Chapter

14 RETURNS
Table Of Content
Sec & Rules Title [Link]. Sec 40 First Return 14.14
Sec 2 Relevant definitions 14.03 Sec 44 & Rule 80 Annual Return 14.15
Sec 37 & Rule 59 Furnishing details of Outward supplies 14.03 Sec 45 & Rule 81 Final Return 14.16
Sec 38 & Rule 60 Communication of details of inward Sec 46 & 47 Notice & Late fee for delay
14.06 14.16
supplies & ITC in filing return
Sec 39 & Rule Furnishing of Returns , Payment of 14.08 Sec 48 Goods & Services Tax 14.20
61/61A/62/63 Tax & Rectification Practitioners

INTRODUCTION
Meaning

Ü The term “return” ordinarily means statement of information (facts) furnished by the taxpayer, to tax
administrators, at regular intervals which enables the Government/ tax administrator to estimate the
tax collection for a particular period and determine correctness of tax compliance.
Ü All details are consolidated & stored at common portal which is common for both, i.e. CG & SGs.

Necessity of Filing of Return

The return serves 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 correct and timely filing of returns

1. A taxpayer has to estimate his tax liability on “self-assessment” basis and deposit the tax along with
the filing of such return & thus, return filed is a work sheet/supporting document for tax authorities to
rely on the computation of tax by authorities.
[Link] 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
transactions in course or furtherance of business.

Modes of filing returns

All the returns/statements under GST laws are filed electronically by using various modes as follows:-
1 GSTN portal Can be filed directly on the GST common portal online.
([Link])
2 Offline utilities Used for preparing the statements offline after downloading the auto populated
provided by GSTN details and uploading them on the common portal as direct filing on portal may be
tedious & time consuming for taxpayers with large number of invoices.
3 GST Suvidha GSTN has also developed an ecosystem of GST Suvidha Providers (GSP) that will
Providers (GSPs) integrate with the common portal.

V’Smart Academy 14.01 CA Vishal Bhattad 09850850800

 CH 14 Returns

Statement / Return
Statement Normal Return

Section 37 Section 38
Outward Supply Inward Supply Regular return Annual return
1-11th of following GSTR - 2B Section 39 Section 44
GSTR -1 Month. Auto updated
After filing GSTR-1,
GSTR -1A but before filing Person Regular taxable Person Non- Person Regular taxable Composition
GSTR-3B & CTP resident Composition Taxable TDS Deductor Person Taxable
IFF 1-13th of following taxable person person
(QRMP Person Form GSTR-9 GSTR-9A
Month

V’Smart Academy
Scheme)
Form GSTR-3B GSTR-5 GSTR-4 (yearly) GSTR-7
Max time within 3 Yrs from Due date 31st Dec of the next F. Y.
30th Jun of following on/before 10th day of
limit due date 13th day Max. within 3 Yrs from due
Due date 20th of following F.Y. the month succeeding
of following date of filling annual
Month the calendar month. Time
month
Limit return
Comment :- Composition tax payer [Link] within 3 Yrs from due date of its filling u/s 39
required to filed quartely statement Limit

14.02
Other Return Non - filing of return
Late Filing
under section 39/44/45
Section 46 Section 47
Late Fee
First Return Final Return Notice to furnish return in
Section 45 next 15 days Regular Return
Section 40 Annual Return
De-registation Statement under sec 37/38
First Tax Period under sec 39 under sec 45
([Link] 1/2)
If still not furnished - Proper Officer Further under (i.e. GSTR - 3B) ` 100 /day
` 100 /day
will make best Judgement section 122 `100 /day Max 0.25 % of
First return shall cover Final return shall be Max ` 5,000
Max `5,000 ATO

CA Vishal Bhattad
Assessmentunder Section 62 penalty leviable ` 10,000
all outward supplies furnished within
from the date 3 months of the
from which GST Practitioner
he becomes liable
for registration Date of Date of
cancellation Section 48
Cancellation
order

Approved person can

Whichever is later
act as GSTP

09850850800
 DEFINITIONS
Sec 2(94):- Registered Person means

a person who is registered u/s 25 but does not include a person having a Unique Identity Number.

Sec 2(92):- Quarter

shall mean a period comprising three consecutive calendar months, ending on the last day of
March, June, September and December of a calendar year.

Sec 2(106):- Tax Period

means the period for which the return is required to be furnished.

Sec 2(117):- Valid Return

means a return furnished u/s 39 on which self-assessed tax has been paid in full.

Sec 37 read with Rule 59 :- Furnishing details of Outward supplies

1. Who is required to furnish details of outward supplies (GSTR-1)?

The details of outward supplies (GSTR-1) of both goods and services are required to be furnished by
every RP including registered CTP except the following:
Ü ISD Ü NRTP Ü person paying tax under composition scheme Ü person deducting TDS
Ü person collecting TCS Ü supplier of OIDAR service located in non-taxable territory providing services
to NTOR or online money gaming outside India to a person in India.
1A. Who is required to furnish GSTR-1A & when it should be furnished?

CH 14 Returns
Ü The said RP may , amend or furnish additional details of outward supplies of goods or services or both
in GSTR-1A for the said tax period electronically at his own option through the GSTportal,
Ü It shall be furnish after furnishing GSTR-1 for a tax period but before filing of return in GSTR-3B for the
said tax period.

Key features of Form GSTR-1A

Ü GSTR -1A is an optional facility
Ü In can be filed only once for a tax period after filing GSTR-1 but before submitting GSTR3B for a tax period.
Ü It allows to amend the records filed in the Form GSTR-1 of current tax period only.
Ü The corresponding effect of the changes made through Form GSTR-1A on the liability of the taxpayer shall
be reflected in the Form GSTR-3B for the same tax period.
Ü The tax on supplies declared or amended by the suppliers through Form GSTR-1A will be available to the
recipient in Form GSTR-2B generated for the next tax period for ITC. Questionnaire Q2
For the Monthly taxpayers, who files FORM GSTR-1 on Monthly basis
Ü There is no due date for filing of GSTR-1A for the taxpayer filing Form GSTR-1 on monthly basis
Ü Form GSTR-1A will be available at the portal every month from the due date of filing of Form GSTR-1 or
the actual date of filing of Form GSTR-1, whichever is later, and will be available till the actual filing of
corresponding Form GSTR-3B of the same tax period.

V’Smart Academy 14.03 CA Vishal Bhattad 09850850800

 2. Nil GSTR-1:-

Ü GSTR 1 filing is mandatory for all normal and CTP, even if there is no business activity in any particular
tax period.
Ü Nil GSTR-1 is required to be filed in such cases, which will not have any entry.
Ü Thus, a NIL GSTR-1 can be filed anytime from 1st of the month subsequent of the tax period, through an
SMS using the registered mobile number of the taxpayer & is verified by registered mobile number-
based OTP facility.
3. Due Date of Submission of GSTR-1:-

Time limit for furnishing the details of outward

Class of registered person
supplies in GSTR-1 for each quarter/tax period
Normal Case (Monthly Scheme) 11th day of the month succeeding such tax period
RP opting for QRMP scheme 13th day of the month succeeding such tax period (i.e Quarter)
It may be extended by Commissioner /Commissioner of SGST/Commissioner of UTGST for a class of
taxable persons by way of a notification.

