Aug 268 min read

Understanding GSTR 11: Rules, Eligibility, Return Filing, and More

Updated: Aug 29

If the GST officer thinks the taxpayer owes any taxes under the GST Act, the taxpayer will get a written notification through the appropriate channels called a demand order. This formal notice is sent to the taxpayer by the GST officer if there is an outstanding tax liability. Within three months of receiving the notice, the taxpayer—whether or not they are registered under GST—may file an appeal against such an order. The process for filing an appeal against a demand order and the processes involved in responding to the demand order will be discussed in this article.

What is GSTR 11?

Every registered person or organisation that receives a Unique Identification Number (UIN) solely in the months when they make purchases for their personal use and receive a tax credit or refund is required to complete the Goods and Services Tax Return 11.

Eligibility for GSTR 11: Who Can Get a UIN

A special designation known as the Unique Identity Number is intended for foreign embassies and diplomatic missions that are exempt from taxes while operating within Indian territory. The following entities are eligible to apply for a UIN:

An organisation within the United Nations that is specialised
A multinational financial institution and organisation designated as a consulate or embassy of a foreign nation pursuant to the United Nations (Privileges and Immunities) Act, 1947
Any other individual or group of individuals who the Commissioner notifies
The aforementioned entities may apply for a UIN by utilising Form GST REG-13.

The aforementioned entities may apply for a UIN by utilising Form GST REG-13. The primary goal of providing UINs is to reimburse the bodies or individuals who possess them for any taxes collected from them. They must, however, file a GSTR 11 to receive their refund of paid GST.

Rules and Deadlines for Filing GSTR 11

You should have a UIN-holding embassy or other foreign diplomatic organisation.
You are not required to file tax returns for the bulk of the year, but you are required to file GSTR 11 in the months when you have bought of goods or services for personal use.
The GSTR 11 for a particular month can be filed upon the completion of that month.
The last day for filing this return is before the 28th of the next month. (For instance, if you are filing the GSTR 11 for March 2018, you need to file it before the 28th of April 2018.)

GSTR-11 Format

Completing GSTR 11 is a lot easier than filling out other GST forms. The GSTR 11 is divided into several components. These sections are as follows:

UIN: The UIN that has been assigned to the person or organisation must be entered in this section.
Name of Person/Organization Holding UIN: When filing GSTR 11, the name of the person or organisation holding UIN will automatically show after UIN has been submitted for the above header.
Details regarding Inward Supplies Acquired: The applicant needs to fill out this part with the GSTIN numbers of their suppliers.
Supplier Information: When the GSTIN is filed, supplier data from the filed GSTR 1 return form will instantly display on the form. The holder of the UIN is not permitted to change or add information that is automatically filled in here.
Amount of Refund Due: The amount due for the GST payment from the prior month will be calculated automatically here. For the refund to be credited, the bank account information you submit here must be accurate.
Authorisation and Signature: After completing all required fields, the UIN holder must digitally sign the GSTR 11 form. They can use their digital signature certificate (DSC) or their Aadhaar-based signature verification to achieve this. The UIN holder fills out the form and digitally signs it to confirm return submission.

Steps for Filing GSTR 11

Step 1: Visit the GST portal & enter your login information.

Step 2: Select Returns & then Returns Dashboard from the Service tab on the main page. File Returns page will appear. Here, you must choose from the drop-down list the Financial Year and Return Filing Period (Month) for which you wish to file the return.

Step 3: If you want to file your returns by entering information through the GST portal, click Search & then, in the GSTR 11 box, click Prepare Online.

Step 4: The GSTR 11 Quarterly Returns page will be displayed to you. Select and input information pertaining to received invoices, received credit and debit notes, and received invoice details by clicking on corresponding tiles.

Step 5: Click Details of Invoices Received and provide details regarding taxable inward supplies you have received from taxpayers who have registered.

Step 6: After choosing Details of Invoices Received, a summary page will show up. Click the Add Details button.

Step 7: The Add Invoice page will now appear. You can only input the GSTINs of regular taxpayers or non-resident taxpayers in the Supplier GSTIN field.

Step 8: For interstate transactions—defined as those in which the supplier's point of sale is situated in a different state than the point of sale for goods and services—the UIN holder is required to furnish data on the taxable value of the goods or services and the cess amount in the relevant fields. To store the information you supplied in the invoice, click store.

Step 9: Based on the values entered in the tax rates and taxable values, numbers in the tax fields are automatically calculated. The cess field, which the UIN holder must fill out, is exempt from this.

Step 10: You will be sent to the previous page after receiving notification that your request has been approved. Under Actions, you can edit or delete any more invoices as needed.

Step 11: Click Back to return to the GSTR 11 page. After being forwarded to the GSTR 11 home page, details about the credit or debit notes that were received, the number of notes, the total note value, the tax amount, and the taxable value will all be shown. Total taxable value and tax amount are represented by the net value of the credit and debit notes.

Step 12: You can now review the GSTR 11 form before submitting it. You can then file it with DSC or EVC after that.

