Returns- 1 | Taxation for CA Intermediate PDF Download

 Page 1


 
LEARNING OUTCOMES 
 
   
 
  
 
RETURNS 
 
For the sake of brevity, the term input tax credit has been referred to as ITC in this Chapter. The 
section numbers referred to in the Chapter pertain to CGST Act, unless otherwise specified.  
Examples/Illustrations/Questions and Answers given in the Chapter are based on the position of 
GST law existing as on 31.10.2020. 
 
This Chapter will equip you to –  
? enlist the various types of statements and returns to be filed by a 
registered taxpayer   
? identify the persons eligible to file various statements/returns as 
also the forms prescribed therefor and explain the periodicity for 
filing such statements/returns  
? determine the late fee for delayed filing of return  
? apply the above concepts in problem solving 
? explain the provisions relating to GST practitioner 
  
CHAPTER 
10 
Page 2


 
LEARNING OUTCOMES 
 
   
 
  
 
RETURNS 
 
For the sake of brevity, the term input tax credit has been referred to as ITC in this Chapter. The 
section numbers referred to in the Chapter pertain to CGST Act, unless otherwise specified.  
Examples/Illustrations/Questions and Answers given in the Chapter are based on the position of 
GST law existing as on 31.10.2020. 
 
This Chapter will equip you to –  
? enlist the various types of statements and returns to be filed by a 
registered taxpayer   
? identify the persons eligible to file various statements/returns as 
also the forms prescribed therefor and explain the periodicity for 
filing such statements/returns  
? determine the late fee for delayed filing of return  
? apply the above concepts in problem solving 
? explain the provisions relating to GST practitioner 
  
CHAPTER 
10 
 
10.2 INDIRECT TAXES 
 
 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 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 of the tax compliance of the taxpayers. 
RETURNS
Furnishing of details of outward supplies 
Furnishing of returns under section 39 
GSTR-3B
GSTR-4
GSTR-5
Other returns 
First Return
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 
 
Page 3


 
LEARNING OUTCOMES 
 
   
 
  
 
RETURNS 
 
For the sake of brevity, the term input tax credit has been referred to as ITC in this Chapter. The 
section numbers referred to in the Chapter pertain to CGST Act, unless otherwise specified.  
Examples/Illustrations/Questions and Answers given in the Chapter are based on the position of 
GST law existing as on 31.10.2020. 
 
This Chapter will equip you to –  
? enlist the various types of statements and returns to be filed by a 
registered taxpayer   
? identify the persons eligible to file various statements/returns as 
also the forms prescribed therefor and explain the periodicity for 
filing such statements/returns  
? determine the late fee for delayed filing of return  
? apply the above concepts in problem solving 
? explain the provisions relating to GST practitioner 
  
CHAPTER 
10 
 
10.2 INDIRECT TAXES 
 
 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 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 of the tax compliance of the taxpayers. 
RETURNS
Furnishing of details of outward supplies 
Furnishing of returns under section 39 
GSTR-3B
GSTR-4
GSTR-5
Other returns 
First Return
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 
 
RETURNS 10.3 
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 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 taxable activities.  
 
 
 
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. 
 
Page 4


 
LEARNING OUTCOMES 
 
   
 
  
 
RETURNS 
 
For the sake of brevity, the term input tax credit has been referred to as ITC in this Chapter. The 
section numbers referred to in the Chapter pertain to CGST Act, unless otherwise specified.  
Examples/Illustrations/Questions and Answers given in the Chapter are based on the position of 
GST law existing as on 31.10.2020. 
 
This Chapter will equip you to –  
? enlist the various types of statements and returns to be filed by a 
registered taxpayer   
? identify the persons eligible to file various statements/returns as 
also the forms prescribed therefor and explain the periodicity for 
filing such statements/returns  
? determine the late fee for delayed filing of return  
? apply the above concepts in problem solving 
? explain the provisions relating to GST practitioner 
  
CHAPTER 
10 
 
10.2 INDIRECT TAXES 
 
 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 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 of the tax compliance of the taxpayers. 
RETURNS
Furnishing of details of outward supplies 
Furnishing of returns under section 39 
GSTR-3B
GSTR-4
GSTR-5
Other returns 
First Return
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 
 
RETURNS 10.3 
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 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 taxable activities.  
 
 
 
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. 
 