Note:- A taxpayer cannot file GSTR-1 before the end of the current tax period. However, following are the
exceptions to this rule:-
Questionnaire Q1
a. Casual taxpayers, after the closure of their business
b. Cancellation of GSTIN of a normal taxpayer- after confirming receipt of the application.

4. Invoice Furnishing Facility (IFF) for taxpayers opting QRMP Scheme:-

Ü IFF is an optional facility available to RP to furnish details of outward supplies for 1st and 2nd months of
a quarter upto a cumulative value of ` 50 lakh in each of the first 2 months of quarter electronically on
common portal.
CH 14 Returns

Ü Only the invoices pertaining to last month of a quarter are to be uploaded in GSTR-1.
Ü IFF is used only for B2B invoices.
Ü Alternatively, a RP may furnish the details of all outward supplies made during a quarter in Form GSTR-1
only, without using the IFF.
Ü Due to IFF, recipient who made purchases from a person opting for QRMP scheme can avail ITC
without much delay as the transaction will be reflected as their inward supplies.
Ü Invoices for a month are to be furnished in IFF between 1st day of succeeding month till 13th day of
succeeding month & not after that.
5. Details of outward supplies required to be furnished in IFF:- It includes-

Ü Invoice wise details of inter-State and intra-State supplies made to the registered persons.
Ü Debit and credit notes, if any, issued during the month for such invoices issued previously.

6. Restriction on furnishing of GSTR-1

If previous GSTR-1 is/are not furnished

Ü A RP shall not be allowed to furnish GSTR-1 for a tax period, if the details of outward supplies for any of the
previous tax periods has not been furnished by him.
Ü However, Govt. may allow notified persons to furnish GSTR-1, even if he has not furnished GSTR-1 for 1 or
more previous tax periods.

V’Smart Academy 14.04 CA Vishal Bhattad 09850850800

If previous GSTR-3B is/are not furnished
a) A registered person (Monthly Scheme):-

shall not be allowed to furnish if he has not furnished the return in FORM GSTR-3B for preceding
GSTR-1, month
b) A registered person (QRMP Scheme):-
shall not be allowed to furnish GSTR- if he has not furnished the return in FORM GSTR-3B for preceding tax
1 or IFF, period

Non compliance of intimation under rule 88C(1)

A RP, to whom an intimation has been issued on the common portal under Rule 88C(1) (where tax liability
shown in GSTR-1 exceeds the tax liability paid in GSTR-3B ) in respect of a tax period,
Ü shall not be allowed to furnish GSTR-1 or IFF for a subsequent tax period,
Ü unless he has either deposited the amount specified in the said intimation or has furnished a reply
explaining the reasons for any amount remaining unpaid, as required under rule 88C(2).
Comments:-
Ø If reply was furnished but found to be not satisfactory, then only recovery proceedings u/s 79 would be triggered as
this rule does not prescribe blocking of GSTR-1 / IFF in such case.
Ø If no action was taken against the issuance of DRC-01B, there would be blocking of GSTR-1/IFF along with initiation
of recovery proceedings u/s 79 of CGST Act, 2017. Questionnaire Q6

Non compliance of intimation under rule 88D(1)

If any intimation is issued rule 88D(1)(for excess ITC) on RP in respect of a tax period or periods, shall
not be allowed to furnish GSTR-1 /IFF for a subsequent tax period,
unless he has either paid the amount equal to the excess ITC as specified in the said intimation or

CH 14 Returns
has furnished a reply explaining the reasons in respect of the amount of excess ITC that still remains to be
paid.

Non furnishing Bank Details

RP shall not be allowed to furnish GSTR-1/ IFF, if he has not furnished the details of the bank account
under rule 10A. Questionnaire Q5

7. Contents in GSTR 1:-

Basic & Other details Details of Outward Supplies

Ü GSTIN Ü B2B including UIN holders
Ü Legal name Ü B2C inter-State supplies with invoice value > ` 1 lakh
Ü Trade name, if any Ü Consolidated details of other B2C supplies
Ü Aggregate turnover in P.Y. Ü Zero rated and Deemed exports
Ü Tax period i.e. Year & Month/Qtr Ü Debit/ Credit notes issued
Ü HSN-wise summary of outward Ü Nil rated/ Exempted/ Non-GST
supplies Ü Amendments for prior period
Ü Details of documents issued Ü Advances received/advances adjusted

V’Smart Academy 14.05 CA Vishal Bhattad 09850850800

 8. Details in GSTR-1/1A :-
Invoice wise 1) Inter-State & Intra-State supplies made to registered persons
details of ALL 2) Inter-State supplies made to URP with invoice value > ` 1 lakh
1) Intra-State supplies made to URP for each rate of tax
Consolidated
details of ALL
2) Inter-State supplies made to unregistered persons with invoice value upto ` 1 lakh for
each rate of tax separately for each State
Debit & Credit 1) Issued during the month for invoices issued previously
notes Questionnaire Q3

9. Sec 37(3): Amendment in details of outward supply (GSTR-1) furnished in prior periods
Scope of amendment/correction entries

Ü Amendments in details of taxable outward supplies furnished in earlier periods can be made in
“Amendment Table” given in GSTR-1 of subsequent periods
Ü Details required for amendment = original invoice (No. & Date), the particulars of which have been
wrongly entered in GSTR-1 of the earlier months.
Ü If the entire original invoice is missed while furnishing the GSTR- 1 for a particular previous month, then
that missing invoice details are to be furnished in the Amendment Table only & such type of errors is
regarded as data entry error.

Rectification of errors

Ü If the supplier discovers any error or omission, he shall rectify the same in the tax period during which such
error or omission is noticed.
Ü If there is short payment in the return to be furnished for such tax period, then short tax and interest shall be paid.
Time limit for rectification
CH 14 Returns

The maximum time limit for making amendments is EARLIER of the following dates:-
Ü 30th November following the end of the F.Y. to which such details pertain or
Ü Actual date of filing of the relevant annual return.

