Key components of GSTR 1, GSTR 2 and GSTR 3 – GST India Guide

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Key components of GSTR 1, GSTR 2 and GSTR 3, Check Key Key components of GSTR 1 (Outward supplies by Tax payers), Key components of GSTR – 2, Inward Supplies, and Key components of GSTR – 3. In this article you can find al details for GSTR-1, GSTR-2 and GSTR-3. Recently we provide complete details for Filing of GST Returns Revision of return, Short Filing of Return, Annual Return (GSTR-8) and Steps for Return Filing etc. Now you can scroll down below n check more details for Key components of GSTR 1, GSTR 2 and GSTR 3

Key components of GSTR 1, GSTR 2 and GSTR 3

Key components of GSTR 1, GSTR 2 and GSTR 3

Key components of GSTR-1 (Outward supplies by Tax payers)

Every registered taxable person required to furnish the details:

  • (a) of outward supplies of goods and/or services effected during a tax period under sub-section (1) of section 25; and
  • (b) of outward supplies of goods and/or services effected during an earlier tax period under sub-section (2) of section 25

shall furnish such details in FORM GSTR-1 electronically through the Common Portal either directly or from a Facilitation Centre, notified by the Board or Commissioner.

This return form would capture the following information:

  1. Basic details of the Taxpayer i.e. Name along with GSTIN
  2. Period to which the Return pertains
  3. Gross Turnover of the Taxpayer in the previous Financial Year. This information would be submitted by the taxpayers only in the first year and will be auto-populated in subsequent years.
  4. Final invoice-level supply information pertaining to the tax period separately for goods and services which has to be submitted as follows:
    • For all B2B supplies (whether inter-state or intra-state) invoice level specified details will be uploaded.
    • For all inter-state B2C supplies – invoice level details to be uploaded for invoices whose value is more than INR 2,50,000. For invoices below this value, state-wise summary of supply statement shall be filed.
    • Following parameters with respect to HSN code for goods and accounting codes for services will apply for submitting the information in return relating to invoice level information.
      • HSN code (4 digits) for goods and accounting code for services will be mandatory initially for all taxpayers with turnover in the preceding financial year above INR 5 crores.
      • HSN codes (8 digits) and accounting codes for services will be mandatory in case of exports and imports.
  5. Details relating to advance received against a supply to be made in future will be submitted in accordance with the Point of Taxation Rules as framed in the GST law.
  6. Details relating to taxes already paid on advance receipts for which invoices are issued in the current tax period will be submitted.
  7. Separate table for submitting details of revision in relation to outward supply invoices pertaining to previous tax periods.
  8. Separate table for effecting modifications/correcting errors in the returns submitted earlier.

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Key components of GSTR-2 (Inward Supplies)

Every registered taxable person required to furnish the details of inward supplies of goods and/or services received during a tax period under sub-section (2) of section 26 shall, on the basis of details contained in Part A of FORM GSTR-2A, prepare such details in the manner specified in sub-section (1) of the said section and furnish the same in FORM GSTR-2 electronically through the Common Portal, either directly or from a Facilitation Centre, notified by the Board or Commissioner, after including therein details of such other inward supplies, if any, required to be furnished under sub-section (2) of section 26.

  • The information in GSTR 1 shall be auto-populated in concerned tables in GSTR-2. It can be modified by the taxpayer while filing GSTR-2.
  • The details of inwards supplies would be auto-populated in the Input Tax Credit (ITC) ledger on submission of return.
  • GST law should provide that ITC with respect to capital goods will be allowed over a period of 2 years in equal instalments. Further GST law should make appropriate provisions for availment of ITC in case of inputs received in one lot or in multiple lots.
  • Separate table for submitting details in relation to ITC received on an invoice on which partial credit has been availed earlier.
  • Separate table for ISD credit and TDS credit received by taxpayer.

Key components of GSTR-3

  • It would capture the aggregate level outward and inward supply information which will be auto populated through GSTR-1 and GSTR-2.
  • Information about ITC ledger, cash ledger and liability ledger would be updated in real time on an activity in connection with these ledgers by the taxpayer.
  • Details of payment of tax under various tax heads of CGST, SGST, IGST and Additional tax separately would be populated from the debit entry in credit/cash ledger. GST law may have provision for maintaining 4 head-wise account for CGST, SGST, IGST and Additional tax and at associated minor heads for interest, penalty, fee etc.
  • Taxpayer will have the option of claiming refund of excess payment through the return for which appropriate field will be provided in the return form.
  • Details of ITC balance (CGST, SGST and IGST) at the end of the tax period will be auto-populated in the ITC ledger irrespective of mode of filing return.
  • The return would have a field to enable the taxpayer to claim the refund or to carry forward the ITC balance (CGST, SGST and IGST). GST law may provide that the refund will be processed quarterly.
  • It will be auto-populated through GSTR- 1 (of suppliers), own GSTR-2, ISD return, TDS return of deductor, own ITC ledger, own cash ledger and own tax liability ledger.

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If you have any query regarding “Key components of GSTR 1, GSTR 2 and GSTR 3” then please tell us via below comment box…

8 COMMENTS

  1. Please clarify the following points:
    1. How the Input Credit will be available on Carry Forward Stock (Closing stock as on 31.03.16)
    on which ED & Vat has been paid.
    2. If a party opts for Composition Tax (turnover within 50 lac), than how the Input Credit will be
    matched as he will file return in GSTR4
    3. How Input credit will be matched if the party is not registered ( below 20 lacs)

    • 1. There has been mention of a mechanism to claim input tax credit on Carry Froward Stock but the details not super clear yet – looking for that from GST council/GSTN.
      2. Composition dealers cannot claim input tax credit. They also don’t pay tax, so when one buys from a composition supplier, there is not ITC to claim. It is the buyer’s responsibility to track who theri composition suppliers are.
      3. If one buys from an unregistered party, one doesn’t (or at lease shouldn’t) pay GST on those transactions, hence no ITC is there to be claimed.

      For points 2 and 3, the essential detail is here: a buyer cannot claim as input tax credit any invoice not transmitted to the GSTN by the supplier.

      This will factor into point one as well – the GSTN will have to provide some mechanism for buyers to let the GSTN know what inventory remains in hand against which they wish to claim ITC – that means those purchase invoices or the sales invoices from those suppliers will in some way have to be sent to GSTN. How that happens is not yet clear. If any one has the detail, please reply here.

    • Dear Sir,

      I was going through your Article on GST & I have a question in my mind & would like
      to get the clarification on this issue.

      In West Bengal at present the medicines are sold under MRP Tax, which means the
      VAT is collected on MRP on first sale & hence VAT registration is not required .
      No Input Credit is taken at present & No Output tax is collected.

      If I am having a closing stock worth 1 crore on 31.03.17 on which Tax I have already paid tax On MRP, will I get any Input Credit for the closing stock on 01.04.2017.

      Whether I can sell the this stock after 01.04.17 without charging any tax as tax has already been paid on this stock.

      Yours faithfully

      R.G.TOSHNIWAL

  2. i want to know that if i have a manufacturing unit then what would i used B2B OR B2C (in any amount of bill)

  3. I AM CIVIL CONTRACTOR PROVIDING SERVICE IN WORK CONTRACT. AS PER RETURN GSTR-1 IS FOR SELL AND GSTR-2 IS FOR PURCHASE,WHEN AND HOW WILL AVAIL US ITC PLEASE EXPLAIN.

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