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The Complete Frequently Asked Questions On GST


GST stands for Goods & Service Tax, implemented on July 1st 2017 to eliminate all the multiple taxes that were earlier levied under VAT system in India. In the Parliament on 29 March 2017, the GST Act was passed.

GSTR Filing simply means filing GST returns based on financial tenure.

In general, there are 22 types of GST returns under GST system. But only 11 GST returns are active, 3 suspended, and rest 8 are view-only in nature.

GSTR-1, GSTR-2, GSTR-2A, GSTR-2B, GSTR-3, GSTR-3B, GSTR-4, GSTR-5, GSTR-5A, GSTR-6, GSTR-7, GSTR-8, GSTR-9, GSTR-9A, GSTR-9C, GSTR-10, GSTR-11

GSTR-1 is the return to be filed for reporting details of all selling/outward supplies of goods and services made by the seller.

Currently a suspended GSTR-2 is a return that was applied to registered buyers for reporting the purchase/inward supplies of goods and services during a tax period.

GSTR-2A is a view-only dynamic tax return that is automatically generated for the recipient or buyer of goods and services when a seller files his GSTR-1.

GSTR-2B is also a view-only static GST tax return important for the purchaser or seller of goods and services. It is auto- generated for every purchase as per the data filled by the suppliers in their respective Forms GSTR-1, GSTR-5 and GSTR-6.

GSTR-3 is also currently suspended GST return. It was a monthly summary return for furnishing summarized details of all sales done; goods purchased and input tax credit claimed, along with details of the tax liability and taxes paid.

GSTR-3B is a monthly self-declaration to be filed, for establishing details of all outward supplies made, tax liability ascertained, input tax credit claimed and taxes paid.

GSTR 4 is the annual/quarterly return under the composition scheme filed by the taxpayer as per the fixed preferences. It has replaced the GSTR-9A (annual return) from FY 2019-20 onwards.

For non-resident foreign taxpayers who are registered under GST, & carry out transactions in India has to file GSTR-5.

GSTR-5A refers to a summary of outward taxable supplies and tax payable by Online Information and Database Access or Retrieval Services (OIDAR) provider under GST.

GSTR-6 is a monthly return to be filed by an Input Service Distributor (ISD).

GSTR-7 is a monthly return filed by persons required to deduct TDS (Tax deducted at source) under GST.

GSTR-8 is a monthly return under the GST, to be filed by registered e-commerce operators who are required to collect tax at source (TCS).

GSTR-9 is the annual return to be filed by taxpayers registered under GST as per the announced due date.

GSTR-9A is currently a suspended annual return earlier required to be filed by composition taxpayers. It had a consolidation of all the quarterly returns filed during that financial year.

GSTR-9C is the reconciliation statement to be filed by all taxpayers registered under GST whose turnover exceeds Rs.2 crore in a financial year, as per the GST law.

GSTR-10 is to be filed by a taxable person whose registration has been cancelled or surrendered.

GSTR-11 is to be filed by persons who have been issued a Unique Identity Number (UIN) in order to get a refund under GST for purchased goods & services in India.

e-Invoices are electronically generated B2B invoices that need to be authenticated on the Invoice Registration Portal. The invoice is assigned with a unique IRN (Invoice Registration Number) & a QR code and the invoice becomes an e-Invoice.

e-invoices are considered valid when generated through an e-invoicing system.

e-Way Bills are mandatory documents for transportation of inter & intra state goods worth Rs. 50,000/-.

e-Way Bills are generated based on Invoices & are supporting documents. It has the invoice details, item details & transporter details furnished.

Reconciliation simply means matching various reports to identify errors & mismatching reports. Reconciliation confirms that the reports match at both buyer & seller end & are true to best of their knowledge. The most common reconciliations are those of, GSTR1 & GSTR-3B, GSTR-2A & Purchase Books, Annual Reconciliation, GSTR-1 & e-Way Bill data.

Reverse charge mechanism means the taxes are paid directly to the government by the recipient of the goods. In normal circumstances the recipient pay tax liabilities to the seller, the seller then pays it to the government by filing their GSTR-1 & GSTR-3B.

Input Tax Credit or ITC is the tax that the taxpayer has already paid at the time of purchasing Goods or Services for manufacturing goods in a particular tax period.