Some Important Notes:-

1. Taxpayer opting for voluntary cancellation of GSTIN has to file GSTR-1 for active period.
2. If taxpayer is converted from a normal taxpayer to composition taxpayer, GSTR-1 is to be filed only for
period during which the taxpayer was registered as normal taxpayer. The GSTR-1 for the said period, even
if filed with delay would accept invoices for the period prior to conversion. Questionnaire Q4

Sec 38:- Communication of details of inward supplies and ITC

Sub- Legal Provision
Sec Substituted by F.A.2025
1 The details of furnished GSTR-1 and of prescribed supplies, and an auto-generated statement a
statement(GSTR- 2B) containing details of input tax shall be made available electronically to recipients.
2 The auto-generated statement Statement referred in (GSTR- 2B) u/s 38 (1) shall consist of–
(a) Details of inward supplies for which ITC may be available to recipient and Omitted by F.A.2025
(b) Details of supplies for which ITC cannot be availed, whether wholly or partly, by recipient,
Inserted including on account of details of the said supplies being furnished u/s 37(1)
by
F.A.2025 (i) by any RP within such prescribed period of taking registration; or

V’Smart Academy 14.06 CA Vishal Bhattad 09850850800

 (ii) by any RP, who has defaulted in payment of tax and such default has continued for prescribed
period or
(iii) by any RP, the output tax payable by whom as per GSTR-1 furnished by him during prescribed
period exceeds the output tax paid by him during the said period by prescribed limit or
(iv) by any RP who, during prescribed period, has availed ITC of an amount that exceeds the credit
that can be availed by him as per clause (a) above, by prescribed limit or
(v) by any RP, who has defaulted in discharging his tax liability as per section 49(12), subject to
prescribed conditions and restrictions or
(vi) by other prescribed class of persons.

(c) such other details as may be prescribed Newly Inserted by F.A.2025

Rule 60:- Form and manner of ascertaining details of inward supplies

Details in GSTR-2B:-
Ü Form GSTR-2B is an auto-generated read only statement containing the details of eligible ITC - is made
available to the registered person (recipient) for every month only once.

It consists of:-
1 The details of outward supplies furnished by suppliers (other than under QRMP Scheme) in Form
GSTR- 1 between:-
Ø the day immediately after the due date of GSTR-1 for the previous month to
Ø the due date of furnishing of Form GSTR-1 for the month.

2 The details of outward supplies furnished by the supplier under QRMP scheme in Form GSTR-1 or using
the IFF, by NRTP in Form GSTR-5 & by an ISD in Form GSTR-6 as the case may be, between:-

CH 14 Returns
For 1st Ü the day immediately after the due date of furnishing GSTR-1 for the preceding quarter to
month of Ü the due date of furnishing details using the IFF for the 1st month of the quarter.
quarter
For 2nd Ü the day immediately after the due date of furnishing details using the IFF for the 1st month
month of of the quarter to
quarter Ü the due date of furnishing details using the IFF for the 2nd month of the quarter.
For 3rd Ü the day immediately after the due date of furnishing of details using the IFF for the 2nd
month of month of the quarter to
quarter Ü the due date of furnishing of Form GSTR-1 for the quarter

3 The additional details or amendments in details of outward supplies furnished by his supplier in
GSTR-1A filed between the day immediately after the due date of furnishing of GSTR-1 for the
previous tax period to the due date of furnishing of GSTR-1 for the current tax period.

4 GSTR-2B consists of all documents filed by suppliers/ISD in their Form GSTR-1, 5 & 6, between the
cut-off dates and import data for the period which are received within 13th of the succeeding month.
Ø In case of monthly Form GSTR-1, the cut-off date is 00:00 hours on 12th of the relevant month to
23:59 hours, on 11th of the succeeding month.
Ø Whereas for quarterly Form GSTR-1/IFF, Form GSTR-5 and Form GSTR-6, the cut-off date is 00:00
hours on 14th day of relevant month to 23:59 hours, on 13th day of succeeding month.

V’Smart Academy 14.07 CA Vishal Bhattad 09850850800

 5 The statement in Form GSTR-2B for every month shall be made available to the RP,-

i) for the 1st and 2nd month of a quarter, a day after the due date of furnishing of details of
outward supplies for the said month,
Ø in the IFF by a RP opting for QRMP, or
Ø in Form GSTR-1 by a registered person other than opting for QRMP,
whichever is LATER.
ii) In the 3rd month of the quarter, a day after the due date of furnishing of details of outward
supplies for the said month, in Form GSTR-1 by a RP opting for QRMP.
Example:- For the quarter July-September, Form GSTR-2B for a registered person (recipient) who has received
supplies from QRMP suppliers as well as from other suppliers will be generated as follows:
Month Date of generation of GSTR 2B
July 14th August
August 14th September
September 14th October

Sec 39:- Furnishing of Returns

GSTR - 3B - Normal Return
39(1) Read with Rule 61 & 61A
(a) It prescribes a monthly return in FORM GSTR-3B for every registered person, other than:-
(a)

Ü ISD, Ü NRTP, Ü Composition Taxpayer, ÜPerson deducting TDS, Ü Person collecting TCS and
Ü Supplier of OIDAR services located in non-taxable territory providing such services to non-taxable online
recipient or online money gaming outside India to a person in India.

Proviso:- Persons notified by Govt. shall furnish a return for every quarter or part thereof, subject to the
CH 14 Returns

specified conditions and restrictions (i.e. QRMP Scheme).

Note:-
Ü GSTR-3B is summary of outward supplies, inward supplies liable to reverse charge, eligible ITC, payment of tax etc.
and thus, it does not require invoice-wise data of outward supplies.
Ü It can be submitted electronically through the common portal, either directly or through a Facilitation Centre notified
by the Commissioner.
Ü Further, a Nil GSTR-3B can be filed through an SMS using the registered mobile number of the taxpayer.
Ü GSTR-3B can be filed monthly or quarterly. Questionnaire Q8

(b) Due date of filing return GSTR-3B:-

Monthly GSTR-3B on or before 20th of the month succeeding the month for which return is furnished.
Quarterly GSTR-3B on or before 22nd or 24th of the month succeeding the quarter for which return is
under QRMP Scheme furnished for the states notified as under:-
Class of Registered Persons Due date
Registered persons whose principal POB is in the States of Chhattisgarh, Madhya 22nd day of the month
Pradesh, Gujarat, Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Telangana, s u c c e e d i n g s u c h
Andhra Pradesh, the UTs of Daman and Diu and Dadra and Nagar Haveli, quarter
Puducherry, Andaman and Nicobar Islands or Lakshadweep.

V’Smart Academy 14.08 CA Vishal Bhattad 09850850800

Registered persons whose principal place of business is in the States of Himachal 24th day of the month
Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, s u c c e e d i n g s u c h
Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West quarter
Bengal, Jharkhand or Odisha, the Union territories of Jammu and Kashmir, Ladakh,
Chandigarh or Delhi.

