Can GST Return Be Revised? What You need to Know?
G.S.T and how to make amendments or corrections in the GST Returns (GSTR 1 & GSTR 3B)
GST known as a Good and Service Tax is in the league of an indirect tax that has replenished the comprehensive collection of indirect taxes such as VAT, CST, service tax, central duty, and more in India. This Good and Service Tax Act came into existence in the year 2017 by the Government of India.
GST is a multi-stage tax system, levied at the time of consumption i.e., on the sale of goods and services unlike the other indirect taxes incurred at the start of the production. The Supply chain of a product involves multiple stages like buying raw material, manufacturing, selling to the whole seller or retailer, and the final sale to the consumers. GST is levied on each of these stages, thus making it a multi-stage tax.
The predominant objective of this taxation system is to introduce a uniform indirect tax procedure throughout India. It also cut down the cascading impact of other indirect taxes, thus resulting in decreasing the cost of the goods. The effect of this uniform taxation will be positive on the process of tax collection and will push the economic development of India.
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What is GST Return?
GST return is a set of forms to be filled by a registered taxpayer/ dealer (GSTIN) providing details of all income on sales (output GST) and expenses on purchase(input tax credit). The filled document to be submitted to the tax authorities helps to calculate net tax liability.
The process of filing GST Return like registration, return filing, refunds, and more is completely accessible on GST Online Portal.
What is the frequency to file GST Returns?
- Any business with an annual turnover of more than Rs.5 crore has to file twice on monthly basis and once annually.
- The number of GSTR filings varies from GSTR quarterly filing under the Quarterly Return Filing and Monthly Payment of Taxes Scheme (QRMP) and a taxpayer can file a maximum of 9 GSTR filings in a year inclusive of GSTR 3B and annual returns.
- In case of some special cases such as composition dealers, the returned to be filed separately and a maximum of five GSTR filings can be made in a year.
Types Of GST Returns?
In the Good and Services Tax Return-1 (GSTR-1), a taxpayer furnishes the details of all the outward supplies or sales of goods and services made during the entire tax period. To be precise it includes all the debit notes and invoices raised on the sales transaction made of the entire tax year.
Any type of amendments to sales invoices even related to the previous year should be mentioned in GSTR-1 forms by all the dealers.
GSTR-1 can be filed in returns on the 11th of every month for a business with a turnover of more than Rs.5 crore, if not opted for Quarterly Return Filing and Monthly Payment of Taxes Scheme (QRMP ). Otherwise, it’s 13 of every quarterly month under the QRMP scheme. This scheme simplifies compliances for small taxpayers.
GSTR 2A is an auto-created purchase-related tax return for a tax filer that is generated by a GST portal on each business showcased for GSTR-1 by its dealers. It consists of all the details of inward supplies of goods and services made from the registered GST suppliers during the entire tax period.
GSTR 2A is a read-only return and is used for reference purposes by the taxpayer to claim an accurate Input Tax Credit (ITC) for every financial year, for multiple tax periods.
GSTR 2 B
GSTR 2B is an auto-drafted return statement generated every month for dealers irrespective of opting for the QRMP scheme or not. The statement is launched in the month of beginning of August every year and contains all the ITC(input tax credits) details of back periods.
It facilitates action against every reported invoice, such as ineligible, subject to reverse charge, references to the table numbers in GSTR 3B.
GSTR 3B is to be filed on monthly basis by all the registered GST taxpayers. It is a self-declaration form for furnishing summarised details of all sale output made, purchase credit claimed tax liability, and taxes paid.
The input and output credit details duly filled in GSTR 3B to be reconciled with GSTR 1 and GSTR 2B. Any mismatch of data between these three forms can suspend your GST registration.
The filing of GSTR 3B is to be made on the 20th of every month by the taxpayer, who has a financial turnover of Rs.5 crore and did not opt for the QRMP scheme. The taxpayers, who opted under the QRMP scheme have to file in the tax on the 22nd month of the quarter.
GSTR 4 is a GST return to be filed on annual basis by the composition taxpayers. This return was earlier filed in every quarter has replaced the GSTR 9At w.e.f. FY2019-20. GSTR 4 to be filed by 31st April of every financial year.
