What is GST Return Filing and Types of GST Returns

What is GST Return Filing?

A GST return contains details of all income/sales and/or expenses/purchases that a taxpayer (every GSTIN) must file a GST return 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 a maximum of Rs. 2,000, while the late fee per day charged is reduced. All persons registered under GST Act must furnish the details of their sales and purchases of goods and service tax details. Since GST is a significant revenue source under the Indirect tax regime, revenue is raised via GST returns filed by the registered persons.

Each registered person must file their monthly and annual return, except those who have opted for a 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 a GST return online:
• First, 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, PAN, and password.
• Next, upload your invoices on the GST portal.
• The next step after uploading the invoices is to file the outward, inward, and monthly returns.
• The outward supply return will be filled in GSTR-1, 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.
• The second return is GSTR 3B is to be filed by the assessee by paying the tax collected on outward supply after adjusting input tax credit; this return should be filed before of 20^th of the subsequent month
• Currently, 11 returns are there, 8 are of view nature

These types 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 GST Returns

The following is the list of GSTR forms

GSTR 1

• GSTR -1 is a return form that contains detailed information about all the outward goods and services during the particular month transacted by the registered taxpayer
• 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, the Commissioner can also extend it for any class of person beyond the 10th.
• GSTR 1 is filed by the regular taxpayer about their outward supplies so that it will be reflected in the recipient GSTR 2A/2B if it is a business-to-business transaction.

GSTR 2A

• This read-only dynamic document 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 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

• GSTR 2B is also a view-only document
• ITC details will be covered from the date of filing of the preceding month of GSTR 1 till the current month of GSTR 1 (it contains all details, not only current month invoice details, eg. if the taxpayer files a 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.

GSTR 2

• It is 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 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 and any other liabilities related to preceding tax periods.

GSTR 3B

• It is a summarized monthly return about the self-declaration of outward and inward supplies.
• It is filled separately by both purchasers and suppliers.
• Every commonly registered taxpayer must file GSTR-3B even if the tax liability is zero.
• The due date for its submission is the 20th of the following month.
• The filing frequency of GSTR-3B is currently as follows:
  (a) Monthly, 20th* of every month – For taxpayers with an aggregate turnover of more than Rs.5 crore in the previous financial year 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 the 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

The 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

Second category
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

GSTR 4

• It is used to file quarterly returns for the taxpayers registered under the composition scheme.
• Small taxpayers with turnover up to Rs.1.50 Cr file quarterly returns through this form.
• It has replaced the erstwhile GSTR-9A (annual return) from FY 2019-20 onwards.
• Before FY 2019-20, this return had to be filed every quarter. A simple challan in the form filed by the 18th of the month succeeding every quarter replaced it.

GSTR 5

• 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 will be filed monthly by the 20th of each month under GSTIN that the taxpayer is registered in India.

GSTR-5A

• 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.

GSTR 6

• Each Input Service Distributor needs to file GSTR-6 each month.
• It provides the details of the invoices 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 the 13th of the following month, for which the tax has to be paid.

GSTR 7

• It is filled by those taxpayers who must deduct TDS per the GST law. It is a monthly return.
• GSTR-7 includes details like; liability towards TDS, tax deducted at source, interest, the fee paid or payable, and TDS refund (if any).
• The due date to file GSTR-7 is the 10th of the following month.

GSTR 8

• It is to be filled by those e-commerce platforms that must 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 following month, for which tax is to be collected.

GSTR 9

• As per section 44(1), each registered taxpayer must 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

GSTR 9A

• It is the annual return for persons registered under the composition scheme.
• Since GSTR-4 (annual return) was introduced in FY 2019-20, this return stands scrapped. Before that, GSTR-9A filing for composition taxpayers had been waived off for FY 2017-18 and FY 2018-19.

GSTR 9B

• It is the annual return for the e-commerce portals 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.

