GST Practitioner

WHO IS A GST PRACTITIONER

GST Practitioner is a tax professional who can prepare returns and perform other activities on the basis of the information furnished to him by a taxable person. They are the only Professionals authorized for the purpose of filing tax returns on behalf of the actual taxpayers.

On the behalf of their clients, a GST practitioner can do the following

1. File GSTR 1 and GSTR 2

GSTR- 1 is a Form encompassing details of outward supplies of the goods and services

Whereas GSTR-2 is a form encompassing details of inward supplies of goods and services.

2. Furnish GSTR 3 and GSTR 9

GSTR-3 is a Monthly Return form which includes turn over details, outward supplies bifurcated as inter-State supplies as well as intra-State supplies. It also includes inward supplies and other additional information.

GSTR- 9 is a Final Return Statement in the form of Comprehensive schedule to be uploaded directly on the website.

3. Make a deposit for credit into the electronic cash ledger

Electronic cash ledger is maintained under form GST- PMT-05. It includes all persons who are liable to pay tax their interest, penalty, or late fees for any other amount on the common portal for crediting the Amount deposited and debiting the payment there from towards tax, interest, penalty fee or any other amount.

Any person or a person on his behalf shall generate challan under Form No: GST PMT-06 on the common portal by entering the details of the amount to be deposited by him.

The deposit can be made through any of the following made modes:

(a) Internet banking through authorised banks.

(b) Credit card or debit card through the authorised banks.

(d) OTC payments through authorised banks for deposits upto 10,000 rupees per Challan through Cash, cheque or demand draft.

4. File a claim for refund (after confirmation from the registered person

Any person claiming refund of any tax and interest can make an application through a GST practitioner before the expiry of 2 years from the relevant date under relevent form.

Under the conditions mentioned below no refund of unutilized input tax credit shall be allowed:

(a) Zero rated supplies made without payment of tax.

(b) Where the credit has accumulated on account of rate of tax on input being higher than the rate of tax on output supplies.

For the purpose of such applications GST Practitioner should be provided with all the documentary evidence as may be required to establish that a relevant case for the refund is duly constituted.

5. File an application for amendment or cancellation of registration (after confirmation from the registered person)

For the purpose of such applications GST Practitioner should be provided with all the documentary evidence as may be required to establish that a relevant case for the refund is duly constituted.

An application in the form GST REG-01 may be made by all such Persons/Firms/Companies and/ or other business organisations who are interested to get themselves registered. This can be done through GST Practitioners. Information so required for registration is very specific focusing on the Legal name of the business, availability of the PAN card, trade name of the business, Nature of the business and certain other relevant informations.

Application for cancellation of registration is done under Form GST REG-16 requiring basic information as: The reason for cancellation and the Registration details already stored with GST department.

6. Appear as an authorized representative

Role of GST Practitioner

To smoothly follow through the various compliances under GST Regime, a Goods & Services Practitioner has been assigned to undertake any or all the following activities on behalf of a registered person;

· Furnish details of outward and inward supplies.

· Furnish monthly, quarterly, annual or final return.

· Deposit any credit into the electronic cash ledger.

· File a claim for refund.

· File application for cancellation or amendment of registration.

A confirmation from the registered person is required to be sought when the GST Practitioner submits the application related to a claim for refund or an application for amendment or cancellation of registration. A GST practitioner can also appear as an authorized representative on behalf of the registered taxpayer before an Appellate Authority or Appellate Tribunal or any officer of the department.

In form GST PCT-5, the registered person must give the consent and authority to a GST practitioner by listing the activities which can be accessed by the practitioner.