The taxpayer can use this already paid tax to reduce their tax liabilities while making a sale of the finished Good, in the same tax period.

This scheme is given by the government for the small taxpayers to collect GST from them without troubling them. Composition scheme made complex calculations & compliances simpler & help the government in maintaining revenue flow.

Under this scheme the taxpayers is not required to maintain a rate wise breakup- instead the GST is calculated over turnover. Taxpayers under the Composition Scheme need not file their GSTR-1, GSTR-3B & GSTR-9. Instead, they need to file GSTR-4 which is a quarterly filing of taxes & GSTR-9A which is the annual filing for this Scheme. This reduces the burden of high tax liabilities for small businesses.

The goods under GST are categorized on which basis the taxes are levied. Commonly there are 0%, 5%, 12%, 18% & 28%. Different categories have different tax rates, for example- luxury goods fall under higher tax rate (28%) & essential goods fall under the low one (as low as 5%). There are other tax rates also, for Fuel, Alcohol, Gems & Precious stones, etc.

Depending on the preferences selected all business except taxpayers registered under GST composition scheme & Input Service Distributors must file GSTR 1 on monthly or quarterly basis.

If filing monthly-the due date for filing GSTR-1 is 10th of every succeeding month.

If filing quarterly- the due date for filing GSTR-1 is the month-end on the last month of the quarter.

Yes, GSTR-1 filing is mandatory. In case of no sales, the taxpayer must file a Nil GSTR-1

Yes, amount of Rs. 200 per day is charged for late filing GSTR 1.

If the annual turnover of the previous financial year was 1.5 crore or less than that, you can opt for quarterly return or the predicted turnover up to successive month is less than or equal to Rs. 1.5 Crore.

Following details need to be given-
  • Invoice & details of supplier
  • Debit/credit note details
  • Details of sales to SEZ
  • HSN wise supplier summary
  • Nil-rated, non-GST or exempted supply details
  • Details of advance received for future supplies.

No, the tax return once filed can't be rectified. However the taxpayer is provided with option to correct it in the next tax period. The mistakes can be amended in the successive report.

You can fill a summary in the Table 7 for all sales made to unregistered person under Rs. 2.5lakh both for interstate & intrastate.

For interstate if the value is above Rs. 2.5 lakh then the details need to furnished in Table 5.

All regular taxpayers, including the SEZ Developers & SEZ Units, OIDAR Service Providers & the taxpayers that changed from composition taxpayers to regular taxpayers must file GSTR 9.

The Government has declared 31st December as the return filing date for the subsequent year. However the due dates may extend to help the taxpayer comply with the system.

To file GSTR 9 follow the steps, login to the GST Portal > Services > Returns > Annual Returns.

GSTR 9 is to be filled by all registered taxpayers whereas Form GSTR 9C is filled by the taxpayer with annual turnover of Rs. 2 crore or above in the financial year.

In GSTR 9C the taxpayer need get the account audited by CA & submit the copy of reconciliation statement & audited annual accounts, under section 44(2) of CGST Act.

The taxpayer must have an active GSTN in a financial year. The taxpayer must be a regular filer of GSTR-1 & GSTR 3B before filing GSTR 9.

No, you only need to fill the details in the tables relevant to your business.

Following details are auto-populated.
  • Details of all tax payables- sales, purchase made during the financial year.
  • Details of non-tax payables
  • 6A the total number of ITC availed from GSTR 3B
  • 6G ITC received from ISD
  • 6L- Transition Credit through TRAN-II
  • 6K- Transition Credit through TRAN-I (including revisions if any)
  • Details of advanced tax paid declared in financial year.

Table no. 8A: ITC as per GSTR-2A is auto populated from GSTR 2A.

Yes it is possible to edit the auto-populated data except details related to ITC & tax paid in financial year.

If you have paid tax through GSTR 3B, then you will declare such transaction in Pt. V – Table 10 or Table 11 of GSTR-9.

If you have files taxes against transaction then declare them in Pt. II - Table 4 or Table 5 of the Form GSTR-9.

No, you will have to calculate them manually. You will have to pay them before or after filing GSTR 9 through Form GST DRC-03.

The accounts are audited & verified by the CA & signed in JASON format. The taxpayer after checking it; upload it to the GST portal along with supporting documents like Profit & Loss statement, balance sheet, expenditure account etc.

