GST Returns dates & How Matching Concept works?

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GST Returns dates &

How Matching Concept works?

Returns are required in every law to provide periodic data to the respective law authority. As GST also governed by a separate law it will also require a number of returns  for communication between taxable registered person and the government. Digitization also plays a important role in GST regime to enforce the Matching Concept for availing credit. In this post we will discuss one by one all the GST returns required under GST Law & how matching concept works for availing input credit.

Broadly GST returns can be segregated in 5 types which are as follows:

Outward GST Returns

GSTR – 1

Every Assesse (Taxable registered Person) other than

Input Service Distributor (ISD);

Compound levy u/s-8;

TDS u/s-37 ;

Shall file GSTR-1 by 10th of succeeding month. For detail about GSTR – 1 click here.

Inward GST Returns

GSTR – 2

Every Assesse (Taxable registered Person) other than

Input Service Distributor (ISD);

Compound levy u/s-8;

TDS u/s-37 ;

Shall file GSTR-2 by 15th of succeeding month. For detail about GSTR – 2 click here.

Monthly GST ReturnsGST Returns dates & How Matching Concept works.

GSTR – 3

Every Assesse (Taxable registered Person) other than

Input Service Distributor (ISD);

Compound levy u/s-8;

TDS u/s-37 ;

Shall file GSTR-3 by 20th of succeeding month. For detail about GSTR – 3 click here.

GSTR – 4

Every Compounding Taxpayer under section 8 shall file GSTR – 4 return quarterly by 18th of the succeeding month of the quarter

GSTR – 5

Every Non-Resident Foreign taxpayer shall file periodic return by last day of registration.

GSTR – 6

Return for ISD (Input Service Distributor) by 15th of the succeeding month.

GSTR – 7

Return for Tax Deducted at Source u/s 37 by 10th of the succeeding month.

Annual GST Returns

GSTR – 8

Annual Return needs to be filed by 31st December from the end of financial year i.e for Financial Year 2017-18, the last date for filing of GSTR – 8 will be 31st December 2018.

Final GST Returns

This return applies for assesse who has applied for Cancellation of their registration. Every assesse who has applied for cancellation will file his/her final return within 3 months of the cancellation date or cancellation order.

As all the returns has been discussed above now it’s time to understand the new matching concept under GST.

Matching Concept – How Matching Concept works?

This is the new concept used in the GST Law just to make sure that both the parties are on the same page in terms of keeping invoices updated at the GST Portal to get Input credit.  In this concept returns are matched at both ends before giving benefit of input credit. The process is as follows:

  1. Firstly Registered taxpayer will file GSTR – 1 for Outward supplies by 10th of the succeeding month.
  2. During filing of GSTR-2 return regarding inward supplies the taxable registered person would have to verify the details which were filed in GSTR-1 return by the seller.
  3. Thirdly, If details of the both Seller and Buyer do not matched under section 29 of matching concept, Reclaim & Reversal of input credit then the defaulter would be liable to pay additional tax with interest.
  4. No rectification after filing the return under section 27 of GST Law for the month of September following the end of financial year OR annual return whichever is earlier.

Penalties and other restriction related to GST Returns

No Taxable Registered Assesses will be allowed to file & Submit return of the month if return of previous month is not submitted.

Penalty of Rs. 100 per day upto Maximum Rs. 5000 will be levied if there is default in filing GSTR 1, GSTR 2 or Final Return.

Penalty of Rs. 100 per day upto 0.25% of aggregate Turnover will be levied if there is default in filing GSTR 8.

That’s all for GST Returns dates & How Matching Concept works. Keep sharing.