(c) Quarterly Return Monthly Payment (QRMP) Scheme :-

Eligibility for QRMP scheme:-
Ü The RP whose aggregate turnover is up to ` 5 crore in the P.F.Y. are eligible to opt for QRMP scheme.
Note:- Here, registered person is other than OIDAR service supplier located in non-taxable territory
and providing such services to a NTOR.
Ü They can furnish their GSTR-1 and GSTR-3B on a quarterly basis while paying their tax on a monthly basis
through a simple challan.
Ü For computing agg. t/o, details furnished in returns for tax periods in the preceding financial year shall be
taken into account.
QRMP Scheme is GSTIN wise:-
- Distinct persons can avail QRMP scheme option for one or more GSTINs.
- It implies that some GSTINs for a PAN can opt for the QRMP scheme and remaining GSTINs may not opt
for the said scheme.

Note:- QRMP Scheme is optional & Not mandatory

(d) Conditions & Restrictions:-

Ü RP shall not be eligible to opt for QRMP scheme,
Ø if he has not furnished the last return due on the date of exercising such option.

CH 14 Returns
Ü If the option is exercised once, the said RP shall continue to furnish the return on a quarterly basis for future
tax periods, unless he:-
Ø becomes ineligible for this scheme as per the conditions and restrictions notified in this regard or
Ø opts to furnish return on a monthly basis, electronically, on common portal.

(e) Time limit to opt for QRMP Scheme:-

Preference to opt this scheme shall be indicated
Ø from 1st day of 2nd month of the preceding quarter
Ø till last day of 1st month of the quarter for which the option is being exercised.

(f) Option QRMP scheme to lapse:-

Ü If the agg. t/o crosses ` 5 crore during a quarter in a F.Y., then the registered person shall not be eligible
to furnish return on quarterly basis from
Ø the first month of the succeeding quarter.
Ü He shall opt for furnishing of return on a monthly basis from the 1st month of the quarter, succeeding the
quarter during which his agg. t/o exceeds ₹ 5 crore.
Ü The facility for opting out (voluntary) of the scheme for a quarter will be available
Ø from 1st day of 2nd month of preceding quarter
Ø to the last day of the 1st month of the quarter. Questionnaire: Q9, Q10, Q11 & Q12

V’Smart Academy 14.09 CA Vishal Bhattad 09850850800

 (g) Nil GSTR-3B:-

Ü Filing of GSTR-3B is mandatory for all normal and casual taxpayers, even if there is no business
activity in any particular tax period. For such tax period(s), a Nil GSTR-3B is required to be filed which
will not have any entry in any of its tables.
Ü A Nil GSTR-3B can be filed through an SMS using the registered mobile number of the taxpayer and is
verified by registered mobile number-based OTP facility.
Ü A taxpayer may file Nil GSTR-3B, anytime on or after the 1st day of the subsequent month/quarter for
which the return is being filed for.

GSTR-4 i.e. Return for composition supplier:-

39(2)read with Rule 62

a) A composition dealer is required to file an annual return in Form GSTR-4 for a F.Y. or part thereof and
also required to furnish a statement in Form GST CMP-08 containing payment details for every quarter
(or part of the quarter), electronically, by the due dates as follows:-
Due date of filing GSTR- 4 for a F.Y By 30th day of the month of June following the end of such F.Y.

Due date of filing GST CMP-08 for By 18th day of the month succeeding such quarter
a quarter
Questionnaire Q13
Note:-
Ü A composition supplier is required to file the return GSTR-4 annually, but he is required to pay the tax
quarterly.
Ü The inward supplies of a composition supplier received from RP filing GSTR-1 will be auto populated in FORM GSTR-4A
for viewing.
CH 14 Returns

Ü Composition taxpayers are required to provide consolidated details of outward supplies in GSTR-4 and not invoice-
wise details.
Ø However, details of inter-State and intra-State inward supplies received from registered and un-registered
persons are to be provided invoice-wise.
Ü They discharge their tax liability only by debiting E- cash ledger as they are not eligible to take ITC.

b) Nil GST CMP-08:-

Ü Filing of GST CMP-08 is mandatory for composition supplier, even if there is no business activity in any
particular tax period (i.e. a Nil GST CMP-08 is required to be filed which will not have any entry in any of its
tables).
Ü It can be filed through an SMS using the registered mobile number of the taxpayer and is verified by
registered mobile number-based OTP facility.

c) Statements/return for the period prior to OPTING for composition scheme:-

Ü A person opting composition scheme from the beginning of a financial year will furnish
statements/return for period prior to paying tax under composition scheme till earlier of:-
Ø Due date of furnishing the return for the month of September of the succeeding F.Y. or
Ø furnishing of annual return of the P.F.Y.
Ü He will not be eligible to avail ITC on receipt of invoices or debit notes from the supplier for the period prior
to their opting to pay tax under composition scheme.

V’Smart Academy 14.10 CA Vishal Bhattad 09850850800

d) GSTR-4/CMP-08 for the period prior to EXITING from composition scheme:-
A RP opts to withdraw from the composition scheme at his own motion or where option is withdrawn at the
instance of the PO, then for the period prior to withdrawing from scheme, he shall furnish-
GST CMP-08 By 18th of month succeeding the quarter in which such withdrawal date falls
GSTR-4 By 30th April following the end of F.Y. during which such withdrawal falls

GSTR-5 i.e. Return for Non-Resident Taxable Persons (NRTP):-

39(5) read with rule 63
a) Monthly return:-
Ü It is a simplified monthly tax return is to be filed in Form GSTR-5 for a NRTP for every calendar month or
part thereof.
Ü The details of outward supplies and inward supplies of a NRTP are incorporated in GSTR-5 itself unlike
normal taxpayer.
Note:- A NRTP is not required to file an annual return.

b) Last date of filing GSTR-5:- It shall be furnished within EARLIER of:-

Ø 13 days after the end of a calendar month or
Ø 7 days after the last day of the period of registration specified u/s 27(1). Questionnaire Q16(1)

c) Payment of Tax, interest, penalty, fees or any other amount:-

Any such amount payable under CGST Act/Rules shall be paid till the last date of filing GSTR-5.

GSTR-7 i.e. Return for TDS

Sec 39(3) & Sec 51 read with rule 66

CH 14 Returns
a) Monthly return:-
Ü Deductor shall furnish a monthly return in Form GSTR-7.
Ü No Nil GSTR-7:- It is mandatory to file nil return if no TDS is deducted in tax period.

b) Last date of filing GSTR-7:-

Ø It shall be filed on/before 10th day of the month succeeding the calendar month in which tax has been
deducted at source.

Substituted by F.A. 24 :- Every person required to deduct tax at source u/s 51 must electronically file a
monthly return detailing the deductions made, in the prescribed form, time and manner.

Proviso The RP must file a return for each calendar month, regardless of whether any deductions were
made or not.
c) TDS details available to deductee on common portal:-
Ü TDS details are made available to each deductee on common portal after filing GSTR-7.
Ü TDS is credited in e-cash ledger of supplier after validation & used for payment of tax or other
liability.

d) Tax Deduction at Source (TDS) Certificate:-

Ü A TDS certificate is generated in Form GSTR-7A for both deductor & deductee (supplier) after filing of Form GSTR-7.
Ü Deductee accepts the details uploaded by deductor & files his return.

