RETURNS TIME PERIOD OF FILING RETURN UNDER GST

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1 RETURNS Introduction: Every registered taxable person shall himself assess the tax payable and furnished return for each tax period under Self-Assessment as per Section 57 of the Revised Model GST Act. A return is statement of specified particulars relating to business activity undertaken by the taxable person during the period. TIME PERIOD OF FILING RETURN UNDER GST Different categories of taxpayers will be required to file GST return as given in the following table:- S.No Return or Ledger Nature of Return or Ledger To be filed by 1 GSTR 1 Outward supplies made by taxpayer (other than compounding taxpayer and ISD) 2 GSTR 1A Outward supplies as added, corrected or deleted by the recipient 3 GSTR 2 Inward supplies received by a taxpayer (other than a compounding taxpayer and ISD) 4 GSTR 2A Inward supplies made available to the recipient on the basis of FORM GSTR-1 furnished by the supplier 5 GSTR 3 Monthly return (other than compounding taxpayer and IST) 6 GSTR 3A Notice to a registered taxable person who fails to furnish return under section 27 and section th of the next month Auto Drafted Form (17 th of the next month) 15 th of the next month Auto Drafted Form 20 th of the next month Within 15 days of service of notice

2 7 GSTR 4 Quarterly return for Compounding Taxpayer 8 GSTR 4A Inward supplies made available to the recipient registered under composition scheme on the basis of FORM GSTR-1 furnished by the supplier 9 GSTR 5 Periodic return by Non Resident Foreign Taxpayer 18 th of the month next to quarter Auto Drafted Form Within 7days after Last day of registration 13 th of the next month 10 GSTR 6 Return for Input Service Distributor (ISD) 11 GSTR 6A Details of inward supplies made Auto Drafted Form available to the ISD recipient on the basis of FORM GSTR-1 furnished by the supplier 12 GSTR 7 Return for Tax Deducted at Source 10 th of the next month 13 GSTR 7A TDS Certificate 14 GSTR 8 Supplies effected through e- 10 th of the next month commerce operator and the amount of tax collected as required under sub-section (1) of section 43C 15 GSTR 9 Annual return 31 st Dec of next F.Y 16 GSTR 9A Annual return by Compounding 31st Dec of next F.Y taxable persons registered under section 9 17 GSTR 9B Reconciliation Statement 31st Dec of next F.Y 18 GSTR 10 Final Return Within 3 month from date of cancellation or date of order whichever is earlier 19 GSTR 11 Inward supplies to be furnished by a person having UIN 28 th of the next month 20 ITC Ledger of taxpayer Continuous 21 Cash Ledger of taxpayer Continuous 22 Tax ledger of taxpayer Continuous Furnishing of details of Outward Supplies? (Section 32 of Revised Model GST Act) Every taxable person has to furnish e-return, for prescribed tax period tax period to present "Details of outward supplies" which is issued in the said tax period.

3 Those are - Zero-rated supplies; - Inter-state supplies; - Return of goods received in relation to/ in pursuance of an inward supply; - Exports; - Debit notes; - Credit notes; and - Supplementary invoices. This e-return shall be filed within 10 th days from the end of the tax period. The Board / Commissioner may notify any extension in time limit for filing such returns for valid and sufficient reason. Extension of time limit by the Board/Commissioner of State Goods and Services This Return is not applicable to Input Service Distributor, Deductor of Tax (Section 46) and Taxable persons opting for Composition Levy (Section 9). Revision/ Rectification of original return: In case any outward supplies are not matched with the respective recipients' return of inward supplies, rectification which is allowed. Such rectification, however, is not permitted after filing of annual return or the return for the month of September of the following year whichever is earlier. Components of Valid GST Return for Outward Supplies made by the Taxpayer: (GSTR -1) 1. Basic Details of Taxpayer. (Auto Populated based on GSTIN) 2. Period of Return 3. Gross Turnover in Previous FY. 4. Final invoice- Level Supply information pertaining to tax period: - For all B2B Supplies (Invoice level details) - For all inter-state B2C Suppliesinvoice level detailswhere value of invoice is more than Rs 2,50,000/-. - For invoices below this value of Rs.2,50,000/-, State wise summary of supply statement will be filed covering those invoices where there is address on record. - For invoices below this value of Rs.2,50,000/- upto Rs.50,000/-, State wise summary of supply statement will be filed covering those invoices where there is address on record and less than Rs.50,000/- details in case of intra state supply not required. - Details about HSN Code and Accounting Code: a) HSN and accounting code (4 Digit) is Mandatory for all taxpayer with turnover above Rs 5 Core. b) Taxpayer with turnover Rs 1.5 Core and Rs 5 Cores, Optional to specify 2 digit HSN code.

