GST Return Filing
- A GST return is a document containing details of all income/sales and/or expenses/purchases that a GST-registered taxpayer (every GSTIN) is required to file with the tax administrative authorities. This is used by tax authorities to calculate net tax liability.
- Under GST, a registered dealer has to file returns about the following areas:
-Purchases
-Sales
-Output GST (On sales)
-Input tax credit (GST paid on purchases). - Under the GST regime, regular businesses having more than Rs.5 crore as annual aggregate turnover (and taxpayers who have not opted for the Quarterly Return Filling & Monthly Payments of Taxes Scheme) have to file two monthly returns and one annual return. This amounts to 25 returns each year.
- Taxpayers with a turnover of up to Rs.5 crore have the option to file returns under the QRMP scheme. The number of GSTR filings for QRMP filers is 9 each year, which include 4 GSTR-1 and GSTR-3B returns each and an annual return. Note that QRMP filers have to pay tax on a monthly basis even though they are filing returns quarterly
- There are also separate statements/returns required to be filed in special cases such as composition dealers where the number of GSTR filings is 5 each year (4 statementcum-challans in CMP-08 and 1 annual return GSTR-4 ).
FOLLOWING RETURNS ARE THERE UNDER GST
There are a total of 13 returns under the Goods and Services Tax (GST) regime. These returns serve to capture different aspects of a taxpayer’s financial transactions and obligations within the GST framework. However, it’s important to note that not all of these returns apply to every taxpayer. The applicability of these returns depends on the type of taxpayer and the nature of their GST registration.
Here is an overview of the 13 GST returns:
- GSTR-1:This return is for reporting outward supplies or sales.
- GSTR-3B:A summary return that includes details of both outward and inward supplies, along with the payment of taxes.
- GSTR-4:Designed for taxpayers under the Composition Scheme, it provides a summary of their turnover and tax liability.
- GSTR-5:Filed by non-resident foreign taxpayers engaged in taxable activities in India.
- GSTR-5A:Filed by online information and database access or retrieval (OIDAR) service providers.
- GSTR-6:For Input Service Distributors to report the distribution of input tax credit (ITC) among their units.
- GSTR-7:For taxpayers required to deduct Tax Deducted at Source (TDS) under GST.
- GSTR-8:Filed by e-commerce operators to report supplies made through their platform.
- GSTR-9:An annual return that provides a consolidated summary of all monthly/quarterly returns filed during the financial year.
- GSTR-10: A final return filed when a taxpayer’s GST registration is cancelled or surrendered.
- GSTR-11: Filed by persons having Unique Identity Number (UIN) to claim a refund of taxes paid on their purchases.
- CMP-08:A quarterly return for taxpayers under the Composition Scheme to report their tax liability.
- ITC-04:Filed by taxpayers who are manufacturers to report the details of goods sent to a job worker and received back.
In addition to these GST returns, there are also statements of input tax credit available to taxpayers, namely:
- GSTR-2A (dynamic): Provides a dynamic view of inward supplies as reported by the suppliers.
- GSTR-2B (static):Offers a static view of inward supplies based on the supplier’s return.
For small taxpayers registered under the Quarterly Return Monthly Payment (QRMP) scheme, there is an Invoice Furnishing Facility (IFF) available. It allows them to report their Business-to-business (B2B) sales for the first two months of the quarter. These taxpayers must still make monthly tax payments using Form PMT-06
DOES GST HAVE TO BE PAID MONTHLY?
GST is to be paid monthly by regular taxpayers, even those who have opted for quarterly filing of returns, i.e. the QRMP scheme(Quarterly Return Filling & Monthly Payments of Taxes Scheme Under GST).
However, for small taxpayers, there is an option to choose the composition scheme under GST, if their annual aggregate turnover is up to Rs.1.5 crore for manufacturers/dealers and Rs.50 lakh for pure service providers. They can file a quarterly statement-cum-challan and pay taxes quarterly
LATE FILING OF GST RETURNS
Late filing of GST returns can have serious consequences, including financial penalties and interest charges. It is essential for businesses to adhere to the prescribed due dates to avoid these adverse effects. Here are some key points to understand about late filing of GST returns:
✓ Cascading Effect of Late Filin
Late filing of GST returns can have a cascading effect. You cannot file the return for the current period if the return for the previous month or quarter has not been filed. This can result in a backlog of pending returns, making it difficult to comply with GST regulations.
