Types of GST in India: A Comprehensive Overview

Since its introduction in 2017, the Goods and Services Tax (GST) has significantly impacted the Indian tax system. In order to declare income, claim input tax credit, and report the GST received and paid on sales and purchases, GST-registered businesses have several important duties, one of which is completing GST returns. The GST portal facilitates filings, and understanding the different types of returns, their deadlines, and their purposes is crucial.

What is GST Return?

To record their income, sales, purchases, and input tax credit (ITC) details, GST-registered businesses submit a GST return to the tax authorities. In addition to enabling firms to claim refunds and set offs for their taxes, these returns assist the government in ensuring appropriate tax revenues.

Businesses must adhere to the GST return filing calendar April 2024–March 2025 in order to avoid late fees. This calendar includes deadlines for filing various types of returns.

Who Should File GST Returns?

Regular firms that do not participate in the QRMP scheme and have an annual aggregate turnover of more than Rs. 5 crores are required to file one annual return (GSTR-9) and two monthly returns (GSTR-1 and GSTR-3B) under the GST system. With no extra statements or special returns included, this amounts to 25 returns annually.

Filing returns under the QRMP scheme is an option for taxpayers with a turnover of up to Rs. 5 crores. Each year, these companies must submit nine GSTR filings, which include the following:

• 4 GSTR-1 filings
• 4 GSTR-3B filings
• 1 annual return (GSTR-9)

Despite filing quarterly returns, QRMP taxpayers are required to use Form PMT-06 to make monthly tax payments.

Additionally, special returns are available for composition dealers, who are required to file 5 GSTR filings annually.

• 4 CMP-08 statements
• 1 GSTR-4 annual return

Types of GST Returns and Forms

The following are the primary types of GST returns and the associated forms:

GSTR-1

The GSTR-1, a monthly or quarterly return form, documents the details of goods and services sold outward. Because it enables recipients to claim ITC and list issued invoices, it is essential for B2B businesses. The Invoice Furnishing Facility (IFF) allows users of the QRMP scheme to upload invoices on a quarterly basis.

GSTR-3B

All ordinary taxpayers are required to complete the GSTR-3B simplified summary return on a monthly or quarterly basis. It includes the summary of outgoing supplies, the input tax credit that was claimed, and the taxes that need to be paid. It is crucial to file GSTR-1 and GSTR-3B on time because failure to do so may result in penalties.

GSTR-4

Only taxpayers registered under the Composition Scheme are required to file this return. These taxpayers file this return, which includes a yearly summary of all outward supplies made during the year. In order to disclose tax payments, taxpayers under this scheme must also file CMP-08 on a quarterly basis.

GSTR-5

Taxpayers who don’t live in India must file GSTR-5. This return records the information of the goods that non-residents brought into and took out of India for business purposes.
GSTR-5A

This tax form is for foreign service providers who do not live in India but offer online information and database access or recovery services to Indian customers. GSTR-5A is required for these types of taxpayers.

GSTR-6

Input Service Distributors (ISD) have to file GSTR-6 every month. The information in this report is about the input tax credit that they got and gave to their branches.

GSTR-7

Under GST, taxpayers who need to deduct TDS (Tax Deducted at Source) must file GSTR-7. This return enumerates the taxes deducted and the pending deposits

GSTR-8

If you run an e-commerce business and collect tax at source (TCS), you need to file GSTR-8. This report enumerates the items purchased from the online store along with the received TCS amount.

GSTR-9

Every regular taxpayer is required to submit the annual GST return, or GSTR-9. This return compiles details about all inward and outward supply and tax liabilities for the entire financial year. Companies with an annual aggregate turnover exceeding 5 crores must submit GSTR-9C, a reconciliation statement subject to audit by a qualified expert.

GSTR-10

Taxpayers who cancel or surrender their GST registration must file the “Final Return,” or GSTR-10. It ensures the accurate reporting of any outstanding credits or liabilities.

GSTR-11

Anyone with a GSTIN who has received a Unique Identification Number (UIN) must file GSTR-11 in order to receive a refund of taxes paid.

Key Forms for GST Filings

CMP-08: Composition Scheme taxpayers use CMP-08 to declare and make payments for their quarterly self-assessed tax.

ITC-04: Businesses that move goods for work are required to file ITC-04. It keeps track of the information that is sent and received for job work.

Importance of GSTR-2A and GSTR-2B

Suppliers include the details for GSTR-2A, a moving statement, in their GSTR-1. Businesses need this form because it helps them confirm the purchases they make. On the other hand, GSTR-2B is a fixed form that helps with ITC claims for a certain month. Correct filling of these forms makes sure a smooth input tax credit reconciliation without any issues.

Payment Methods and Late Fees

You use Form PMT-06 to make tax challan payments. The GST portal guarantees that companies can electronically pay taxes. Missing the filing dates will result in late fees, penalties, and interest.

Simplifying Filing for Small Businesses with QRMP Scheme

For small taxpayers with yearly revenue up to Rs. 5 crores, the QRMP scheme (Quarterly Return Filing and Monthly Payment of Taxes) is a streamlined return filing system. Taxpayers can use Form PMT-06 to make monthly tax payments and GSTR-1 to file quarterly.

GSTR Filings and Compliance

To make sure ongoing compliance with GST regulations, GSTR filings must be accurate and submitted on time. Whether they are ISD, ordinary taxpayers, or non-resident suppliers, businesses must ensure they understand the specific forms they need to submit based on their classification.

Through the GST portal, the GSTN (Goods and Services Tax Network) offers the required services and infrastructure, making it simple for companies to track ITC, manage their returns, and fulfill their tax obligations.

Summary

Businesses must comprehend the various types of GST returns and their requirements in order to stay in compliance. In addition to keeping, you inside the law, properly handling your GSTR filings, particularly with forms like GSTR-1 and GSTR-3B, will guarantee seamless tax operations. Utilizing resources such as the GST portal and document management via GSTIN, companies may effectively oversee their tax procedures.