Under the composition tax scheme, a dealer dealing with goods and services with a turnover of up to Rs.1.5 crores can pay the taxes at a fixed rate on the declared turnover.
GSTR 5 is filed by non-resident businesses registered under GST taxation policy and conducts transactions within India. The return accounted for are the details of all outward sales made, inward purchases received, credit/debit notes, tax liability, and taxes paid. This return is to be filed by the 20th of each month under GSTIN by the registered taxpayer in India
GSTR 5A is a summary of returns to be filed every 20th of each month. It reports the outwards taxable supplies and tax payable by Online Information and Database Access or Retrieval Services provider under GST.
GSTR 6 contains details of input tax credit received and distributed by the Input Service Distributor. It is filed by the Input Service Distributor on the 13th of every month.
GSTR 7 is filed on a monthly basis, by the taxpayer, to deduct TDS (Tax deducted at source) under GST. The return consists of details of TDS deducted, the TDS liability payable and TDS refund claimed if any. This return to be made by the 10th of every month.
GSTR 8 is a return filed on monthly basis by the registered GST e-commerce operators, required to collect tax at source(TCS). This return contains all supplies made through the e-commerce platform, and the TCS collected on the same. GSTR 8 is filed on the 10th date of every month.
GSTR 9 is a return made by the GST registered taxpayer at the end of( 31st December) every year. It consists of the details of all outward and inward supplies made and inward purchases received during the relevant financial year. CGST, SGST & IGST, and a summary value of supplies that are reported under every HSN code, inclusive of details of taxes payable and paid.
GSTR 9A is currently a suspended annual return that was earlier required to be filed by composition taxpayers. Formerly, it was a consolidation of all the quarterly returns filed for that financial year.
GSTR 9C is the reconciliation statement filed by the GST registered taxpayers with a turnover of more than Rs.2 crore in a financial year.
As per the GST guideline, this return to be certified by a Chartered Accountant/Cost & Management Accountant after conducting a thorough GST audit of the books of accounts and comparing the figures with the GSTR-9. The returns to be filed by 31st December of a year following the subsequent financial year.
GSTR-9C is to be filed for every GSTIN. So, for one PAN, you can have multiple GSTR-9C forms filed.
GSTR 10 is a return filed in the case the GST registered taxpayer registration gets canceled or surrendered. It is a final return to be filed within 3 months from the date of cancellation or surrendered.
GSTR 11 under GST guidelines is a return filed by a person issued Unique Identity Number (UIN) to get a refund for their purchases of goods and services in India. The filer is foreign diplomatic missions and embassies not liable to tax in India, to get a refund of taxes.
Can GST Return be amended or corrected?
Once the filing of GST returns is done it cannot be revised or amended. The new return filing system provides the provisions for changes of any minute errors made while uploading the details particularly, to sale invoices in the subsequent months of return.
Which GST returns can be amended or corrected?
- The errors made while filing form GSTR 1 and GSTR 3B particularly, related to output tax liability, credit, and a few more, are subject to minor amendments. These changes can be done within a particular time frame and, changes to be made in GSTR1 and GSTR 3B respective forms only.
- In the case of a normal taxpayer, the amendments can be filed in GSTR by 20th October for the month of September. In the case of composition taxpayers, the due date of filing GST returns for the second quarter can be made by 31st October, subsequently following the end of the financial year.
- The errors in the GSTR 9 annual returns, cannot be rectified directly. However, changes to be made in GSTR 1 and GSTR 3B. All three GST returns are interconnected. The alterations made in GSTR 1 and GSTR 3B will be directly auto-generated in GSTR 9. This is because the changes made are duly updated in the annual return
- filed till 31st December.
What amendments or corrections can be made in GST returns?
