Advisory for Taxpayers Filing of Quarterly Returns FORM GSTR1

  • Taxpayers opting for quarterly filing of return will have to select the last month of the quarter from the drop down menu. However, for the month of July 2017, GSTR-1 has to be filed separately by all taxpayers, as option to file quarterly returns is applicable for returns from August 2017 onwards.
  • If a taxpayer opts to file quarterly return, and their annual turnover is less than Rs 1.5 Cr (on basis of their turnover in previous financial year or in case of new registration obtained after 1st July 2017, expected turnover for current financial year), then in such cases GSTR-1 of August, 2017 is disabled and he can file details for August and September, 2017 in GSTR 1 of September,2017 and so on.
  • Thus, taxpayers who opt for quarterly return filing will have to file GSTR-1 of the various tax periods in the following manner:
    • For July: Monthly (by choosing July from drop down menu)
    • For 2nd Quarter (August and Sept): Quarterly, by choosing Sept.
    • For 3rd Quarter (Oct-Dec): Quarterly, by choosing December
  • Taxpayer who has already filed GSTR 1 for July 2017, will not be able to revise the same. However, amendment relating to invoices and other relevant document of July 2017 can be made through amendment Table (Table 9).
  • Once taxpayer has chosen the option “Quarterly”, they cannot change this option in the remaining part of the financial year 2017-18. Thus, they will be required to file Quarterly returns and they cannot opt for Monthly filing of returns during current financial year.


Refund under GST

Characteristics of refund procedure under GST:

Under GST refund of excess GST paid or erroneously paid is time bound procedure led by a simplified and technology driven exercise with minimal human interface. An application has to make in FORM GST RFD – 01 online with requisite documents. However, refund claim arising from balance in Electronic Cash Register can be made through the filing of regular return.

When a claim of refund arises under GST:

Following are the few cases wherein refund claim might arise under GST:

  1. Mis-calculation or wrong calculation leading to excess payment of GST: The chances of such calculation are minimal as complete process of filing GST return is technology driven. However, such error may arise if wrong tax is selected at the filing of GST return.
  2. Export / deemed export of goods / services: GST being a destination based consumption tax and hence if any goods and / or services is not consumed within India and same can’t be taxed in India and hence supplies are Zero rated. Any tax, if any paid, may be refunded to taxpayer.
  3. SEZ supply: Supply of goods and / or services to units located in SEZ area are also termed zero rated supply and hence above consequences of export will also apply here.
  4. Refunds may arise due to judgment of appellate authority or court.
  5. Refund may arise at the time of finalization of provisional assessment

When a refund claim can be filed on GST portal:

Refund claim under GST can be filed within 2 years from relevant date. Relevant date depends on facts of each case and can be summarized as below:

Case Activity to be completed Relevant date shall be counted from Other
Export of goods
– By sea or air
Export manifest or export report is delivered u/s 41 of the customs act. Ship or aircraft loaded with goods leaves India.
Export of goods
– By land
Export manifest or export report is delivered u/s 41 of the customs act. Goods passes the frontier
Export of goods
– By Post
Postal receipt is received from post The goods dispatch to outside India
Export of services
– Services completed prior to receipt of payment
Actual supply of services completed and consideration in convertible foreign exchange is received The date of receipt of payment in convertible foreign exchange.
Export of services
– Advance receipt of payment
Invoice must be issued The date of issue of invoice
Supplies to SEZ unit or developer Goods / services have been admitted in full by such SEZ or developer of such SEZ. The date of payment of tax.
Deemed Export Return relating to such deemed export is furnished. The date of filing of such return. The application for refund of GST shall be filed by the recipient of deemed export.
Refund arising due to judgment, decree, order or direction of AA, AT or any court Such judgment etc must be communicated to parties concern The date of such communication
Unutilized input tax credit in electronic credit ledger The end of financial year in which such claim for refund arises
Provisional Payment of tax Completion of final assessment The date of adjustment of tax after the final assessment
Other case The date of payment of tax
Person other than supplier The date of receipt of goods or services

It is worth to note that acknowledgment of Refund application by the deportment in prescribed formant is mandatory within the prescribed time.