There are a whole lot of activities that form a part of the process of Returns under GST. These include:

· Filing different types of GST returns electronically

· Uploading invoice wise details

· Auto-population of details with regards to input tax

credit from returns filed by suppliers to return filed by

recipients

· Matching of invoice information

· Automatic reversal of ITC in the event of mismatch of the

invoice information

Taxpayers registered under GST are required to follow the return procedure to be able to file returns easily and take the benefit of Input Tax Credit (ITC). A regular taxpayer under GST is required to file two monthly returns and one annual return. However, there are special category taxpayers registered under GST who need to furnish separate returns. These taxpayers include:

· Non-resident taxable persons

· Taxpayers registered under the Composition Scheme

· Persons allotted with Unique Identification Number (UIN)

· Input Service Distributors

· Persons required to deduct TDS or collect TCS under GST

What is Return Under GST?

Every registered person paying GST is required to furnish an electronic return every calendar month. A “Tax Return” is a document that showcases the income of a registered taxpayer. Such a document needs to be filed with the tax authorities in order to pay tax to the government. The tax to be paid by a registered dealer depends upon the income declared by such a person in the tax return filed with the tax authorities.

Under the initial GST Return filing procedure, the different types of GST returns demanded the taxpayer to disclose the following details:

· Outward Supplies (Sales)

· Inward Supplies (Purchases)

· GST On Output

· GST on Input (Input Tax Credit)

· Other Particulars (As May be Prescribed in the Document)

Types Of GST Returns?

1. GSTR – 1: Return for Outward Supplies

GSTR-1 is a monthly return of outward supplies undertaken by a normal registered taxpayer under GST. In other words, this monthly return showcases the sales transactions of a business in a particular month.

Who Needs To File GSTR-1?

Every normal registered taxpayer under GST is required to file GSTR-1 each month. This return showcases details of 1) invoices, 2) debit notes, 3) credit notes and 4) revised invoices issued pertaining to your outward supplies.

Due Date for Filing GSTR-1

The standard date for filing GSTR-1 is 10 days from the end of the month for which such a return is to be filed. However, the due date to file GSTR 1 can be extended for any class of persons beyond the tenth of the succeeding month by the Commissioner. The reasons for such an extension would be notified.

2. GSTR – 2: Return for Inward Supplies

GSTR-2 is a monthly return of inward supply of goods and services as agreed by the recipient of the goods and services. In other words, GSTR-2 contains details with regards to the purchases made by the recipient in a particular month. The information contained in GSTR-2 is auto-populated with the details contained in GSTR-2A.

Who Needs To File GSTR-2?

Every normal registered taxpayer under GST is required to provide details regarding inward supplies or purchases made for each month in GSTR-2. This return showcases details with regards to purchases made from registered and unregistered taxable persons, debit notes and credit notes issued with respect to the inward purchases etc.

Hence, the recipient makes use of the details auto-populated in Form GSTR-2A with details uploaded by supplier in GSTR-1. The recipient makes necessary changes if required in GSTR-2 after verifying the information auto-populated in GSTR-2A.

Due Date for Filing GSTR-2

The process of making changes and filing GSTR-2 is required to be undertaken between 11th and 15th day of the succeeding month for which return is to be filed.

3. GSTR – 2A: Read Only Document

GSTR-2A is a read only document. This document gets auto-populated once the supplier uploads the details in GSTR-1. In other words, GSTR-2A enables the recipient to verify the details uploaded by the supplier in GSTR 1. Also the recipient could accept, reject, modify or keep the invoices pending using the said details. However, such changes are made by the recipient in GSTR 2.

Who Needs To File GSTR-2A?

GSTR-2A is made available to every normal registered taxpayer filing return under GST. This is because it is a read only document that gets auto-populated with details uploaded by supplier in GSTR-1.

Due Date for Filing GSTR-2A

GSTR-2A is a read-only document used by the recipient to match the details uploaded by the supplier in GSTR-1. Thus, the recipient can accept, reject, modify or keep the invoices pending in case there is any mismatch. However, the recipient can make actual changes, if any, only in Form GSTR 2. This process of making changes and filing GSTR-2 is to be undertaken between 11th and 15th day of the month succeeding the month for which such a return is to be filed.

