Section 35- First Return

GST Update-10.02.2017-RETURNS PART-IV

GST DAILY DOSE OF UPDATION

Returns

Section 35: First Return

The old proviso read as follows:

(1) Every registered taxable person paying tax under the provisions of section 7 shall furnish the first return containing the details of:

(a) outward supplies under section 25 from the date on which he became liable to registration till the end of the month in which the registration has been granted;

(b) inward supplies under section 26 from the effective date of registration till the end of the month in which the registration has been granted:

Provided that a registered taxable person paying tax under the provisions of section 8 shall furnish the first return for the period starting from the date on which he becomes a registered taxable person till the end of the quarter in which the registration has been Granted.

(2) Provisions of section 25, 26 and 27, other than the provision pertaining to tax period, shall apply mutatis mutandis to the said person furnishing return under subsection (1).

The new provision in the revised draft is as follows:

Every registered taxable person who has made outward supplies in the period between the date on which he became liable to registration till the date on which registration has been granted shall declare the same in the first return filed by him after grant of registration.

It can be noted that the new provision has been simplified. First return of taxable person should be filed covering all outward supplies from the period tax liability arises and inward supplies from the date of registration. Similarly person opting for composition scheme after registration will have to file first return in the quarter in which he has taken the registration

Section 36: Claim of input tax credit and provisional acceptance thereof

The old provision reads as follows:

Every taxable person shall, subject to such conditions and restrictions as may be prescribed in this behalf, be entitled to take credit of input tax, as self-assessed, in his return and such amount shall be credited, on a provisional basis, to his electronic credit ledger to be maintained in the manner as may be prescribed:

Provided that a taxable person who has not furnished a valid return under section 27 of the Act shall not be allowed to utilize such credit till he discharges his self-assessed tax liability.

The new provision reads follows:

(1) Every registered taxable person shall, subject to such conditions and restrictions as may be prescribed in this behalf, be entitled to take credit of input tax, as self assessed in his return and such amount shall be credited, on a provisional basis, to his electronic credit ledger to be maintained in the manner as may be prescribed.

(2) The credit referred to in sub-section (1) shall be utilized only for payment of self assessed output tax liability as per the return referred to in sub-section (1).

The change that has been bought into this section is that the word valid return has been removed from this rule. Proviso has been deleted thereby even if payment of taxes has not been made still every person who have furnished the return can utilized the credit.

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GST Update-10.02.2017-RETURNS PART-IV

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