4 c) Any taxpayer may specify HSN code at 6 digits or 8 digits if so desires irrespective of Turnover. d) Prescribed Accounting Code is Mandatory e) HSN code (8 digits) and accounting code is mandatory for Exports and Import. - The above parameter for HSN and Accounting Code will apply for submitting the information in return for B2B supplies and inter-state B2C Supplies(Taxable value per invoice is more than Rs.2.5 Lakhs). Taxpayer who have turnover below the limit of Rs.1.5 Core will have to mention the Description of goods/service. - For all intra state B2C Supplies, Consolidated sales details need to be uploaded. However, a dealer may at his option furnish invoice wise information in respect of exempted and nil rated supplies. - The supply information will also have details regarding place of supply in order to identify the destination state. - Details relating to supplies attracting Reverse charge will also be submitted. 5. Details relating to advance received against a future supply will be submitted 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. Details relating to supplies exported (including deemed exports) both on payment of IGST as well as without payment of IGST would be submitted. 8. There will be a separate table for submitting the details of revisions in relation to the outward supply invoices pertaining to previous tax periods. This will include the details of Credit/Debit Note issued by the suppliers and the differential value impact and the concomitant tax payable or refund/tax credit sought. 9. There will be a separate table for effecting modifications/correcting errors in the returns submitted earlier. The time period for correcting these errors will be provided in the GST Law. 10. There will be a separate table for submitting details in relation to NIL rated, Exempted and Non-GST outward supplies to (both inter-state and intra-state) to registered taxpayers and consumers. The return (GSTR-1) would be filed by the 10th of the succeeding month. Late filing would be permitted on payment of late fees only.

5 Furnishing of details of Inward Supplies? (Section 33 of Revised Model GST Act) The return for outward supplies filed by the supplier of goods / services (under section 25) the receiver is required to match his receipts with the details of supplies filed by supplier. The receiver is required to Verify, Validate, and Modify or even Delete the details furnished by the suppliers. Now, these details as accepted by the recipient will be filed in the return for inward supplies by the recipient. Details of inward supplies include debit notes, credit notes and inward supplies liable for tax payment on reverse charge basis. This return has to be filed by the recipient of (goods/services) supplies within 15 th days from the end of the relevant tax period. The Board / Commissioner may notify any extension in time limit for filing such returns for valid and sufficient reason. In case the return for outward supplies requires rectification, it is allowed. Such rectification, however, is not permitted after filing of annual return or the return for the month of September of the following year, whichever is earlier. Components of valid GST Return for Inward Supplies received by the Taxpayer (GSTR-2): This return form would capture the following information: 1. Basic details of the Taxpayer (Name along with GSTIN) 2. Period to which the Return pertains 3. Final invoice-level inward supply information pertaining to the tax period for goods and services separately 4. The information submitted in GSTR-1 by the Counterparty Supplier of the taxpayer will be auto-populated in the concerned tables of GSTR-2. The same may be modified i.e. added or deleted by the Taxpayer while filing the GSTR-2. The recipient would be permitted to add invoices (not uploaded by the counterparty supplier) if he is in possession of invoices and has received the goods or services. 5. There will be separate tables for submitting details relating to import of Goods/Capital Goods from outside India and for the services received from outside India. 6. The details of inward supplies would be auto-populated in the ITC ledger of the taxpayer on submission of his return. The taxpayer will select the invoice detailsregarding the in-eligibility and eligibility of ITC in relation to these inward supplies and the quantum available in a particular tax period. 7. There will be a separate table for submitting details in relation to ITC received on an invoice on which partial credit has been availed earlier.

