GST Returns - Types of Forms and Due Dates

'Change is only Constant' because Change in one thing that ends up impacting the other. Goods and Services Tax, popularly known as GST, is a reform for our economy's indirect tax plan. On 8th August 2016, GST Bill (Which was long pending) was passed in Lok Sabha. It was possible after a very long journey flooded with challenges, Confrontations. As last, the GST Bill has entered the phase of implementation, which will come into effect from July 1, 2017. GST would make changes in the tax structure between the Center and the State.

GST is like Value Added Tax (VAT) that will eradicate the cascade effect/double taxation from the price of goods and services down the value chain. It would surely affect the incidence, structure and calculation of the indirect taxes, which will lead to a comprehensive refurbishment of the current tax system in India.

Here are the list of GST Returns :

Sl. No.	Return Form	Particulars
1	GSTR-1	Details of Outward Supplies of Taxable Goods or Services or Both effected
2	GSTR-2	Details of Inward Supplies of Taxable Goods or Services or Both claiming Input Tax Credit
3	GSTR-3	Monthly Return on the Basis of Finalization of Details of Outward Supplies and Inward Supplies along with the payment of amount of Tax
4	GSTR-4	Quarterly Return for Compounding Taxable Persons
5	GSTR-5	Return for Non-Resident Foreign Taxable Persons
6	GSTR-6	Input Service Distributor Return
7	GSTR-7	Return for Authorities Deducting Tax At Source
8	GSTR-8	Details of Supplies effected through e-Commerce Operator and the amount of tax collected as required under sub-Section (52)
9	GSTR-9	Annual Return
10	GSTR-9A	Simplified Annual Return by Compounding Taxable persons registered under Section 10

Due Dates of GST Return:

Sl. No.	Return Form	Due Dates
1	GSTR-1	10th of Next Month
2	GSTR-2	After the 10th But before 15th of Next Month
3	GSTR-3	20th of Next Month
4	GSTR-4	18th from end of the Quarter
5	GSTR-5	20th from end of the month or within 7 days after the last day of validity of registration whichever is earlier.
6	GSTR-6	13th of Next Month
7	GSTR-7	10th of Next Month
8	GSTR-8	10th of Next Month
9	GSTR-9	31st December of Next Financial Year
10	GSTR-9A	31st December of Next Financial Year

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Effect of GST on Insurance Premium

With  a hike in GST rates to 18% from the current 15%, the insurance sector are poised to get more expensive after July 1, 2017. The immediate effect will be the increase in premiums especially for families that own Life Insurance, Health Insurance and Car Insurance.

The existing and new insurance buyers would have to bear the updated prices. The Policy holders stand a chance to be benefited if the insurance providers get a green signal on the input tax credit benefit. Unfortunately, as of yet, it is still unclear since he Center/State GST  structure is very complex. It might create confusions and conformity for the insurance buyers and increase the administrative expenses for the insurance providers. If the insurance buyers remain confused about the GST updates, then irrespective of the increase or decrease in the prices the financial strength will adversely affected. The general insurance sector will be equally impacted. The overall outgo for health, car, and various non-life plans would be increased by 3 percent.

The Insurance policies premium represents two components - Savings and Risk Coverage. The service tax is levied specified only on the premium component. 

What GST (Goods And Service Tax) Rules says, the value of service on which the GST is levied regarding the life insurance sector shall be accordingly;

(i) The gross premium would be reduced by the amount allocated for or savings or investment on policyholders behalf.

(ii) When it comes to the single premium annual policies, ten percent of the single premium would be charged from the policy holder.

(iii) In other cases, 25 percent of the premium for the first year and 12.5% of the premium in the upcoming years will be charged.

(iv) In case the total premium paid by the policy holder is towards the life insurance's risk cover, oly the 18% GST would be levied on the total premium.

There are three types of life insurance;

* Term Insurance Plans - Basic life insurance policy

** ULIP Plans - Insurance and investment under a single integrated plan

*** Endowments Plans (including money back plan) - Life insurance policies that pay a lump sum on maturity/death or a fixed sum every month (like pension)

List of new revised rates on all insurance plans are as follows :

GST RATES : NEW RATES UNDER GST FOR INSURANCE POLICIES
INSURANCE PRODUCTS	BEFORE GST	AFTER GST	APPLICABILITY
Endowment Plans – 1st Year	3.75%	4.50%	On 25% of Premium
Endowment Plans – Renewal Premium	1.88%	2.25%	On 12.5% of Premium
Health Insurance Premium	15%	18%	On Entire Premium
Rider Premium	15%	18%	On Entire Premium
Annuity: Single Premium	1.50%	1.80%	On 10% of Premium
Term Insurance Premium	15%	18%	On Entire Premium
ULIP (On Charges)	15%	18%	On Premium minus Investment Amount
Vehicle Insurance	15%	18%	On Entire Premium
Travel Insurance	15%	18%	On Entire Premium

Life and health insurers will not have input tax credit as it is not available for life and health insurances ( as they are for personal purposes). Even corporate policyholders with group life and health insurance for their employees will not enjoy any input tax credit.

Life insurance provided under Government Schemes are exempted from GST;

1) Janashree Bima Yojna (JBY)

2) Aam Aadmi Bima Yojna (AABY)

3) Life Micro-Insurance product (as approved by the IRDA having maximum amount of cover of fifty thousand rupees)

4) Varishtha Pension Bima Yojna (VPBY)

5) Pradhan Mantri Jeevan Jyoti Bima Yojna (PMJJBY)

6) Pradhan Mantri Jan Dhan Yojna

7) Pradhan Mantri Vaya Vandan Yojna 

8) Any other insurance schemes of the State Government as may be notified by Government of India on the the recommendation of GST Centre.

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