Everything about GST Returns

GST (Goods and Services Tax) is an indirect tax of the supply of goods and services. GST return is a document containing the details of income, sales, expenses, and purchases. All GST-registered businesses are required to file for GST Returns monthly or quarterly and an annual GST return based on business types. GST returns can be filed timely after the GST registration for tax input credits.

In this article, you will learn the details about GST returns and relevant procedures in detail.

What is GST Return?

A GST return is an official document containing of the details about all purchases, sales, tax collected on sales (output tax), and tax paid on purchases (input tax).

All business owners and dealers are eligible to file GST returns depends on their businesses or transactions. They can file GST return through online portal of GST provided by the Goods and Services Tax network (GSTN).

All registered business owners and dealers under GST require the following details to file the GST Returns for the specific timeframe:

• Purchases
• Sales
• Output GST (On sales)
• Input tax credit (GST paid on purchases)

All GST-registered business owner and dealer can check their GST return filing status online.

All registered businesses should file GST returns monthly, quarterly, and annually for business. They need to contribute the relevant details about the sales or purchases and the amount of tax.

Who should file GST Returns?

According to the GST Act, any business entity can file for the GST returns on the supply of goods and provided services. It contains firms of supply goods and services within or outside the state. GST-registered e-commerce operators and non-resident entities should also file GST returns.

Types of GST returns

Here are the various types of GST returns:

• GSTR-1

GSTR-1 is a tax return for outward supplies of selling goods and services made during the month and tax charged. It includes the details of all sales and the supply of goods and services made by the taxpayer during a tax period. It may include the details of B2B supplies of taxable goods and services affected. All GST-registered taxpayers have to file the GSTR-1. All the registered normal and casual taxpayers need to file this return.

The frequency of filing GSTR-1 are:

• Frequency is monthly, and the due date is the 11th of the next month: If a business's annual revenue in the previous or current year surpasses 1.50 crore, on a monthly basis they must submit GSTR-1.
• Frequency is quarterly, and the due dates are the 11th of the month as per the quarter: The deadline for the current month's GSTR-1 filing is the 11th day of the subsequent month With a turnover less than Rs. 1.5 Crore have the option to file GSTR-1 on a quarterly basis.

• GSTR-2A

The GSTR-2A is a purchase-related tax for the recipient or buyer of goods and services. It includes information on all inward supplies of goods and services. It is also considered a read-only dynamic return for each business by the GST portal. It includes the details of all inward supplies of goods and services and purchases made from GST-registered suppliers in a given month.

The auto-populated data filed from the suppliers of GSTR-1 returns. The data is also filed and auto-filled by the QRMP taxpayers in the Invoice Furnishing Facility (IFF). The buyers need to use it to claim Input Tax Credit (ITC) during every tax period.

• GSTR-2B

GSTR-2B is a static view of an auto-drafted ITC statement for every normal taxpayer using the information provided by their supplier in their respective GSTR-1/IFF, GSTR-6 (input service distributor), and GSTR-5 (non-resident taxable person) forms. It indicates the availability and non-availability of the input tax credit for each document of a taxpayer. This return is available every month and begins in August 2020.

The ITC details in GSTR-2B covers the GSTR-1 timeframe between the filing dates for the preceding month and the current month.

• GSTR-2

GSTR-2 is a monthly GST return which is currently suspended since September 2017 followed by the CGST rules. In this return, GST-registered buyers report about the inward supplies of goods and services and the purchases made during a tax period. All registered normal taxpayers filed a GSTR-2 but it is no longer required as it has been suspended.

Every GST-registered taxpayer is eligible to file GSTR-2 monthly. If a business has an aggregate annual turnover below 1.5 crores, a taxpayer can file GSTR-2, the tax will be paid quarterly on a month. Suppliers can file this return if they fail to make a purchase. They have to pay the penalty charges of Rs.100 Per day to a maximum amount of Rs.5000 for late filling.

• GSTR-3

GSTR-3 is a monthly summary return of outward and inward supplies. It has been suspended since September 2017. It includes the details of all outward supplies made, inward supplies received, tax liability and tax paid, and input tax credit claims. All GST-registered normal taxpayers are required to file for a GSTR-3 return. Thus, it is currently a suspended GST return followed by the GST return filing rules.

• GSTR-3B

GSTR-3B is a simplified summary return for all normal and casual taxpayers. It focuses on summary declaration and discharging of GST liabilities for a specific tax period. Normal and casual taxpayers must file GSTR-3B returns for every tax period. If a taxpayer wants to extend the due date for filing, it can be extended by the Government through notification.

Here are the filing frequency of GSTR-3B:

• The monthly, and due date of filing is the 20th of the succeeding month: Taxpayers who have an aggregate turnover of more than RS. 5 crore need to file GSTR-3B form.
• Quarterly, and due date of filing is the 22nd and 24th of the month following the quarter: The taxpayers who have an aggregate turnover equal to or below Rs.5 crore under the QRMP scheme, they need to file quarterly 3B return form.

• GSTR-4

GSTR-4 is the annual return for the composition taxpayers which is required to be filed annually under the composition scheme. Taxpayers who have the composition scheme are required to file GSTR-4 for each financial year. They necessitate a summary of details of outward supplies, inward supplies, imported services, and supplies to attract a reverse charge.

• GSTR-5

GSTR-5 is the return for the non-resident foreign taxpayers with GST registration and details about business transactions in India. The return include the details of all outward supplies made, credit or debit notes, inward supplies received, payments of taxes and tax liability.

A resident taxpayer must file GSTR-5 return monthly by 20^th of the following month.

