GST Return Filing in India
Goods and Services Tax (GST) is an indirect tax that came into effect on 1st July 2017 in India, replacing multiple taxes and simplifying the taxation process. The primary goal of GST is "One Nation, One Tax," ensuring a streamlined approach to taxing the exchange of goods and services. GST should be paid at each stage of the production process.
A GST Return is a document containing details about sales, purchases, output tax (tax collected on sales), and input tax (tax paid on purchases). Businesses must file these returns to fulfill their tax obligations. GST return filing can be done on a monthly, quarterly, or annual basis, depending on the business type. It also helps businesses in generating GST-compliant invoices.
Types of GSTR
The various types of GSTR forms are outlined below:
GSTR-1:
- Describes outward supplies of goods and services. It's filed monthly by businesses with a turnover of over ₹5 crores, or those not opting for the QRMP scheme.
- Due Date: 11th of the next month (if turnover > ₹5 crores) or 13th of every month for businesses using the QRMP scheme.
GSTR-2A:
- An auto-filled form that provides details of inward supplies (purchases) from GSTR-1 filed by suppliers.
- No specific Due Date.
GSTR-3B:
- A self-declaration form that summarizes outward supplies, input tax credit, and taxes paid.
- Due Date: 20th of each month for businesses with turnover > ₹5 crores. Businesses with turnover ≤ ₹5 crores file by 22nd or 24th depending on their state.
GSTR-4:
- Filed by taxpayers under the Composition Scheme.
- Due Date: 18th of the month following the quarter.
GSTR-5:
- Filed by non-resident foreign taxpayers.
- Due Date: 20th of each month.
GSTR-6:
- Filed by Input Service Distributors to report input tax credit.
- Due Date: 13th of each month.
GSTR-7:
- Filed by government authorities deducting tax at source (TDS).
- Due Date: 10th of each month.
GSTR-8:
- Filed by e-commerce operators to report tax collected at source (TCS).
- Due Date: 10th of each month.
GSTR-9:
- Annual return for normal taxpayers, summarizing monthly/quarterly returns.
- Due Date: 31st December of the following financial year.
GSTR-9C:
- Reconciliation statement for businesses with turnover exceeding ₹2 crores.
- Due Date: 31st December of the following financial year.
GSTR-10:
- Filed by taxpayers whose registration has been canceled.
- Due Date: Within 3 months from cancellation.
GSTR-11:
- Filed by taxpayers with a UIN (Unique Identity Number) to claim a refund.
- Due Date: 28th of the month following the month in which the statement is filed.
- Single Form for Multiple Taxes: All taxes (IGST, CGST, SGST) can be recorded in a single form, streamlining the filing process.
- Eliminates Cascading Tax Effect: GST has removed multiple taxes, helping eliminate the cascading effect of taxation.
- Higher Threshold: GST raised the turnover threshold from ₹5 lakh (under VAT) to ₹20 lakh, benefiting small businesses.
- Start-up Benefits: Start-ups benefit from GST’s ability to set off taxes and ease initial burdens.
- Compliance Rating: GST introduces compliance ratings for businesses, providing a publicly accessible score based on tax fulfillment.
- Improved E-commerce Regulation: GST simplifies tax filing for e-commerce businesses, reducing the complexity and tax-related issues.
- Better Accountability: GST has streamlined the tax filing system, ensuring better regulation and accountability.
Businesses with an annual turnover above ₹20 lakh or ₹40 lakh are required to file GST returns. Additionally, any business engaged in sales, purchases, output tax, or input tax must file.
Required Invoices for GST Return Filing:
For GST return filing, businesses must provide GST-compliant invoices for sales and purchases. Key fields include:
- Invoice date, customer name, GSTIN, area of supply
- HSN/SAC code, product details (quantity, unit, etc.)
Taxable value, discounts, and tax rate (CGST/SGST/IGST)
GST Registration Details: Provide your GSTIN (GST Identification Number) for accurate return filing. This links your business to the GST system and ensures your returns are filed correctly. It’s necessary for processing any claims or adjustments.
Sales and Purchase Invoices: Submit all sales and purchase invoices for the filing period. These invoices help calculate your GST liabilities and input tax credits accurately. Proper documentation ensures no discrepancies in tax reporting.
Bank Statements: Share bank statements to verify all financial transactions during the period. These statements ensure transparency and accuracy in reporting your income and expenses. It also helps in reconciling your tax payments.
Previous GST Returns: Include copies of your past GST returns for consistency. This allows for a smooth transition between periods and ensures compliance. Previous returns also serve as a reference point for any adjustments or corrections.
