Goods and Service Tax (GST) is one of the formidable tax reforms in India, which seeks to change the structure of indirect tax by simplifying the tax structure. Filing GST returns is one of the crucial aspects of the GST regime, as it requires businesses to declare their income, tax liability, and credit of input credit in a structured manner. In this blog, we will cover all aspects of GST returns, starting from Forms, How to File, Various GST Returns available, and their Due Dates.
What is a GST Return?
A GST return form is a return that requires entities under the GST Act to declare their sales, purchases, the amount collected as tax on sales, and the amount paid as tax on purchases. In essence, GST returns serve as a mechanism by which the government can aggregate its taxes, monitor compliance, and regulate the entire GST environment.
GST returns are filed online through the GST portal, and all measures have been taken to make the process convenient for both the Central and State Governments as well as taxpayers.
Who Should File GST Returns?
Filing GST returns is mandatory for every individual or entity registered under GST. Here’s a brief overview:
Regular Taxpayers
Who: Establishments Regular taxpayers with turnover up to ₹40 lakh (in most states) are exempt, not ₹20 lakh. However, for service providers, the threshold remains ₹20 lakh.
What: GSTR-1, GSTR-3B, and GSTR-9.
Purpose: Prepare sub-ledgers of sales, purchases, and tax payable.
Composition Scheme Dealers
Who: Small taxpayers with annual turnover up to ₹1.5 crore, and ₹75 lakh for special category states.
What: CMP-08 and GSTR-4.
Purpose: This means that the company has to pay a fixed tax fraction of turnover.
E-commerce Operators
Who: Commission agents such as Amazon or Swiggy handling their sales online.
What: GSTR-8.
Purpose: Report and remit Tax Collected at Source (TCS).
Input Service Distributors (ISD)
Who: Companies that use ITCs, including companies that supply ITCs to their branches.
What: GSTR-6.
Purpose: Allocate ITC across units.
Non-Resident Taxable Persons
Who: Persons/entities engaged in business in India but do not have a fixed place of business.
What: GSTR-5.
Purpose: Even though organizations can carry forward their input credit, they have to report and pay GST on the transactions.
Tax Deductors/Collectors (TDS/TCS)
Who: Persons entitled to the recovery of tax from the amount paid or payable.
What: GSTR-7 (TDS) and GSTR-8 (TCS).
Purpose: Notify and pay out tax reduction/assumptions.
Types of GST Returns
Under GST, different returns apply to different categories of taxpayers. Here are the key types of GST returns:
- GSTR-1: Details of Outward Supplies
Who files it? Regular taxpayers
Frequency: Depending on the turnover, businesses with a turnover up to ₹5 crore can file GST returns monthly or quarterly if they opt for the QRMP scheme.
Purpose: Other companies’ outward supplies (sales) and tax measurement declaration.
- GSTR-2A and GSTR-2B: Auto-Drafted Returns
Who uses it? Regular taxpayers
Purpose: Just like GSTR-2A, it is an auto-populated return displaying details of inward supply (purchase) indexed from GSTR-1 by the supplier.
- GSTR-3B: Summary Return
Who files it? Regular taxpayers
Frequency: Monthly or quarterly (under QRMP scheme)
Purpose: Affidavit of the summary of sales, purchases, and tax paid.
- GSTR-4: Return for Composition Scheme
Who files it? Taxpayers under the Composition Scheme
Frequency: Annually
Purpose: A brief of turnover and tax paid made under the Composition Scheme.
- GSTR-5: Return for Non-Resident Taxable Persons
Who files it? Non-resident taxable persons
Frequency: Monthly
Purpose: Declaration of outward supplies making the appropriate tax liability and declaration of inward supplies received by the taxable person.
- GSTR-6: Input Service Distributor Return
Who files it? Input Service Distributors (ISD)
Frequency: Monthly
Purpose: Allotment of input tax credit of a branch to its dependent branches which share a common registration number.
- GSTR-7: Return for Tax Deductors (TDS)
Who files it? Entities that are compelled to deduct tax at the source
Frequency: Monthly
Purpose: TDS will be retained and deposited quarterly/yearly.