V’Smart Academy 14.11 CA Vishal Bhattad 09850850800

 Ü It contains the details pertaining to value on which tax has been deducted, rate of deduction, amount of
TDS and amount paid to Government.

Sec 39(7): Payment of Tax

Due date of Payment of Tax:-
Persons Due date of payment of Tax

Every registered person u/s Last date to pay the tax due as per such return is the due date for
39(1) other than below furnishing of return (i.e. Monthly GSTR-3B).
Every RP furnishing return Due date to pay tax for a quarter is 18th of the month succeeding such
under composition scheme quarter.
NRTPs or CTPs Tax is required to be paid in advance equivalent to the estimated tax
liability for period for which registration is sought or extension of
registration is sought as per sec 27(2).

RP furnishing return under QRMP scheme:-

The persons furnishing return under QRMP scheme have an option to pay either the self-assessed tax or a
prescribed amount.
N/No. 85/2020 :- There is Monthly payment of Tax in FORM PMT-06 though return is filed quarterly
under QRMP Scheme.

1st Month 2nd Month

Particulars Last month of Qtr
of Qtr of Qtr
Due date 25th of 25th of Along with return for the Qtr i.e. on or before 22nd or
of Payment succeeding month succeeding month 24th of the month succeeding such Qtr.
CH 14 Returns

Manner of balance in Can use balance in 1st 2 months deposited amount is debited solely for
paying tax electronic cash electronic cash offsetting the liability furnished in that quarter's Form
ledger. ledger excluding GSTR-3B. Any amount left after filing of that quarter's
the tax due for 1st Form GSTR-3B may either be claimed as refund (only
month. after such Quarterly return is filed)or may be used for
any other purpose in subsequent quarters.
Note:- The deposit made for 1st 2 months of Qtr cannot be used by taxpayer for any other purpose till the filing
of return for the quarter.

Options for making payment of Tax for 1st 2 months of Qtr:-

Fixed Sum Method:- A facility is available on GST portal for generating an auto-generated/pre- filled
challan in Form GST PMT-06. Challan amount is calculated by system which can't be edited.
[Link] Type of Taxpayer Tax to be paid in each of 1st 2 months
1 Who furnished GSTR-3B quarterly for the 35% of tax paid in cash in the preceding quarter.
last quarter
2 Who furnished GSTR-3B monthly during 100% of tax paid in cash in the last month of the
the last quarter immediately preceding quarter.
The balancing amount of tax as per return is to be paid in the 3rd month.

V’Smart Academy 14.12 CA Vishal Bhattad 09850850800

There are certain situations where no such tax needs to be deposited:-
Ü For 1st Month of Quarter: The tax liability is Nil or the balance in the E- cash ledger/E-credit ledger is
adequate for the tax liability for the same month.
Ü For 2nd Month of Quarter: The tax liability is Nil or the balance in the E- cash ledger/E-credit ledger is
adequate for the cumulative tax liability for the first two months of the quarter.

Note:-
Ø Monthly tax payment through this method would not be available to those registered persons who have not furnished
the return for a complete tax period preceding such month.
Ø A complete tax period means a tax period in which the person is registered from the first day of the tax period till the
last day of the tax period.

Applicability of interest under this method:-

Ü While filing GSTR-3B, if it is found that in any or both of the first 2 months of the quarter, the net tax
liability was higher than the amount paid in challan, then, no interest would be charged provided:-
Ø system calculated amount for each of first 2 months should have been paid &
Ø entire liability for the quarter is discharged in GSTR-3B of quarter by due date.
Ü If the system calculated amount is not paid by due date:-
Ø interest is payable at the applicable rate,
Ø from the due date of furnishing Form GST PMT-06
Ø till the date of making such payment.
Ü If GSTR-3B for the quarter is furnished beyond the due date:-
Ø interest is payable as per sec 50 for the tax liability net of ITC.

Self-Assessment Method:-:- Taxpayer can pay the tax by considering the tax liabilities on inward &

CH 14 Returns
outward supplies as per the ITC available for which GSTR-2B can be used for each month.
Applicability of interest under this method:-
Interest is payable as per sec 50 for the tax liability net of ITC which remains unpaid / paid beyond the due
date for the first 2 months of the quarter.
Note:-
Ø Interest payable, if any, shall be paid through Form GSTR-3B.
Ø No late fee is applicable for delay in payment of tax in first 2 months of the quarter.

Common points for sec 39(7):-

Ü RP who is required to furnish return shall pay tax, interest, penalty, fees or any other amount payable
under GST law as per sec 49 by debiting the
Ø E- cash ledger or
Ø E- credit ledger
and include the details in the return.
Ü Tax, fee, etc. are to be paid by depositing the said amount in Form GST PMT-06.
Ü Commissioner may, on recommendations of Council, by notification, extend the due date for depositing
the said amount in Form GST PMT-06, for specified class of taxable persons.
Ü Further, any extension of time limit notified by Commissioner of State tax/UT shall be deemed to be
notified by the Commissioner.

V’Smart Academy 14.13 CA Vishal Bhattad 09850850800

 Sec 39(9) : Rectifications of Errors/Omissions:-
Ü Under GST law, a return once filed cannot be revised.
Ü But, the details of the transactions (invoices or debit note/credit note) can be amended in any of the future
GSTR- 1s in tables specifically provided for the same.
Ü Omission or incorrect particulars discovered in the returns filed u/s 39 can be rectified in the return to be
furnished for the month or quarter during which such omission or incorrect particulars are noticed.
Ü Any tax payable as a result of such error or omission will be paid along with interest.
Exception:-
Ü Error or omission discovered on account of scrutiny, audit, inspection, or enforcement activities by tax
authorities cannot be rectified & assessee may not be able to pass on the ITC to the receiver in respect of tax
payments made by him in this case.
Time limit for making rectification:- It is EARLIER of-
Ü 30th November following the end of the financial year or
Ü Actual date of filing of relevant annual return. Questionnaire Q14

Sec 39(10) : Restrictions on furnishing of return:-

Ü A registered person shall not be allowed to furnish a return for a tax period if he has not furnished the
following:-
Ø the return for any of the previous tax periods or
Ø the details of outward supplies u/s 37(1) (i.e. GSTR-1) for the said tax period.
Ü Proviso:- Govt. may allow notified registered person(s) to furnish the return, even if he:-
Ø has not furnished returns for 1 or more previous tax periods or
Ø has not furnished the details of outward supplies u/s 37(1) for the said tax period.
CH 14 Returns

Some Important Notes:-

Ü Return furnished u/s 39(1) on which self-assessed tax is paid in full is considered as a valid return.
Ü Return for current month can be filed only when returns of the previous month have been filed.
Ü A taxpayer has to electronically sign the submitted returns otherwise it will be considered not-filed.
Ø Can be electronically signed using a DSC (mandatory for all types of companies and LLPs),
Ø E-sign (Aadhaar-based OTP verification), or
Ø EVC (Electronic Verification Code sent to registered mobile number of authorized signatory).

