Understanding Chapter 8 of CGST Rules: Goods and Services Tax Returns

This document examines Chapter 8 of the Central Goods and Services Tax (CGST) Rules, which outlines various procedures related to GST returns. The information is derived from the official CGST rules document published by the Central Board of Excise and Customs (source).

Procedure for Submitting Outward Supply Details

All registered individuals, excluding those mentioned in section 14 of the Integrated Goods and Services Tax Act, 2017, must electronically submit details of their outward supplies of goods or services as per section 37. This submission is done via FORM GSTR-1 through the common portal, either directly or through a designated Facilitation Centre.

The information provided in FORM GSTR-1 must include:

• Invoice-level details for all:
• Inter-State and intra-State supplies to registered persons.
• Inter-State supplies exceeding INR 2.5 lakhs in value made to unregistered persons.
• Consolidated details for all:
• Intra-State supplies to unregistered persons, categorized by tax rate.
• State-wise inter-State supplies up to INR 2.5 lakhs in value made to unregistered persons, categorized by tax rate.
• Any debit and credit notes issued during the month for previous invoices.

After the FORM GSTR-1 due date, the outward supply details provided by the supplier become electronically accessible to recipients in Part A of FORM GSTR-2A, FORM GSTR-4A, and FORM GSTR-6A via the common portal. If a recipient modifies (adds, corrects, or deletes) inward supply details in their FORM GSTR-2 (under section 38), FORM GSTR-4, or FORM GSTR-6 (under section 39), these changes are electronically shared with the supplier in FORM GSTR-1A. The supplier can then accept or reject these modifications, and their initial FORM GSTR-1 will be updated accordingly.

Procedure for Submitting Inward Supply Details

Every registered person, excluding those under section 14 of the IGST Act, 2017, is required to submit details of inward supplies of goods or services received during a tax period under sub-section (2) of section 38. This is based on the information in Parts A, B, and C of FORM GSTR-2A. These details are prepared as specified in sub-section (1) of section 38 and submitted electronically in FORM GSTR-2 via the common portal, either directly or through a Facilitation Centre. Any additional inward supply details required under sub-section (2) of section 38 must also be included.

Registered persons must also electronically provide any details required under sub-section (5) of section 38 in FORM GSTR-2. In FORM GSTR-2, registered persons must identify inward supplies for which they are partially or fully ineligible for input tax credit, if this eligibility can be determined at the invoice level. They must also declare the amount of ineligible input tax credit on inward supplies related to non-taxable supplies or non-business purposes that cannot be determined at the invoice level.

Details of invoices provided by a non-resident taxable person in their FORM GSTR-5 return (under rule 63) are made available to the credit recipient in Part A of FORM GSTR-2A and can be included in FORM GSTR-2. Similarly, invoice details from an Input Service Distributor's FORM GSTR-6 return (under rule 65) are made available in Part B of FORM GSTR-2A for inclusion in FORM GSTR-2. Tax deducted at source details from a deductor's FORM GSTR-7 return (under sub-section (3) of section 39) are available to the deductee in Part C of FORM GSTR-2A for inclusion in FORM GSTR-2. Lastly, tax collected at source details from an e-commerce operator's FORM GSTR-8 return (under section 52) are made available to the concerned person in Part C of FORM GSTR-2A for inclusion in FORM GSTR-2.

The inward supply details provided in FORM GSTR-2 must include:

• Invoice-level details of all inter-State and intra-State supplies received from registered persons or unregistered persons.
• Details of imported goods and services.
• Any debit and credit notes received from suppliers.

Procedure for Submitting Monthly Returns

Every registered person, excluding those referenced in section 14 of the IGST Act, 2017, Input Service Distributors, non-resident taxable persons, or those paying tax under section 10, 51, or 52, must submit a monthly return as specified under sub-section (1) of section 39 in FORM GSTR-3 electronically through the common portal or a Facilitation Centre.