- GSTR-8: Return for E-Commerce Operators
Who files it? E-commerce operators
Frequency: Monthly
Purpose: Documentation of Tax Collected at Source (TCS).
- GSTR-9: Annual Return
Who files it? Regular taxpayers
Frequency: Annually
Purpose: Consolidated report of all the monthly/quarterly returns for the financial year.
- GSTR-10: Final Return
Who files it? Affected taxpayers and those whose GST registration number was canceled
Frequency: Once (upon cancellation)
Purpose: Relating to taxes, the declaration of pending taxes to be paid at the end of the financial year.
- GSTR-11: Return for UIN Holders
Who files it? Persons and companies with Unique Identification Numbers, such as embassies, missions, NEXT of kin of UN members, etc.
Frequency: Monthly
Purpose: Provides that the customer may claim a refund of GST paid on purchases.
Due Dates for Filing GST Returns
Each GST return has a specific due date that taxpayers must adhere to avoid penalties and interest. Below are the due dates for key GST returns:
GST Return | Filing Frequency | Due Date |
GSTR-1 | Monthly | 11th of the following month |
Quarterly (QRMP Scheme) | 13th of the month following the quarter | |
GSTR-3B | Monthly | 20th of the following month |
Quarterly (QRMP Scheme) | 22nd or 24th of the month following the quarter (based on the state) | |
GSTR-4 | Annually (Composition Dealers) | The due date is 30th April, not at the end of the financial year. |
GSTR-5 | Monthly (Non-resident taxpayers) | 20th of the following month |
GSTR-6 | Monthly (Input Service Distributors) | 13th of the following month |
GSTR-7 | Monthly (Tax Deductors – TDS) | 10th of the following month |
GSTR-8 | Monthly (E-commerce Operators) | 10th of the following month |
GSTR-9 | Annually | The due date for annual returns is typically 31st December, but it may be extended each year based on government notifications. |
GSTR-10 | Final Return | Within 3 months of cancellation or order of cancellation |
GSTR-11 | Monthly (UIN holders) | 28th of the following month |
Steps to File GST Returns in Detail
Login to GST Portal
Visit the GST portal at www.gst.gov.in.
Enter your credentials, including the GSTIN (GST Identification Number), username, and password.
Complete the CAPTCHA verification and click on “Login.”
Navigate to Return Dashboard
After logging in, go to the “Services” menu.
Select Returns > Returns Dashboard from the dropdown.
Choose the Financial Year and Return Filing Period (month/quarter, depending on your filing type).
Click on Search to view the applicable return forms for the selected period.
Prepare and Upload Data
Select the appropriate return type (e.g., GSTR-1, GSTR-3B, etc.).
Enter or upload details of:
- Sales/Outward Supplies: Details of invoices, debit/credit notes, and exports.
- Purchases/Inward Supplies: Input tax credit claimed against purchases.
- Tax Liability: Calculate GST payable after adjustments for ITC.
Use offline tools provided by the GST portal (if needed) to prepare bulk data and upload it.
Verify and Submit
Carefully review all entered details to ensure accuracy.
Use the Preview option to generate a draft copy of the return.
Correct any errors or discrepancies before proceeding.
Click on Submit to freeze the data for filing (once submitted, modifications are restricted).
Pay Tax (if applicable)
If there’s any outstanding tax liability, navigate to the Payment of Tax section.
Use available options, such as:
- Net Banking: Link directly to your bank account.
- Debit/Credit Card: Pay securely online.
- NEFT/RTGS: Generate a challan and pay at your bank.
Once payment is completed, the system updates the liability in real-time.
- Download Acknowledgment
After successful submission and payment, an acknowledgment receipt (ARN – Acknowledgment Reference Number) is generated.
Go to the return history to download the filed return or acknowledgment for your records.
Consequences of Non-Compliance
Failing to file GST returns on time can result in penalties and interest:
- Late Fees:
For GSTR-3B and GSTR-1, late fees are ₹50 per day (₹25 under CGST and ₹25 under SGST). For NIL returns, the late fee is ₹20 per day.
