Overview about GST Return
What is GST Return?
The GST Return is a comprehensive statement that encompasses all the financial transactions of an individual who is registered under GST. This statement reflects both the revenues earned and the expenditures incurred. It is mandatory for every holder of GSTIN to submit this statement to the tax authorities, as it enables them to determine the net tax liability with precision.
The filing of the GST return includes a number of essential components:
Purchases: – Detailed documentation is kept, providing a thorough account of the taxpayer’s purchases.
Sales: – An extensive record is provided, offering a comprehensive overview of the taxpayer’s sales activities.
Output GST (On Sales): – The taxpayer’s sales show the GST amount.
Input Tax Credit (GST Paid on Purchases): – The document shows the GST amount paid for acquisitions, which can be subtracted from the GST amount due for transactions.
Who Must Submit GST Returns?
All businesses and individuals registered under the GST regime must complete their GST returns. This obligation is triggered when the annual aggregate turnover surpasses the threshold determined by tax authorities, which may differ for different types of taxpayers.
How many GST returns are there?
Within the Goods and Services Tax (GST) system, there are 13 returns that address various aspects of a taxpayer’s financial transactions. It is important to understand that not all taxpayers are required to submit each type of return; the specific returns that need to be filed are contingent upon the taxpayer’s category and the particulars of their GST registration.
A summary of the 13 GSTreturns may be seen below:
- GSTR-1
GSTR-1 serves as the necessary return for businesses to disclose their outward supplies of goods and services. This encompasses the reporting of all sales-related invoices and adjustment notes for the designated tax period. All regular taxpayers under GST, as well as casual taxable persons, are required to submit GSTR-1. - GSTR-3B
The monthly summary declaration, GSTR-3B, is required for normal taxpayers. It summarizes their outward supplies, input tax credits, and tax dues. Before filing GSTR-3B, it’s essential to reconcile sales and ITC details with GSTR-1 and GSTR-2B. - GSTR-4
GSTR-4 is the yearly return that individuals under the Composition Scheme need to file by April 30th of the following financial year. This return has replaced the previous quarterly submissions, and taxpayers are now required to submit a simplified challan via Form CMP-08 by the 18th day after the end of each quarter. - GSTR-5
GSTR-5 is a requisite document for non-resident foreign taxpayers engaged in business activities within India. It serves as a detailed record of their outbound and inbound transactions, adjustments, tax obligations, and payments. The deadline for submitting GSTR-5 is the 20th day of every month.
- GSTR-5A
Due on the 20th of each month, GSTR-5A is the monthly summary required of suppliers of online information and database access or retrieval services. - GSTR-6
Every month, Input Service Distributors are obligated to file GSTR-6, which involves reporting the Input Tax Credit (ITC) received and allocated. Furthermore, comprehensive documentation related to the distribution of credits must be submitted. The deadline for filing this report is the 13th day of each month. - GSTR-7
Under GST, entities must deduct TDS and file GSTR-7 on a monthly basis. They are required to document TDS deducted, due and paid amounts, as well as any refunds. The deadline for filing is the 10th of the subsequent month. - GSTR-8
E-commerce operators registered under GST are obligated to submit GSTR-8 monthly, outlining the supplies made and the tax collected at the source. The deadline for submission is the 10th day of the following month.
- GSTR-9
Each year, all GST-registered taxpayers are required to file GSTR-9, which summarizes their inbound and outbound supply information, taxes owed, and amounts paid.
- GSTR-10
Upon the cancellation or surrender of GST registration, a taxable person is obliged to submit a return using the GSTR-10 form. This return is specifically referred to as the final return. - GSTR-11
Those who have been assigned a Unique Identity Number must complete Form GSTR-11 in order to get a refund of the taxes they paid on their imported goods. - CMP-08
The Form CMP-08 is specifically designed for composition dealers. They can provide the specifics or an overview of their self-assessed tax liability for a specific quarter using it as a statement-cum-challan. Moreover, it doubles as a challan for tax payment.
A composition dealer is a dealer who has registered under the composition scheme for both goods and services. In addition to Form CMP-08, the dealer must also file the annual return using the revised Form GSTR-4 by April 30th after the financial year ends.
- ITC-04
MSMEs are required to periodically submit the GST ITC-04, also referred to as the ‘Goods Sent to Job Work and Received Back’ form. This return is necessary for detailing the movement of goods to job workers and the subsequent receipt of those goods. Job work encompasses sending raw materials or semi-finished goods to another party for processing, assembly, or any other form of work.There are several statements pertaining to input tax credits and returns:
- GSTR-2A
GSTR-2A acts as a real-time, unmodifiable report for the recipients or buyers of goods and services, capturing specifics of all received supplies from registered GST vendors during a tax period. The details in GSTR-2A are auto-populated from suppliers’ GSTR-1 filings and the Invoice Furnishing Facility (IFF) data for those participating in the QRMP scheme. - GSTR-2B
Released in August 2020, GSTR-2B is a fixed read-only return that delivers uniform ITC information sourced from the GSTR-1 filings of the previous month. It aids purchasers in reconciling their ITC claims for each tax period, offering guidance on necessary measures for every specified invoice, such as reversals, ineligibility, or application of the reverse charge.
Late GST Return Filing Penalties
You risk fines and interest if your GST returns are submitted after the deadline. Companies should send in their applications on time to save money. What you should know about late GST returns is as follows:
- Returns Must Be Filed:Even in the absence of commercial activity, all registered taxpayers are required to file GST returns on a regular basis.
- More Delays Occur Due to Delays:Not meeting a filing deadline will bar you from filing for the next period until the previous one is filed, potentially causing a backlog of late returns.
- Late filing penalties:For example, you’ll incur a penalty when filing GSTR-3B if you file GSTR-1 beyond the deadline.
- Late Tax Payment Interest: Late payment of taxes will incur an 18% interest rate per year on the unpaid amount, beginning the day after the deadline and continuing until the balance is settled.
- Fees for late filing:The late filing penalty for both CGST and SGST is fixed by law at Rs. 100 per day, up to a maximum of Rs. 5,000.
- Annual Late Fees for Returns:Annual return late fees, such as GSTR-9 and GSTR-9C, are capped at 0.25% of your turnover in your state or UT, unless the government decides to provide relief or alter the fees.
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FAQ’s
Any person or entity registered for GST in India is required to file a GST return. This obligation is especially relevant to individuals whose yearly turnover above a level established by the tax authorities.
Thirteen distinct return types, each covering a different facet of a taxpayer’s financial activities, are part of the GST structure. Nevertheless, depending on their company type and GST registration information, not all taxpayers are obligated to complete all of these forms.
Foreign taxpayers who do not live in India but undertake taxable transactions are required to file a monthly return called GSTR-5. It is required by the twentieth of every month and contains information about both incoming and outgoing shipments.