Manner of issue of refund:

Refund type Activity precedence Time limit Refund amount Condition
Provisional Refund The date of acknowledgment 7 days 90% Person claiming refund has not been prosecuted earlier.
Delay in granting refund Beyond 60 days Interest @ 6% will be payable to assessee


Cancellation of GST Registration

When need for cancellation for registration in required:

  1. In case GST registration is issued by department is the process of migrating the existing registration and under GST regime assessee is not liable to get himself registered.
    1. For example, the dealer is registered under service tax being his turnover exceeding Rs 10 Lacs and his registration is migrated by the department. Now under GST regime such taxable person is not liable to get himself registered if their turnover is less than Rs 20 lacs and hence such persons are in batter position if they cancel their registration.
  2. If there is change is rate of tax of goods and service deal in by the dealer to NIL. In such cases this total turnover is exempt from GST net subsequently and liable for cancellation.
  3. If taxable person have closed his business entity and transfer is whole business ongoing basis.
  4. There is change is constitution of business resulting in change in the PAN number etc. ..

Cancellation in case of voluntarily registration:

No application for the cancellation of registration shall be considered in case of a taxable person, who has registered voluntarily, before the expiry of a period of one year from the effective date of registration. The effective date of registration is “Date of issue of certificate” mentioned in line number 9 of GST REG-06 issued at the time of registration of the firm on the GST portal.

Cases and situations for compulsory cancellation of registration:

The registration granted to a person is liable to be cancelled, if the said person,-

  1. Does not conduct any business from the declared place of business; or
  2. Issues invoice or bill without supply of goods or services in violation of the provisions of this Act, or the rules made thereunder; or
  3. Violates the provisions of section 171 of the Act or the rules made thereunder.

Can department cancel registration of the taxable person in case NIL return being filed or no return is filed during certain tax period:

The answer is no. Because filing NIL return or non filing of return does not mean that registered person is not conducting any business at the declared place. The term conduct of business is not limited to mere purchase and/or sale of goods and/or services. It includes wide range of activities from planning, organizing, directing or controlling, strategy making etc for the business. Thus, filing of NIL return or no return alone can not cause cancellation of registration.

How to apply for cancellation:

A registered person,

  • other than a person to whom a registration has been granted under rule 12 or
  • a person to whom a Unique Identity Number (UIN) has been granted under rule 17,

Seeking cancellation of his registration shall electronically submit an application in FORM GST REG-16.

Such person shall include therein:

  • The details of inputs held in stock or
  • inputs contained in semi-finished or finished goods held in stock and
  • The stock of capital goods held in stock on the date from which the cancellation of registration is sought,
  • liability on the above stock
  • The details of the payment, if any, made against such liability and

Further he may furnish, along with the application, relevant documents in support thereof, at the common portal within a period of thirty days of the occurrence of the event warranting the cancellation, either directly or through a Facilitation Centre notified by the Commissioner.

Process of cancellation:

Where a person who has submitted an application for cancellation of his registration is no longer liable to be registered or his registration is liable to be cancelled, the proper officer shall issue an order in FORM GST REG-19, within a period of thirty days from the date of application cancel the registration,

Such cancellation of registration shall be with effect from a date to be determined by proper officer and he may notify the taxable person, directing him to pay arrears of any tax, interest or penalty including the amount liable to be paid under sub-section (5) of section 29.

GST Implication of second hand and used cars etc

Chargeability of GST: [Section 9]

There shall be levied a tax called the central goods and services tax on all intra-State supplies of goods or services or both,

  • Except on the supply of alcoholic liquor for human consumption,

On the value determined under section 15 and at such rates, not exceeding twenty per cent., as may be notified by the Government on the recommendations of the Council and collected in such manner as may be prescribed and shall be paid by the taxable person.

Thus, before liability to pay GST arises two conditions must be satisfied:

  • Transaction under consideration must be a supply under GST law
  • The transaction must be entered by a taxable person.

Meaning of supply:

As per section 7 of the act, supply includes:

  1. All forms of supply of goods or services or both such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business;
  2. Import of services for a consideration whether or not in the course or furtherance of business;
  3. The activities specified in Schedule I, made or agreed to be made without a consideration; and
  4. The activities to be treated as supply of goods or supply of services as referred to in Schedule II.

In general the term supply means – “The total amount of a goods or service that is available to be purchased at any set period of time” Thus, in contrast to sale the term supply does to require actual delivery of goods or services to the purchaser.