Sec 40:- FIRST RETURN

Ü A RP may make taxable outward supplies in the period between:-
Ø the date on which he became liable to registration till
Ø the date of grant of registration certificate.
Ü Firstly, he may issue revised tax invoices against the invoices already issued during said period within 1
month from date of issuance of certificate of registration (Sec 31(3)(a) read with rule 53).
Ü RP shall declare his outward supplies made during said period in the first return furnished by him after
grant of registration so as to enable recipients to avail ITC on such supplies.

V’Smart Academy 14.14 CA Vishal Bhattad 09850850800

 Sec 44 read with Rule 80:- ANNUAL RETURN
Required to be furnished by whom?

Every registered person shall furnish Annual return in prescribed form except:-
Ü Casual Taxable Person (CTP),
Ü Non-resident taxable person (NRTP),
Ü Input Service Distributors (ISD) and
Ü Persons paying tax under section 51 or 52. Questionnaire Q16(2)

Due Date

Annual return for a F.Y. shall be filed by 31st December of Next F.Y.
(Note:- It may be extended by Commissioner)

Manner

Electronically through the common portal

Form
A person paying tax under composition scheme:- GSTR-9A.
Any other person:- GSTR-9
Other documents

An annual return may include:- self-certified reconciliation statement, reconciling the value of supplies
declared in the return furnished for the F.Y., with audited annual financial statement for every F.Y.

Exemption from filing

Commissioner exempts the registered person whose aggregate turnover in any Financial year from F.Y.
2024-25 onwards is up to ` 2 Cr from filing annual return for that said F.Y. Newly Inserted by
N/n 15/2025

CH 14 Returns
Sec 44 N.A. to whom

This section shall NOT apply to any department of CG or SG or a local authority, whose
books of account are subject to audit by the CAG of India or an auditor appointed for
auditing the accounts of local authorities under any law for the time being in force.

Clarification on late fee for delay in furnishing of FORM GSTR-9C: [[Link]. 246/03/2025]
Issue: Whether Late fee u/s 47 apply when Form GSTR-9C (Reconciliation statement) is not filed with
annual return but is filed after due date of furnishing Annual Return (Form GSTR-9)
Clarification:
Ü Taxpayers with Aggregate Turnover exceeding ₹ 5 Crore in a FY must submit a self-certified reconciliation
statement (Form GSTR-9C) along with Form GSTR-9.
Ü If Form GSTR-9C is required to be filed but not filed along with Form GSTR-9, the annual return is
considered incomplete.
Ü Late fees u/s 47(2) will apply from due date of furnishing annual return till the date of furnishing complete
annual return (both GSTR-9 & GSTR-9C being filed).

[Link] Cases Date of filing complete annual return

1. If GSTR-9C is not required to be furnished, Date of filing GSTR-9
2. Wherever required,
if GSTR-9C is filed along with GSTR-9 Date of filing GSTR-9
if GSTR-9C is filed after filing GSTR-9 Date of filing GSTR-9C

V’Smart Academy 14.15 CA Vishal Bhattad 09850850800

 Ü No separate late fees for delays in filing FOTM GSTR-9 & GSTR-9C, it will be calculated based on the
complete annual return submissions.
Ü As per N/n 08/2025, Excess late fees u/s 47(2) for delay in filing FORM GSTR-9C for Financial years up to
FY 2022-23 have been waived provided it is filed on or before 31st March 2025.
Ü However, no Refund will be given for late fees already paid for past delays.

Note:
Ü Before 01.08.2021, businesses with turnover over ₹ 2 crore had to get their accounts audited and file
GSTR-9 along with a certified reconciliation statement (GSTR-9C) under the CGST Act.
Ü From 01.08.2021, the audit requirement was removed. Now, only businesses with turnover exceeding ₹ 5
crore must file GSTR-9 along with a self-certified GSTR-9C by 31st December following the end of the
financial year.

Maximum Time limit for furnishing GSTR -1/GSTR-3B & others /GSTR-9
Sec 37(5) & Sec 39(11) & Sec 44(2)
A RP shall not be allowed to furnish the details of outward supplies (GSTR-1)/ Return u/s 39 & annual return
u/s 44 for a tax period/ F.Y. after the expiry of a period of 3 years from the due date of furnishing the said
details.
Proviso:-
CG may, on the recommendations of the Council, by notification, allow a RP or a class of RP to furnish the
details of outward supplies/return/AR for a tax period/F.Y., even after the expiry of the said period of 3 years
from the due date of furnishing the said details.

Sec 45 read with Rule 81:- Final Return

Furnished by whom?
CH 14 Returns

Every registered person who is required to furnish return u/s 39(1) and whose registration has been
surrendered or cancelled.

Time limit

The final return has to be filed within 3 months of:- Questionnaire: Q15 &
Ü date of cancellation or Ü date of order of cancellation, whichever is later. Q16(3)

Form :- GSTR-10
Manner:- Electronically through the common portal

Sec 46 & 47:- Default/Delay in Furnishing Return

Notice to return defaulters (Sec 46 read with Rule 68)

Ü A notice is issued electronically, in prescribed form, to a RP who fails to furnish return under:-
Ø Sec 39 (Normal return)
Ø Sec 44 (Annual return)
Ø Sec 45 (Final return)
Questionnaire Q17
Ø Sec 52 (TCS Statement)
Ü Notice requires the registered person to furnish the return within 15 days,
Ø failing which the tax liability will be assessed u/s 62.
Ø In addition to tax so assessed, applicable interest and penalty will also be payable.

V’Smart Academy 14.16 CA Vishal Bhattad 09850850800

Late fees (Sec 47)
Late fees for delay in filing return & statement

If there is delay in furnishing of following by registered person by the due dates:-

Ø Statement of Outward Supplies - GSTR -1 [Sec 37]
Ø Returns (including returns under QRMP Scheme) [Section 39]
Ø Final Return [Section 45] or
Ø TCS Statement [Section 52]
then, he is liable to pay late fee which is LOWER of:-
Ø ` 100 (i.e. ` 200 for CGST & SGST) for every day during which such failure continues or
Ø ` 5000 (i.e. ` 10,000 for CGST & SGST)

Late fees for delay in filing Annual return

If a registered person fails to furnish the Annual return u/s 44 by the due date, he is liable to pay late fee
which is LOWER of:-
Ø ` 100 (i.e. ` 200 for CGST & SGST) for every day during which such failure continues or
Ø 0.25% (i.e. 0.5% for CGST & SGST) of the turnover of registered person in the State/UT.