Part A of this return is automatically generated from information submitted in FORM GSTR-1 and FORM GSTR-2, along with any other liabilities from previous tax periods. The registered person filing the return must settle their tax, interest, penalty, fees, or other payable amounts by debiting their electronic cash ledger or electronic credit ledger, incorporating these details into Part B of FORM GSTR-3. If a refund of any balance in the electronic cash ledger is claimed under sub-section (6) of section 49, it can be requested in Part B of FORM GSTR-3, making the return an application under section 54.

In situations where the deadlines for FORM GSTR-1 (section 37) and FORM GSTR-2 (section 38) have been extended, and circumstances require it, a return in FORM GSTR-3B may be submitted in place of FORM GSTR-3, following conditions specified by the Commissioner.

Procedure for Submitting Quarterly Returns by Composition Suppliers

All registered persons opting to pay tax under section 10 must submit a quarterly return in FORM GSTR-4 electronically via the common portal or a Facilitation Centre. This return is based on details in FORM GSTR-4A, with necessary additions, corrections, or deletions.

When filing this return, the registered person must settle their tax, interest, penalty, fees, or any other amounts by debiting their electronic cash ledger.

The return in FORM GSTR-4 must include:

• Invoice-level details of inter-State and intra-State inward supplies received from registered and unregistered persons.
• Consolidated details of outward supplies made.

A registered person who chose the composition scheme from the start of a financial year must, if required, furnish details of outward and inward supplies and returns under rules 59, 60, and 61 for the period they were liable. This must be done by the due date for the September return of the succeeding financial year or the annual return of the preceding financial year, whichever is earlier. It is clarified that such a person cannot claim input tax credit on invoices or debit notes received from suppliers for the period before they opted for the composition scheme.

If a registered person withdraws from the composition scheme (either voluntarily or by official order), they must, if required, furnish details for the period before opting for tax payment under section 9 in FORM GSTR-4. This must be completed by the due date for the return of the quarter ending September of the succeeding financial year or the annual return of the preceding financial year, whichever is earlier.

Procedure for Submitting Returns by Non-Resident Taxable Persons

Every registered non-resident taxable person must submit a return in FORM GSTR-5 electronically through the common portal or a Facilitation Centre. This return includes details of outward and inward supplies. All payable tax, interest, penalty, fees, or other amounts must be paid within twenty days after the end of a tax period or within seven days after the last day of the registration's validity period, whichever comes first.

Procedure for Submitting Returns by Persons Offering Online Information and Database Access or Retrieval Services

Any registered person providing online information and database access or retrieval (OIDAR) services from outside India to an unregistered person in India must file a return in FORM GSTR-5A. This must be done on or before the twentieth day of the month following the calendar month or part thereof.

Procedure for Submitting Returns by an Input Service Distributor

Every Input Service Distributor (ISD) must electronically submit a return in FORM GSTR-6 through the common portal or a Facilitation Centre. This return is based on details in FORM GSTR-6A, with any necessary adjustments, and includes information on tax invoices for which credit has been received and those issued under section 20.

Procedure for Submitting Returns by Persons Required to Deduct Tax at Source

All registered persons mandated to deduct tax at source under section 51 (referred to as deductors) must submit a return in FORM GSTR-7 electronically via the common portal or a Facilitation Centre. The details provided by the deductor in this return are made electronically available to each supplier in Part C of FORM GSTR-2A and FORM GSTR-4A on the common portal after the FORM GSTR-7 filing due date. The certificate mentioned in sub-section (3) of section 51 is electronically provided to the deductee on the common portal in FORM GSTR-7A, based on the submitted return.

Procedure for Submitting Statements of Supplies Through an E-Commerce Operator

Every e-commerce operator required to collect tax at source under section 52 must electronically submit a statement in FORM GSTR-8 on the common portal or through a Facilitation Centre. This statement must contain details of supplies facilitated through the operator and the collected tax amount, as required under sub-section (1) of section 52. The details furnished by the operator are electronically made available to each supplier in Part C of FORM GSTR-2A on the common portal after the FORM GSTR-8 filing due date.