• GSTR-5A

GSTR-5A is a summary return which is required to be filed by non-resident taxpayer’s Online Information and Database Access or Retrieval Services (OIDAR). A Non-resident taxable person needs to file a GSTR-5A within a tax period.

• GSTR-6

GSTR 6 is for Input Service Distributors to report the distribution of input tax credit (ITC) among their units. It includes the details of all input tax credits, all documents issued for the distribution of input credits, and the manner of distribution. All input service distributors (ISD) are required to file GSTR-6 under GST.

The due date is the 13th of the following month to file GSTR-6.

• GSTR-7

GSTR-7 is a monthly return for TDS (Tax Deducted at Source) deductors under the GST rule. It includes the details of TDS liability, refunds claimed, payments made, and the total deducted amount as TDS. All GST-registered people who deducted the TDS should file GSTR-7 by the 10th of the following month.

• GSTR-8

GSTR-8 is a statement of Tax collected at source (TCS) for GST-registered E-commerce operators. It contains the details of all taxable supplies made by other sellers through the platform, transaction value, and the amount of TCS collected on those transactions. E-commerce operators are required to file GSTR-8 by the 10th of the following month.

• GSTR-9

GSTR-9 is an annual return of outward supplies, inward supplies, tax liability, and input tax credit for all registered taxpayers under GST. It includes the details of all outward and inward supplies, refunds claimed, input tax credit availed, and any tax liabilities for the financial year. All GST-registered taxpayers must file GSTR-9 annually. The filing due date is 31st December of the following financial year.

• GSTR-9A

GSTR-9A is an annual return for the taxpayers who have opted for the composition scheme during the financial year. It includes the details of all outward and inward supplies, taxes paid, and any adjustments to input tax credits during the financial year. All GST-registered composition taxpayers must file GSTR-9A. The due date is 31st December of the subsequent financial year to file it. It can be extended by the Government through notification from time to time.

• GSTR-9C

GSTR-9C is an annual reconciliation statement for regular taxpayers including SEZ units and developers crossing the turnover limit of 5 crores in a financial year. It contains the details of gross and taxable turnover during the financial year. All GST-registered taxpayers must file GSTR-9C by 31st December of the following financial year. It is not mandatory for taxpayers to file.

• GSTR-10

GSTR-10 is a final return for taxpayers whose GST registration gets canceled or surrendered. They must file for GSTR-10 within three months of the date of cancellation or the date of cancellation order of the GST registration. It contains the details of the ITC involved in closing stock to be reversed or paid such as inputs and capital goods by the taxpayer.

• GSTR-11

GSTR-11 is a statement of inward supply of goods or services issued by Unique Identity Number (UIN) holders for filing every quarter. It is a form required to be filed by every registered person having UIN and a refund claim quarterly.

• GST CMP-08

GST CMP-08 is a statement-cum-challan for tax payment. It provides the details or summary of self-assessed tax payable for a given quarter. All taxpayers who are registered under the composition scheme must file it quarterly. The due date for filing is the 18th of the month succeeding the quarter.

• ITC-04

ITC-04 is a declaration form containing the details of inputs or capital goods sent to or received from a job worker. All registered taxpayers who are engaged in job work activities must file ITC-04 through the online GST government portal.

The processes of GST Return filing in India

Here are the processes of GST filing in India:

Step 1: Visit the official GST portal

Firstly, a taxpayer needs to visit the official GST portal.

Step 2: Register for GSTIN

Taxpayers who are not GST registered must register with a 15-digit GSTIN number on the basis of the state code of operation and PAN.

Step 3: Log in to the GST portal

A taxpayer should log in to the official GST portal using their username and password. Then you need to click on the “Services” tab.

Step 4: Returns Dashboard

A taxable person must click on the “Returns Dashboard” option. Then, they need to fill in the financial year and the return filing period from the drop-down menu.

Step 5: Prepare Online

As a taxpayer, you are required to select the return that you want to file and click on the “Prepare Online” option.

Step 6: Enter Details

You must enter all the required details correctly in the provided fields. If required, you need to fill in the details of the amount and late fees to file your GST returns. Then, click on “Save” and see a success message on your screen. Next, click on “Submit” at the bottom of the page to submit it.

Step 7: Check Submission Status

A taxpayer must check the status of the GST return after submission of the form.

Step 8: Tax Payment

When the status of your return filing has been submitted, you must scroll down and click on “Payment of Tax”. Next, click on the “Check Balance” option to see the credit and cash balance.

Step 9: Offset Liability

Offset of liability refers to the process of using available input tax credits to reduce the total tax payable. The return involves CGST ITC, IGST ITC, and SGST ITC submission against the respective tax liabilities. You must be sure that the payable amount is minimized.

As a taxpayer, you should click on the “Offsite Liability” option to make the GST payment within a few minutes and click on “OK” after the confirmation message is displayed. Then, you must check the relevant boxes for declaration and select an authorized signatory from the drop-down list. Lastly, click on the “File Form with DSC” or “File form with EVC” and Click on “Proceed” to make the payment.

Late Return Filing Fees under Section 234F:

• Rs 5,000 – If the return is filed after the due date but before December 31 of the assessment year.
• Rs 10,000 – If the return is filed after December 31 of the assessment year.
• Rs 1,000 – If the total income is below Rs 5 lakh, the late fee is capped at Rs 1,000.

Additional Consequences of Late Filing

• Interest under Section 234A: If there are outstanding taxes, interest at 1% per month (or part of a month) is levied on the unpaid tax amount.
• Loss of Certain Benefits: You cannot carry forward losses (except loss under house property).
• Delayed Refunds: If you are eligible for a refund, delays in filing may postpone your refund.

Conclusion

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