- The errors that occurred while filing form GSTR 1 related to taxable amount, tax rate, etc, can be altered. These changes can be incorporated by filing for amendments to invoices in subsequent month’s GSTR1. But if a mistake is made in GSTIN, party name, IGST, CGST, or SGST, then no rectification can be done. For example, if a dealer has filed in ‘’X’’ Business to Business transactions (B2B) sales to ‘’Y’’ in GSTR 1 in the month of April amounting to Rs.20,000, but in actual the sales are Rs.30,000.In such a case, the dealer can rectify the mistake by showing the amendment to invoices in GSTR1 in the month of May, i.e., the following month, and can pay the tax on the remaining amount with the interest.
- As per the CGST Act section 37(3), any registered person, who has furnished the details under section 37-1 for any tax period and which have remained unmatched under section 42 or section 43 of CGST Act, can upon discovery of any error, rectify such error in a prescribed manner, and shall pay tax and interest, if any. In the case of short payment of tax on account of such error or omission, in return to be furnished for such tax period.
- No rectification of an error in respect of the details furnished under section 37-1 of CGST Act is allowed after furnishing of the return under section 39 for the month of September, subsequently following the end of the financial year to which such details pertain, or furnishing of the relevant annual return, whichever is earlier – the first proviso to section 37(3) of CGST Act.
- Department has published a detailed circular No. 26/26/2017=GST dated 29/12/2017 provides relevant instructions to correct errors made in filing GSTR-3B.
- As return in GSTR-3B form does not facilitate the provisions for reporting of differential figures for past months, the concern figures may be reported on a net basis along with the values for the current month, in the referred suitable tables given in the form.
- While making adjustments in the output tax liability or input tax credit, it should be noted that there can be no negative entries made in the FORM GSTR-3B. If any amount is left for adjustment, it may be adjusted in the returns in FORM GSTR-3B in subsequent months. In cases where such adjustment is not feasible, one can claim a refund.
- Kindly note that where alterations have been made in FORM GSTR-3Bof multiple months, corresponding alterations to be made in FORM GSTR-1 in the corresponding months.
Process of how to make the amendments or corrections in GSTR 1 & GSTR 3B?
Steps for Amendment in GSTR 1 –
Select the filing Period
- The taxpayer has to select the GST Return filing period in the same month in which the amendments, to be made. For eg: if the change is made in April, then the filing period will be the same month .i.e. April, in case of a monthly filing. However, if it is the quarterly filing, the filing period will be next month i.e. May, if the amendment is made in April of a quarter of March-May.
- Note that the revised- amended invoice date must be the last date of the original invoice tax period. For eg: if an original invoice date: 12/03/2020 was amended in April, then the amended invoice date should not exceed later than 31/03/2020.
Category of the invoice that can be subject to an amendment or change
- B2B, B2C Large, registered Credit/Debit Notes, unregistered Credit Debit Note and Export Invoices
Details that are not subject to any amendment or change:
- A tax invoice, type of Export i.e., with or without payment, Credit /Debit Notes, the place of Supply/the Customer GSTIN/Reverse charge applicable, etc. are non-amendable and, as based on the invoice that is linked and these details need to match with the link- invoice details.
- If the receiver of goods has already made any kind of changes in the invoices, say in terms of accepted or modified, then the taxpayer will not be allowed to amend those invoices. Kindly note that such invoices are not subject to any amendment or change.
Summary Level Amendments
- B2C Others, Advances Received (Tax Liability), Adjustment of Advances
Steps to reset GSTR 3B:
- Login at GST portal to go to the ‘Return Dashboard’
- Select the option of the month and a year for which you want to reset GSTR 3B
- Click on Prepare Online
Kindly note that the option to reset GSTR 3B is already activated with your submission of your earlier return.
- Click on ‘Reset GSTR 3B’
- Click on ‘Yes’ and ‘OK
At the press of resetting the return, the status gets edited to Yet to be filed. Now fill in the required changes and resubmit. It shall be Note that the details provided in the return form will not alter only status changes.
Before the final submission of Form GSTR 3B, click on the Preview section to review. If you notice any more errors, then go to the tiles and edit the relevant information.
GST tax invoice of sales is as good as a Cheque with not much of a choice of easy corrections. Therefore, be utmost careful at the time of preparation of it. GST returns must be filed with complete and corrected information.