4. GSTR – 3B: Summary of Inward and Outward Supplies

GSTR 3B is a simplified monthly summary return of inward and outward supplies. It is a self declaration showcasing the summary of GST liabilities of the taxpayer for the tax period in question. Moreover, it helps the taxpayer to discharge the tax liabilities in a timely manner.

GSTR-3B is a form that cannot be revised. Furthermore, this form does not require the compliance of comparing invoices between supplier and purchaser. That means both the suppliers and the recipients file the GSTR-3B form separately. Therefore, such a facility does not cause delays in filing of returns which would consequently attract late fees and interest.

Who Needs To File GSTR-3B?

Every normal registered taxpayer filing GST Returns is required to file GSTR-3B. GSTR-3B is also filed during the tax periods for which the tax liability is zero. That is, a taxpayer needs to file a Nil Return in case there are no outward or inward transactions during a particular month.

Due Date for Filing GSTR-3B

The GSTR-3B must be submitted by the 20th of the month succeeding the tax period for which GST is filed. In case no transactions have been undertaken in a particular month, the registered person needs to file a NIL return for that period.

5. GSTR – 4: Return For Composition Dealers

GSTR-4 is a quarterly return that needs to be filed by a registered taxpayer who has signed up for the Composition Scheme. Under this scheme, small taxpayers having a turnover of upto Rs 1.5 Crores need to pay tax at a fixed rate and file quarterly return. This is unlike the normal registered dealer who files three returns every month including GSTR-1, GSTR-2 and GSTR-3B.

Who Needs To File GSTR-4?

The Composition Scheme was introduced under GST in order to reduce the compliance burden on small taxpayers. Every registered taxpayer opting for Composition Scheme is required to file quarterly return in GSTR-4.

Due Date for Filing GSTR-4

The due date for filing GSTR-4 is 18th of every month following the quarter for which such a return needs to be filed.

6. GSTR – 5: Return For Non-Resident Taxable Persons

GSTR-5 is a monthly return filed by every non-resident taxable person. This return includes details pertaining to:

· inward supplies

· outward supplies

· any interest, penalty, fees

· tax payable or tax paid or

· any other amount payable under the act

Furthermore, this is the only return to be filed by a non-resident taxable person. This means, a non-resident taxable person is not required to file any annual return.

Who Needs To File GSTR-5?

Unlike a normal registered taxpayer, a non-resident taxable person is required to File monthly return in For GSTR-5. A non-resident taxable person means a person who supplies goods or services occasionally. This person does not have a fixed place of business or residence in India. Moreover, he can supply goods or services either as a principal or an agent or in any other capacity.

Due Date for Filing GSTR-5

The details in GSTR 5 need to be filed within a time period that is earlier of:

· within 20 days after the end of the calendar month or within

· 7 days after the last date of validity of the registration

7. GSTR – 6: Return For Input Service Distributors

GSTR 6 is a monthly return that an Input Service Distributor files every calendar month. This return provides information of all the invoices on which credit has been received and are issued by an ISD. This means that it gives a summary of the total input tax credit available for distribution during a particular month. Thus, the details of the invoices that an ISD furnishes in form GSTR 6 are made available to every recipient of the credit. These details are visible to the recipient in part B of form GSTR 2A.

What is GSTR-6A?

GSTR 6A is an auto drafted, read only form. This form is generated automatically based on the details furnished by the suppliers of an ISD in form GSTR 1. This form contains details pertaining to the supplies against which credit is received for distribution. It also includes the details pertaining to the debit notes and credit notes received during the current tax period.

Due Date for Filing GSTR-6

GSTR-6 needs to be filed on the thirteenth day of the month succeeding the month for which tax is to be paid.