Notices for Non-Filers of Returns

If a registered person fails to submit a return under section 39, section 44, section 45, or section 52, an electronic notice in FORM GSTR-3A will be issued to them.

Matching Input Tax Credit Claims

After the due date for filing FORM GSTR-3, the following input tax credit (ITC) claim details for inward supplies, including imports (provisionally allowed under section 41), are matched under section 42:

• Supplier's Goods and Services Tax Identification Number (GSTIN).
• Recipient's GSTIN.
• Invoice or debit note number.
• Invoice or debit note date.
• Tax amount.

If the deadlines for FORM GSTR-1 (section 37) and FORM GSTR-2 (section 38) are extended, the ITC matching date will also be extended. The Commissioner may further extend the ITC matching date based on Council recommendations. Clarification:

• ITC claims in FORM GSTR-2 accepted by the recipient based on FORM GSTR-2A without modifications are considered matched if the corresponding supplier has filed a valid return.
• An ITC claim is matched if the claimed amount is equal to or less than the output tax paid by the corresponding supplier on that invoice or debit note.

Final Acceptance and Communication of Input Tax Credit

The final acceptance of an input tax credit claim for any tax period, as specified in sub-section (2) of section 42, is electronically communicated to the claimant in FORM GST MIS-1 via the common portal. If an ITC claim was initially marked as mismatched but is later rectified by the supplier or recipient, it will be finally accepted and communicated electronically to the claimant in FORM GST MIS-1.

Communication, Rectification, and Reversal of Discrepancies in Input Tax Credit Claims

Any discrepancies in an input tax credit claim for a tax period, as per sub-section (3) of section 42, and the output tax liability to be added under sub-section (5) due to ongoing discrepancies, are electronically communicated. The recipient making the claim receives FORM GST MIS-1, and the supplier receives FORM GST MIS-2 through the common portal by the last day of the month in which matching occurred.

A supplier receiving a discrepancy notice can rectify their statement of outward supplies for the month in which the discrepancy was communicated. Similarly, a recipient can rectify their statement of inward supplies for the same month. If the discrepancy is not rectified by either party, an amount equal to the discrepancy will be added to the recipient's output tax liability in their FORM GSTR-3 return for the month following the discrepancy communication. Clarification:

• Supplier rectification means adding or correcting outward supply details in their valid return to match the recipient's declared inward supply details.
• Recipient rectification means deleting or correcting inward supply details to match the supplier's declared outward supply details.

Handling Multiple Input Tax Credit Claims on the Same Invoice

If input tax credit claims are duplicated for the same invoice in inward supply details, the registered person will be electronically notified in FORM GST MIS-1 via the common portal.

Matching Claims for Output Tax Liability Reduction

After the due date for filing FORM GSTR-3, the following details related to claims for output tax liability reduction are matched under section 43:

• Supplier's GSTIN.
• Recipient's GSTIN.
• Credit note number.
• Credit note date.
• Tax amount.

If the deadlines for FORM GSTR-1 (section 37) and FORM GSTR-2 (section 38) are extended, the matching date for output tax liability reduction claims will also be extended. The Commissioner may further extend this date based on Council recommendations. Clarification:

• Claims for output tax liability reduction due to credit notes in FORM GSTR-1, accepted by the recipient in FORM GSTR-2 without amendment, are considered matched if the recipient has filed a valid return.
• An output tax liability reduction claim is matched if the output tax liability (after reduction) is equal to or greater than the input tax credit claim (after admitted reduction) discharged by the recipient in their valid return.

