What is GST return filing and Types of GST returns
A GST return is a document containing details of all income/sales and/or expense/purchase which a taxpayer (every GSTIN) is required to file with the tax administrative authorities. This is used by tax authorities to calculate net tax liability. Cost of Rs.500 per return for nil filing and Rs. 2000 for other than nil filing. According to CGST notification 22/2021 dated 1st June 2021. TDS filing under GST shall be of maximum Rs. 2,000 while late fee per day charged is reduced
All persons registered under GST Act, have to furnish the details of their sales and purchases of goods and service tax details. Since GST is major revenue source under Indirect tax regime, revenue is raised via GST returns filed by the registered persons.
Each registered person has to file their monthly and annual return respectively, except for those who have opted for composition scheme; quarterly returns are to be submitted.
In the new tax system, return filing has been automated completely.
Steps to file GST returns
- Below are the steps you can take to file GST return online:
- First of all, visit the GST portal and log in to your account using the 15 digit GST Identification Number allotted to you based on the state code and PAN and password .
- Next, upload your invoices on the GST portal.
- The next step after uploading the invoices is to file the outward return, inward return, along with monthly return.
- The outward supply return will be filled in GSTR-1, which is available in the information section on GST Common Portal by the 10th of each month.
- The outward return for the supplies is done through GSTR-2A.
- Second return is GSTR 3B is to filed by the assesee by paying the tax collected on outward supply after adjusting input tax credit ,this return should be filed before of 20th of the subsequent month
- Currently 11 returns are there , 8 are of view nature
These type of taxpayers include
- regular taxpayer,
- composition taxable persons,
- e-commerce operators,
- TDS deductor,
- non-resident taxpayer,
- Input Service Distributor(ISD),
- casual taxable persons, etc.
Types of returns
The following is the list of GSTR forms
- GSTR -1 is a return form that contains the detailed information of all the outward goods and services during the particular month transacted by the registered tax payer
- GSTR-1 contains details of invoices, debit notes, credit notes, and revised invoices for outward goods and services.
- The return is filed monthly by the 10th of next month. However, it can also be extended by the Commissioner for any class of person beyond the 10th.
- GSTR 1 is filed by the normal tax payer with regard to their outward supplies , so that it will be reflected in the recipient GSTR 2A/2B if it is business to business transaction.
- This is a read-only dynamic document that gets auto-populated as and when the seller files GSTR-1. Thus, GSTR-2a enables the buyer to verify the details submitted by the seller.
- Also ,the data filed in the Invoice Furnishing Facility by the QRMP taxpayer also gets auto-filled
- The buyer can communicate with the seller to upload the missing invoices
- It was used to Verify before claiming ITC for every tax period
- GSTR 2B is also a view only document
- ITC details will be covered from the date of filing of preceeding month of GSTR 1 till current month GSTR 1, (it contains all details not only current month invoice details , eg.if the tax payer files jan 2021 invoice in mar 2021 GSTR 1 it will be reflected in March GSTR 2B
- The return is made available on the 12th of every month, giving sufficient time before filing GSTR-3B, where the ITC is declared
- It is a currently a suspended GST return, that applied to registered buyers to report the inward supplies of goods and services, i.e. the purchases made during a tax period
GSTR 3 :
- This is also a currently a suspended GST return.
- It was a monthly summary return for furnishing summarized details of all outward supplies made, inward supplies received and input tax credit claimed, along with details of the tax liability and taxes paid GSTR-3 is also auto-populated.
- It includes the information filed under the GSTR-1 and GSTR-2, along with any other liabilities related to preceding tax periods.
- It is a summarized monthly return with regard to self declarationof outward and inward supplies.
- It is filled separately by both purchasers and suppliers.
- Every normal registered taxpayer needs to file GSTR-3B even if the tax liability is zero.
- The due date for its submission is 20th of the next month.
- The filing frequency of GSTR-3B is currently as follows:
(a) Monthly, 20th* of every month – For taxpayers with an aggregate turnover in the previous financial year of more than Rs.5 crore or have been otherwise eligible but still opted out of the QRMP scheme.
(b) Quarterly, 22nd of the month following the quarter for one category of States and 24th of the month following the quarter for second category of States – For the taxpayers with aggregate turnover equal to or below Rs 5 crore, eligible and remain opted into the QRMP scheme
First category of states include
Chhattisgarh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Telangana or Andhra Pradesh or the Union territories of Daman and Diu and Dadra and Nagar Haveli, Puducherry, Andaman and Nicobar Islands and Lakshadweep
Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand or Odisha or the Union Territories of Jammu and Kashmir, Ladakh, Chandigarh and New Delhi
- It is used to file quarterly returns for the taxpayers registered under the composition scheme.
- Small taxpayers with turnover upto Rs.1.50 Cr file quarterly returns through this form.
- It has replaced the erstwhile GSTR-9A (annual return) from FY 2019-20 onwards.
- Prior to FY 2019-20, this return had to be filed on a quarterly basis. Thereafter, a simple challan in form filed by 18th of the month succeeding every quarter replaced it.