As regards to sale or disposal of old assets there are specific mention of this in the act as mention below:

Schedule No Clause Details
I: Activities To Be Treated As Supply Even If Made Without Consideration 1 Permanent transfer or disposal of business assets where input tax credit has been availed on such assets
II: Activities To Be Treated As Supply Of Goods Or Supply Of Services 4 Transfer of business assetsa) Where goods forming part of the assets of a business are transferred or disposed of by or under the directions of the person carrying on the business so as no longer to form part of those assets, whether or not for a consideration, such transfer or disposal is a supply of goods by the person;

b) Where, by or under the direction of a person carrying on a business, goods held or used for the purposes of the business are put to any private use or

c) Are used, or made available to any person for use, for any purpose other than a purpose of the business, whether or not for a consideration, the usage or making available of such goods is a supply of services;

d) Where any person ceases to be a taxable person, any goods forming part of the assets of any business carried on by him shall be deemed to be supplied by him in the course or furtherance of his business immediately before he ceases to be a taxable person, unless— (i) the business is transferred as a going concern to another person; or (ii) the business is carried on by a personal representative who is deemed to be a taxable person.


One of my client is in the business of manufacture and trading of goods. He wants to sell his truck, brought in the erstwhile VAT regime now. Also, he wants to sell his car, used for the purpose of transportation of employees.

My query is will there be any GST implication on the same and if so what will be the rate of GST?


GST would be payable on the both of the above transaction if the seller is otherwise a taxable person under the act.

The regular rate (as applicable on the car) will apply. There is no special rate prescribed for sale of second hand cars.

Procedure required for migrating data from GSTR 2A to GSTR 2:

There are two method of filing GSTR 2: Offline mode and online mode. Under offline mode you can down data from GSTR 2A in the portal in CSV format and convert it to excel format and check it and upload the same into the again in GSTR 2 after adding missing invoices.

Under online mode data in GSTR 2A can be assessed online in summery form shorted in the order of GSTIN of supplier. Taxpayer cannot edit the data in GSTR 2A. Any editing in data can be done by taxpayer end in GSTR 2.

Taxpayer will open the GSTR 2 and click on the button “GENRATE RETURN”. Taxpayer has to open the invoices of every supplier and after checking the correctness of data in invoice accept it. Finally after checking all the invoices he can file his return.

Issues faced while accepting data in GSTR 2:

  1. Uploaded by supplier: After opening any GST number in the summery data of any supplier two buttons are reflected at the top of the table. First one is “UPLOADED BY SUPPLIER”. This means that this table contains the data uploaded by supplier.
  1. Uploaded by taxpayer: This tag contains the invoices uploaded by taxpayer after clicking the button “ADD MISSING INVOICES”
  1. Invoices’ issued by composite supplies (sellers having turnover below 0.75 crore): Composition suppliers are not allowed to transfer GST to customers and taxpayers are eligible to claim ITC on those invoices and hence there is no such requirement to upload such supplies.

There was a press release from government for facilitating small taxpayer having turnover less than 1.5 corer to file their return on quarterly basis. However, no such notification is raised till date to implement this process. Thus, these suppliers would also file their return on quarterly basis till the process is implemented by an official notification.

  1. Suppliers’ invoice is shown in the portal but option to accept it is not activated: This is a technical error. Confirm from your counterpart supplier to file his return and enquire in the matter from GST helpline.
  1. Suppliers’ invoice is shown with status – “N”: This may be due to mistake on your supplier side being his return is submitted but not filled. Ask your supplier to file his return on immediate basis.
  1. Invoices issued under reverse charge (Table 4B of GSTR 2): In case taxpayer has issued on self for purchases made from unregistered person or for specified supplies and wants to claim ITC for the same than table 4B need to be file by taxpayer.
  1. Suppliers’ invoice is shown with incorrect value or invoice number mismatch: Open the particular invoice and make adequate alteration and save it. After saving the invoice accept it.

Decision taken in 22nd GST Council Meeting

1.     GST Council allows SMEs with turnover of up to Rs 1.5 cr to file quarterly returns instead of monthly filings.

2.     Nominal 0.1% GST on exports

3.     For July exports, refund cheques will be processed by October 10 and for August exports, refund cheques will be processed by October 18

4.     There will be an e-wallet for each exporter and notional amount as advance refund will be given; will be initiated on 1 April 2018

5.     The e-wallet credit will allow for GST, IGST, etc, while actual refund will offset this

6.     The limit for turnover in compensation scheme raised from Rs 75 lakh to Rs 1 crore

7.     SMEs with Rs 1 crore turnover can file quarterly returns

8.     1% tax applicable on traders under composition scheme

9.     Any person providing exempted service are eligible for compensation scheme

10.  Revision in GST rates:


Old rates

New rates

Sliced dried mangos, khakra and chapatti



Unbranded Namkeen



Unbranded Ayurvedic Medicine



Stones used for flooring

Other than marble and granite



Stationary items



Diesel engine parts



Petrol pump parts



Man Made yarn



Job Work



GST and TDS calculation under Income Tax Act

Circular no 23/2017 of CBDT:

The Central Board of Direct Taxes (the Board) had earlier issued Circular No. 112014 dated 13.01.2014 clarifying that wherever in terms of the agreement or contract between the payer and the payee, the Service Tax component comprised in the amount payable to a resident is indicated separately, tax shall be deducted at source under Chapter XVIl-B of the Income tax Aet, 1961 (the Act) on the amount paid or payable without including such Service Tax component.