✓ Mandatory Return Filing
Under the Goods and Services Tax (GST) regime, return filing is mandatory, even if there are no transactions to report. This means that all registered taxpayers must file GST returns regularly, as specified by the government.
✓ Late Fee Charges
The late fee for late filing of GST returns is specified under the Central Goods and Services Tax (CGST) Act and the State Goods and Services Tax (SGST) Act. As per these acts, the late fee is Rs. 100 per day per Act, which means it’s Rs. 200/day (Rs. 100 under CGST and Rs. 100 under SGST). However, there is a maximum limit of Rs. 5,000 per Act. This means that if you delay filing a return for an extended period, the late fee can accumulate up to the maximum limit.
✓ Interest on Outstanding Tax
If you have outstanding tax liabilities, interest is charged at a rate of 18% per annum. Interest is calculated by the taxpayer on the amount of outstanding tax to be paid. It is calculated from the day after the due date until the actual date of payment.
FREQUENTLY ASKED QUESTIONS (FAQ’S)
A firm dealing exclusively in exempted products has GST registration; does it need to file return?
If registered, then you need to file returns. You may choose to cancel your registration since you are dealing only in exempted products.
What GST returns need to be filed if a registered business terminates its operations permanently?
Any business that permanently terminates its operations is required to file the GSTR-10, also known as the final GST return.
What is the alternative if E-sign does not work while filing?
If e-sign does not work, you can always file a GST return using other methods which involve an OTP from your registered phone number, your PAN information and a DSC
Who is required to file the GSTR-11
The GSTR-11 return is to be filed only by those entities or persons that possess a Unique Identity Number (UIN), and only during those months when they make inward supplies (purchases). It must be filed before the 28th of the following month.
What is Form GSTR-1? Who is required to file Form GSTR-1?
Form GSTR-1 is a monthly/quarterly Statement of Outward Supplies to be furnished by all normal and casual registered taxpayers making outward supplies of goods and services or both and contains details of outward supplies of goods and services.
Every registered taxable person, other than an input service distributor/ composition taxpayer/ person liable to deduct tax u/s 51 / persons liable to collect tax u/s 52 is required to file Form GSTR-1, the details of outward supplies of goods and/or services during a tax period, electronically on the GST Portal.
When can I Opt-in for Quarterly Return option for filing of Form GSTR-1 return?
You can opt for Quarterly filing of Form GSTR-1 under following condition:
- If your turnover during the preceding financial year was up to Rs. 5 Crore or
- If you are registered during the current financial year and expect your aggregate turnover to be up to Rs. 5 Crores
Note: In case you have chosenOpt-in for Quarterly Returnoption, you need to file both Form GSTR-1 and Form GSTR-3B quarterly only.
Is GSTR 1 filing mandatory?
GSTR 1 needs to be filed even if there is no business activity (NIL return) in the tax period.
What are the modes of preparing GSTR 1?
GSTR 1 can be prepared through the following modes.
- -Online entry in the GST portal.
- Uploading of invoice and other data using returns offline tool.
- Using third party application like ASPs through GSP’s.
What is Form GSTR-3B?
Form GSTR-3B is a simplified summary return and the purpose of the return is for taxpayers to declare their summary GST liabilities for a particular tax period and discharge these liabilities. A normal taxpayer is required to file Form GSTR-3B returns for every tax period.
Who needs to file Form GSTR-3B?
All normal taxpayers and casual taxpayers are required to file Form GSTR-3B.
By when do I need to file Form GSTR-3B?
For monthly filers, due date for filing of Form GSTR-3B is 20th day of the month following the month (tax period) for which the return pertains.
For quarterly filers, due date for filing of Form GSTR-3B, as notified for different States/UTs, is 22nd and 24th day of the month following the quarter for which the return pertains.
Is filing of Form GSTR-3B mandatory even if there is no business in the particular tax period?
Filing of Form GSTR-3B is mandatory for all normal and casual taxpayers, even if there is no business in that particular tax period.
