Understanding the GST Circular No. 26 for Return Filing- Simplified manner
CGST Circular No. 26 – Filing of Returns under GST
Download it from here – click here
Simplified Summary
Due date to file GST returns
GSTR 3B
- 20th of Next month till March return (example March 18 3B = 20th April)
- From April 2018 3B – 10th of Next month (example April 18 3B = 10th May)
GSTR 1
Option
- Quarterly filing of GSTR-1 – Optionally allowed only to persons having turnover upto 1.5 crore in previous FY (for new registrants, check t/o of current FY)
- Monthly filing – For persons having turnover greater than 1.5 crore in previous FY (for new registrants, check t/o of current FY), or who have less turnover but can voluntarily choose monthly filing.
- Once choosen/ required to file return on monthly basis, then cannot change to quarterly for the entire financial year.
- Note: Where person wrongly reports turnover and opts to file on quarterly basis – liable for punitive action under Act.
For people Opted for Quarterly Return
- Jul-Sep 17 – 10th Jan 2018 [July month GSTR-1 wil be filed seperately (for 1 month), then in July to Sep quarter GSTR-1, only details for Aug and Sep are to be included)
- Oct-Dec 17 – 15th Feb 2018
- Jan-Mar 18 – 30th April 2018
For people Opted for Monthly Return
- July-Nov 17 – 10th Jan 2018
- Dec 17 – 10th Feb 2018
- Jan 18 – 10th March 2018
- Feb 18 – 10th April 2018
- Mar 18 – 10th May 2018
GSTR 2 & 3
“The time period of filing of FORM GSTR-2 and FORM GSTR -3 for the months of July 2017 to March 2018 would be worked out by a Committee of officers and communicated later.”
GSTR 4 (Composition Return)
- July-Sep 17 – 24th Dec 2017
- For all further quarters – 18th of Next Month (Example – for Oct-Dec 17 quarter = 18th Jan 2018)
Late fees for GST returns
- For Nil Return – Rs. 20 per day (Rs. 10 per head of CGST & SGST each)
- For Other returns (having tax liability) – Rs. 50 per day (Rs. 25 per head of CGST & SGST each)
Correction of errors in GST returns
Normal Procedure
GSTR 1 & 2 data is consolidated in GSTR-3. GSTR 3 is compared with GSTR-3B of same period, and any difference is added to output liability/ added to input tax credit, as the case may be.
But the problem is that GSTR-2 & 3 have been postponed. So now, special procedure as below is recommended by the circular.
Correction of 3B error before offset/ filing
Option to “Reset” GSTR-3B has been provided, which can be used.
We can reset, then edit the data as required, and submit again!
[Remember that if you have ‘submitted’ nil data in 3B, it is deemed automatically ‘offset’]Correction of 3B error after filing (Already offset liability/ filed return)
Mistake in Liability of Tax
Error #1 – Liability was under reported
Solution – Liability may be added in the return of subsequent month(s) after payment of interest.
Example –
Company A has four units in Haryana, while filing their return for the month of July, they inadvertently, missed on details of a last minute order. The Company had filed their returns in order to not pay late fee and other penalties. What can they do?
In this case, they may report this additional liability in the return of next month and pay tax with interest
Change in GSTR-1 – Declare correct liability in GSTR-1. If mistake even in GSTR-1 of that month, then such liability may be declared in the subsequent month’s/quarter’s FORM GSTR-1 in which payment was made.
Error #2 – Liability was over reported
Solution – Liability may be adjusted in return of subsequent month(s) [means you will show less liability than actual in next month 3B] or refund may be claimed where adjustment is not feasible.
Example –
Company B had reported an inter-State sale but realized that the same sale was counted twice and hence was not to be reported or taxed. But the return form was already filed and no change could be done to reduce the liabilities. What can company B do?
In this case, they may reduce this liability in the return of subsequent months or claim refund of the same.
Change in GSTR-1 – Declare correct liability in GSTR-1. If mistake even in GSTR-1 of that month, then such liability may be amended through amendments under Table 9 of FORM GSTR-1 of next month.
Error #3 – Liability was wrongly reported (in wrong head)
Solution – Unreported liability may be added in the next month‟s return (with interest if applicable). Also, adjustment may be made in return of subsequent month(s) or refund may be claimed where adjustment is not feasible.
Example –
Company C was registered in the State of Haryana. While entering their outward supplies in FORM GSTR-3B, the company realized that they had inadvertently, shown inter-State supply as intra-State supply and submitted the return. The company paid their wrong liability and filed their return in order to avoid late fee and penalty? What can they do?
Since, the return has already been filed, then the company will have to report the inter- State supply in their next month‟s liability and adjust their wrongly paid intra-State liability in the subsequent months returns or claim refund of the same.
Change in GSTR-1 – File for amendments by filling Table 9 of the subsequent month’s / quarter’s FORM GSTR-1.
Mistake in Input Tax Credit
Error #1 – Input tax credit was under reported
Solution – Input tax credit which was not reported may be availed while filing return for subsequent month(s) [means add ITC in next month 3B].
Example –
Company D, while filing their FORM GSTR – 3B for the month of July, inadvertently, misreported Input tax credit of Rs. 1,00,00,000/- as Rs. 10,00,000/-. They had filed their return and paid Rs. 90,00,000/- in cash. What can they do?
Since, the return has already been filed, Company D may add such Input tax credit in their return for subsequent month(s).
Change in GSTR-1 – None required [as no ITC is declared in GSTR 1].
Error #2 – Input tax credit was over reported
Solution – Pay (through cash) / Reverse such over reported input tax credit with interest in return of subsequent month (s).
Example –
While filing their FORM GSTR 3B for the months of July, 2017, Company E inadvertently, reported their eligible input tax credit, as Rs. 20,00,000/- instead of Rs. 10,00,000/-. Company E also utilized their additional input tax credit and filed their returns. What can they do?
Since, the company had utilized ineligible credit to offset such liabilities, the company will have to pay (through cash) / Reverse such over reported utilized input tax credit with interest.
Change in GSTR-1 – None required [as no ITC is declared in GSTR 1].
Error #3 – Input Tax Credit of the wrong tax was taken (of wrong head)
Solution – Pay(through cash) / Reverse any wrongly reported input tax credit in return of subsequent month(s). For under reported input tax credit, the same may be availed in return of subsequent month(s).
Example –
While filing their FORM GSTR 3B for the months of July, 2017, Company E inadvertently, reported their Central Tax credit of Rs. 20,00,000/- as Integrated tax credit. In order to avoid late fee and penalties, they paid Rs. 20,00,000/- Central Tax in cash and did not utilize their Integrated tax credit. What can they do?
Since, the company has filed the returns and there is an unutilized Integrated tax credit of Rs. 20,00,000/- which was inadmissible to them, they will have to pay / reverse such credit in the return of subsequent month(s). Further, Central Tax credit of Rs. 20,00,000/- can be availed in return of subsequent month(s).
Change in GSTR-1 – None required [as no ITC is declared in GSTR 1].