Now, the Government has brought in force a new Goods and Services Tax regime with effect from 01.07.2017 replacing, amongst others, the Service Tax which was being charged prior to this date as per the provisions of Finance Act, 1994. Therefore, there is a need to harmonize; the Circular No. 01/20 14 of the Board with the new system for taxation of services under the GST regime.

Hence therefore, wherever in terms of the agreement or contract between the payer and the payee, the component of ‘GST on services’ comprised in the amount payable to a resident is indicated separately, tax shall be deducted at source under Chapter XV Il-B of the Act on the amount paid or payable without including such ‘GST on services’ component.


The amount of TDS shall be computed without grossing up for the goods and service tax (GST) component, which is also part of the bill.

What is included in GST for the purpose of deduction of TDS at source?

GST for these purposes shall include:

  1. Integrated Goods and Services Tax (IGST),
  2. Central Goods and Services Tax (CGST),
  3. State Goods and Services Tax (SGST)and
  4. Union Territory Goods and Services Tax (UTGST).

For the purpose of above circular, GST does not included cess chargeable under GST (Compensation to the States) Act which is also a part of GST chargeable under the above acts. Matter needs to be further clarified as to whether TDS shall also be deducted on the cess component or not. Practically cess shall also be excluded for the purposes of deduction of TDS.

What is the impact of above circular on the existing contract as on 01.07.2017?

Any reference to ‘service tax’ in an existing agreement or contract which was entered prior to 01.07 .2017 shall be treated as ‘GST on services’ with respect to the period from 01.07.20 17 onward till the expiry of such agreement or contract.

Example: There are several payments, such as works contracts which attract GST (at 18%) and which also attract TDS (at 10% on fees for technical services, 2%/1% on work contract) under the Income Tax (I-T) Act.

Whether TDS under GST and TDS under income tax shall be deducted separately?

As the purpose of deduction of TDS under GST and TDS under income tax act is different and hence in cases where as per terms of contract TDS under income tax and TDS under GST is deductible at the same time than both are deducted separately and accounted for in the different accounts and further deposited under separate account.

Accounting Entries in case GST paid under Reverse Charge

Features of reverse charge mechanism of payment of tax on certain supply of services under GST:

The bulleted points of the above discussion are as below:

  • Reverse charge is a mode of collection of tax by government and not a different tax.
  • If goods and / or services are purchase from the registered taxable person – reverse charge levy can be effected only when goods and / or services traded are one of the specified items. Till date no such items are specified by central government.
  • Goods and / or services on which tax is payable under reverse charge are not exempted goods and / or services.
  • In case such goods are supplied by registered taxable person tax invoice shall be prepared by such supplier with the mentioned of the words – “TAX IS PAYABLE ON REVERSE CHARGE BASIS”
  • In case goods and / or services are supplied by unregistered person tax invoice will be generated by recipient taxable person under section 31(3)(f).
  • ITC of tax paid under RCM (reverse charge mechanism) will allowed once tax and value of supply is paid.

With the above background the accounting entry that can be passed is given below:

Accounting entry at seller end:

Whether supply is made by registered person or unregistered person –

XYZ party a/c Dr

To Sale (under RCM) a/c

Accounting entry at purchaser end:

Mode 1 : Purchase made from registered person:

  • Tax will be paid by receiver of goods
  • Tax Invoice shall be prepared by supplier of goods / services
  • ITC will be available on tax paid
  • Payment voucher shall be prepared for every payment made

Accounting entry:


Purchase a/c Dr

Provisional ITC of CGST (under RCM)

Provisional ITC of SGST (under RCM)

To ABC Party a/c (For material purchase)

To CGST (under RCM) (For CGST)

To SGST (under RCM) (For SGST)

Availing ITC after fulfilling conditions:



To Provisional ITC of CGST (under RCM)

To Provisional ITC of SGST (under RCM)

Mode 1 : Purchase made from un-registered person:

  • Tax will be paid by receiver of goods
  • Tax Invoice shall be prepared by receiver of goods / services
  • No question of issuance of bill of supply as supply is not of exempted goods
  • ITC will be available on tax paid
  • Payment voucher shall be prepared for every payment made

