Detailed Understanding of GST Process

The Central Goods and Services Act, 2017 deals with the various processes, procedures and GST Compliances that are required to be completed by a business or taxpayers in India. These GST Process have been described in detail in the following section.

  • GST Registration: Section 22 to Section 30 under Chapter VI of the CGST Act, 2017 deals with and states the provision of GST Registration and related GST Process with it. It states that every goods and services supplier should be registered under the GST.

Section 22 of the CGST Act, 2017 states that-

“Every supplier shall be liable to be registered under this Act in the State or Union territory, other than special category States, from where he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds twenty lakh rupees.”

  • GST Returns: For every taxpayer registered under GST, it is important to submit the GST Return Filing at regular intervals through various forms. Types of GST Return forms to be filed are as follows-
  • Form GSTR-1: Filed for furnishing the details of all the sales and outward supplies.
  • Form GSTR-2: Filed for furnishing the details of all the purchases and inward supplies. Form GSTR-3: Filed for monthly returns.
  • Form GST-3B: Filed for furnishing summary returns for the months of July and August in a particular financial year.
  • Form GSTR -4: To be filed by Composition taxpayers for furnishing returns.
  • Form GSTR-5: To be filed by Foreign Non-Resident taxpayers for furnishing returns.
  • Form GSTR-6: To be filed by Input Service Distributor for filing returns.
  • Form GSTR-7: Filed by Tax deductor for furnishing
  • Form GSTR-8: Statement for Tax Collection at Source (TCS).
  • Form GSTR-9: Annual Returns of the taxpayer.
  • Form GSTR-10: Final Returns of the taxpayer
  • Form GSTR-11: Statement of Inward supplies for persons having Unique Identification Number (UIN).
  • GST Refunds: The Section 54 to Section 58 of Chapter XI of the CGST Act, 2017 states the provisions and laws related to the GST Refund claim application and process. Such similar provisions have been incorporated in the SGST and UTGST Acts as well. As per the CGST Act, 2017 there are four types of refunds available in this GST Process. These types under GST Refund Service are as follows-
  • Section 54(1) of CGST Act and Rule 1 of Refund Rules- Refund against for the balance in electronic cash ledger.
  • Section 54(1) of CGST Act, 2017 and Rule 1 of Refund Rules- Advance tax deposited by CTP or NRTP.
  • Section 54(2) of CGST Act, 2017 and Rule 7 of Refund Rules- Refund by persons specified under Section 55 like Embassy, Agency of UNO, etc.
  • Section 54(3) of CGST Act and Rule 1 of Refund Rules- Refund against Unutilized Input Tax Credit (ITC).
  • GST Assessment: The GST Act provides with various provisions related to the different types of assessment under GST as an important GST Process. As per the prescribed provisions under CGST Act, 2017, these are as under-
  • Section 59: Self-Assessment of taxes payable

Section 59 of the CGST Act, 2017 which states the following-

“Every registered person shall self-assess the taxes payable under this Act and furnish a return for each tax period as specified under section 39.”

  • Section 60: Provisional Assessment
  • Section 61: Scrutiny Assessment: Scrutiny of tax returns filed by registered taxable persons
  • Section 62: Failure to File GST Return- Best Judgment Assessment of registered taxable person
  • Section 63: Assessment of Unregistered Person- Best judgments
  • Section 64: Summary Assessment in certain special cases
  • GST Audits: GST Audit is a GST Process, conducted by the GST Authorities or taxpayer for evaluating the financial statements and GST Returns for a particular financial year. According to section 13(2) of CGST Act, 2017, it states that the term-

“’Audit’ refers to the examination of:

  • Records, returns, and other documents kept or filed by the registered person under the Act
  • Rules or guidelines under GST or any other law for the time being in force.”

Under the act there are three types of GST Audit Service which are as under-

  • GST Audit under Section 35(5): These are conducted for the person having a GST Registration and whose turnover exceeds Rs.2 Crore in a fiscal year. Such taxpayers are required to get their accounts audited by a profession Cost Accountant or Chartered Accountant.
  • GST Audit by the Tax Authorities under Section 65: This type of audit under the GST Process for audit is also called as general or normal audit. It is undertaken by the Commissioner or an authorized officer by him under the mentioned section. The audit is required to done for a period in a manner as specified in the order given by the commissioner. The audit is undertaken by the officials in place of business or registered office of the registered person.
  • Special GST Audit under Section 66: Special Audits are demanded by an officer not below the rank of Assistant Commissioner in cases where they deem to carry on the GST Process for evaluation and verification.

 

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    Author: Anil Agrawal
    EZYBIZ India Consulting LLP, New Delhi. The firm is business and tax consultancy firm providing consultancy in Taxation, Regulatory, Transfer pricing, Valuation, Corporate funding and Business set up matters. He may be reached at 9899217778 or anil@ezybizindia.in.
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