GST return filing: GSTR-5, 6, 7 & 8

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The last four forms in the series of the Returns filing process are as follows:

GSTR-5 has been designed to take care of the non-resident foreign taxpayers. The authorities are attempting to plug the areas where a leakage of taxes could have been possible. On obtaining the registration the GSTR-5 needs to be filed by the foreign taxpayer within seven days of the expiry of the registration. If the period is more than a month then the monthly return gets added. The GSTR-5 captures the details of the outward and inward supplies including the tax, interest, penalty and fees in a manner very similar to the GSTR-4. The difference comes in the form of the HSN details at 8 digit level, input tax credit (ITC) availed and declaration of the closing stock of goods.

GSTR 6: The concept of the Input service provider (ISD) has been retained in the GST. The ISD is required to file the return within 15 days after the month end. It will contain the details of the ISD as well as the recipient. The GST registration numbers have to be indicated. The next table requires the information on the supplier invoices which form the groundwork of the input tax credit (ITC). The information will be auto-populated but can be entered manually in case the detail is not appearing electronically. The invoice details with the document number and date have to be entered next. In the tax table, the amount of IGST, CGST, and SGST credit as applicable and being distributed is to be mentioned.

GSTR 7: In the supply chain there will be certain stages where the purchaser will have to deduct tax from the payment due to the suppliers. This tax deduction at source will be at a certain percentage that will be made public. The designated group of purchasers who will deduct the TDS will have to file the TDS return in the GSTR 7 form with details. The return form is similar to income tax forms 26Q/24Q etc. The registration number of the deductor and deductee will be mentioned in the return. The invoice number with date along with the TDS certificate number with date and value are required to be entered in the GSTR 7. Next, would be the taxable value computation along with the entry of the TDS rate for State and Centre GST and IGST as pertinent. Finally the entry of the value of State and Centre GST and IGST subtracted as TDS has to be populated.

GSTR 8: The annual return would be mandatory for all the taxpayers in the GST regime. This return would be a summation of the monthly reports that the taxpayer would have filed during the year. The taxpayer would have to reconcile the returns with his audited financial statement. The whole purpose of the GSTR 8 is to provide a holistic view of the activities of the taxpayer.

The monthly returns will form the basis of the annual report and will help the taxpayer in identifying the gaps and short reporting of activities if any. All the arrears pending with the taxpayer and the refund amount pending with the tax authorities would also be captured. The taxpayer will be required to provide the current status of the orders that have led to the arrears pending with him.

The audited financial report of the taxpayer must tally with the GSTR 8 form. The Profit and Loss account as contained in the audited financial report must be in tandem with the P & L indicated in the GSTR 8. The last date for filing of the GSTR 8 would be 31st Dec of the financial year for which the report is filed. The GSTR 8 and the audited annual financial report copy would be filed together. Wherever the law requires that the accounts of the taxpayer have to be audited by a CA, a separate reconciliation statement signed by the CA would have to be submitted.

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