Understanding GST Return Filing: A Comprehensive Guide

This Blog is written by Deepika Muthukrishnan.
Goods and Service tax is indirect tax. It was introduced in 2017 and started a new tax regime which replaces the old tax regime in order to avoid many drawbacks like double taxation. Business owner who become eligible by crossing the set limit by tax authority then they shall register under GST and should pay the tax. Taxpayer are obligated for GST Return Filing on regular timely basis.

Categories of Taxpayers:-

There are several type of taxpayers:-

1. Regular taxpayers
2. Composition taxable persons
3. TDS deductors
4. Non-resident taxpayers
5. Input Service Distributors
6. Casual taxable persons
7. E-commerce operators

It’s important to note that GST returns are filed on monthly, quarterly or annual basis depending on the category and turnover.

GST Returns:-

Return form are filed on monthly, quarterly and annually by normal taxpayer for purchase and sales for incomes and expenses which are made on the goods and services and tax which is collected during the time period. Its used for finding the net tax paid for registered persons on output and input.

GST returns need to be filed for following:-

– Purchases

– Input tax credit with GST paid on purchase

– Sales

– Output tax on sales

Eligibility for GST Return Filing:-

Regardless of Business type/category or profitability, all the business which are registered under GST and are making taxable supply shall file returns. It includes even dormant companies as their legal existence still prevails. When the business is involved in E-commerce activities, inter state supplies, non resident taxable person, etc.

Any individual who is registered for GST gets a GST Identification Number known as GSTIN upon registration. Business owners with GSTIN shall file return mandatorily.

Tax Authority which have a threshold limit with annual turnover which brings all business which cross threshold limit under mandatory purview of GST. Taxpayer with a turnover of Rs.40 Lakhs for product suppliers and for service providers it Rs.20 lakhs. In some state the threshold limit in turnover of Rs.10 Lakhs.

Individuals who do not meet this limit or eligibility do not need to register and are called unregistered Persons.

GST Schemes:-

Composite Scheme – Business owners who are eligible for paying GST and whose annual turnover does not exceed Rs.1.5 crore could opt for composition Scheme.

Quarterly Return with Monthly Payments – QRMP Scheme. Eligibility for this is that the taxpayer who are obligated for filing the form GSTR 3B and aggregate annual turnover is above Rs.5 Crore in preceding financial year. If the tax payer chooses this scheme, then he shall file GSTR 1 and GSTR 3B on quarterly basis while paying monthly tax via challan.

GST Returns Forms:-

There are different types of GST returns which have to be filed by the tax payer regardless of type of GST registration. Following are types of form for GST returns. There are total of 22 GST forms with 11 of them currently active, 8 for only viewing and 3 which have been suspended. So , majorly there are 13 returns:-

1. GSTR-1:–

Forms of GSTR-1 are to be filed on monthly basis. They deal with the outward supply of taxable goods and services. For the current month the return are to be filed by 11th of subsequent month which mean the next month.

2. GSTR-3B:–

This is also to be filed on monthly basis. Click on Form GSTR-3B for filing this mentions the summary of supplies and the input tax credit which is claimed and details of tax which are paid by the taxpayer. It need to be filed by 20th of next month.

If Taxpayer is eligible for QRMP and chose it, then he could file both GSTR-1 and GSTR-3B on quarterly basis.

– For GSTR-1, it is 13th of the month succeeding the quarter.

– For GSTR-3B, it is 22nd or 24th of the month succeeding the quarter.

3. GSTR-4:–

If Taxpayer is eligible for composition scheme and chosen it , then they have to file return under the form-GSTR-4. It needs to be filed annually by composition taxpayer and on the 30th of succeeding financial year which means from April to march, then the return GSTR-4 needs to be filed on April 30th of succeeding the financial year.

4. CMP-08:–

Form No. CMP-08 needs to be filed by the taxpayers who chose composition scheme which means composition taxpayer and declaring the summary of self assessed tax which they have to pay for quarterly filing basis. It need to be filed after the 18 of succeeding quarter.

5. GSTR-5:–

If Registered person is a Non-Resident of India which means Non Registered Person, then its required for filing return under this form. Its on monthly basis. Taxpayer are required for filing it on 20 of the coming month.

6. GSTR-5A:–

If an individual requires to file a return is a non resident and OIDAR Service Provider(Online Information and Database Access or Retrieval) like online advertising/gaming, cloud computing, etc. then he could file form GSTR-5A. Its on monthly basis and is to be filed on 20th of subsequent month.

7. GSTR-6:–

The Input tax Distributor is taxpayer who receives invoices for supplies from its branch and distributes the ITC which is paid on such supplies on proportional basis by issuing ITD invoice. The Input Tax Distributor(ITD) is required for filing return under form GSTR-6 for all tax distributed for ITC. Its on monthly basis and needs to be filed on 13th of subsequent month.

8. GSTR-7:-

The individual who gets the payment is usually the one who pays the tax. But in particular situations like rent, commission, etc, the tax is deducted at source which means the tax is deducted from such individuals making such payments is called Tax Deducted at Source (TDS). The individual deducting tax at source needs to file returns under the GSTR-7. Its monthly based and needs to be filed on 10 of subsequent month.

9. GSTR-8:–

For E-Commerce Suppliers the return needs to be filed in Form GSTR-8 for all supplies and the tax collected on it. This is done on monthly basis and is to be filed by E-com operator on 10th of the coming month.