8. GSTR – 7: Return For Taxpayers Deducting TDS

GSTR 7 is a monthly return that is required to be filed by the deductors who are required to deduct TDS under GST. Such a return consists of the details regarding:

· tax deducted at source,

· the liability towards TDS,

· TDS Refund claimed if any

· Interest, late fees etc. paid or payable

What is GSTR-7A?

GSTR-7A is an auto-generated form. The form gets generated once the deductor furnishes details in Form GSTR-7 on the common portal. If the details furnished by the deductor are accepted by the deductee, then a TDS certificate is made available to the deductee electronically.

Due Date for Filing GSTR-7

GSTR-7 is required to be filed by the deductor within 10 days after the end of the month in which the deduction was made.

9. GSTR – 8: Return For E-Commerce Operators Collecting TCS

GSTR 8 is a monthly return furnished by every electronic commerce operator who is required to deduct Tax Collected at Source under GST. This return reflects details of the supplies made through e-commerce portal and the amount of tax collected from suppliers of goods and services. Furthermore, the operator can also make changes to the details of supplies furnished in any of the earlier period statements.

Due Date for Filing GSTR-8

The last date to file GSTR 8 is the 10th day of the month succeeding the month for which TCS is to be collected. Thus, the amount of tax that the operator collects also needs to be deposited by the 10th day of the following month during which such a collection is made. Furthermore, the operator is also required to file an annual statement in the prescribed format in GSTR 9B. This return needs to be filed by 31st December following the end of each financial year.

10. GSTR – 9: Annual Return For Normal Registered Taxpayer Under GST

Section 44(1) requires that:

Every registered person shall furnish electronically an annual return for every financial year in the prescribed form, except the following:

· Input Service Distributor

· Person paying tax under section 51 or section 52,

· Casual taxable person

· Non-resident taxable person

Furthermore, persons registered under GST but having no transactions during the year are still required to file a Nil Annual Return.

Due Date for Filing GSTR-9

Such a return needs to be furnished on or before the 31st day of December following the end of such financial year. To further add to this, Rule 80(1) of the CGST Rules, 2017 states that such registered person shall furnish an annual return electronically in Form GSTR-9. This return needs to be filed through the common portal either directly or through a Facilitation Centre notified by the Commissioner.

11. GSTR – 9A: Annual Return For Composition Dealers

GSTR 9A is the annual return that every registered person opting for composition levy needs to file every financial year. This return is in addition to the quarterly returns filed by a composition dealer during a financial year. Thus, GSTR 9A is an annual return filed by a composition dealer containing details that relate to the quarterly returns filed by him during the year. This return contains details with regards to supplies made by the taxpayer during the year under composition scheme. These details include:

· inward and outward supplies,

· tax paid,

· input credit availed or reversed,

· tax refunds,

· late fee etc

Due Date for Filing GSTR-9A

The due date to file GSTR 9A is on or before December 31 succeeding the close of a particular financial year for which the return needs to be filed.

12. GSTR – 9B: Annual Return For E-Commerce Operators Collecting TCS

Every electronic commerce operator required to collect tax at source under section 52 shall furnish annual statement in FORM GSTR -9B. This return includes all the information furnished by the e-commerce operators in the monthly returns filed during the financial year.

Due Date for Filing GSTR-9B

All the e-commerce taxpayers are required to file GSTR-9B on or before 31st December following the close of the financial year.

13. GSTR – 9C: Return For Registered Persons Getting Accounts Audited

Every registered person having an aggregate turnover of more than Rs. 2 crores during a financial year must get his accounts audited by a CA or cost account. Furthermore, he needs to submit the annual return, a copy of the audited accounts and a reconciliation statement. This reconciliation statement is in Form GSTR 9C. So basically, GSTR 9C is a reconciliation statement reconciling value of supplies declared in annual return with the audited annual accounts.

Due Date for Filing GSTR-9C

The due date for filing GSTR-9C is the same as that for filing annual returns in GSTR-9. Hence, GSTR-9C shall be submitted on or before 31st December of the year subsequent to the relevant FY under audit.