6 8. In case inputs covered under one invoice are received in more than one instance/lot, the ITC will be given in the return period in which the last purchase is recorded in the books of accounts. 9. There will be a separate table for submitting the details of revisions in relation to inward supply invoices pertaining to previous tax periods (including post purchase discounts received). This will include the details of Credit/Debit Note issued by the suppliers and the differential value impact and concomitant tax payable or refund/tax credit sought. 10. There will be a separate table for effecting modifications/correcting errors in the returns submitted earlier. The time period for correcting these errors will be provided in the GST Law. 11. There will be a separate table for submitting details in relation to NIL rated, Exempted and Non GST inward Supplies ( Both Inter-State and Intra-State) including those received from compounding taxpayers and unregistered dealers. 12. There will be a separate table for the ISD credit received by the taxpayer. 13. There would be a separate table for TDS Credit received by the taxpayer. Auto-Population in this return from GSTR-1 will be done on or after 11th of the succeeding month. Addition or Deletion of the invoice by the taxpayer will be permitted between 12th and 15th of the succeeding month. Adjustments would be permitted on 16th and 17th of the succeeding month. The return (GSTR-2) would be filed by 17th of the succeeding month. Late filing would be permitted on payment of late fees only. Monthly Return under GST? (Section 34 of Revised Model GST Act) Every registered taxable person, for every calendar month furnish, in prescribed form and manner, an electronic return: (a) of inward and outward supplies of goods and/or services, (b) Input tax credit availed, (b) tax payable, (c) tax paid and (d) other particulars as may be prescribed (e) within 20 days after the end of such month:

7 a. The return (GSTR-3) would be entirely auto-populated through GSTR-1 [of counterparty suppliers], own GSTR-2, ISD return (GSTR-6) [of Input Service Distributor], TDS return (GSTR-7) [of counterparty dedicator], own ITC Ledger, own cash ledger, own Tax Liability ledger. However, the tax-payer may fill the missing details to begin with. b. The return will include basic details and period to which return pertains. c. Turnover details including Gross turnover, Export Turnover, Exempted Domestic Turnover, Nil Rated Domestic Turnover, Non GST Turnover, and Net Taxable turnover. d. Final aggregate level outward and inward supply information. These details will be auto populated from GSTTR-1 and GSTR-2. e. Tax liability under CGST, SGST, IGST and Additional Tax. f. Information about ITC ledger, Cash ledger and Liability ledger (these are running electronic ledgers maintained on the dashboard of taxpayer by GSTN). Details of ITC utilized against tax liability of CGST, SGST, IGST and Additional Tax. Details of the 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. g. Details of other payments- Interest/Penalties/Fee/others, etc. GSTR-4 Quarterly Return for Compounding Dealers:- a) Compounding Dealer is required to file return on quarterly basis. Section 8 of the Model CGST and SGST Law provides for the Compounding Dealers and it states that a registered taxable person whose aggregate turnover in a financial year does not exceed fifty Lakh Rupees may pay tax at such rate as may be prescribed, but not less than one percent of the turnover during the year and the person opting for the Scheme will be called as compounding dealer under the provision of law. b) The taxpayer is only required to indicate the total value of supply made during the period of return and the tax paid at the compounding rate(which is maximum 1% in proposed GST model law) along with the details of payment of tax in the return. c) The compounding taxpayer will also need to declare invoice-level purchase information (auto-drafted from supply invoice information uploaded by counterpayer taxpayers) for the purchases from normal taxpayers. The Compounding taxpayer will be required to submit details of the goods and services imported from outside India.