Note :- Above late fee is subject to exemption notification

Important Points:-
1. An equal amount of late fee as above would be payable by such person under the respective SGST/UTGST Act. The late
fee discussed above is under the CGST Act.
2. The late fee leviable under IGST Act shall be the sum total of the late fee leviable under the CGST Act and the SGST/
UTGST Act.

CH 14 Returns

V’Smart Academy 14.17 CA Vishal Bhattad 09850850800

 The late fee can be waived off partially or fully by CG. Accordingly, the maximum late fees payable u/s 47
for delayed filing of Forms GSTR-1, GSTR-3B, & GSTR-4, is rationalized as under:-

1. For delayed filing of GSTR-1 and/or GSTR-3B:- Total amount of late fee payable u/s 47, by the
registered person who fail to furnish Form GSTR-1 and/or Form GSTR-3B by due date:-

1) Registered persons who

` 500 (` 250 each under
CGST & SGST /UTGST)

Whichever is
}
have nil outward supplies in
the tax period/ whose total
amount of tax payable in

Lower
` 20 (` 10 CGST + ` 10 SGST /
the GSTR- 3B is Nil, as the
UTGST) for every day during
case may be
which such failure continues
Class of registered Person

` 2,000 (` 1,000 each under

Whichever is
CGST & SGST /UTGST)

}
Aggregate turnover <= ` 1.5
crores in the preceding FY ` 50 (` 25 CGST+`25 SGST

Lower
2) Registered persons other /UTGST) for every day during
than those covered in (1) which such failure continues
above
` 5,000(` 2,500 each under
Aggregate turnover in

}
Whichever is
CGST & SGST /UTGST)
preceding FY is > ` 1.5
Crores but <= `5 Crores ` 50 (` 25 CGST + ` 25

Lower
SGST /UTGST) for every
day during which such
failure continues
` 10,000 (` 5,000 each under
CH 14 Returns

CGST & SGST /UTGST)

}
Whichever is

Registered persons whose

aggregate turnover > ` 5 `50 (`25 CGST + `25
Lower

crores in the preceding FY SGST/UTGST) for every day

during which such failure
continues

For delayed filing of GSTR-4:- Total amount of late fee payable u/s 47 of the CGST Act, by the RP
(composition taxpayer) who fail to furnish Form GSTR-4 by the due date, shall be as follows:
Class of registered person Quantum of late fee
` 500 (` 250 each under CGST &

}
Whichever

SGST/UTGST)
is Lower

(1) Total tax payable in GSTR-4

is Nil ` 20 (` 10 CGST + `10 SGST/UTGST) for
every day during which such failure continues

Where ` 2,000 (` 1,000 each under CGST &

}
Whichever

SGST/UTGST)
(2) Registered persons other
is Lower

than those covered in (1)

` 50 (` 25 CGST + ` 25 SGST/UTGST) for
above
every day during which such failure
continues

V’Smart Academy 14.18 CA Vishal Bhattad 09850850800

For delayed filing of Annual Return (GSTR-9):-
Quantum of late fee
Class of registered person
` 50 per day (` 25 CGST + ` 25 SGST /

Whichever
Registered persons having UTGST)

is Lower
aggregate turnover <= ` 5 crores
in the relevant FY 0.04 % of turnover in the State or UT
(0.02% CGST + 0.02% SGST / UTGST)

` 100 per day (` 50 CGST + ` 50 SGST

Whichever
Registered persons having / UTGST)

is Lower
following aggregate turnover:
Where ` 5 crores < aggregate turnover 0.04 % of turnover in the State or UT
` 20 crores in the relevant FY (0.02% CGST + 0.02% SGST / UTGST)

` 200 for every day during which such

failure continues (` 100 CGST + ` 100

Whichever
Registered persons having
SGST/UTGST)

is Lower
aggregate turnover > ` 20
crores in the relevant FY 0.50% of the turnover of the registered
person in the State/UT (0.25 % CGST +
Questionnaire Q18 0.25% SGST/UTGST)

For delayed filing of GSTR-7:-

Total amount of late fee payable under section 47 of the CGST Act by any registered person, required to
deduct tax at source under the provisions of section 51 of the CGST Act for delayed filing of GSTR-7, shall be
as follows:
` 50 (` 25 each under CGST &SGST

CH 14 Returns
/UTGST) for every day during
Whichever

which such failure continues.

Quantum
is Lower

of late Fee
` 2,000 (` 1,000 each under CGST
& SGST/UTGST)

Waiving of late fee for failure to furnish GSTR-7:- Inserted by N/No. 23/2024

Ø Total late fee payable u/s 47 by such RP calculated as above for June, 2021 onwards in excess of ₹ 1,000
shall stand waived (total late fee shall be max ₹ 1,000).
Ø If the total CGST deducted at source in said month is nil, the total amount of late fee stands waived.

V’Smart Academy 14.19 CA Vishal Bhattad 09850850800

 Sec 48:- Goods & Services Tax Practitioners (GSTP)

a) Definition u/s 2(55)

Goods & services tax practitioner means any person who has been approved u/s 48 to act as such
practitioner.

b) Concept of furnishing returns through GSTP:-

Ü A RP may authorise an approved GSTP to furnish information, on his behalf, to Govt. At any time, the
registered person may withdraw such authorization.
Ü GSTN provides separate user ID and Password to GSTP to enable him to work on behalf of his clients
without asking for their user ID and passwords.
Ü The GSTP can undertake only authorised activities.
Ü Before confirming submission of any statement prepared by GSTP over email or SMS, registered person
ensures that the facts mentioned in the return are true & correct, making the registered person
responsible for the same. However, failure to respond to request for confirmation is treated as deemed
confirmation.
ÜThe GSTP should prepare all statements with due diligence and affix his digital signature on the statements
prepared by him or electronically verify using his credentials.
Ü If the GSTP is found guilty of misconduct, his enrolment will be liable to be cancelled and a show cause
notice would be issued to him.
Ü A taxpayer may choose a different GSTP by simply unselecting the previous one and then choosing a new
GSTP on the GST portal.

c) Eligibility criteria for GSTP:-

In order to be eligible for being GSTP, following conditions needs to be satisfied:-

CH 14 Returns

1) A person who is
Ø Citizen of India,
Ø Person of sound mind, Questionnaire Q19 & 20
Ø Not adjudicated as insolvent and
Ø Not been convicted by competent court.
2) In addition to above, the person has to satisfy ANY of the following conditions:-
Ø Retired officer of Commercial Tax Department of any State Govt./CBIC who, during service under
Government had worked in a post not lower than the rank of a Group-B gazetted officer for a period
not less than 2 years.
Ø Enrolled as a Sales Tax Practitioner or Tax Return Preparer under the earlier indirect tax laws for a
period of not less than 5 years.
Ø Has acquired ANY of the prescribed qualifications mentioned below:-
A Graduate or postgraduate degree or its equivalent examination having a degree in Commerce,
Law, Banking including Higher Auditing, or Business Administration or Business Management
from any Indian University established by any law for the time being in force.
A Degree examination of any Foreign University recognised by any Indian University as equivalent
to the degree examination mentioned above.
A Any other examination notified by Government, on recommendation of GST Council.
A Has passed final examination of ICAI/ ICSI/ Institute of Cost Accountants of India.