Rules and Guidelines Applicable to GSTR 11

The following are a few of the GSTR 11 regulations and guidelines that have recently been updated:

Rule 21: If the outward supplies recorded in GSTR-1 are greater than those declared in GSTR-3B for the same tax period, the GSTIN may be cancelled.

Rule 21A(2A): The taxpayer's GSTIN may be suspended if there are significant discrepancies between GSTR-3B and 1 or GSTR-3B and 2B.

Rule 59(5): This rule states that the following situations exclude filing a GSTR-1 for the current tax period:

If the taxpayer (in the case of monthly GSTR-1 filers) was unable to file GSTR-3B for the preceding two months
In the event that the taxpayer (or quarterly GSTR-1 filers) was unable to file GSTR-3B for the previous tax period

Rule 138E: A cancelled GSTIN or a suspended GST registration prevents the generation of an e-way bill.

Penalties for Late Filing of GSTR 11

Heavy fines and penalties apply to late GSTR 11 filings. The outstanding amount of taxes owed by the taxpayer will be subject to an annual interest rate of 11%. The daily late fee is Rs. 200, of which ₹ 100 is the combined value of SGST and CGST.

Conclusion

Maintaining tax filing compliance requires completing GST returns. The Goods and Services Tax system requires precise reporting of Input Tax Credits. According to government tax requirements, taxpayers must submit their declarations via the GST system. To comply with the criteria of the GST compliance form, accurate tax invoice reporting and compliance paperwork are essential.

FAQ

Q1. What is the purpose of GSTR 11?

Every registered person who has received a Unique Identity Number (UIN) must file Form GSTR 11 to receive tax credits or refunds under the GST.

Q2. When is GSTR 11 due?

The deadline for filing GSTR 11 is the 28th of the month after the month in which UIN holders receive inbound supplies. For example, to receive a refund of the GST he paid on food, lodging, and other expenses during his August 2017 visit to India, the US embassy must file a return in GSTR 11 by September 28, 2017.

Q3. What is the frequency of GSTR 11?

The GSTR 11 form must be filed every three months. For the time being, nevertheless, when the UIN holder is not receiving any inbound supplies, filing the paperwork is not required. However, Form GSTR 11 filing for the relevant quarter is required prior to claiming a refund in Form GST RFD-10.

Q4. What is UIN in GST?

A Unique Identity Number is known as a UIN. Rather than the standard GSTIN, it is a special registration number that is assigned to a limited number of individuals.

Q5. Who can get a UIN under GST?

Under the Goods and Services Tax (GST) framework, diplomatic missions, consulates, United Nations (UN) agencies, and other designated international organisations are among the entities that can apply for a Unique Identification Number (UIN).

Q6. What are the benefits of filing GSTR 11?

The following are some of the advantages of submitting a GSTR 11:

It features a simple, uncomplicated form with just four headings. All you need to do is meticulously mention each detail.
UIN holders can access the status and refund amount that Table 3 computes automatically.
The majority of the data you enter there is automatically filled in.
Any supply you provide to a UIN holder is considered a business-to-business supply, and their invoices need to reflect this. Consequently, it records information.

Q7. Who needs to file GSTR 11 and why is it important?

GSTR 11 must be filed by taxpayers with a Unique Identification Number (UIN) to claim refunds on inward supplies. Filing this return is crucial for organizations like embassies, UN bodies, and other notified entities to get GST refunds.

Q8. What is the deadline for filing GSTR 11?

GSTR 11 must be filed by the 28th of the month following the month in which supplies were received. Timely filing ensures smooth processing of refund claims.

Q9. What information is required to file GSTR 11?

GSTR 11 requires details of inward supplies, including GSTIN of the supplier, invoice number, and tax amounts. It’s crucial to have accurate data to avoid discrepancies.

Q10. Can GSTR 11 be revised after submission?

No, once GSTR 11 is filed, it cannot be revised. Any errors must be corrected in subsequent filings or via communication with the GST department.

Q11. How does GSTR 11 differ from other GST returns?

Unlike regular GST returns, GSTR 11 is specifically for entities with UINs, who are not liable for GST but need to claim refunds on their inward supplies.

Q12. What happens if GSTR 11 is not filed on time?

Delayed filing of GSTR 11 may result in delays in processing refund claims. It’s essential to file on time to avoid cash flow disruptions for the entity.

Q13. Can GSTR 11 be filed online, and what are the steps?

Yes, GSTR 11 can be filed online through the GST portal. The steps include logging in, selecting the return type, entering supply details, and submitting the return.

Q14. What is the purpose of the Unique Identification Number (UIN) in GSTR 11?

The UIN in GSTR 11 helps identify special entities like foreign embassies, allowing them to claim refunds on GST paid, as they are not subject to GST laws.

Q15. What common mistakes should be avoided when filing GSTR 11?

Common mistakes include incorrect invoice details, mismatched GSTINs, and errors in tax amounts. Double-check all entries to ensure accuracy.

Q16. Are there penalties for incorrect filing of GSTR 11?

While there are no direct penalties for incorrect filing, errors can lead to refund delays or rejections. Ensuring accurate data entry is key to a smooth refund process.

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