8 GSTR-5 Returns for Non-Resident Foreign Taxpayer Such return applicable in case of a non-resident foreign taxpayer would be required to file GSTR-5 for the period for which they obtained registration within a period of seven days after the date of expiry of registration. In case registration period is for more than one month, monthly return(s) would be filed and thereafter return for remaining period would be filed within a period of seven days as stated earlier. Section 2(69) of the Model CGST and SGST Law defines the term Non Resident Taxable Person as: non-resident taxable person means a taxable person who occasionally undertakes transactions involving supply of goods and/or services whether as principal or agent or in any other capacity but who has no fixed place of business in India. GSTR-6 ISD Return a. This would include basic details of tax payer and period to which return pertain. The return relates to the Input service distributor. Section 2(56) of the Model CGST and SGST Law defines the term Input Service Distributor as: Input Service Distributor means an office of the supplier of goods and/or services which receives tax invoices issued under section 23 towards receipt of input services and issues tax invoice or such other document as prescribed for the purposes of distributing the credit of CGST (SGST in state Acts) and/or IGST paid on the said services to a supplier of taxable goods and/or services having same PAN as that of the office referred to above. Explanation-For the purposes of distributing the credit of CGST (SGST in State Acts) and/or IGST, Input Service Distributor shall be deemed to be a supplier of services. b. Invoices level supply information will be auto populated by GSTR-1 and the same can be modified by the taxpayer while filling the ISD return. c. Details of the invoices along with the GSTN of the receiver of the credit i.e. to whom ISD is distributing the credit. d. Separate ISD ledger that will provide Opening balance of ITC, credit for ITC services received, debit for ITC reversal and ITC distributed and closing balance.

9 GSTR 7 TDS Return The return is to be filled by the persons allowed to deduct tax under Section 37 of the Model CGST and SGST Law. The return will include: a. Basic details and period to which return pertains. b. Details of GSTIN of the Supplier along with the invoices against which the tax has been deducted. This will also contain the details of tax deducted against each major head i.e. CGST, SGST and IGST. c. Details of other payment Interest/ Penalties/ Fee/ Other, etc. GSTR 8 TCS Return by e-commerce operator a. Supplies effected through e-commerce operator and the amount of tax collected as required under sub-section (1) of section 43C b. This return is to be filled by every e-commerce operator required to collect tax at source under section 43C,electronically through the Common Portal,containing details of supplies effected through such operator and the amount of taxcollected as required under sub-section (1) of section 43C. c. The details furnished by the operator under sub-rule (1) shall be made availableelectronically to each of the suppliers in Part D of FORM GSTR-2A on the Common Portal after the due date of filing of FORM GSTR-8. GSTR 9 Annual Return a. All the Normal taxpayers would be required to submit Annual Return. This requirement to file annual return is intended to provide 360 degree view about the activities of the taxpayer. This statement would provide a reconciliation of the returns with the audited financial statements of the taxpayer. b. This return is a detailed return and captures the details of all the income and expenditure of the taxpayer and regroups them in accordance with the monthly returns filed by the taxpayer. This return also provides for the reconciliation of the monthly tax payments and will provide the opportunity to make good for any short reporting of activities undertaken supply wise. c. A separate reconciliation statement, duly certified by a Chartered Accountant, will have to be filed by those taxpayers who required to get their accounts audited under section 44AB of Income tax Act 1961.

10 GSTR 9A Annual Return by Compounding Taxable Person All the Composite taxpayers would be required to submit Annual Return. This requirement to file annual return is intended to provide 360 degree view about the activities of the taxpayer. This return is a detailed return and captures the details of all the income and expenditure of the taxpayer and regroups them in accordance with the monthly returns filed by the taxpayer. GSTR 10 Final Return a. Every registered taxable person required to furnish a final return under section 31, shall furnish such return electronically in FORM GSTR-10 b. This return is to be filled Within 3 month from date of cancellation or date of cancellation order whichever is earlier. GSTR 11 Inward supplies to be furnished by a person having UIN a. Every person, who has been issued a Unique Identity Number and claims refundof the taxes paid on his inward supplies, shall furnish the details of such supplies of taxable goods and/or services in FORM GSTR-11 b. Every person, who has been issued a Unique Identity Number for purposes other than refund of the taxes paid, shall furnish the details of inward supplies of taxable goods and/or services as may be required by the proper officer in FORM GSTR- 11. Some important points relating to return filing are as under:- a. Error or Omission in case of outward supply return and inward supply return: Any registered taxable person shall upon discovery of any error or omission therein, rectify such error or omission in the tax period during which such error or omission is noticed and shall pay the tax and interest, if any, in case there is a short payment of tax on account of such error or omission, in the return to be furnished for such tax period but no rectification of error or omission in respect of the details furnished shall be allowed after filing of the monthly return under section 34 for the month of September following the end of the financial year to which such details pertain, or filing of the relevant annual return, whichever is earlier. b. Error or omission in any other returns: Any registered taxable person shall upon discovery of any error or omission therein, rectify such error or omission in the tax period during which such error or omission is noticed and shall pay the tax and interest, if any, in case there is a short payment of tax on account of such error or omission, in the return to be furnished for such tax period but no rectification of error