Debit/Credit Notes: Provide all debit and credit notes issued during the period. These documents are important to adjust any discrepancies in GST paid or collected. They help in ensuring the accuracy of your GST liabilities.
Tax Payment Receipts: Ensure all receipts for GST payments are included in your submission. These receipts verify the taxes you’ve already paid and help in reconciling with your returns. They are essential for any future refunds or adjustments.
Proof of Export (if applicable): Submit proof of exports if your business deals in exports. This documentation is required for claiming export exemptions and ensuring your export sales are correctly reflected. It also helps avoid unnecessary GST on exported goods.
Details of Input Tax Credit (ITC): Include a summary of any input tax credit (ITC) claimed. This allows for accurate adjustments to the taxes paid on inputs against the GST collected on sales. Proper ITC documentation helps avoid errors in tax calculations.
Annual Financial Statements: Provide comprehensive annual financial statements, including balance sheets and profit & loss accounts. These documents help in determining taxable income and ensuring your GST returns are in line with financial records. Accurate financial reporting is key to compliance.
HSN/SAC Codes for Products/Services: List the HSN (Harmonized System of Nomenclature) or SAC (Services Accounting Code) for all goods and services. These codes help classify your products/services under the right tax category. Proper classification ensures your GST returns are filed accurately.
- Collect Documents and Invoices: Gather all relevant documents and invoices for filing.
- Access the GST Portal: Once your documents are prepared, go to the GST portal and log in with your credentials. After logging in, you'll be directed to the dashboard, where you'll need to provide the required information.
- File Application: Submit required details and documents for GST return filing.
- Pre-Compliance Check: Ensure all records and invoices are accurate before submission.
- File the Return: Once everything is verified, submit the return.
GST Return Filing Highlights (2022):
The 47th GST Council meeting discussed:
- Amendments to GSTR-3B and GSTR-9 for auto-population of data.
- Exemption for taxpayers with turnover below ₹2 crore from filing GSTR-9 and GSTR-9A.
- Deadline extensions for various forms like GSTR-4 and CMP-08.
- Simplification for e-commerce operators, allowing them to register under the Composition Scheme.
Penalty for Late GST Return Filing:
Late filing attracts penalties, including:
- Interest at 18% per annum on outstanding taxes.
- Late fee of ₹100 per day under CGST and SGST, up to ₹5000.
Revised Invoices Before Filing:
- Taxpayers must issue revised invoices within one month from the registration date if they made any earlier mistakes in their invoices.
FilingIn Procedure for GST Return Filing:
- FilingIn experts provide step-by-step guidance through GST return filing, ensuring compliance and helping businesses navigate the process smoothly. We offer expert support, handle documentation, and ensure timely filing, making the process efficient and cost-effective.
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We prioritize transparency and keep our clients updated at every step. Through our platform, you can easily track the progress of your filing. If you have any queries about GST Return Filing or need further clarification, our experienced representatives are always just a phone call away. We make sure that communication with professionals is hassle-free and efficient.
How FilingIn Helps You with GST Return Filing
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Frequently Asked Questions in India
What happens if I miss a GST return deadline?
Missing the GST return deadline can lead to penalties such as late fees and interest charges. To minimize these penalties, it’s best to file your return and settle any outstanding taxes as soon as possible.
What is the GST filing period?
The filing period for GST depends on your business’s turnover and registration type. Typically, businesses registered as regular taxpayers file their returns monthly, while those under the composition scheme file quarterly returns.
Is GST filing monthly or quarterly?
The frequency of GST return filing depends on your turnover and registration type. Regular taxpayers file returns on a monthly basis, whereas businesses under the composition scheme file their returns quarterly.
Is monthly GST return filing mandatory?
Yes, for regular taxpayers with turnover exceeding the specified threshold, monthly GST return filing is mandatory. However, businesses under the composition scheme are required to file returns quarterly.
How do I file a zero return in GST?
To file a zero return in GST, log in to the GST portal, choose the appropriate return form, and enter zero transactions for that period. After filling in the required details, submit the form to complete the process. If you need help, reach out to our experts.
Can I file my own GST returns?
Yes, you can file your GST returns by yourself using the GST portal or authorized GST software. However, it’s crucial to ensure accurate compliance with GST laws to avoid penalties for incorrect reporting.
How can I check the status of my GST return filing?
You can check the status of your GST return filings by logging into the GST portal. Under the ‘Services’ section, select ‘Returns Dashboard’ to view whether your returns are submitted, pending, or processed.
What is the time limit for GST return rectification?
The time limit for rectifying a GST return is either within the period for filing the next return or one year from the due date of the annual return, whichever is earlier. It’s important to correct any errors promptly to avoid penalties and compliance issues.