You can download the error file, rectify it or show it to the CA & upload the correct document again.

Once you will upload the following document you will be able to proceed.
  • Signed Audit File in JSON format.
  • Balance sheet in PDF (or JPEG form) (and other support documents)

No, once form GSTR 9c is submitted you cannot make changes. However you can change any time before clicking 'File GSTR 9-C'.

All normal, casual & registered Taxpayers must file their GSTR-3B for tax periods, regularly.

You can easily file GSTR 3B from GST portal. Login to GST portal > Return Dashboard Section> GSTR 3B

The due dates of filing GSTR3B are based on the turnover & the state of business operation. For businesses with turnover more than Rs. 5 Crore, 20th of the succeeding month is the due date to file GSTR 3B.

Yes, it is mandatory to file GSTR 3B. If you do not have any transaction you can file Nil GSTR 3B.

No, you need not mention all inwards taxable supplies. However, you must declare the details of ITC in Table 4.

No, you cannot change or edit GSTR 3B form once submitted. However you can rectify the errors in the next tax period.

No, GST portal does not auto save any data. You need to save the information before exiting the portal.

In Table 3.1 (d) of the GSTR-3B Form you can show the details of all liable inward supplies under Reverse Charge Mechanism. You will also need to create an invoice for yourself and release the tax liability against the invoice.

Yes, it is mandatory to file GSTR 3B regularly.

If you fail to pay GST by the due date you will be liable to penalty of 18% of the tax liability per annum which is calculated per day wise.

There is no process to claim the refund for the amount paid under RCM. However you can claim the input tax credit of the amount of tax paid in Table 4 of GSTR 3B.

No, you can't do that. Even if you try to pay GST by generating online challan, the GST will not adjust any of your tax liability.

If the ITC is more than GSTR 2A then you must discuss with your supplier regarding the missing invoice. Once your supplier declares the invoice, then you can claim the ITC. If the excess ITC is not even 10% of GSTR2A, then the taxpayer can claim input tax credit in GSTR 3B.

If ITC is less than GSTR 2A, then you have to rectify GSTR 3B & declare the missing invoice from your end.

You can file Nil GSTR 3B through a SMS from your registered mobile number using OTP.

Form GSTR 2A need not to be filed by anyone. It is an auto populated Form which displays all the purchases made in the tax period. It displays all the transactions seller has uploaded as sale.

As a taxpayer, you will be able to see your GSTR 2A when your supplier has filed his GSTR 1 with all sales details & declared all the transactions correctly.

Every month you will get a notification via mail & message when the GSTR 2A is generated.

Yes, you can download Form GSTR 2A for future references from the GST portal.

Part-A
  • Normal Registered Seller : GSTR-1
  • Non-Resident : GSTR-5 Including credit notes, debit notes and amendments made
Part-B
  • Input Service Distributor : GSTR-6
Part-C
  • TDS Deductors : GSTR-7
  • Ecommerce / Tax Collector : GSTR-8

Currently GSTR 2 is suspended but it is the purchase report of the buyer furnished by himself. Whereas GSTR 2A is the auto populated read only file generated from the details entered by the supplier in GSTR 1.

You can reconcile GSTR 2A & purchase records easily using any GST software solution like Marg ERP or GST solution providers. You can calculate the precise amount of ITC through best reconciliation with Marg GST Software.

The matching of both the reports is important for the correct calculation of amount of ITC & tax liability adjustment. The ITC mentioned in GSTR 2A is claimed in GSTR 3B, therefore it is important to match the two reports.

GSTR 2A reconciliation is simply the matching or reconciliation of data of GSTR 2A & the purchase books. To cross verify if any ITC has been missed or any error in GSTR 2A.

Consigner, consignee or the transporter of the goods can generate e-way bill. However, most often the supplier of the goods generate e-way bill.

E-way bill can be generated from the government portal i.e. www.ewaybill.nic.in, or e-way bill can also be generated through APIs & e-way bill software. You can also use Marg ERP GST software for creating e-way bill.

Yes, you can generate multiple e-way bills against same invoice if the goods are transported through multiple vehicles. There can be n-number of e-way bills & delivery challans.

No, multiple invoices can't be clubbed in single e-way bill.