14. GSTR – 10: Return For Registered Person Whose GST Registration Gets Cancelled

GSTR-10 is a final return required to be filed by a registered person whose GST Registration gets cancelled. Such a registered person does not include:

· Input Service Distributor

· Person paying tax under composition scheme

· Non-resident taxable person

· Person collecting TDS or TCS

Further, Form GSTR-10 is filed electronically through the common portal either directly or via a facilitation centre as prescribed by the Commissioner. The intent of filing this final return is to make sure that the taxpayer pays of any liability outstanding. This liability may include an amount equivalent to the amount that is higher of:

· input tax related to stock of finished and semi-finished goods, capital goods or plant and machinery or

· output tax payable on such goods

Due Date for Filing GSTR-10

The registered person whose GST Registration has been cancelled is required to file final return in Form GSTR-10 within a period which is later of:

· 3 months from the date of cancellation or

· Date of order of cancellation

15. GSTR – 11: Return For UIN (Unique Identification Number) Holders

GSTR-11 is a return to be furnished by a person who has been allotted a Unique Identification Number (UIN). UIN is issued so that the registered person obtaining the same can claim refunds for GST paid on goods and services purchased by them in India.

Who Can Apply For UIN?

UIN is allotted to foreign embassies and diplomatic missions who are not required to pay taxes in India. This number is issued so that these organizations can claim a refund for the amount of tax paid to the Indian Tax Authorities. In order to claim the refund on GST paid, these organizations need to file GSTR-11.

The organizations that can apply for UIN include:

· Specialized agency of the United Nations Organization

· A consulate or embassy of foreign countries

· Multilateral financial institution and organization notified under the United Nations (Privileges and Immunities) Act, 1947

· Any other person or class of persons as may be specified by the Commissioner

Due Date for Filing GSTR-11

The due date for filing GSTR-11 is 28th of the month succeeding the month in which inward supplies are received by the UIN holders. This means, GSTR-11 is not filed on a monthly basis. Rather, this form is filed on case-to-case basis as and when the supplies are made.

Below Table Shows Types of GST Returns

1	GSTR – 1: Return for Outward Supplies
2	GSTR – 2: Return for Inward Supplies
3	GSTR – 2A: Read Only Document
4	GSTR – 3B: Summary of Inward and Outward Supplies
5	GSTR – 4: Return For Composition Dealers
6	GSTR – 5: Return For Non-Resident Taxable Persons
7	GSTR – 6: Return For Input Service Distributors
8	GSTR – 7: Return For Taxpayers Deducting TDS
9	GSTR – 8: Return For E-Commerce Operators Collecting TCS
10	GSTR – 9: Annual Return For Normal Registered Taxpayer Under GST
11	GSTR – 9A: Annual Return For Composition Dealers
12	GSTR – 9B: Annual Return For E-Commerce Operators Collecting TCS
13	GSTR – 9C: Return For Registered Persons Getting Accounts Audited From CA
14	GSTR – 10: Return For Registered Person Whose GST Registration Gets Cancelled
15	GSTR – 11: Return For UIN (Unique Identification Number) Holders

Penalty For Filing Late Returns

In case, a taxpayer fails to furnish the details relating to outward supplies, a penalty is charged for the same. The fine amounts to a sum of Rs 200 (Rs 100 for CGST and Rs 100 for SGST) for each day of continuing default. This is subject to a maximum of Rs 5,000 only. However, there is no late fee for IGST. Also, interest is charged at 18% per annum. This interest is calculated by the registered taxpayer on the amount of tax liability outstanding. Furthermore, the interest is calculated from the day succeeding the due date for filing the GST return until the date of payment of tax by the taxpayer.

