Sub: Details and Returns

Return, under a fiscal law, is information and details (including values) in relation to taxable event and related calculations including tax [that is, supply (under the Act) and computation of taxable supplies, tax collected, ITC available, tax payable and the like].

The Act obliges every RTP to file his Return and other details. The Act, for the purpose, envisages:

• Furnishing details of outward supplies;
• Verification thereof and furnishing details of inward supplies;
• Matching thereof to determine adjustments for: duplication, errors, omissions and reconciliations (not clearly spelt out in law);
• Determination of ITC (provisionally or otherwise);
• Accordingly, based on auto populated or data fed, determine taxable supplies and tax liability to furnish Return.

To furnish above details and Return, source of information in relation to:

• Outward supplies, would be: Tax invoice and other documents (evidencing supply or matters related thereto) raised by RTP;
• Inward supplies, would be: Tax invoice and other documents (evidencing supply or matters related thereto) received from a RTP by RTP furnishing details;
• Return, would be: Outward supplies details; Inward supplies details; taxes paid, collected and deducted.

To facilitate above, information needs to be uploaded, through Common portal, electronically and in Forms prescribed or specified, the details whereof are as follows/given in Enclosure 1; the particulars to be furnished are detailed in the Forms and they are self-evident.

Broadly stated, the details and particulars, which need to be furnished are:

• Outward supplies effected to RTPs [reflecting business to business transactions (enabling credit of ITC paid on supplies received)]: each and every invoice details need to be uploaded (like, recipient's GSTIN, HSN or ASC, value, taxable value, tax, etc);
• Other Outward supplies (like, interstate, exports, exempt, nil rated, directly to consumers and other classes of supplies) details need not be for every invoice and depending on the threshold, nature of supply, details, as required, may be compiled and furnished;
• Amendments to the above information based on verification, matching, detection of errors, detection of omissions, reconciliations and the like relating to the earlier period in the same manner need to be furnished;
• Similar information in relation to Inward supplies including Amendments.
• Details of taxes paid by way of deposit, deduction of tax, collection of tax, ITC and the like (some of which may be auto populated based on information provided by others or by RTP); and
• Other particulars and information about RTP, like, bank account details, GSTIN and so on.

Thus, practically, Steps involved for furnishing details and Return would be:

• Check and ascertain information required to be furnished and source thereof;
• Devise process, procedure, method and record (electronic or otherwise) to compile data, invoice wise or otherwise, in respect of each and every category of information required;
• Testing and checking the data generated for its veracity and accuracy;
• Uploading data, electronically, directly or through intermediary;
• Receive data relating to Inward supplies;
• Verify, check, modify, correct etc Inward supplies data and confirm it;
• Compile additional data, as may be necessary, in respect of Inward supplies;
• Verify auto populated data or otherwise in Return;
• Check Outward supplies data and corrections etc required therein;
• Verify and check auto populated information of various payments and ITC;
• Verify and check information relating to taxable supplies, ITC etc to determine Tax and other payments;
• Verify and check information relating to earlier period;
• Verify and check various debits and credits in Electronic Cash Ledger, Electronic Credit Ledger and Electronic Taxpayer's Liability ledger;
• Verify and check communications received, from time to time, in relation to various information in respect of outward supplies, Inward supplies and Return;
• Verify and check various reconciliations in respect of outward and inward supplies for appropriate actions at appropriate point in time;
• Verify and check adjustments to provisional credits granted, interest charged etc;
• Appropriate action for any credit / debit note in accordance with information and data duly verified and checked;
• Final verification of information in Return;
• Payment of tax and other payments, following appropriate procedure for discharging liability (including steps required where appropriate conformations are not received for payment including electronic correspondence);
• Uploading Return;
• Receiving acknowledgement;
• Preparation of list of pending adjustments etc for appropriate actions with suppliers and/or customers and/or GSTN or Common Portal.