V’Smart Academy 14.20 CA Vishal Bhattad 09850850800

 d) Activities undertaken by GSTP on behalf of RP, if so authorised by him:-

1. Furnish details of outward supplies

2. Furnish monthly, annual or final return
3. Make deposit for credit in E- cash ledger
4. File a claim for refund (Confirmation from the registered person shall be sought)
5. File an application for registration amendment/ cancellation (Confirmation from the registered person
shall be sought)
6. Appear as authorised representative before any officer of department, appellate authority, or Appellate
Tribunal, on behalf of such registered person provided he is enrolled as GSTP under rule 83
7. Furnish information for generation of E-way bill
8. Furnish details of challan in the prescribed form
9. File an intimation to pay tax under the composition scheme or withdraw from the said scheme
(Confirmation from the registered person shall be sought)
10. File an application for amendment or cancellation of enrolment under rule 58

e) Procedures for Enrolment as GSTP:-

1. An enrolment application to be made electronically through the common portal in prescribed form.
2. The Application will be scrutinised and GSTP certificate shall be granted in prescribed form.
3. If application is rejected, proper reasons shall have to be given.
4. The enrolment once done remains valid till it is cancelled.
5. No person enrolled as a GSTP is eligible to remain enrolled unless he passes such examination conducted at
such periods by NACIN.
6. Any person who has been enrolled as GSTP by virtue of him being enrolled as a Sales Tax Practitioner or Tax
Return Preparer under the earlier indirect tax laws can remain enrolled only for a period of 30 months from

CH 14 Returns
the appointed date unless he passes the said examination within the said period of 30 months.

Some important notes regarding this chapter:-

Ü Quantum of late fee waived off partially or fully- not relevant for exam.
Ü State GST laws prescribe identical provisions & provisions of returns, other than late fee, under CGST Act have also
been made applicable to IGST Act vide section 20 of IGST Act.

Rule 88D (Newly inserted via N/No. 38/2023):- Manner of dealing with difference in ITC
available in autogenerated statement containing the details of ITC and that availed in return:-
1 Excess ITC Ü When input tax credit (ITC) claimed in FORM GSTR-3B exceeds the ITC available in
Intimation FORM GSTR-2B, the discrepancy is notified in Part A of FORM GST DRC-01C.
Ü The RP is informed electronically via the common portal and receives an email
detailing the difference in claimed and available ITC.

Excess ITC Intimation highlighting the said difference and directing him to
Demand or (a) Pay the excess ITC amount with interest through FORM GST DRC-03, or
clarification on (b) Provide reasons for the discrepancy on the common portal,
Intimation within a period of seven days.

2 Excess ITC The registered person referred to sub-rule (1) shall, upon receipt of the intimation
Payment & Reply referred to in the said sub-rule, either,
to Intimation (a) pay an amount equal to the excess input tax credit, as specified in Part A of

V’Smart Academy 14.21 CA Vishal Bhattad 09850850800

 FORM GST DRC-01C, fully or partially, along with interest payable under
section 50, through FORM GST DRC-03 and furnish the details thereof in Part
B of FORM GST DRC-01C, electronically on the common portal, or
(b) furnish a reply, electronically on the common portal, incorporating reasons in
respect of the amount of excess input tax credit that has still remained to be
paid, if any, in Part B of FORM GST DRC-01C, within the period specified in the
said sub-rule.

3 Non payment of Where any amount specified in the intimation referred to in sub-rule (1) remains to
tax or no reply be paid within the period specified in the said sub-rule and
by RP Ü where no explanation or reason is furnished by the registered person in default
or
Ü where the explanation or reason furnished by such person is not found to be
acceptable by the proper officer,
the said amount shall be liable to be demanded in accordance with the provisions of
section 73 or section 74 or Section 74A, as the case may be.
Questionnaire Q7
CH 14 Returns

V’Smart Academy 14.22 CA Vishal Bhattad 09850850800

 QRMP - Monthly Payment & Interest Liability

Monthly payment by Monthly payment by Monthly payment of June +

25th of next month 25th of next month Differential payment of April & may
Registered
Person (Supplier) April May 25th June 25th 22nd/24th

(Whose Aggregate Invoices = B2B & B2C Invoices = B2B & B2C Invoices = B2B & B2C

}
}
}
annual turnover
upto 5 Cr in P.F.Y)
Monthly payment Monthly payment Payment of the differential
Particulars 1st Month 2nd Month End of (If short payment or Non payment then (If short payment or Non payment then 22nd/24th -
Quarter interest is payable @ 18% per annum) interest is payable @ 18% per annum) Quarterly Return(3B)

V’Smart Academy
Payment PMT - 06 PMT - 06 PMT - 06
challan
Due date 25th of 25th of along
Payment Method
of Payment succeeding month succeeding month with return
OR
2. Self-Assessment Method (SAM)
1. Fixed Sum Method (FSM)
Here the taxpayer can pay the tax liability by considering the tax liabilities
Payment of tax in the 1st and the 2nd month of the quarter.
Sr. No. Type of Taxpayer Tax to be paid on inward and outward supplies and as per the ITC available.

14.23
35% of tax paid in cash(E- Cash Ledger) There are certain conditions where no tax needs to be paid:
1. Who furnished GSTR-3B
in the preceding quarter • 1st Month of Quarter: The tax liability is Nil. OR The balance in the
quarterly for the last quarter
electronic cash ledger is adequate for the tax liability for the same
2 Who furnished GSTR-3B 100% of tax paid in cash in the
last month of the immediately preceding month.
monthly during the last quarter
quarter • 2nd Month of Quarter: The tax liability is Nil. OR The balance in the
electronic cash ledger is adequate for the cumulative tax liability for the
The balancing amount of tax is to be paid in the 3rd month.
IThst two months of the quarter.

Example
In case the last return filed was on quarterly basis for Quarter Ending March, 2021: In case the last return filed was monthly for tax period March, 2021:

CA Vishal Bhattad
Tax paid in Cash in Quarter Tax required to be paid in each Tax paid in Cash in March,21 Tax required to be paid in each of the months-April and May, 21
(January -March, 2021) of the months - April and May, 21 CGST 50 CGST 50
CGST 100 CGST 35 SGST 50 SGST 50
SGST 100 SGST 35 IGST 80 IGST 80
IGST 500 IGST 175 Cess ---- Cess ---
Cess 50 Cess 17.5

09850850800
CH 14 Returns
CH 14 Returns

V’Smart Academy 14.24 CA Vishal Bhattad 09850850800