ICAI Notes: Returns | Taxation for CA Intermediate PDF Download

 Page 1


 
 
 
LEARNING OUTCOMES 
a
    
 
 
CHAPTER 
15 
 ER 
 
 
 
 
RETURNS 
 
The section numbers referred to in the Chapter pertain to CGST Act and rule numbers referred 
to in the Chapter pertain to CGST Rules, unless otherwise specified.  
Examples/Illustrations/Questions and Answers given in the Chapter are based on the position 
of GST law existing as on 30.04.2023. 
 
  
 
After studying this Chapter, you will be able to –  
? comprehend and analyse the provisions relating to filing of 
various types of statements and returns by registered persons,  
? determine the late fee for delayed filing of return 
? explain the provisions relating to GST practitioner 
 
 
 
 
© The Institute of Chartered Accountants of India
Page 2


 
 
 
LEARNING OUTCOMES 
a
    
 
 
CHAPTER 
15 
 ER 
 
 
 
 
RETURNS 
 
The section numbers referred to in the Chapter pertain to CGST Act and rule numbers referred 
to in the Chapter pertain to CGST Rules, unless otherwise specified.  
Examples/Illustrations/Questions and Answers given in the Chapter are based on the position 
of GST law existing as on 30.04.2023. 
 
  
 
After studying this Chapter, you will be able to –  
? comprehend and analyse the provisions relating to filing of 
various types of statements and returns by registered persons,  
? determine the late fee for delayed filing of return 
? explain the provisions relating to GST practitioner 
 
 
 
 
© The Institute of Chartered Accountants of India
 
14.2 
GOODS AND SERVICES TAX  
 
15.2 
 
 
 
 1.  INTRODUCTION 
The term “return” ordinarily means statement of information (facts) furnished by 
the taxpayer, to tax administrators, at regular intervals.  The information to be 
furnished in the return generally comprises of the details pertaining to the nature 
of activities/business operations forming the subject matter of taxation; the 
RETURNS
Furnishing details of outward supplies 
Furnishing details of inward supplies 
Furnishing of returns under section 39 
GSTR-3B
GSTR-4
GSTR-5
Other returns/Statements 
First Return
GSTR-8
Annual Return 
GSTR-9 GSTR 9 
Final Return 
GSTR-10 
GSTR-11
Default/delay in furnishing return 
Notice to return 
defaulters
Levy of late fee
Goods and services tax practitioners 
CHAPTER OVERVIEW 
© The Institute of Chartered Accountants of India
Page 3


 
 
 
LEARNING OUTCOMES 
a
    
 
 
CHAPTER 
15 
 ER 
 
 
 
 
RETURNS 
 
The section numbers referred to in the Chapter pertain to CGST Act and rule numbers referred 
to in the Chapter pertain to CGST Rules, unless otherwise specified.  
Examples/Illustrations/Questions and Answers given in the Chapter are based on the position 
of GST law existing as on 30.04.2023. 
 
  
 
After studying this Chapter, you will be able to –  
? comprehend and analyse the provisions relating to filing of 
various types of statements and returns by registered persons,  
? determine the late fee for delayed filing of return 
? explain the provisions relating to GST practitioner 
 
 
 
 
© The Institute of Chartered Accountants of India
 
14.2 
GOODS AND SERVICES TAX  
 
15.2 
 
 
 
 1.  INTRODUCTION 
The term “return” ordinarily means statement of information (facts) furnished by 
the taxpayer, to tax administrators, at regular intervals.  The information to be 
furnished in the return generally comprises of the details pertaining to the nature 
of activities/business operations forming the subject matter of taxation; the 
RETURNS
Furnishing details of outward supplies 
Furnishing details of inward supplies 
Furnishing of returns under section 39 
GSTR-3B
GSTR-4
GSTR-5
Other returns/Statements 
First Return
GSTR-8
Annual Return 
GSTR-9 GSTR 9 
Final Return 
GSTR-10 
GSTR-11
Default/delay in furnishing return 
Notice to return 
defaulters
Levy of late fee
Goods and services tax practitioners 
CHAPTER OVERVIEW 
© The Institute of Chartered Accountants of India
 