In case a transport vehicle is carrying goods against multiple e-way bills for delivering to a nearby location may be, then they can merge all e-way bills into one single consolidated e-way bill. This is only for the sake of creating ease of carrying one e-way bill instead of carrying multiple e-way bills.

As per the New Rule 138E-of CGST Rule 2017, implemented from 1st December 2019, a taxpayer cannot generate any further e-way bill if they have not filed their GSTR 3B for consecutive two or more tax periods.

The taxpayer should pay GSTR 3B & reduce the number for unpaid tax period to less than two. In such condition, the e-way bill generating portal will be unlocked automatically.

Yes, the taxpayer can raise a request to a Tax jurisdiction officer to get their GSTN unblocked temporarily. On authenticating the reasons given by the user the officer can unblock e-way bill generation facility from the portal.

The e-way bill is valid for a limited period of time. An e-way bill is valid for one day for 100 km. For every added 100km one day validity is added. After the validity expires the Goods can be seized for penalties.

Yes, the validity of e-way bill can be extended until 4 hours before & after the actual expiry. The transporter must enter a valid reason in Part B & the approximate distance yet to be covered.

Part A of an e-Way Bill is the part where the consigner enters all the details such as GSTIN of the receiver, Goods values, Delivery address, Invoice/Challan Number, HSN Codes, the reason for delivery, etc.

Part B of an e-Way Bill contains all transporter details such as Transport mode, Vehicle Number, Transporter ID, Vehicle Number, etc.

There are many free software in the market for GST return filing. Marg is one of the best GST billing software for return filing, free GST billing, inventory & finance management. It also aids in creating customised invoices with the business logo & details. Marg is easy to use and is compliant with the latest Government taxation system

Yes GST bill is mandatory in most of the categories if GST is applicable. Only in the categories where GST is not applicable GST bill is not mandatory.

The full form of HSN is “Harmonized System of Nomenclature”. In India, HSN Code is a 8-digit uniform codes which is used to classifydifferent products & categories on the basis of GST applicability and is accepted worldwide.

Date for filing GST annual returns of FY 18-19, which was due on 31st March 2020 was extended till the last week of June 2020. Later amid Covid19 situation the finance minister Nirmala Sithraman further extended the due date till 30th September 2020. No late fee and penalty will be charged if returns are filed before the last due date.

Penalty fee is applicable in case late filing of GST return. The amount of late fee is Rs. 100 per day per Act. So it counts as Rs 100 under CGST &Rs. 100 under SGST. This count a total of Rs. 200/day* that will be charged as a late fee. Although a maximum of Rs. 5,000 can be charged as the late fee. There is no late fee applicable on IGST in case of delayed filing. Along with the late fee, an interest of 18% is calculated per annum and is applicable for a time period starting from the last date of late filing.

An interest of 18% is calculated per annum and is applicable for a time period starting from the last date of late filing.

The composition scheme is for the qualifying taxpayers with turnover less than 50 lakh in the preceding financial year to pay the percentage of their yearly turnover as tax in a state. The tax payer does not need to collect tax from their customer directly. The composition scheme also provides following benefits:

  • File single quarterly return in spite of monthly returns
  • Pay a lower tax rate, offering a competitive advantage
  • Save time in maintain records & books

In GSTR 1, if the mistake is occurred in taxable amount, tax amount, tax rate, etc can be rectified. But if the mistake is occurred in GSTIN, party name, head of tax i.e, IGST, CGST and SGST then no rectification can be made. If mistake is occurred in taxable amount, tax amount, tax rate, then the rectification can be made in it through amendment to invoices in next month’s GSTR 1.

Yes, GST software has the provision to provide sales reports & other reports related to stock, accounts & finances. You can manage your sales, inventory & accounting with the help of a GST software.

Yes, you can easily download all the data & returns filed.

Yes there is a facility to file annual composition form.

Filing Form GSTR-4 Annual return: Logon to your dashboard, click on Services > Returns > Annual Return >Select FY>Search>GSTR 4> FILE THE RETURN. Some important Points: Form GSTR 4 can be filed only if, all applicable quarterly statements in Form CMP 08 of that financial year, have been filed

Yes you can file GSTR 7 & GSTR 8 also.

Yes, most of the vendors provide after sales & support service to you. Software like Marg has a dedicated customer care departments that helps you through every step from the installation tile software usage & return filing.