11 or omission in respect of the details furnished shall be allowed after filing of the monthly return under section 34 for the month of September following the end of the financial year to which such details pertain, or filing of the relevant annual return, whichever is earlier. An acknowledgement will be generated at the time of submission of each return. WHERE WILL THE TAXPAYER FILE RETURN A registered Tax Payer shall file GST Return at GST Common Portal either: i. by himself logging on to the GST Common Portal using his own user ID and password; ii. Through his authorized representative using the user Id and password (allotted to the authorized representative by tax authorities), as chosen at the time of registration, logging on to the GST Common Portal. The filing may be done either directly or by using Applications developed by accounting companies/it companies which will interact with GST System using APIS or through Facilitation Center (FC). REVISION OF RETURN There would be no revision of return. NOTICE TO DEFAULTERS Where a taxable person fails to return then a notice shall be issued to him requiring furnishing such return within such time and manner as specified.(form GSTR - 3A) LEVY OF LATE FEES Any registered dealer who fails to furnish return required under the provisions shall be liable to pay a late fees of Rs. 100 for every day during which such failure continues subject to a maximum of Rs in case of other returns and an amount calculated at a quarter percent of his aggregate turnover in case of annual return. --XXX--

12 INPUT TAX CREDIT GST Introduction:- Chapter V of GST Act deals with input tax credit. The chapter is divided into 7 sections: (i) Section 16 : Eligibility and conditions for taking input tax credit (ii) Section 17 : Apportionment of credit and blocked credits (iii) Section 18 : Availability of credit in special circumstances (iv) Section 19 : Recovery of Input Tax Credit and Interest thereon (v) Section 20 : Taking input tax credit on inputs sent for job work. (vi) Section 21 : Manner of distribution of credit by ISD. (vii) Section 22 : Manner of recovery of credit distributed in excess. Input tax credit is the backbone of the GST regime. GST is nothing but a value added tax on goods & service combined. It is these provisions of Input Tax Credit that make GST a value added tax i.e., collection of tax at all points after allowing credit for the inputs. The procedures and restrictions laid down in these provisions are important to make sure that there is seamless flow of credit in the whole scheme of transition without any misuse. Relevant Definitions:- Section 2(98) read along with Section 9 of Model GST Act - Taxable person means a person who carries on any business at anyplace in India/State of _ and who is registered or required to be registered under Schedule III of the Act. Section 2 (55) of Revised Model GST Act - It means credit of Input tax as defined in Section 2 (56). Section 2 (56) of Revised Model GST Act - Input tax in relation to a taxable person, means - the {IGST and CGST}/{IGST and SGST} charged on any supply of goods and/or service to him - which are used, or are intended to be used, - in the course or furtherance of his business - And includes the tax payable under reverse charge. Section 8(3) of Revised Model GST Act -Levies tax on goods and/or services on reverse charge. Therefore, input tax credit is the tax paid by a taxable person under the Act whether on forward charge or reverse charge for the use of such goods and/or services in course or furtherance of his business. Section 2 (43) of Revised Model GST Act - Electronic Credit Ledger - The input tax credit ledger in electronic form maintained at the common portal for each registered taxable person in the manner as may be prescribed in this behalf. Section 2 (19) of Revised Model GST Act - Capital Goods means - any goods,