 
 
10.4 
 
INDIRECT TAXES 
Chapter IX of the CGST Act [Sections 37 to 48] prescribes 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 41 Claim of input tax credit and provisional acceptance thereof 
Section 42 Matching, reversal and re-claim of input tax credit 
Section 43 Matching, reversal and re-claim of reduction in output tax liability 
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 
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].  State GST laws also prescribe identical provisions in relation to filing of 
returns.   
 
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.    
Page 5


 
LEARNING OUTCOMES 
 
   
 
  
 
RETURNS 
 
For the sake of brevity, the term input tax credit has been referred to as ITC in this Chapter. The 
section numbers referred to in the Chapter pertain to CGST Act, unless otherwise specified.  
Examples/Illustrations/Questions and Answers given in the Chapter are based on the position of 
GST law existing as on 31.10.2020. 
 
This Chapter will equip you to –  
? enlist the various types of statements and returns to be filed by a 
registered taxpayer   
? identify the persons eligible to file various statements/returns as 
also the forms prescribed therefor and explain the periodicity for 
filing such statements/returns  
? determine the late fee for delayed filing of return  
? apply the above concepts in problem solving 
? explain the provisions relating to GST practitioner 
  
CHAPTER 
10 
 
10.2 INDIRECT TAXES 
 
 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 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 of the tax compliance of the taxpayers. 
RETURNS
Furnishing of details of outward supplies 
Furnishing of returns under section 39 
GSTR-3B
GSTR-4
GSTR-5
Other returns 
First Return
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 
 
RETURNS 10.3 
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 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 taxable activities.  
 
 
 
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. 
 
 
 
10.4 
 
INDIRECT TAXES 
Chapter IX of the CGST Act [Sections 37 to 48] prescribes 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 41 Claim of input tax credit and provisional acceptance thereof 
Section 42 Matching, reversal and re-claim of input tax credit 
Section 43 Matching, reversal and re-claim of reduction in output tax liability 
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 
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].  State GST laws also prescribe identical provisions in relation to filing of 
returns.   
 
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.    
 
 
RETURNS 10.5 
 
However, the return filing process is under review and is yet not finalized.  A simplified 
monthly return in Form GSTR 3B was introduced in July, 2017 to help businesses to 
file returns easily in the initial months of GST roll out.  This was to be followed with 
filing of returns - GSTR - 1, 2 and 3.  Further, to ease the compliance requirements 
for small taxpayers, the GST Council allowed taxpayers with annual aggregate 
turnover up to ` 1.5 Crore to file details of outward supplies in Form GSTR-1 on a 
quarterly basis and on monthly basis by taxpayers with annual aggregate turnover 
greater than ` 1.5 Crore.  The GST Council also recommended to postpone the date 
of filing of Forms GSTR-2 (details of inward supplies) and GSTR-3 (monthly return) 
for all normal taxpayers, irrespective of turnover, till further announcements were 
made in this regard. 
The return process has still not been streamlined and the GST Council has extended 
GSTR-3B filing requirement till end of March 31, 2021.  Therefore, in the subsequent 
pages of this Chapter, provisions of only those sections which are practically effective, 
have been discussed.   
Further, the due dates for filing of various statements/returns discussed under this 
Chapter are the due dates which are provided under the provisions of the CGST Act 
or the due dates specified by notifications which have been consistent over a period 
of time.  Practically, the due dates are often extended by the Government on account 
of various reasons.  Also, the quantum of late fee for delayed filing of 
statements/returns discussed under this Chapter is the quantum of late fee as 
provided under the provisions of the CGST Act.  Here also, the Government often 
waives off the late fee either partially or fully.  It may be noted that such extended 
due dates and late fee waivers are not relevant from examination point of view   
The GST Council at its 42
nd
 meeting held on 5
th
 October 2020 has recommended 
the following incremental changes in the return filing process: 
1. Effective 01.01.2021, taxpayers with turnover below ` 5 crores may file 
GSTR-3B and GSTR-1 on quarterly basis.  Such taxpayers would, for the 
first two months of the quarter, have an option to pay 35% of the net tax 
liability of the last quarter, using an auto generated challan. 
2. Effective 01.01.2021, due date of furnishing quarterly GSTR-1 by 
taxpayers to be revised to 13
th
 of the month succeeding the quarter. 
Note – Notification No. 74/2020 CT dated 15.10.2020 has revised the due 
date for filing quarterly GSTR-1 by the registered persons having 
aggregate turnover up to ` 1.5 crores in the preceding financial year or 
current financial year to 13
th
 of the month succeeding the end of quarter.