 
RETURNS 
a
a
 
 
15.3 
measure of taxation such as sale price, turnover, or value; 
deductions and exemptions; and determination and 
discharge of tax liability for a given period.    
In any tax law, “ filing of returns” constitutes the most 
important compliance procedure which enables the 
Government/ tax administrator to estimate the tax collection 
for a particular period and 
determine the correctness and completeness of the tax 
compliance of the taxpayers.  
The returns serve the following purposes:  
a) Mode for transfer of information to tax 
administration; 
b) Compliance verification program of tax administration; 
c) Finalization of the tax liabilities of the taxpayer within stipulated period of 
limitation; 
d) Providing necessary inputs for 
taking policy decision; 
e) Management of audit and anti-
evasion programs of tax 
administration 
The taxpayer is generally required to 
furnish the return in a specific statutory 
format.  These formats are, therefore, 
designed to take care of all the 
provisions of the law that have a 
bearing on computation of tax liability 
of a taxpayer.  Hence, a study of various 
fields contained in the form of return vis-à-vis the relevant corresponding 
provisions of the tax law, can facilitate overall understanding of the tax law in a 
better manner.  
Under the GST laws, the correct and timely filing of returns is of utmost importance 
because of two reasons.  Firstly, under GST laws, a taxpayer is required to estimate 
his tax liability on “self-assessment” basis and deposit the tax amount along with 
 
 
Filing of GST returns helps in 
determination of tax liability of 
the return filer and at the same 
time it also has a huge bearing 
on determination of tax 
liability of other persons with 
whom the former has entered 
into taxable activities. 
 
 
© The Institute of Chartered Accountants of India
Page 4


 
 
 
LEARNING OUTCOMES 
a
    
 
 
CHAPTER 
15 
 ER 
 
 
 
 
RETURNS 
 
The section numbers referred to in the Chapter pertain to CGST Act and rule numbers referred 
to in the Chapter pertain to CGST Rules, unless otherwise specified.  
Examples/Illustrations/Questions and Answers given in the Chapter are based on the position 
of GST law existing as on 30.04.2023. 
 
  
 
After studying this Chapter, you will be able to –  
? comprehend and analyse the provisions relating to filing of 
various types of statements and returns by registered persons,  
? determine the late fee for delayed filing of return 
? explain the provisions relating to GST practitioner 
 
 
 
 
© The Institute of Chartered Accountants of India
 
14.2 
GOODS AND SERVICES TAX  
 
15.2 
 
 
 
 1.  INTRODUCTION 
The term “return” ordinarily means statement of information (facts) furnished by 
the taxpayer, to tax administrators, at regular intervals.  The information to be 
furnished in the return generally comprises of the details pertaining to the nature 
of activities/business operations forming the subject matter of taxation; the 
RETURNS
Furnishing details of outward supplies 
Furnishing details of inward supplies 
Furnishing of returns under section 39 
GSTR-3B
GSTR-4
GSTR-5
Other returns/Statements 
First Return
GSTR-8
Annual Return 
GSTR-9 GSTR 9 
Final Return 
GSTR-10 
GSTR-11
Default/delay in furnishing return 
Notice to return 
defaulters
Levy of late fee
Goods and services tax practitioners 
CHAPTER OVERVIEW 
© The Institute of Chartered Accountants of India
 
 
RETURNS 
a
a
 
 
15.3 
measure of taxation such as sale price, turnover, or value; 
deductions and exemptions; and determination and 
discharge of tax liability for a given period.    
In any tax law, “ filing of returns” constitutes the most 
important compliance procedure which enables the 
Government/ tax administrator to estimate the tax collection 
for a particular period and 
determine the correctness and completeness of the tax 
compliance of the taxpayers.  
The returns serve the following purposes:  
a) Mode for transfer of information to tax 
administration; 
b) Compliance verification program of tax administration; 
c) Finalization of the tax liabilities of the taxpayer within stipulated period of 
limitation; 
d) Providing necessary inputs for 
taking policy decision; 
e) Management of audit and anti-
evasion programs of tax 
administration 
The taxpayer is generally required to 
furnish the return in a specific statutory 
format.  These formats are, therefore, 
designed to take care of all the 
provisions of the law that have a 
bearing on computation of tax liability 
of a taxpayer.  Hence, a study of various 
fields contained in the form of return vis-à-vis the relevant corresponding 
provisions of the tax law, can facilitate overall understanding of the tax law in a 
better manner.  
Under the GST laws, the correct and timely filing of returns is of utmost importance 
because of two reasons.  Firstly, under GST laws, a taxpayer is required to estimate 
his tax liability on “self-assessment” basis and deposit the tax amount along with 
 
 
Filing of GST returns helps in 
determination of tax liability of 
the return filer and at the same 
time it also has a huge bearing 
on determination of tax 
liability of other persons with 
whom the former has entered 
into taxable activities. 
 