10. GSTR-9:–

Form GSTR-9 is for regular taxpayer for the annual return filing. Its done on annual basis and is to be filed on 31st December of the next Financial Year.

11. GSTR-9C:–

Its reconciliation statement between annual GSTR-9 of financial year and the taxpayer’s audited financial statement. Its done on annual basis and needs to be filed on 31st December of Financial Year.

12. GSTR-10:-

If the person’s GST Registration is cancelled or surrendered then it required for filing the form GSTR-10 which is also known as Final tax return. It need to be filed in 3 months of cancellation of the GST registration or 3 months of cancellation whichever is earlier.

13. GSTR-11:–

Unique Identification Number holder is required for filing the return of all the inward supply of goods and services or both it has received on form GSTR-11. Its on monthly basis and is to be filed on 28 of the next month in which the particular has received the inward supplies.

14. ITC-04:-

Registered Manufacturers are required for furnishing details of the inputs or the capital goods received or dispatched to the job worker in form ITC-04. If registered person has aggregate turnover which exceeds Rs.5 Crore, then it needs to be filed Half yearly on 25 October and 25 April. If the registered person has aggregated person annual turnover of Rs.5 Crore, then it has to be filed on or before 25 April.

Other Forms:-

All the taxpayer are not required for filing returns. Specific returns apply to specific taxpayers. Returns are filed based on type of registration the taxpayer has acquired.

1. Moreover than compulsory GST return filing, taxpayer have access to two type of Input Tax Credit statements.

– Form GSTR-2A (dynamic)

– Form GSTR-2B (static)

2. Small taxpayers which are registered under the QRMP scheme can utilise Invoice Furnishing Facility for reporting their Business to Business (B2B Transaction and B2B Supplies) sales particularly for the first two months of the quarter.
3. Its important to note that even these taxpayers, monthly tax payments are still required using the form PMT-06.

Online Process:-

Filing GST return is essential process for the businesses registered under GST regime. It involves reporting the tax liabilities and Input Tax Credit to government for a given time period. Any taxpayer registered need to file returns on time and who fails to file GST returns on time is liable for paying the interest and penalties.

Step 1:- Register for GST

The taxpayer has to register for the GST via official GST portal. During this the taxpayer is required to provide the PAN, Email Address, Aadhar and mobile number. Once, registered, GST identification number (GSTIN) will be given.

Step 2:- Collect and organize necessary information

All required documents, record and information such as the invoice, bills, debit notes, credit notes and receipts of the purchase and sales transaction which are made during that period of filing GST returns are to be organised. If there is any change is any tax change look for that also.

Step 3:- Choosing Applicable GST Return

As there are different types of GST return which are to be filed according to the nature of business structure and activity and turnover. So, registered taxpayer shall select the applicable GST return form which is based on the business type and annual turnover.

After all this required information is entered and data is saved, upload this information and data on the GST Portal.

Step 4:- Fill the GST Return Form

Once after selecting the applicable GST return form, fill in the required detail :-

1. Visit the online GST portal and login using the credentials, A 15 digit alphanumeric code known as the GST Identification Number will be given based upon the State code and PAN number.
2. After logging in the GST Portal, click on File Returns and Payment.
3. For filing GST return click on file and select the form you are required. After selecting provide the required information and mention the amount.
4. Once Invoice is generated fill the details of supplies. Upload the returns and all the required details. For any error a rectification could be done.
5. GSTR-1 needs to be filed for the outward supply of taxable goods and services using the information section in GST portal.
6. Outward supply will be derived from form GSTR-2A.
7. Recipient needs to verify all details of outwards supplies which are mentioned and file the debit and credit notes.
8. After this inward supply return needs to be filed in form GSTR-2.
9. Supplier has option for accepting or rejecting the information given by inward supplies as reflected in the GSTR-1A.

Step 5:- Review and Verify GST return form

Once filed all the documents and returns, its important to review and verify all the information which is entered. If there is any error or inconsistency, taxpayer need to correct it. Its important to ensure that the information provided is correct.

Once these returns are filed, you need to sign a Digital Signature Certificate(DSC) or an e-sign. By using the sign button for authenticating the filing process. If taxpayer does not have a DSC, it can use ensign for verifying and then sign it electronically.

Step 6:- Submitting GST Return form

After all these forms are filled, reviewed and verified, its time for submitting the GST return form, Upon the submission, a confirmation message or acknowledgement will be sent to mobile or email. Its better to save a copy for future use.

Step 7:- Paying GST Liability

Once this GST return is files the tax payer has to pay the required GST liability for the given period. GST portal itself provides the amount of tax which is due and the other options like net banking, credit card, etc. through which the tax payer pays it.

Once it is finalised and return is submitted, you can generate acknowledgement for such return and pay the challan using Generate Challan.

Penalty for Non-Compliance:-

Any individual who is not filing their GST returns timely has to face penalties. Here are different penalty of non compliance:-

1. Late fee: Rs. 50 per day for each return if they fail to file GST returns within due dates. The maximum penalty is Rs. 10,000.
2. Interest: If any taxpayer fails to make GST payment within due date, they will be charged interest at rate of 18% per annum. Interest is calculated on Outstanding Tax amount from due date till date of payment.
3. Revocation of GST Registration: If taxpayer fails to file GST returns for continuous period of six months, their GST registration could be canceled by government.