Monthly GST Return - New 2018 Format

In the 27th GST Council meeting, a new GST return format was announced. The new GST return format was set to make GST return filing simpler for over 90% of all persons registered under GST. Subsequently, the government has released the new format of monthly GST return. In this article, we look at the 2018 monthly GST return filing form and procedure in detail.

Monthly GST Return Format

The new monthly GST return format is reproduced below for reference: [pdf-embedder url="https://www.indiafilings.com/learn/wp-content/uploads/2018/07/2018-Monthly-GST-Return-Format.pdf" title="2018 Monthly GST Return Format"]

Eligibility

Monthly GST return must be filed by all taxpayer except for small taxpayers (Taxpayers having a turnover of less than Rs.5 crores), composition dealers, input service distributors, non-resident registered persons and person liable to deduct tax at source. Hence, any person having GST registration and a turnover of more than Rs.5 crores per annum would be required to file monthly GST return. The taxpayer would be able to determine if the account falls in the small category taxpayer by checking the GST portal. In case of a newly registered taxpayer, the account would be classified on the basis of self-declaration of the estimated turnover.

GST Return Due Date

The monthly GST return would be due on a staggered basis based on the turnover of the taxpayer reported in the last year. The due date for filing of return by a large taxpayer would be 20th of the next month. Know more about GST return due date.

NIL Return Filing

If a taxpayer has no purchases, no output tax liability and no input tax credit to avail in any quarter of the financial year, he/she can file one NIL GST return for the entire quarter. In month one and two of the quarter, the taxpayer would report NIL transaction by sending a SMS. Facility for filing quarterly return can also be available by an SMS.

Customised Returns

In a GST return, there are many types of input and types of supplies which can be daunting for a taxpayer. However, since most taxpayers only have a few types of supplies and few types of inputs, only relevant fields will be shown based on the inputs of the taxpayers. Thus a small taxpayer may have to only complete a few fields while submitting GST return, making the process simpler.

Continuous Uploading of Invoices

Matching of invoices was a major issue during the GST rollout. The Government has now simplified the process by introducing continuous uploading and viewing of invoices. Taxpayers would be able to continuously upload invoices anytime during the month and the uploaded invoice will be continuously visible to the recipient. Based on the uploaded invoice the recipient can avail input tax credit. Invoices uploaded by the supplier by 10th of succeeding month will be auto-populated in the liability table of the main return of the supplier. The screen where it will be visible to the recipient is called “viewing facility” (shown as “inward annexure” in the return document). After the due date for the filing of return is over, the recipient will also be able to see the return filing status of the supplier and be aware of whether the tax liability on purchases made by him has been discharged by the supplier or not.

Suppliers Responsibility to Upload Invoices

Only the invoices or debit notes uploaded by the supplier on the common portal will be the valid document for availing input tax credit by the recipient. Invoices or debit notes which have not been uploaded by the supplier and on which recipient has availed input tax credit will be termed as “missing invoices”. If input tax credit is availed on missing invoices by the recipient and the missing invoices are not uploaded by the supplier within a certain time, input tax credit availed on such invoices or debit notes will be recovered from the recipient. Thus, input tax credit will be dependent on the uploading of invoices or debit notes by the supplier - either before or after filing of the return, within the prescribed time limit.

Locking Invoices

Locking of invoices indicates the acceptance of transaction and invoice by the supplier and recipient. Invoices uploaded by the supplier can be locked by a recipient anytime before the filing of GST return. Also, on the filing of GST return by the recipient, all invoices would be deemed to be accepted, whether locked or not, except for pending or rejected invoices. A wrongly locked invoice can be unlocked online by the recipient himself subject to reversal of the input tax credit.

Pending Invoices

Pending invoices are invoices which have been uploaded by the supplier but for which recipient is not ready to claim input tax credit due to any of the following reasons:

The supply has not been received by the recipient.
The recipient is of the view that the invoice needs amendment.
Recipient is not able to decide whether to take input tax credit for the time being.

Rejected Invoices

If the GSTIN of the recipient is wrongly filled by the supplier, the invoice would appear on the viewing facility of a taxpayer who is not the recipient of the supplies. In such cases, the invoice can be rejected and input tax credit would not be provided.

Invoice Uploaded - Return Not Filed

In cases where no return is filed after uploading of the invoices by the supplier, the GST due on invoices uploaded will be treated as a self-admitted liability by the supplier and recovery proceedings will be initiated against the taxpayer after allowing for a reasonable time for filing of the GST return and payment of tax.

Reporting Missing Invoices

Missing invoices can be reported by the supplier in the main return for any tax period with interest or penalty as applicable. Reporting of missing invoices by a recipient can be delayed up to two tax periods to allow the recipient to follow up and get the missing invoice uploaded from the supplier. For example, purchase invoices received by recipient in April on which input tax credit has been availed but not uploaded by the supplier can be reported by the recipient not later than the return of June filed in July. Information about the missing invoice uploaded by the recipient will be made available to the supplier. Taxpayers filing quarterly returns should report missing invoices in the next quarter.

Recovery of GST Input Tax Credit

In case a supplier uploads an invoice and fails to pay the GST dues, the input tax credit would not be automatically reversed at the recipients end. The recovery of GST dues would first be made from the supplier. However, in some exceptional circumstances like missing taxpayer, closure of business by the supplier or supplier not having adequate assets or in cases of connivance between recipient and the supplier, etc. recovery of input tax credit from the recipient shall be made through a due process of service of notice and issue of order.

HSN Code

The GST return would no longer require HSN code in the table reporting supplies with tax liability at various rates. However, the supply at different rates of GST must still be mentioned. However, HSN code will be captured at four digit or more in a separate table in the regular monthly return

Offline Tool

An offline tool for matching of the invoices would be made available on the GST Portal in excel format for viewing invoices. The excel tool will have features to filter invoices based on date of invoice and GSTN of supplier.