13 - the value of which is capitalised in the books of accounts - of the person claiming the credit - and which are used or intended to be used - In the course or furtherance of business. Section 2 (52) of Revised Model GST Act - Input: Input means - any goods, - other than capital goods, - used or intended to be used by a supplier - In the course or furtherance of business Section 2 (53) of Revised Model GST Act - Input service: Input service means - any service - used or intended to be used - by a supplier - In the course or furtherance of business Section 16 of Revised Model GST Act - Eligible and conditions for taking ITC:- Registered person to take credit: Every registered taxable person subject to Section 44 (Person liable to pay tax under GST Law), shall be entitled to take credit of admissible input tax. The input tax credit is credited to the electronic credit ledger. Conditions for availing input tax credit: Registered taxable person is not entitled to input tax credit on supply of goods and/or services unless he: (i) is in possession of a - tax invoice, debit note, supplementary invoice or - Such other taxpaying document as may be prescribed. (ii) Has received the goods and/or services. The goods are deemed to be received by the taxable person when - Goods are delivered by supplier to recipient or other person on direction of the taxable person whether an agent or otherwise before or during movement of goods by way of transfer of documents of title of goods or otherwise. (iii) Tax charged for such supply - is actually paid to the credit of the appropriate Government, - either through cash or through utilisation of input tax credit admissible in respect of such supply (iv) He has furnished return as per section 34

14 In case of the goods which are received in lots or instalments, against an invoice the credit could be availed upon receipt of last lot or instalment by registered taxable person. (a) Eligibility of input tax credit on inputs held in stock and contained in semifinished and finished goods held in stock:(sec 17) The credit on inputs held in stock and inputs contained in semi-finished goods and finished goods held in stock are available in the following manner: S.No. Eligible persons Credit entitled As on Restriction/cond itions 1 Person applied for Inputs held in The day registration stock and inputs immediately Cannot avail within30days from the date of contained in semi-finished or preceding the date from which credit of goods and / or services liability to pay tax finished goods he becomes after 1 year register and held in stock liable to pay tax fromtax invoice registered 2 Person applied for registration after 30days from the date of liability to pay tax, registers and registered 3 Person who is notrequired toregister, butobtains voluntary registration 4 Person ceases to pay composition tax (Sec 9 to Sec 8) Nil Inputs held in stock and inputs contained in semi-finished or finished goods held in stock Inputs held in stock and inputs contained in semi-finished or finished goods held in stock NA The day immediately preceding the date of registration The day Immediately preceding the date from which he becomes liable to pay tax under regular scheme date The amount of credit calculated as per GAAP (B)Proportionate credit: The goods and / or services are used by a registered taxable person partly for business and partly for non-business; he is eligible to input tax credit of goods and / or services attributable to the purposes of business.

15 The goods and / or services are used partly for effecting taxable supplies (plus zero-rated supplies) and partly for effecting non-taxable supplies (plus exempt supplies); he is eligible for credit attributable to the taxable supplies including zero-rated supplies. (C) Input Tax Credit and change in constitution of taxable person: The change in constitution of taxable person due to sale merger, demerger, amalgamation, lease or transfer of business with provision for transfer of liabilities, the registered taxable person allowed transferring the input tax credit remaining unutilized in the books of account to such sold, merged, demerged, amalgamated, leased or transferred business. (D) Ineligible credit: (i) motor vehicles, except when they are supplied in the usual course of business or are used for providing taxable services of - Transportation of passengers - Transportation of goods - Imparting training or motor driving skills (ii) Goods and / or services provided in relation to - food and beverages, outdoor catering, cosmetic and plastic surgery - life insurance, health insurance - travel benefits to employees on vacation such as leave or home travel concession - membership of a club, beauty treatment, - health services, - health and fitness centre Such goods and / or services as are used primarily for personal use or consumption of employee (iii) (iv) Goods and/or services acquired by principal in the execution of works contract - when such contract results in construction of immovable property, - Other than Plant and Machinery. Goods acquired by principal, the property in which is not transferred - whether as goods or in some other form - to any other person, - which are used in construction of immovable property, - Other than Plant and Machinery. (v) Goods and/or services on which composition tax has been paid (u/s 8) (vi) Goods and/or services used for private or personal consumption to the extent they are so consumed.