Final Acceptance and Communication of Output Tax Liability Reduction

The final acceptance of an output tax liability reduction claim for any tax period, as specified in sub-section (2) of section 43, is electronically communicated to the claimant in FORM GST MIS-1 via the common portal. If a claim for output tax liability reduction was initially marked as mismatched but is later rectified by the supplier or recipient, it will be finally accepted and communicated electronically to the claimant in FORM GST MIS-1.

Communication and Rectification of Discrepancies in Output Tax Liability Reduction and Reversal of Claims

Any discrepancies in output tax liability reduction claims, as per sub-section (3) of section 43, and the output tax liability to be added under sub-section (5) due to ongoing discrepancies, are electronically communicated. The registered person making the claim receives FORM GST MIS-1, and the recipient receives FORM GST MIS-2 through the common portal by the last day of the month in which matching occurred.

A supplier receiving a discrepancy notice can rectify their statement of outward supplies for the month in which the discrepancy was communicated. Similarly, a recipient can rectify their statement of inward supplies for the same month. If the discrepancy is not rectified by either party, an amount equal to the discrepancy will be added to the supplier's output tax liability, debited from their electronic liability register, and reported in their FORM GSTR-3 return for the month following the discrepancy communication. Clarification:

• Supplier rectification means deleting or correcting outward supply details in their valid return to match the recipient's declared inward supply details.
• Recipient rectification means adding or correcting inward supply details to match the supplier's declared inward supply details.

Handling Multiple Claims for Output Tax Liability Reduction

If claims for output tax liability reduction are duplicated in the outward supply details, the registered person will be electronically notified in FORM GST MIS-1 via the common portal. Refund of interest on reclaims: Interest to be refunded under sub-section (9) of section 42 or sub-section (9) of section 43 is claimed by the registered person in their FORM GSTR-3 return and credited to their electronic cash ledger in FORM GST PMT-05. This amount can then be used for future interest payments or claimed as a refund under section 54.

Matching Details Provided by E-Commerce Operators and Suppliers

The following details regarding supplies made through an e-commerce operator, as reported in FORM GSTR-8, are matched with the corresponding details declared by the supplier in FORM GSTR-1:

• State of place of supply.
• Net taxable value.

If the deadline for FORM GSTR-1 (section 37) is extended, the matching date for these details will also be extended. The Commissioner may further extend this date based on Council recommendations.

Communication and Rectification of Discrepancies Between E-Commerce Operator and Supplier Details

Any discrepancies between details provided by the e-commerce operator and those declared by the supplier are electronically communicated. The supplier receives FORM GST MIS-3, and the e-commerce operator receives FORM GST MIS-4 through the common portal by the last day of the month in which matching occurred.

A supplier receiving a discrepancy notice can rectify their statement of outward supplies for the month in which the discrepancy was communicated. An operator can likewise rectify their statement for the same month. If the discrepancy is not rectified by either party, an amount equal to the discrepancy will be added to the supplier's output tax liability in their FORM GSTR-3 return for the month following the discrepancy communication. This addition to output tax liability and associated interest will be electronically communicated to the supplier in FORM GST MIS-3.

Annual Returns

Every registered person, excluding Input Service Distributors, persons paying tax under section 51 or 52, casual taxable persons, and non-resident taxable persons, must electronically submit an annual return as per sub-section (1) of section 44 in FORM GSTR-9 through the common portal or a Facilitation Centre. Persons paying tax under section 10 must file their annual return in FORM GSTR-9A.

Every e-commerce operator required to collect tax at source under section 52 must submit the annual statement mentioned in sub-section (5) of that section in FORM GSTR-9B.

Any registered person whose aggregate turnover exceeds INR 2 crore in a financial year must have their accounts audited as per sub-section (5) of section 35. They must then electronically submit a certified copy of the audited annual accounts and a reconciliation statement in FORM GSTR-9C through the common portal or a Facilitation Centre. Final Return: Every registered person required to file a final return under section 45 must submit it electronically in FORM GSTR-10 through the common portal or a Facilitation Centre.