GSTR 9C

• 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 must also submit the audited copy accounts, annual returns, and reconciliation statements.
• The reconciliation statement is submitted in Form GSTR-9C.
• 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 are 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 government has yet to clarify this removal’s financial year and date of applicability.

Note: As per the CBIC notification 16/2020, which was further amended, GSTR-9C is waived off for taxpayers with an aggregate turnover of more than Rs.5 crore for the financial year 2018-19 and 2019-2020

GSTR 10

• It is the final return to be filed by the user whose GST registration has got cancelled.
• However, such a person does not include; a 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.
• This return primarily intends to ensure taxpayers have paid off all outstanding tax liabilities.

The due date of filing GSTR-10 is later of:

• a) 3 months from the date of registration getting cancelled, or
• b) date of order of cancellation.

GSTR 11

• 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 purchasing goods and services.
• The organizations that can get UIN are:
• A consulate or embassy of foreign countries
• Multilateral Financial Institutions and Organizations are notified in the United Nations (Privileges and Immunities) Act, 1947.
• Specialized agencies of the United Nations Organizations
• or any other class of user or person as may be specified by the Commissioner
• The due date for filing GSTR-11 is the 28th of the following 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 average taxpayers registered under the composition scheme.
• Failing to file the return on time attracts a penalty per GST law.
• A penalty of Rs.100 per day is levied in case of return delay 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 Rs. 5,000 per CGST and Rs.5000 per IGST. In the case of IGST, there is no late fee.
• In addition to a 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 calculating interest will start from the next day of the due date.
• Return filing is mandatory under GST. Even though there is 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)

GST Return Filing Deadlines

The GST return filing deadlines refer to the dates businesses are required to file their GST returns with the tax authorities. These deadlines are determined based on the type of GST return filed and the state where the business is registered.

The GST Council has set the following GST return filing deadlines:

1. Monthly GSTR-1 (Outward Supplies) – 11th of the following month
2. Monthly GSTR-3B (Summary Return) – 20th of the following month
3. Monthly GSTR-5 (Non-Resident Taxpayer) – 20th of the following month
4. Monthly GSTR-6 (Input Service Distributor) – 13th of the following month
5. Quarterly GSTR-4 (Composition Scheme) – 18th of the month succeeding the quarter
6. Annual GSTR-9 (Annual Return) – 31st December of the following financial year
7. Annual GSTR-9A (Composition Scheme Annual Return) – 31st December of the following financial year
8. Annual GSTR-9C (Reconciliation Statement) – 31st December of the following financial year

It is essential for businesses to file their GST returns before the due dates to avoid any penalties and interest charges. Late filing of GST returns may also lead to a blockage of input tax credit and difficulty in obtaining future refunds.

Consequences of Non-compliance with GST Return Filing

Non-compliance with GST return filing can have serious consequences for businesses. Here are some of the consequences of non-compliance with GST return filing:

1. Penalty: A penalty of Rs. 200 per day of delay (up to a maximum of Rs. 10,000) may be levied for late filing of GST returns.
2. Interest: If GST returns are not filed on time, interest at 18% per annum will be levied on the outstanding tax liability.
3. Input Tax Credit (ITC) Blockage: Non-filing of GST returns can lead to a blockage of ITC, which means businesses cannot claim credit for the GST paid on their purchases.
4. Legal Consequences: Non-compliance with GST return filing can also lead to legal consequences, such as a notice from the tax authorities or a tax audit.
5. Difficulty in Obtaining Future Refunds: Non-filing of GST returns may also lead to difficulties in obtaining future refunds, as businesses must have filed all their returns before claiming any refunds.

Therefore, it is essential for businesses to comply with the GST return filing requirements and file their returns on time to avoid these consequences.

Related Services

• Income Tax Return Filing Online
• Trademark Registration Online
• Sole Proprietorship Registration Online
• Private Limited Company Registration Online

FAQs on GST Returns

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