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    April

    19 2017

    Simplified guidelines to file GSTR 1, 2 and 3

    Share 0 Comment - GST

    gst-returns-guidelines

    GST is a destination based consumption tax which means that revenue will be accumulated from the state where goods/service is consumed. Filing GST return is an important link between tax payer and tax administration as it is crucial for:

    • Compliance verification program of tax administration
    • Providing necessary inputs for taking policy decision
    • Audit management and anti-evasion programs of tax administration
    • Finalization of tax liabilities of the taxpayer within the given period of limitation

    A registered taxpayer will have to file returns of Goods and Services Tax (GST) every month/quarter. Basically, this is a record of Outward supply, Inward supply done during the month/quarter and tax paid/payable by the supplier on the same. In addition, they need to fill Annual Return also.

    Let’s try to understand how to file GSTR 1, 2 and 3?

    GST filing process

    • The taxable Supplier needs to upload outward supply details in form GSTR-1 by the 10th date of succeeding month of the supplies that are made.
    • On 11th day of the month, the visibility of inward supplies is made available to the purchaser in the auto-generated GSTR-2A
    • GSTN will provide blueprint of temporary GSTR-2A of Outward Supply based on the details of the invoice reported.
    • Purchaser can accept/reject/modify such temporary blueprint of GSTR-2A (Purchaser can download his statement from the portal and update or modify it offline). Purchaser will also be able to add extra purchase (if he has actually received such supplies) in invoice of GSTR-2A which is not uploaded by seller, up to 15th day of the month (i.e. within period of 5 days). (To minimize the last-minute load on the system, GSTN would facilitate periodic upload of such information.)
    • Purchaser will submit form GSTR-2 by 15th of subsequent month and any updates will be available to the seller in GSTR – 1A. The seller can accept or reject the corrections made by the purchaser and GSTR 1 will be revised according to the modifications accepted by the seller.
    • Both parties will pay the amount drafted in GSTR-3 return and will debit the ITC ledger and cash ledger and mention the debit entry No. in the GSTR-3 return and would submit the same by 20th of succeeding month.

    They will finalize their GSTR-1 and GSTR-2 and determine the liability on their supplies to generate the net tax i.e. GSTR-3. Few things to be auto-populated in GSTR-3

    • Cash details carried forward from the previous tax period
    • ITC carried forward from the previous tax period
    • ITC reversal and linked penalty
    • Taxes paid during the current tax period

    GST Return Filing Process

    marching and guideline

    Want to know more? Please drop in an email at inquiry@cygnetinfotech.com

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