ICAI releases Handbook on Annual Return under GST

Posted on    05 December 2022

Annual Return under GST


Goods and services tax (hereinafter referred to as GST), a consumption-based value-added tax is the tax levied on the purchase of goods, services or works. Unlike the erstwhile tax regime, where the tax was collected by the State where the supplier is registered, at present taxes are passed on to the State which consumes it. This was done with the noble motive of making India a single market which was possible only by simplifying the following procedures in indirect taxes:


(a) Abolish the requirement of forms for availing the Tax/Duty benefits by allowing the receiver to avail ITC.

(b) Levying taxes at all points in the supply chain, with credit for taxes paid on goods, services or works acquired for use in making the further supply.

(c) Free flow of goods by removing the check post system and increasing the efficiency of the logistics industry.

(d) Restricting the exemptions otherwise permitting the ITC to the receiver and allowing recipient to apply for the refund,

(e) Moving towards progressive tax law by introducing multiple taxes for the same goods but different values.

(f) Automation of refund process.

(g) Standardizing the requirement in the document issued by the supplier.

(h) Standardizing requirement of the records to be maintained in every registered principal place of business.

(i) Simplifying the process of payment of taxes and filing of monthly returns.

(j) Permitting rectifying of the error, omission, and commissions in the monthly returns and permission to make the short payment voluntarily arising due to the above-referred reasons. This is because section 73 of the Central Goods and Services Tax Act, 2017 ("the CGST Act") provides a unique opportunity of self – correction to the registered person, i.e. if a registered person has not paid, short paid or has erroneously obtained/been granted a refund or has wrongly availed or utilized input tax credit, then before the service of a notice by any tax authority, the registered person may pay the amount of tax with interest.

To view / download the complete Handbook: Click Here

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