GST: Returns, Payment of Tax, Refunds and Assessment
Returns and payment
- GSTR-1 is due on the 11th (13th for quarterly filers); GSTR-3B on the 20th; CMP-08 quarterly for composition dealers.
- GSTR-9 is annual for turnover above Rs.2 crore and GSTR-9C for turnover above Rs.5 crore.
- Payment is through the electronic credit ledger and cash ledger; Rule 88A requires IGST credit to be used first, then CGST and SGST.
- Interest u/s 50(1) is 18% on delayed payment, and 50(3) applies 18% on wrongly availed and utilised ITC.
Refunds
Section 54 allows a refund application within two years of the relevant date. For zero-rated supplies, 90% is sanctioned provisionally within seven days and the final order follows within 60 days. Refund of unutilised ITC under 54(3) is available for zero-rated supplies and inverted duty structure, not where goods are exported with payment of IGST.
Assessment
Section 59 is self-assessment, 60 provisional, 61 scrutiny, 62 best judgment for non-filers, 63 for under-assessed supplies and 64 summary assessment.
Worked example
An exporter files GSTR-1 and applies for a refund of Rs.10 lakh of ITC on 20 August. The proper officer must sanction 90%, that is Rs.9 lakh, provisionally within seven days of acknowledgement, and pass the final order within 60 days.
Traps
- Claiming a refund of unutilised ITC where the export was made with payment of IGST.
- Counting the two-year limit from the date of the application instead of the relevant date.
- Using CGST credit before IGST credit, contrary to Rule 88A.
- Overlooking interest under 50(3) on wrongly availed and utilised ITC.