 
© The Institute of Chartered Accountants of India
 
14.4 
GOODS AND SERVICES TAX  
 
15.4 
the filing of such return.  The return, therefore, constitutes a kind of working 
sheet/supporting document for the tax authorities that can be relied upon as the 
basis on which the tax has been computed by the taxpayer.  Secondly, under the 
GST regime, filing of returns not only determines the tax liability of the person filing 
the same, but it also has a huge bearing on determination of tax liability of other 
persons with whom the former has entered into transactions in course or 
furtherance of business. 
Chapter IX of the CGST Act [Sections 37 to 48
1
] prescribe the provisions relating to 
filing of returns as under:  
Section 37 Furnishing details of outward supplies 
Section 38 Furnishing details of inward supplies 
Section 39 Furnishing of returns 
Section 40 First return 
Section 44 Annual Return 
Section 45 Final Return 
Section 46 Notice to return defaulters 
Section 47 Levy of late fee 
Section 48 Goods and services tax practitioners 
Apart from this, section 52, inter alia, prescribes a statement for tax collection at 
source to be furnished by Electronic Commerce Operator.  Provisions of section 41 
relating to availment of input tax credit have already been discussed in Chapter 8 – 
Input Tax Credit in this Module of the Study Material; thus, said provisions are not 
discussed here.  The provisions relating to forms and manner, in which information 
is to be furnished through returns, are given under Chapter VIII of the CGST Rules 
[Rules 59-84
2
].  State GST laws also prescribe identical provisions in relation to filing 
of returns. 
 
1
 Sections 42, 43 and 43A have been omitted. 
2
 Rules 69, 70, 71, 72, 73, 74, 75, 76, 77 and 79 have been omitted. 
Provisions of returns, other than late fee, under CGST Act have also been 
made applicable to IGST Act vide section 20 of the IGST Act.    
© The Institute of Chartered Accountants of India
Page 5


 
 
 
LEARNING OUTCOMES 
a
    
 
 
CHAPTER 
15 
 ER 
 
 
 
 
RETURNS 
 
The section numbers referred to in the Chapter pertain to CGST Act and rule numbers referred 
to in the Chapter pertain to CGST Rules, unless otherwise specified.  
Examples/Illustrations/Questions and Answers given in the Chapter are based on the position 
of GST law existing as on 30.04.2023. 
 
  
 
After studying this Chapter, you will be able to –  
? comprehend and analyse the provisions relating to filing of 
various types of statements and returns by registered persons,  
? determine the late fee for delayed filing of return 
? explain the provisions relating to GST practitioner 
 
 
 
 
© The Institute of Chartered Accountants of India
 
14.2 
GOODS AND SERVICES TAX  
 
15.2 
 
 
 
 1.  INTRODUCTION 
The term “return” ordinarily means statement of information (facts) furnished by 
the taxpayer, to tax administrators, at regular intervals.  The information to be 
furnished in the return generally comprises of the details pertaining to the nature 
of activities/business operations forming the subject matter of taxation; the 
RETURNS
Furnishing details of outward supplies 
Furnishing details of inward supplies 
Furnishing of returns under section 39 
GSTR-3B
GSTR-4
GSTR-5
Other returns/Statements 
First Return
GSTR-8
Annual Return 
GSTR-9 GSTR 9 
Final Return 
GSTR-10 
GSTR-11
Default/delay in furnishing return 
Notice to return 
defaulters
Levy of late fee
Goods and services tax practitioners 
CHAPTER OVERVIEW 
© The Institute of Chartered Accountants of India
 
