Purpose of return:
- Mode for transfer of information to tax administration;
- Compliance verification program of tax administration;
- Finalization of the tax liabilities of the taxpayer within stipulated period of limitation; to declare tax liability for a given period;
- Providing necessary inputs for taking policy decision;
- Management of audit and anti-evasion programs of tax administration.
Liability to file return
Outward supply: Section 32 subsection 1
Every registered taxable person, other than
- an input service distributor,
- a nonresident taxable person and
- a person paying tax under the provisions of section 9, section 46 or section 56,
shall furnish, electronically, in such form and manner as may be prescribed, the details of outward supplies of goods or services effected, during a tax period on or before the tenth day of the month succeeding the said tax period and such details shall be communicated to the recipient of the said supplies within the time and in the manner as may be prescribed.
Inward supply: section 33 subsection 1
Every registered taxable person, other than:
- an input service distributor or
- a nonresident taxable person or
- a person paying tax under section 9, section 46 or section 56,
Shall verify, validate, modify or, if required, delete the details relating to outward supplies and credit or debit notes communicated under sub-section (1) of section 32
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 under sub-section (1) of section 32.
In essence it can be said every taxable person need to file return of his turnover.