GST Return Filing

GST return filing is the process of submitting tax details, including sales, purchases, and tax collected, to the government under the Goods and Services Tax (GST) system for a specific period.

Click here

What is GST Return Filing

GST, or Goods and Services Tax, is a comprehensive indirect tax levied on the supply of goods and services across India. Introduced on July 1, 2017, GST replaced multiple indirect taxes levied by the central and state governments. It aims to create a unified market by eliminating cascading effects (tax on tax) and improving ease of doing business.

GST is structured into central GST (CGST), state GST (SGST), and integrated GST (IGST) for inter-state transactions. It operates on a dual model, where both the central and state governments levy and collect taxes simultaneously on a common tax base.

T (26)

Benefits of GST Return Filling

Compliance and Legal Benefits:

Filing GST returns ensures compliance with tax regulations, helping businesses avoid penalties and legal issues. Staying updated with filings maintains good standing with tax authorities.

Input Tax Credit (ITC):

Regular filing allows businesses to claim Input Tax Credit, reducing the overall tax burden. ITC enables businesses to deduct taxes paid on purchases from taxes collected on sales, improving cash flow.

Enhanced Business Reputation:

Timely GST return filing enhances a company’s credibility with customers and suppliers. It indicates financial discipline and reliability, attracting more business opportunities.

Access to Loans and Financial Support:

Many financial institutions require proof of GST compliance for granting loans or credit facilities. Regular GST return filing serves as a financial document that can help businesses secure funding more easily.

Who Should File GST Returns?

GST returns must be filed by any business or individual registered under the GST regime. This obligation applies to entities whose annual aggregate turnover surpasses the specified threshold, which is set by the tax authorities and may differ for various classifications of taxpayers, such as standard taxpayers and those opting for the composition scheme.

How Many Returns are there under GST?

The Partnership Registration process in India starts with preparing the necessary documentation. Partnership Firm documents required include KYC documents of all partners, including their PAN, Adhar, and personal address proof. Additionally, the proof of the firm’s Registered Office address must also be submitted. Besides, if the office is rented, the applicant must submit the stamped and notarised Rent Agreement along with an NOC from the property owner.
Within the Goods and Services Tax (GST) system, 13 returns cater to different facets of a taxpayer’s financial dealings. It’s important to recognize that not all taxpayers must file every type of return; the specific returns that need to be filed depend on the taxpayer’s category and the particulars of their GST registration.
Below is a snapshot of the 13 GST returns:
  • GSTR-1: Filed for disclosing details of outward supplies
  • essentially the sales.
  • GSTR-3B: A summarised return that outlines both sales and purchases
  • inclusive of tax payments.
  • GSTR-4: Applicable to those under the Composition Scheme
  • summarizing turnover and corresponding tax.
  • GSTR-5: For non-resident taxpayers conducting taxable transactions in India.
  • GSTR-5A: For providers of online information and database access or retrieval services.
  • GSTR-6: Used by Input Service Distributors for detailing input tax credit distribution.
  • GSTR-7: For entities required to deduct TDS under GST.
  • GSTR-8: To be filed by e-commerce operators reporting transactions on their platform.
  • GSTR-9: An annual comprehensive return summarizing all periodical filings over the fiscal year.
  • GSTR-10: The final return upon cancellation or surrender of GST registration.
  • GSTR-11: For those with a Unique Identity Number
  • claiming refunds on their purchases.
  • CMP-08: A quarterly statement for Composition Scheme taxpayers detailing tax liability.
  • ITC-04: For manufacturers to declare details about goods dispatched to and received from a job worker.

Additionally, there are return-related statements for input tax credits:

  • GSTR-2A (dynamic): Offers a real-time perspective of inward supplies as suppliers report.
  • GSTR-2B (static): Provides a fixed snapshot of inward supplies based on the suppliers’ filings.

For small taxpayers enrolled in the Quarterly Return Monthly Payment (QRMP) scheme, the Invoice Furnishing Facility (IFF) permits the declaration of B2B sales during the first two months of a quarter. Nonetheless, these taxpayers are obligated to remit taxes monthly using Form PMT-06.

 

GSTR-1 (Return for Outward Supplies)

GSTR-1 is the mandatory return for businesses to detail their outward supplies of goods and services. This encompasses all sales-related invoices and adjustment notes for the given tax period. Every regular taxpayer under GST, including those classified as casual taxable persons, is obligated to file GSTR-1.

Submission Deadlines

Monthly:

Due on the 11th of the subsequent month for businesses whose yearly turnover exceeds Rs. 5 crore or for those not enrolled in the QRMP scheme.

Quarterly:

Due on the 13th of the month after the quarter’s end for businesses participating in the QRMP scheme.

GSTR-1 (Return for Outward Supplies)

GSTR-2A is a dynamic, read-only return for the recipients or purchasers of goods and services, capturing details of all incoming supplies from registered GST vendors within a tax period. The information in GSTR-2A is filled automatically from the GSTR-1 returns of suppliers and the Invoice Furnishing Facility (IFF) data for those in the QRMP scheme.

GSTR-2B (Static Read-Only Return)

Introduced in August 2020, GSTR-2B is a static read-only return that provides consistent ITC information sourced from the previous month’s GSTR-1 filings. It supports purchasers in matching their ITC claims for each tax period, advising on necessary actions for each listed invoice, including any need for reversals, ineligibility, or application of the reverse charge.

GSTR-2 (Deferred Return)

GSTR-2, an editable return, is presently deferred and was meant for registered purchasers to declare their inward supply of goods and services for a tax period. Initially planned to be auto-filled from GSTR-2A, its filing has been on hold since September 2017.