16 Where the registered taxable person has claimed depreciation on the tax component of the cost of capital goods under the provisions of the Income Tax Act, 1961, the input tax credit shall not be allowed on the said tax component. When taxable person switches over from regular scheme to composition scheme: - pay an amount by debiting electronic cash ledger, - equivalent to input tax credit of - inputs held in stock or - inputs contained in semi-finished or finished goods held in stock - On the day immediately preceding the date of such switch over. - Balance of input tax credit lying in the electronic credit ledger, after payment of the above said amount, shall lapse. - The amount payable is to be determined as per general accepted accounting 0principles (GAAP). The above provision is also applicable where goods or services supplied by taxable person are absolutely exempt. Supply of capital goods on which input tax credit is taken: The registered taxable person shall: - pay an amount equal to input tax credit taken on such capital goods - reduced by percentage points as prescribed or - Tax on the transaction value of such capital goods, whichever is higher. Credit in respect of invoice for supply of goods or services for the month of September, after filing returns: A taxable person shall not take input tax credit - in respect of any invoice for supply of goods and/or services, - after the filing of the return for the month of September - following the end of financial year to which such invoice pertains or - Filing of the relevant annual return, whichever is earlier Section 19 of Revised Model GST Law - Recovery of ITC and Interest thereon:- Input tax credit taken wrongly; the same shall be recovered from the registered taxable person in the manner prescribed. Section 20 of Revised Model GST Law - Input Tax Credit - Job Work:- (i) Relevant Definitions: - Job work: Any treatment or process done by a person on goods belonging to aregistered taxable person - Job worker: A person who does any treatment or process on goods of registered taxable person. - Principal: A person on whose behalf an agent carries on the business of supply orreceipt of goods and/or services.

17 (ii) Entitlement of credit on inputs: - The principal can take credit of input tax on inputs sent to job-worker, for job work - subject to such conditions and restrictions as may be prescribed - the inputs, after completion of job-work, are received back by him within 180 days oftheir being sent out - Credit of inputs can be taken even if inputs are sent directly to job-worker s placewithout bringing to principal s place of business. - If input sent directly to job worker, the period of 180 days is counted from the date whenjob worker receives input. - If the inputs are not received back within 180 days, the principal shall pay an amountequal to input tax credit taken on the said inputs. - If the inputs are received back by the principal, he may reclaim the input tax credit andinterest paid earlier. (iii) Entitlement to credit on capital goods: The principal can take credit of input tax on capital goods sent to job-worker - The said capital goods, after completion of job-work, are received back by him within 2years of their being sent out - The principal can take credit of capital goods even if such capital goods are sentdirectly to job-worker s place without bringing to principal s place of business. - If the capital goods are not received back within 2 years, the principal shall pay an amount equal to input tax credit taken on the said capital goods. - If the capital goods are received back by the principal, he may reclaim the input tax credit and interest paid earlier. Section 21 of Revised Model GST Law Manner of distribution of credit by Input Service Distributor:- Input Service Distributor (ISD) is an office of the supplier of goods and/or services where document (like invoice) of services attributable to other locations are received (since they might be registered separately). Since the services relate to other locations the corresponding credit should be transferred to such locations (having separate registrations) as the output services are being provided there. It is deemed that an ISD is a supplier of services for the purposes of distributing the credit. Distribution of credit where ISD and recipient are located in different States undercgst Act: ISD can distribute as prescribed, credit of CGST or IGST as the case maybe asigst by issuing prescribed document mentioning the amount of credit distributed to recipient of credit located in different States. Distribution of credit where ISD and recipient are located in different States under SGST Act: ISD could distribute as prescribed credit of SGST as IGST by issuing aprescribed document containing the amount of credit distributed.

18 Distribution of credit where ISD and recipient are located within the State under CGST Act: In case of different registrations within the same State by an entity, it mayhave to distribute credit to such locations also as in the case of locations with differentregistrations outside the State. In order to enable the same, it is provided that ISD candistribute in the prescribed manner, credit of CGST and IGST as CGST by issuingprescribed document mentioning the amount of credit distributed to recipient being abusiness vertical. Distribution of credit where ISD and recipient are located within the StateunderSGST Act: Similar to the premises of CGST as indicated supra under CGST Act, evenunder the SGST Act, it is provided that an ISD can distribute in the prescribed manner, credit of SGST and IGST as SGST by issuing prescribed document mentioning the amount of credit distributed to recipient being a business vertical. Section 22 of Revised Model GST Law Manner of recovery of credit distributed in excess:- Excess distribution of credit to one or more recipients of credit, the excess credit so distributed shall be recovered from such recipients along with interest, and the provisions of section 66 or 67, as the case may be, shall apply mutandis mutandis for effecting such recovery. --XXX--