCS Credit received

10. Consolidated Statement of Advances paid/Advance adjusted on account of receipt of supply: Any advance payment made during the month will appear here. If you paid advance tax on goods or services received during an earlier tax period, but only received the invoices this month, declare the details here.

11. Input Tax Credit Reversal / Reclaim: ITC can be availed only on goods and services for business purposes. If they are used for non-business (personal) purposes, or for making exempt supplies ITC cannot be claimed.

12. Addition and reduction of amount in output tax for mismatch and other reasons: This section will capture any additional tax liability that can arise due to the corrections made to the GSTR-3 of the previous month.

13. HSN summary of inward supplies: This section requires a registered dealer to provide HSN wise summary of goods purchased. It will be entered by the taxpayer.

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