The Eight Forms Under GST Regime

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The Eight Forms Under GST Regime

Demystifying GST

As the GST Bill is about to come into effect by next year, the government of India is taking necessary steps to make sure that the GST regime works fine. The Government will introduce eight forms namely GSTR-1 to GSTR-8 that will be required to file the GST Tax returns in India.

These forms will be collectively used to take the assessees details and offer multiple options to file online return.

GSTR-1: Sales Register

This is a sales register of goods and services, here we can enter the detailed data of of sales. If a person sells his goods and services to a registered person within the state, in that case he is liable to charge CGST and SGST on the transaction.

At the same time, if the person sells his goods and services to another state he is liable for IGST charge on him.

Here for each transaction, it is important to classify the goods or services with SAC or HSN code because these codes will identify the nature of the transaction. Again for avoidance of black money transactions in GST returns, there is need to identify some important transaction like inter-state transaction worth Rs 250,000 or more.

GSTR-2: Purchase Register

This is a comprehensive purchase register. Here, data of both purchase of service and goods have to be entered. In GSTR-2, the data of the goods purchased from registered dealer including debit/credit note will automatically be populated as the respective dealers upload their sales register on the due date. Mismatch of tax credits will be easy to resolve.

Here, separate information will be required for input service distributors. Due date of filing the return is 15th of the next month, but it will be possible to upload data daily, weekly, fortnightly too. The workload of filing returns will be less than in the current multiple tax regime.

GSTR-3: Monthly Return Form

Most of the data here is auto populated from purchase and sales registers. Only adjustment entries and challan information will need to be entered. Here cash ledger (tax deposit in cash and TDS/ TCS) will be made separately for CGST , SGST and IGST.

GSTR-4: Quarterly return for compounding dealers

This return is a quarterly return filed by the compounding dealer (as per draft GST law, the assessee whose turnover is less than Rs 50 lakh and there is no interstate transaction), is liable to file returns on and before 18th of the month after the quarter. In this return, data will be automatically populated after filing of GSTR-1.

GSTR-5: Return file by the Non-Resident

This will be a monthly return filed by the non-resident within 18th day after end of the month and within the 7 days after expiry of registration. In this return HSN/SAC code should be mention because these classify the transaction as sales and purchase of goods and services.

GSTR-6: Return for Input Service Distributor

This return will be filed by the Input Service Distributors within 15 days after end of the month. In this return form, input service distribution ledger will be maintained. In this ledger credit of CGST, SGST, IGST will be maintain separately of each tax amount.

GSTR-7: TDS Return

Tax deductor will be liable to file this TDS return within the 10 days after end of the month. This return form is almost similar to TDS return of income tax as in this return deductee information and transaction information is mentioned with the related challan in which the TDS amount is paid to the department.

GSTR-8: Annual Return

This return form will be filed on or before 31st December of the next financial year. In this return, the total annual returns information will be matched by the department with the monthly/quarterly returns filled by the assesse.

In this return, auditors information will submitted. In this return all the transactions will bifurcated within goods and services. This bifurcation should be matched with the HSN/SAC code given by the assessee in his monthly/quarterly return.