₹200 per day for filing annual returns (GSTR-9), and there is no limit for the amount for which returns are filed.
- Interest:
The interest rate is 18% per annum on the unpaid tax, but the late filing penalty for ITC wrongly availed/utilized attracts a higher rate of 24%.
- Suspension or Cancellation of GST Registration:
Failure to file GST returns may result in the cancellation/suspension of GST registration if non-compliance continues for six months.
A suspended GSTIN doesn’t allow businesses to issue tax invoices, avail of Input Tax Credit (ITC), or generate e-way bills.
- Loss of Input Tax Credit (ITC):
Buyers lose ITC benefits if the seller has not filed the returns, which harms the business relationship.
- Legal Actions and Prosecution:
Constant violations may result in legal notices, penalties, or prosecution. In severe cases, imprisonment may be imposed.
Conclusion
Filing GST returns is one of the essential activities of GST as it helps in maintaining transparency between the trader and the government, and between the traders themselves. The Legal Dost knows that ignorance of GST laws can lead to penalties; hence, it is essential to work on it to avoid disruptions in businesses. A basic understanding of the various kinds of returns, their due dates, and filing procedures goes a long way in ensuring that businesses remain compliant legally. Updating the laws frequently and seeking help from professionals when needed can also make it easier.
Despite the complicated process of GST return filing, having a proper time-based plan and familiarizing oneself with the deadlines makes this process a requirement to be met for business management. Here at The Legal Dost, we always want to provide you with the tools you need to stay up-to-date and compliant with GST. This ensures that businesses can embrace growth without indulging in activities that may attract penalties, keeping them compliant.
GST Return Overview: Filing, Types, and Key Deadlines (FAQ)
A GST return is a form that the registered persons must submit to the government with the details of supplies made by him, inward supplies received by him, the amount of tax charged under GST on supplies made and the taxes paid on inward supplies. They facilitate the taxpayers to obey the GST laws and they aid keep the relationships between the taxpayers and government transparent.
The GST return to be filed by all registered persons under GST are: – all taxpayers under normal sale or use, dealers under composition scheme, e-commerce operators, input service distributors, non-resident taxable persons and TDS/TCS deductors.
The main GST returns include:
- GSTR-1: Outward Supplies
- GSTR-3B: Summary Return
- GSTR-4: Composition Scheme Return
- GSTR-5: Non-Resident Taxable Persons
- GSTR-9: Annual Return
Other specialized returns include GSTR-6, GSTR-7, GSTR-8, GSTR-10, and GSTR-11.
The due dates vary based on the type of return:
- GSTR-1: 11th of the following month (monthly) or 13th of the month following the quarter (QRMP scheme).
- GSTR-3B: 20th of the following month or 22nd/24th (QRMP scheme).
- GSTR-4: 30th April of the next financial year (composition dealers).
Late filing attracts:
- A penalty of ₹20/day for GSTR-3B/GSTR-1 and ₹200/day for GSTR-9.
- Interest at 18% per annum on unpaid tax.
- Potential suspension or cancellation of GST registration for prolonged non-compliance.
GST returns can be filed on the official GST portal, www.gst.gov.in Bodies have to register on the site with their GSTIN or password. The information outlined above is intended to be filled in by the taxpayers, checked, pay an amount (if necessary), and send the form.
Under QRMP Scheme, taxpayers with an annual turnover of less than ₹5 crore can file GSTR1 and GSTR 3B on a quarterly basis, while the taxes are to be paid monthly.
In fact you can just know that GST returns cannot be altered or amended right after it has been filed. Any mistakes or oversights must be corrected in the following return period.
In the case your supplier has not filled his GST returns, your ITC claim will be rejected and it will affect your tax liability and cash flow.
The Legal Dost is competitive in cases of filing GST returns, action taken to deal with non-compliance of GST laws, avoiding penalties and rendering legal services related to GST to make your tax processes so simple that they do not hamper the business operations.