GSTR-3 (Deferred Return)

GSTR-3, a suspended monthly summary return for regular taxpayers, compiled concise figures of both outward and inward supplies, input tax credits, tax liabilities, and tax payments. It was automatically generated from GSTR-1 and GSTR-2 filings but has been deferred since September 2017.

GSTR-3B (Consolidated Return)

GSTR-3B, a monthly summary declaration for normal taxpayers, summarizes outward supplies, input tax credits, and tax dues. Before submitting GSTR-3B, it is critical to reconcile sales and ITC details with GSTR-1 and GSTR-2B records.

Submission Deadlines

Monthly:

Due by the 20th of the month following the reporting month for taxpayers with an annual turnover above Rs. 5 crore.

Quarterly:

Due by the 22nd of the month following the quarter for ‘X’ category states and by the 24th for ‘Y’ category states for taxpayers with a turnover of up to Rs. 5 crore in the QRMP scheme.

GSTR-4 (Return for Composition Scheme Taxpayers)

GSTR-4 is the yearly return for those under the Composition Scheme, due by April 30th of the subsequent financial year. GSTR-4 has replaced the prior quarterly submissions, with taxpayers now submitting a simplified challan via Form CMP-08 by the 18th following each quarter’s end
 
Under the Composition Scheme, businesses with goods turnover up to Rs. 1.5 crores may pay tax at a predetermined rate on their turnover. Service providers with a turnover of up to Rs. 50 lakh can opt for a similar benefit

GSTR-5A (Return for OIDAR Service Providers)

GSTR-5A is the monthly summary for providers of Online Information and Database Access or Retrieval Services, due by the 20th of every month.

GSTR-6 (Return for Input Service Distributors)

Input Service Distributors must file GSTR-6 monthly, reporting the ITC received and allocated, including detailed documentation related to the distribution of credits, by the 13th of each month.

GSTR-7 (TDS Return)

Entities must deduct TDS under GST file GSTR-7 monthly, documenting TDS deducted, due and paid amounts, and any TDS refunds, with filings due by the 10th of the subsequent month.

GSTR-8 (Return for E-commerce Operators)

E-commerce operators under GST must submit GSTR-8 monthly, recording the supplies made and tax collected at source, due by the 10th of the following month.

GSTR-9 (Annual Return)

All GST-registered taxpayers must file GSTR-9 annually, summarizing their outward and inward supply details, taxes due, and paid. The due date is December 31st of the year after the

GSTR-9 (Annual Return)

GST Return

Type of Taxpayer

Due Date

GSTR-1

Regular Taxpayer

Monthly: 11th of the following month

Quarterly: 13th of the month following the quarter

GSTR-2A (Auto-generated)

All Taxpayers

Auto-generated, utilized for reconciliation purposes

GSTR-3B

Regular Taxpayer

Monthly: 20th of the following month

GSTR-4

Composition Scheme Dealer

Annually: 30th of April following the end of the financial year

GSTR-5

Non-Resident Foreign Taxpayer

20th of the following month

GSTR-6

Input Service Distributor

13th of the following month

GSTR-7

Tax Deducted at Source (TDS)

10th of the following month

GSTR-8

E-commerce Operator

10th of the following month

GSTR-9

Regular Taxpayer (Annual)

31st December of the following financial year

GSTR-9C

Regular Taxpayer (Annual)

Filed along with GSTR-9, by 31st December of the following financial year

GSTR-9 (Annual Return)

If you submit GST returns late, you could face penalties and interest charges. Businesses should submit on time to avoid these costs. Here’s what you need to know about late GST returns:

Monthly:

Every registered taxpayer has to file GST returns regularly, even if there’s no business activity.

Delays Lead to More Delays:

If you miss a filing deadline, you can’t file for the next period until you’ve filed for the previous one. This can lead to a pile-up of late returns.

Penalties for Late Filing:

If you file GSTR-1 late, for example, you’ll get a penalty that shows up when you file GSTR-3B.

Interest on Late Tax Payments:

If you owe taxes and pay late, you’ll be charged 18% interest per year on the amount you owe, starting from the day after the due date until you pay

Late Filing Fees:

The law sets the late filing fee at Rs. 100 per day for each CGST and SGST, with a maximum of Rs. 5,000.

Annual Return Late Fees:

For yearly returns like GSTR-9 and GSTR-9C, the late fee is capped at 0.25% of your turnover in your state or UT unless the government provides relief or changes the fees.

GST Return Filing FAQ's

GST return filing is the process of submitting tax details to the government, including sales, purchases, and tax collected or paid.

All registered businesses under GST, including manufacturers, suppliers, and service providers, must file returns.

Depending on the business type, returns can be filed monthly, quarterly, or annually.

    • Common returns include GSTR-1 (outward supplies), GSTR-3B (summary return), and GSTR-9 (annual return).

  •  

Yes. Personal liability is one of the main concerns for sole proprietors. Unlike other forms of incorporation, you are personally liable for any of your sole proprietorship’s debts or legal judgments against your business. Since the business owner and the business are the same legal entity, any debts or liabilities the business incurs are the responsibility of the owner. This means if someone sues your business, your personal assets, such as your home or car, could be at risk.

Late filing can lead to penalties, interest charges, and loss of Input Tax Credit.

No, revisions are not allowed, but adjustments can be made in the next filing period.

Returns are filed online through the GST portal using the prescribed forms.

Invoices, purchase records, tax payment challans, and any other relevant documents.