Advantages of GST

1. Upcoming of Common National Market

Under the Pre – GST scenario, state and local self governments practiced notable sovereignty in taxation. With individual states having strong taxation rights, each used to levy indirect taxes such as VAT, Central Sales Tax, Service Tax, Excise etc in many different forms. Not only that, to attract investment in their respective states, state governments depended on incentives. This leads to different prices of the same goods and services in different states. While states benefited from such a tax structure, the economy as a whole suffered.

But with the coming of GST, the registered tax assessees now pay a single, uniform tax on goods and services across the country. In addition to this, GST is lead by a Central Tax Authority – the GST Council. This council is chaired by the Union Finance Minister and has various states as its members. Each state member thus participates in the formulation of the indirect tax policy of the country.

2. Elimination of Cascading Effect of Taxes

Cascading tax effect, also known as tax on tax, occurs when a good is taxed on every stage of its production, until it is sold to the final consumer. In such a situation, each succeeding transfer of good is taxed inclusive of the taxes charged on the preceding transfer. Consequently, the final consumer bears the burden of multiple taxes imposed on every stage of production, leading to inflationary prices.

3. Increased Exemption Limit for Small traders or Service Providers

Under the previous indirect tax structure, various indirect taxes had different sales turnover limits for registrations.

Annual Sales Turnover Limits for Indirect Taxes Under Previous Tax Regime

The threshold limits for registrations under various indirect taxes was as follows:

Excise Duty – Manufacturers with an annual turnover of Rs. 1.50 Crores and above were required to register for excise duty and hence liable to pay excise tax.

Service Tax – Service providers with an annual sales turnover of Rs. 10 lakhs and above were required to register for service tax and hence liable to pay the same.

Value Added Tax – This varied for different states.

Annual Sales Turnover Limits for Indirect Taxes Under GST

The turnover limits for registration under GST are higher, which exempt the small traders and service providers from paying GST. In fact, in the 32nd GST Council Meeting, the turnover limits for GST registration were further increased. Hence, with the grant of such GST exemptions and benefits, 35 Lakh small traders, manufacturers and service providers are expected to be benefited.

According to 32nd GST Council Meeting:

· For suppliers of goods, the GST exemption limit increased from Rs 20 Lakh to Rs 40 Lakh

· GST exemption limit for supplier of services remains unchanged at Rs. 20 lakhs

· And for special category states, the GST exemption limit increased from Rs. 10 lakhs to Rs. 20 lakhs

Note: Hilly and north eastern states have been given an option to choose either Rs. 20 lakhs or Rs. 40 lakhs as the turnover limit for GST exemption.

4. Small Businesses Benefit from the Composition Scheme

To encourage reduced taxes and tax compliances, the Composition Scheme was introduced under GST. Small business owners registered under the scheme are required to pay a fixed percentage of tax on their turnover. In addition to this, unlike the regular GST tax payers, small businesses registered under Composition Scheme need to file one quarterly return. Following are the tax rates under Composition Scheme:

· Small businesses with a turnover of Rs 1.50 crores would pay a flat GST rate of 1%. They will now file one tax return only.

· Small service providers with an annual turnover of Rs 50 Lakhs would now pay a GST of 6% instead of 18%

Appeals to appellate Tribunal

The governments will constitute an Appellate Tribunal known as the Goods and Services Tax Appellate Tribunal to hear appeals against the orders passed by the Appellate Authority or the Revisional Authority.

National Appellate Tribunal

A person unhappy with the decision of the First Appellate Authority on the Revisional Authority can appeal against the decision to the National Appellate Tribunal. They most Appeal within 3 months from the date of appeal along with the form GST APL-01 and the fees.

Fees

Fees Every Appellant must pay the full amount from the original order that he agrees to including tax, interest, fine, fee and penalty and 20% of the amount of tax in dispute.

Will All Appeals be accepted

They can refuse to admit any appeal where the amount involved is lower than rupees 50,000. If this committee is of the opinion that the order was not legal or not properly passed then it can direct any officer to apply to the Appellate Tribunal within 6 months from the Appeal date extendable by 3 months.

RERA