 
RETURNS 
a
a
 
 
15.3 
measure of taxation such as sale price, turnover, or value; 
deductions and exemptions; and determination and 
discharge of tax liability for a given period.    
In any tax law, “ filing of returns” constitutes the most 
important compliance procedure which enables the 
Government/ tax administrator to estimate the tax collection 
for a particular period and 
determine the correctness and completeness of the tax 
compliance of the taxpayers.  
The returns serve the following purposes:  
a) Mode for transfer of information to tax 
administration; 
b) Compliance verification program of tax administration; 
c) Finalization of the tax liabilities of the taxpayer within stipulated period of 
limitation; 
d) Providing necessary inputs for 
taking policy decision; 
e) Management of audit and anti-
evasion programs of tax 
administration 
The taxpayer is generally required to 
furnish the return in a specific statutory 
format.  These formats are, therefore, 
designed to take care of all the 
provisions of the law that have a 
bearing on computation of tax liability 
of a taxpayer.  Hence, a study of various 
fields contained in the form of return vis-à-vis the relevant corresponding 
provisions of the tax law, can facilitate overall understanding of the tax law in a 
better manner.  
Under the GST laws, the correct and timely filing of returns is of utmost importance 
because of two reasons.  Firstly, under GST laws, a taxpayer is required to estimate 
his tax liability on “self-assessment” basis and deposit the tax amount along with 
 
 
Filing of GST returns helps in 
determination of tax liability of 
the return filer and at the same 
time it also has a huge bearing 
on determination of tax 
liability of other persons with 
whom the former has entered 
into taxable activities. 
 
 
© The Institute of Chartered Accountants of India
 
14.4 
GOODS AND SERVICES TAX  
 
15.4 
the filing of such return.  The return, therefore, constitutes a kind of working 
sheet/supporting document for the tax authorities that can be relied upon as the 
basis on which the tax has been computed by the taxpayer.  Secondly, under the 
GST regime, filing of returns not only determines the tax liability of the person filing 
the same, but it also has a huge bearing on determination of tax liability of other 
persons with whom the former has entered into transactions in course or 
furtherance of business. 
Chapter IX of the CGST Act [Sections 37 to 48
1
] prescribe the provisions relating to 
filing of returns as under:  
Section 37 Furnishing details of outward supplies 
Section 38 Furnishing details of inward supplies 
Section 39 Furnishing of returns 
Section 40 First return 
Section 44 Annual Return 
Section 45 Final Return 
Section 46 Notice to return defaulters 
Section 47 Levy of late fee 
Section 48 Goods and services tax practitioners 
Apart from this, section 52, inter alia, prescribes a statement for tax collection at 
source to be furnished by Electronic Commerce Operator.  Provisions of section 41 
relating to availment of input tax credit have already been discussed in Chapter 8 – 
Input Tax Credit in this Module of the Study Material; thus, said provisions are not 
discussed here.  The provisions relating to forms and manner, in which information 
is to be furnished through returns, are given under Chapter VIII of the CGST Rules 
[Rules 59-84
2
].  State GST laws also prescribe identical provisions in relation to filing 
of returns. 
 
1
 Sections 42, 43 and 43A have been omitted. 
2
 Rules 69, 70, 71, 72, 73, 74, 75, 76, 77 and 79 have been omitted. 
Provisions of returns, other than late fee, under CGST Act have also been 
made applicable to IGST Act vide section 20 of the IGST Act.    
© The Institute of Chartered Accountants of India
 
 
RETURNS 
a
a
 
 
15.5 
All the returns under GST laws are to be filed electronically.  Taxpayers can file 
the statements and returns by various modes.  Firstly, they can file their statement 
and returns directly on the GST common portal online.  However, this may be 
tedious and time consuming for taxpayers with large number of invoices.  For such 
taxpayers, offline utilities have been provided by GSTN that can be used for 
preparing the statements offline after downloading the auto populated details and 
uploading them on the common portal.  GSTN has also developed an ecosystem of 
GST Suvidha Providers (GSP) that will integrate with the common portal. 
 
The details furnished by the taxpayer in the form of returns shall be consolidated 
and stored at the common portal which will be common for both, i.e. Central 
Government and State Governments.   
 2. RELEVANT DEFINITIONS 
? Common portal means the common goods and services tax electronic portal 
referred to in section 146 [Section 2(26)]. 
? Credit note means a document issued by a registered person under sub-
section (1) of section 34 [Section 2(37)]. 
? Casual taxable person means a person who occasionally undertakes 
transactions involving supply of goods or services or both in the course or 
furtherance of business whether as principal, agent or in any other capacity, 
in a State or a Union Territory where he has no fixed place of business [Section 
2(20)]. 
? Debit note means a document issued by a registered person under sub-
section (3) of section 34 [Section 2(38)]. 
© The Institute of Chartered Accountants of India