Introduction to GST Information Returns

This article details the concept of information returns within the Goods and Services Tax (GST) framework in India. To facilitate data collection, the government specifies various compliance obligations for particular entities. One such requirement involves the submission of information returns. These returns serve primarily an administrative function, enabling the government to exchange crucial data. Section 150 of the Central Goods and Services Tax (CGST) Act, 2017, makes the filing of these returns mandatory for specific categories of individuals and organizations under GST. It is important to note that information returns differ from regular tax returns; they are documents used to report specific business transactions rather than calculate tax liabilities.

Who Must File Information Returns and What Information to Report

As previously stated, only specific classes of individuals and entities, as defined by the Act, are mandated to file information returns under GST. An information return becomes mandatory if a person (from the categories listed below) is responsible for maintaining any of the following types of records or details:

• Registration data
• Account statements
• Regular returns
• Tax payment particulars
• Other transaction details for goods or services
• Bank account transactions
• Electricity consumption records
• Purchase transactions
• Sales transactions
• Exchanges of goods or property
• Rights or interests in property

The designated categories of persons required to submit Information Returns include:

• Taxable individuals or entities
• Local authorities, other public bodies, or associations
• State Government authorities responsible for collecting State Goods and Services Tax (SGST)
• Central Government authorities tasked with collecting Central Goods and Services Tax (CGST)
• Income tax authorities
• Banking institutions
• State Electricity Boards or electricity distributors
• Registrars or Sub-registrars (under the Registration Act)
• Registrars (under the Companies Act)
• Registering authorities (under the Motor Vehicles Act)
• Collectors (as defined by the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act)
• Stock exchanges
• Depositories
• Officers of the Reserve Bank of India
• Persons granted a Unique Identity Number (UIN)
• Any other person designated by the Government's council

Deadlines for Submitting Information Returns

Information returns must be filed within the specific timeframes outlined in sub-sections (1) and (2) of the Act. If the authorities identify any defects in a filed return, they will notify the filer, requesting corrections. The corrected return must then be submitted within 30 days of receiving this notification. Furthermore, if a required return is not filed by its due date, the authority may issue a notice compelling the person to file it. This notice can grant up to 90 additional days from its date for the return to be submitted.

Penalties for Failure to File Information Returns

According to the Act's provisions, individuals or entities who fail to submit an information return within the timeframe specified in a notice will incur a penalty of Rs. 100 for each day the default persists. There is an upper limit for this penalty; the maximum amount chargeable for not furnishing an information return cannot exceed Rs. 5,000.