Accounting entry:


Purchase a/c Dr

To ABC Party a/c (For material purchase)


Issue of tax invoice:

Provisional ITC of CGST (under RCM)

Provisional ITC of SGST (under RCM)

Memorandum sale a/c – crated only for the purpose of creating GST liability

To CGST (under RCM) (For CGST)

To SGST (under RCM) (For SGST)

To Memorandum sale a/c – crated only for the purpose of creating GST liability


Availing ITC after fulfilling conditions:



To Provisional ITC of CGST (under RCM)

To Provisional ITC of SGST (under RCM)

GSTR 2 & 2A

Role of GSTR -2 for the registered dealer:

GSTR – 2 is a return document used by GST portal for giving Input Tax Credit in GSTR – 3 to the dealer. Hence, it is a very important document and due care should be maintained in filing this form so that we get ITC for which we are eligible correctly.

Inter – linking of GSTR 2 and GSTR 2A:

GSTR 2 and 2A are inter-link document. GSTR 2 can’t be filed without all information is captured in GSTR – 2A. In case any purchases are made from registered dealer, same will be auto populated in GSTR – 2A after due date of filing of GSTR – 1 is over. Any missing or incorrect information in GSTR – 2A may be rectified in GSTR – 2 in case of these dealers. Thus, GSTR -2 document can be filed only after due date of filing GSTR -1 is over.

Who to file GSTR -2A & 2 under section 38(1) – Details of inward supplies:

PART A – Filing of fresh return:

Every registered person, other than:

  1. An Input Service Distributor or
  2. A non-resident taxable person or
  3. Composition supplier under section 10 or
  4. A person paying tax under the provisions of section 51 (TDS deductor) or
  5. A person paying tax under the provisions of section (TCS deductor) 52,

shall verify, validate, modify or delete, if required, the details relating to outward supplies and credit or debit notes communicated in GSTR – 2A to prepare:

  • The details of his inward supplies and
  • Credit or
  • Debit notes and
  • may include therein, the details of inward supplies and credit or debit notes received by him

in respect of such supplies that have not been declared by the supplier in GSTR 1.

PART B – Rectification of return already filed:

Any registered person, who has furnished the details under sub-section (2) for any tax period and which have remained unmatched, shall, upon discovery of any error or omission therein, rectify such error or omission in the tax period during which such error or omission is noticed in such manner as may be prescribed, and shall pay the tax and interest, if any, in case there is a short payment of tax on account of such error or omission, in the return to be furnished for such tax period.

Errors or omission that can be rectified:

  1. Section 42: Discrepancy observed in the inward supply claimed by registered dealer with the corresponding details of outward supply furnished by corresponding registered person in the same tax period or earlier tax period.
  2. Duplication of ITC claimed
  3. Section 43: The details of every credit note relating to outward supply with corresponding reduction in claim for ITC by corresponding registered person.

Time limit for rectifying such errors or omission:

Provided that no rectification of error or omission in respect of the details furnished under sub-section (2) shall be allowed after furnishing of the return under section 39 for the month of September following the end of the financial year to which such details pertain, or furnishing of the relevant annual return, whichever is earlier

Form and manner of furnishing details of inward supplies:-

  1. Every registered person required to furnish the details of inward supplies of goods or services or both received during a tax period shall, on the basis of details contained in Part A, Part B and Part C of FORM GSTR-2A, prepare such details and furnish the same in FORM GSTR-2.
  2. Every registered person shall furnish the details of any mismatch electronically in FORM GSTR-2.
  3. The registered person shall specify the inward supplies in respect of which he is not eligible, either fully or partially, for input tax credit in FORM GSTR-2.
  4. The registered person shall declare the quantum of ineligible input tax credit on inward supplies which is:
    1. Relatable to non-taxable supplies or
    2. For purposes other than business and cannot be determined at the invoice level in FORM GSTR-2.
  5. The details of inward supplies of goods or services or both furnished in FORM GSTR-2 shall include the-
    1. Invoice wise details of all inter-State and intra-State supplies received from registered persons or unregistered persons;
    2. Import of goods and services made; and
    3. Debit and credit notes, if any, received from supplier
Deadline for filing GSTR 1 extended to 10th October 2017
GSTR Form No.
Tax Period
Revised Due Date
July 2017
(Turnover more than 100 crore)
July 2017
July 2017
July 2017
July-September 2017
18-Oct-2017 (no change)
July 2017


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