- This form is for the non-resident taxable person.
- The return includes details of inward and outward supplies, tax paid or payable, interest or fee paid, and any other amount to be paid as per the GST Act.
- A non-resident taxpayer is a person who supplies goods or services occasionally.
- The GSTR-5 return is to be filed monthly by the 20th of each month under GSTIN that the taxpayer is registered in India
- GSTR-5A refers to a summary return for reporting the outward taxable supplies and tax payable by Online Information and Database Access or Retrieval Services (OIDAR) provider under GST.The due date to file GSTR-5A is the 20th of every month
- Each Input Service Distributor needs to file GSTR-6 each month.
- It provides the details of the invoices which are issued by the ISD, and the credit has been received. It summarizes the total input tax credit available for distribution and is made available to each recipient in part B of GSTR-2A.
- The due date to file GSTR-6 is 13th of the next month for which the tax has to be paid.
- It is filled by those taxpayers who are required to deduct TDS as per the GST law. It is a monthly return
- GSTR-7 includes details like; liability towards TDS, tax deducted at source, interest, and fee paid or payable, and TDS refund (if any).
- The due date to file GSTR-7 is 10th of the next month.
- It is to be filled by those e-commerce platforms which are required to deduct Tax Collected at Source as per GST law.
- The form contains the details of goods and services supplied through e-commerce platforms and the tax amount collected from suppliers.
- The due date for this return is the 10th of the next month for which tax is to be collected.
- As per section 44(1), each registered taxpayer needs to furnish an annual return for each financial year.
- It includes details of the Input tax credit, casual taxable person, person who has to pay tax under section 51 or 52, and details of the non-resident taxable person.
- As per the CGST notification no. 47/2019, later amended, the annual return under GST for taxpayers having an aggregate turnover that does not exceed Rs.2 crore has been made optional for FY 2017-18, FY 2018-19 and FY 2019-20
- It is the annual return for persons registered under the composition scheme.
- Ever since GSTR-4 (annual return) was introduced from FY 2019-20, this return stands scrapped. Prior to that, GSTR-9A filing for composition taxpayers had been waived off for FY 2017-18 and FY 2018-19.
- It is the annual return for the e-commerce portals which are required to collect tax at source under section 52.
- The due date for filing GSTR-9B is 31st December succeeding at the end of each financial year.
- Each registered person with an annual turnover of Rs.2 Cr and more needs to get their accounts audited by a CA or cost accountant. Besides, the user also needs to submit the audited copy accounts, annual return, and reconciliation statement.
- The reconciliation statement is submitted in Form GSTR-9C.
- As per the Union Budget 2021 outcome, the GST audit requirement by professionals such as CAs and CMAs has been removed from the GST law. Sections 35 and 44 were amended for this but yet to be notified by CBIC. Accordingly, GSTR-9 needs to be filed on the GST portal by taxpayers on a self-certification basis, completely removing the requirement for GSTR-9C. However, the financial year and date of applicability of this removal are yet to be clarified by the government.
Note: As per the CBIC notification 16/2020, which was further amended, GSTR-9C is waived off for the taxpayers with an aggregate turnover of more than Rs.5 crore for the financial year 2018-19 and 2019-2020
- It is the final return to be filed by the user whose GST registration has got canceled.
- However, such a person does not include; person paying tax under a composition scheme, a person who is collecting TDS or TCS, an input service distributor, and a non-resident taxable person.
- The main intent for this return is to make sure that the taxpayer has paid off all outstanding tax liability.
The due date of filing GSTR-10 is later of:
- a) 3 months from the date of registration getting canceled, or
- b) date of order of cancellation.
- This return is for those users who have been allotted a UIN (Unique Identification Number).
- The UIN is issued to the registered person to claim tax refunds of GST paid on the purchase of goods and services.
- The organizations who can get UIN are:
- A consulate or embassy of foreign countries
- Multilateral Financial Institutions and Organizations which are notified in the United Nations (Privileges and Immunities) Act, 1947.
- Specialized agencies of the United Nations Organizations
- any other class of user or person as may be specified by the Commissioner
- The due date for filing GSTR-11 is 28th of the next month in which the UIN holders received inward supplies.
Penalty for Late Filing of Returns
- GST return filing is mandatory for all registered taxpayers, whether they are normal taxpayers of registered under composition scheme.
- Failing to file the return on time attracts penalty as per the GST law.
- A penalty of Rs.100 per day is levied in case of delay of return for each Central Goods and Services Tax and State Goods and Services Tax. Thus, the effective late fee is Rs.200 per day. However, the maximum late fee is limited to Rs. 5,000 per CGST and Rs.5000 per IGST. In the case of IGST, there is no late fee.
- In addition to late fee interest at the rate of 18% per annum is also to be paid on the amount of tax for that period. The period for the calculation of interest will start from the next day of the due date.
- Return filing is mandatory under GST. Even though no transaction, a Nil return has to be filed
- Also, for GSTR-1 and GSTR-3B, the total late fee was reduced to Rs. 50 /day (Rs.20 /day for Nil filing)