Webtel FAQs Changes in GST Returns Nov 2017

1 1 | P a g e FAQS ON Changes IN FILING OF GST Returns (GST COUNCIL MEETING ON 10 NOV, 2017) Contents Filing of GSTR-3B & GSTR-1 Filing of GSTR-2 Case Study on Consequence of Deferring of GSTR-2 Why Filing of GSTR-2 Important? Relief in Late Filing Fee 2 | P a g e Filing of GSTR-3B & GSTR-1 Q1. Which assessees have to pay tax and file GSTR-3B on a monthly basis? All Regular and Casual Assessees have to pay tax and file GSTR-3B on a monthly basis, by 20th of the next month. Presently, this has been prescribed till March 2018.

2 Q2. What is the periodicity of filing GSTR-1,2 & 3? Turnover in Financial year 2016-17 Filing of GSTR-1,2 & 3 Upto Rs. cr Quarterly More than cr Monthly Q3. What are the due dates for filing GSTR-1 for financial year 2017-18? A. Turnover upto Rs. cr in financial year 2016-17 Period Due Date July- Sep 2017 31st Dec, 2017 Oct-Dec 2017 15th Feb, 2018 Jan-Mar 2018 30th Apr, 2018 Turnover exceeding Rs. cr in financial year 2016-17 Period Due Date July- Oct 2017 31st Dec, 2017 Nov 2017 10th Jan, 2018 Dec 2017 10th Feb, 2018 Jan 2018 10th Mar, 2018 Feb 2018 10th Apr, 2018 Mar 2018 10th May, 2018 3 | P a g e Filing of GSTR-2 Q4.

3 Are assessees no longer required to file GSTR-2 & GSTR-3? Presently, relaxation has been given in filing of GSTR-2 & GSTR-3 to make them more user friendly. GSTR-2 & GSTR-3 have to be filed at a later date. (See Press Release dated ) A Committee will decide the dates of their filing. Q5. Why is filing of GSTR-2 & 3 necessary? GSTR-2 is necessary for Matching of input taxes claimed in GSTR-3B (GSTR-3 when regular filing begins) with GSTR-1 filed by supplier. Q6. What will happen if there is difference in Input taxes claimed by me in GSTR-3B (or GSTR-3 later) with GSTR-1 filed by suppliers from whom I have made purchases or availed services?

4 Any shortfall in taxes has to be made good by the assessee. So if one of my suppliers does not file his GSTR-1 or does not include sale bill of Rs. 1 lac pertaining to me in his GSTR-1, claim of Rs. 18,000 input tax against the same would be wrong and I will have to deposit the same together with interest for late payment. I will get the credit when subsequently supplier files his GSTR-1 or corrects the mistake in GSTR-1 of subsequent month(s). This is similar to Form 26AS in Income tax. Wherever I do not get credit of TDS, I have to pursue with the deductor.

5 If he does not correct the mistake, I have to pay the shortfall in taxes myself. Then only can I file my ITR. Mismatch of ITC 4 | P a g e Case Study on Consequence of Deferring of GSTR-2 Q7. Can I postpone matching of input taxes claimed by me with the taxes paid by my suppliers in their respective GSTR-1 & GSTR-3B? A. Postponing of Matching of Input taxes claimed by me with Output taxes of suppliers would be suicidal. Case Study Data of Webtel Electrosoft (P) Ltd. for the month of Oct. 2017 Particulars Amount GST Amount (18%) Outward Supplies Rs.

6 Lacs lacs Inward Supplies Rs. lacs lacs Net GST Payable lacs Details of Inward Supplies Supplier Correct Amount of Supplies Amount of Supplies in GSTR-1 of Supplier Output GST (18%) ( Webtel Input tax) A lacs lacs lacs B lacs lacs lacs C lacs - - Total lacs lacs lacs Excess ITC claimed : lacs = lacs. Webtel will not only have to pay this shortfall of tax of lacs, it will also have to shell out interest @ 24% even though it is not at fault. It is expected that there will be a deluge of notices due to mismatches in input tax claim.

7 We have already experienced it in the previous DVAT regime where there was no prior matching by parties. Reconciliation was done through software by department party wise instead of invoice wise. Such automatic reconciliation resulted in notices to virtually all the assessees. Instances like this will happen in GST also if there is no matching. It is expected that even though filing of GSTR-2 has been deferred, government will allow buyers to view GSTR-2A and ask supplier to make corrections, if any. 5 | P a g e Why Filing of GSTR-2 Important.

8 Q8. Is it good that at present I do not have to file GSTR-2? When I file GSTR-2, I am able to correct omissions, deletions and incorrect data entry of my suppliers on a regular basis. By deferring this matching process, my data to be reconciled will accumulate and I will have to spend more time and effort in reconciling it. By filing GSTR-2, I can take the following remedial measures : Mistakes in GSTR-1 of Supplier Consequence Corrective Action by Buyer Few invoices pertaining to me not mentioned Lesser ITC Add Missing Invoices.

9 Additional invoices not pertaining to me shown Excess ITC Reject such Invoices Incorrect data entry Lesser/Excess ITC Modify relevant invoices In view of the above, filing of GSTR-2 is a blessing in disguise. If I am unable to file it, I shall not be able to make such corrections. In fact, now I will have to be more vigilant and continuously check the invoices uploaded by suppliers. Any mistakes made by them can be unilaterally rectified by them only in subsequent months. Non-filing of GSTR-2 has made claiming input taxes like claiming TDS in Form 26AS where correction can be made by deductor only.

10 Hopefully, government shall announce dates of filing GSTR-2 & GSTR-3 soon. 6 | P a g e Relief in Late Filing Fee Q9. What will happen to the late filing fee paid by me which has been subsequently waived? The late fee which has been waived later, shall be credited to Electronic Cash Ledger under the head Tax instead of Fee . This will help the assessee to utilise it against his future tax liability. Q10. Is late filing fee waived for all months? Late filing fee has been waived from Jul to Sep 2017. From October, 2017 onwards, filing fee shall be payable for late filing of GST Returns as follows : Late Filing Fee per day Return CGST (Rs.)