GST returns filing process
GST Return Filing Process: A Simple Guide
In this post, we will discuss the GST return filing process, including its importance, who needs to submit it, the various return types, due dates, and a step-by-step approach to filing. Knowing GST returns is critical for compliance and smooth tax management, whether you are a business owner or a tax professional.
Let’s look at each section in detail:
What is a GST Return?
A GST return is a document that contains a taxpayer’s sales, purchases, and tax payments. Each GST-registered business must file these forms so that tax authorities can calculate their net tax liability.
GST returns normally include:
- Purchases
- Sales
- Output GST (tax collected on sales)
- Input tax credit (GST paid on purchases)
You can use Saral Pro software, which allows data imports from accounting software and ERP systems like Tally, Busy, and Excel, for effortless GST filing. This will also help you in reconciling IMS data in real time and map the same to GSTR 2B for ITC claim.
Who should file GST Returns?
Businesses with a yearly turnover above ₹5 crore and not in the QRMP scheme are required to file two monthly returns and one annual return, a total of 25 filings per year under GST.
For companies with a turnover of up to ₹5 crore, the QRMP program allows quarterly return filing, reducing the total to 9 filings per year: four GSTR-1, four GSTR-3B, and one annual report. Taxes must still be paid monthly.
Special situations, such as composition dealers, require only five filings per year, which includes four quarterly CMP-08 statements and one yearly GSTR-4 return.
Types of GST Returns and GST Return Filing Due Dates
Here’s a simple explanation of several GST returns in India, including who must file them, how frequently, and their due dates:
|
Return Form |
Who Should File & What’s Reported? |
Frequency |
Due Date |
|
GSTR-1 |
Registered suppliers have to report outward taxable supplies. |
Monthly |
11th of the next month |
|
GSTR-2 |
Registered recipients report inward taxable supplies and claim ITC. |
Monthly |
15th of the next month |
|
GSTR-3 |
A summary of sales, purchases, and tax payments. |
Monthly |
20th of the next month |
|
GSTR-4 |
Composition scheme taxpayers file their returns. |
Quarterly |
30th of the month after the financial year |
|
GSTR-5 |
Non-resident taxable persons must report transactions. |
Monthly |
20th of the next month |
|
GSTR-6 |
Details for the Input Service Distributors (ISD) files. |
Monthly |
13th of the next month |
|
GSTR-7 |
Entities that deduct TDS under GST have to report their deductions. |
Monthly |
10th of the next month |
|
GSTR-8 |
E-commerce businesses report supplies and collect taxes. |
Monthly |
10th of the next month |
|
GSTR-9 |
Registered taxpayers are required to submit an annual return. |
Annual |
31st December of the next financial year |
|
GSTR-10 |
Final return after cancellation of GST registration. |
One-time |
Within 3 months of cancellation order or date, whichever is later |
|
GSTR-11 |
UIN holders are required to record inward supplies in order to receive tax refunds. |
Monthly |
28th of the next month |
Step-by-Step GST Return Filing Process
Under the GST system, all taxpayers, including producers, suppliers, dealers, and consumers, are required to file annual tax returns. The process is now automated, and GST returns can be submitted online through the official GST portal or software accessible via the Goods and Services Tax Network (GSTN).
Here’s a step-by-step guide:
- Visit the GST portal (www.gst.gov.in) and log in.
- Get your GSTIN – You will be given a 15-digit GST identification number depending on your PAN and state code.
- Upload invoices – Upload your invoices to the GST portal. Each will have its own invoice reference number.
- File returns – Submit your outward, inward, and cumulative monthly returns online. If there are any problems, you can correct them and resubmit them.
- Submit GSTR-1 – File outward supply details with the GST portal by the 10th of the coming month.
- Review GSTR-2A – This form allows the recipient to view the supplier’s outward supply details.
- Verify and update – Recipients must verify changes or add information about outward supplies, including credit and debit notes.
- Submit GSTR-2 – Recipients must provide information on taxable inward supply.
- Supplier approval – The supplier may inspect and accept or reject any changes to GSTR-1A.
Documents Required for GST Return Filing
- GSTIN (Goods and Services Tax Identification Number)
- The customer’s GSTIN is required for all B2B invoices.
- Invoices
- A complete record of issued invoices, categorized as B2B or B2C.
- B2B invoices should include:
- Invoice type, number, and date
- Place of supply
- Taxable value and GST rates (IGST, CGST, SGST)
- GST cess, if applicable
- Reverse charge applications, if applicable
- B2C Invoices
- Details for invoices over ₹2.5 lakh are required:
- Invoice number, date, and total amount.
- taxable value and GST rates
- Place of supply and summary of intra-state and inter-state sales based on GST rate.
- Export Invoices
- Must include:
- Please include the customer’s GSTIN, invoice number, and shipping bill date.
- Port code:
- Taxable value along with applicable GST amounts
- HSN (Harmonized System of Nomenclature) Summary
- Required information:
- HSN code, description, and unit quantity code (UQC)
- Total quantity, value, and GST amounts
- Additional Summaries
- A summary of credit/debit notes, advance receipts, and modifications
- Consolidated interstate and intrastate sales reports, sorted by GST rates and e-commerce transactions.
Penalty for Late Filing
If a taxpayer fails the return filing deadline, they must pay a late charge. Under GST rules, the late fee for both CGST and SGST is Rs. 100 per day each, making a total of Rs. 200 per day. However, the maximum late cost is set at Rs. 5,000. This rate might vary based on official notifications.
There is no IGST late fee. If you fail to pay your taxes on time, you will be charged an extra 18% each year in interest. This interest is calculated on the outstanding tax amount between the day following the due date and the actual payment date.
With that, we conclude this post. Please leave any questions or comments in the space below; we will be happy to respond to them.
FAQs
1. What should a taxpayer do after receiving the GSTR-3A?
Ans: Defaulters must file their returns and pay any related penalties and late fees within 15 days of receiving a GSTR-3A Notice.
2. Can the taxpayer change the period for filing returns?
Ans: Yes, taxpayers can change their filing period once. This can only be done when the first return for the financial year is filed.
3. What are the reasons we can file Form RET-1 via SMS mode?
Ans: Form RET-1 can be filed via SMS in the case of Nil returns, which indicate that no supplies were made or received.
4. Can the document details on form ANX-1 be updated if they are entered in the incorrect table?
Ans: The facility to move such papers to the correct table is available only after the receiver has rejected the documents.