Details of Inward Supplies for Persons with Unique Identity Numbers

Every person issued a Unique Identity Number (UIN) who claims a refund of taxes paid on inward supplies must electronically furnish details of such taxable goods or services in FORM GSTR-11, along with their refund application, via the common portal or a Facilitation Centre. For UIN holders whose UIN was issued for purposes other than tax refunds, they must provide inward supply details of taxable goods or services as requested by the proper officer in FORM GSTR-11.

Regulations Concerning Goods and Services Tax Practitioners

An application for enrollment as a Goods and Services Tax Practitioner (GSTP) can be made electronically in FORM GST PCT-01 through the common portal or a Facilitation Centre. To be eligible, an applicant must be an Indian citizen, of sound mind, not adjudicated as insolvent, not convicted by a competent court, and meet one of the following criteria:

• A retired Group-B gazetted officer or higher from the Commercial Tax Department (State Government) or Central Board of Excise and Customs (Department of Revenue, Government of India) with at least two years of service in that rank.
• Enrolled as a sales tax practitioner or tax return preparer under previous laws for at least five years.
• Hold a graduate or postgraduate degree in Commerce, Law, Banking (including Higher Auditing), Business Administration, or Business Management from an Indian university, or an equivalent degree from a foreign university recognized in India, or another government-notified examination, or have passed the final examination of the Institute of Chartered Accountants of India, Institute of Cost Accountants of India, or Institute of Company Secretaries of India.

Upon receiving the application, the authorized officer will conduct necessary inquiries and either enroll the applicant as a GSTP, issuing a certificate in FORM GST PCT-02, or reject the application if the applicant does not meet the qualifications. This enrollment remains valid until canceled. However, enrolled GSTPs must pass periodic examinations conducted by an authority notified by the Commissioner on the Council's recommendations to remain eligible. Specifically, those qualifying under clause (b) of sub-section (1) must pass this examination within one year from the appointed date.

If a GSTP is found guilty of misconduct in proceedings under the Act, the authorized officer can issue a show-cause notice in FORM GST PCT-03. After providing a reasonable opportunity to be heard, an order in FORM GST PCT-04 may be issued, disqualifying them from functioning as a GSTP under section 48. A person against whom such an order is made can appeal to the Commissioner within thirty days of the order's issue date.

Any registered person can authorize a GSTP on the common portal using FORM GST PCT-05 or withdraw such authorization at any time. The authorized GSTP can then perform tasks specified in the authorization during its validity period. If a GSTP files a statement on behalf of a registered person, a confirmation request is sent via email or SMS to the registered person. The statement is also made available on the common portal. If the registered person does not respond by the statement's due date, it is assumed they have confirmed it.

A GSTP can undertake the following activities on behalf of an authorized registered person:

• Furnish details of outward and inward supplies.
• Furnish monthly, quarterly, annual, or final returns.
• Make deposits for credit into the electronic cash ledger.
• File refund claims.
• File applications for registration amendment or cancellation. Note: For refund claims or applications for registration amendment/cancellation submitted by a GSTP, confirmation is sought from the registered person. The application is made available on the common portal and will not proceed until the registered person provides consent.

A registered person choosing to file returns through a GSTP must:

• Provide consent to the GSTP in FORM GST PCT-05 to prepare and file their return.
• Before confirming submission, ensure the facts in the return are accurate.

The GSTP must:

• Prepare statements with due diligence.
• Affix their digital signature on the statements prepared by him or electronically verify using his credentials.

A GSTP enrolled in one State or Union Territory is considered enrolled in other States or Union Territories for the activities specified in sub-rule (8).

Conditions for Appearance

No person can appear before any authority as a GSTP for proceedings under the Act on behalf of a registered or unregistered person unless they are enrolled under rule 83. A GSTP appearing on behalf of another person in any Act proceedings must produce a copy of the authorization given by that person in FORM GST PCT-05 if requested by the authority.