GST Filings is compliance for those who are registered under Goods and Service Tax registration (GST Registration). There will be various GST filings for a business Which depends on the type of taxpayers, such as regular taxpayers, composition dealer, e-commerce operator etc.
There are several GST return filings, and they are numbered from GST1 – GSTR 11. Where each and every number is defined for a specific type of filings, type of transaction, type of business etc. These numbers are further sub-numbered as GSTR 9A,9C etc.
Usually, a regular taxpayer has to file for two GST returns monthly and that is GSTR-1 and GSTR-3B. and an annual return of GSTR-9/9C for each GST registration separately.
GST returns are categorized by the frequency of filing. Some GST filings need to be done every month, quarterly and annually Which completely depends on the type of filing.
List of Monthly GST Return filings:
- GSTR-1: It is a monthly or quarterly return that needs to filed by every GST registered taxpayer except a few. GSTR-1 Contains all outward supplies. i.e., sales transactions. Even if there are zero transactions in that particular month, GSTR-1 needs to be filled as null filings. For nil GSTR filings there is a facility to file through a single SMS.
GSTR-1 can also be filed quarterly by small taxpayers with turnover up to 1.5 crores in the previous financial year.
- GSTR 2 & 2A: GSTR-2 contains the details of all the purchased transactions of GST registered dealers for a month. This form is auto-filled from the GSTR-2A. GSTR-2 was an editable form but this form has been suspended from filing.
GSTR 2A: It is the same as GSTR 2, containing all the details of the purchase’s transactions but this form is auto-filled when the supplier files for his GSTR-1. GSTR 2A is a read-only return no actions can be taken.
- GSTR-3: It is a monthly return filing With a summarized detail of purchases and sales transactions that occurred during the month along with the amount of GST liability. This return form is auto-generated by pulling information from GSTR-1 and GSTR-2A.
- GSTR-3B: This return is to be filed monthly by all the normal taxpayers registered under GST. It is a self-declaration that needs to be filed for furnishing summarized details of all outward supplies made, input tax credit claimed, tax liability ascertained and taxes paid.
- GSTR-5: This return needs to be filed by the non-resident foreign taxpayers who carry out business transactions in India. GSTR-5 contains details of all sales, purchases, Credit/debit notes, tax liability and taxes paid. It is monthly return filing
- GSTR-6: Every Input Service Distributor has to file a monthly return form GSTR-6. Input Service Distributor (ISD) are those businesses which receive invoices for services used by its branches.
- GSTR-8: Every e-commerce aggregator needs to file for GSTR-8 every month. The e-commerce operators required to collect Tax at Source (TCS). GSTR-8 contains the details of supplies effected through e-commerce platform and the amount of TCS collected on such supplies.
- GSTR-11: A Person who has been issued a UIN (Unique Identity Number) needs to file for GSTR-11. In order to get a refund under GST for the goods and services purchased by them in India. GSTR-11, will contain details of inward supplies received and refund claimed.
List of Quarterly GST Returns Filings:
- GSTR-4/CMP-08: Taxpayers who have opted for a composition scheme under GST need to file for GSTR-4. From April 2019, this form has been replaced by CMP-08. In CMP-08 filings the taxpayers whose turnover is less than 1.5 Cr. Can opt into and pay taxes at a fixed rate on the turnover declared. This form needs to be filed quarterly.
List of Annually GST Returns Filings:
- GSTR-4: A composition dealer, who has opted for a Composition scheme needs to file for GSTR-4 returns. A Composition scheme is required to furnish only 1retun annually which is GSTR-4. Which needs to be filed by 30th of April, following a financial year.
- GSTR-9: It is an annual return that needs to be filed by every taxpayer registered under the GST. It consists of all the details regarding the inward and outward supplies made and received during the financial year. It is basically a consolidation of all the returns filed (monthly and quarterly) in the financial year.
- GSTR-9A: Taxpayers who are registered under the composition scheme in a financial year needs to file form GSTR-9A. It is a consolidation of all the quarterly returns filed in that financial year.
- GSTR-9C: A Person whose turnover exceeds more than 5 Crore in a financial year shall get his accounts audited by a Chartered or Cost Accountant and shall furnish a copy of the audited annual accounts and a reconciliation statement, duly certified in form GSTR-9C.
GSTR-9C is a statement of reconciliation between the annual return in GSTR-9 filed and figures of the audited annual financial statement of the taxpayer.
When GST Registration is Cancelled or Surrendered:
- GSTR-10: A taxable person whose GST registration is been cancelled or surrendered has to file in Form GSTR-10. This is a final return and has to be filed within 90 days from the date of cancellation/cancellation order whichever is earlier.
The benefits of GST return filing are as follows:
- Elimination of Cascading Effects: GST eliminates the cascading effects of tax, ensuring that businesses only pay tax on the value added at each stage of the supply chain. This helps in reducing the overall tax burden and avoids double taxation.
- Higher Threshold for Registration: Under the GST regime, the threshold for registration has been increased to 20 lakhs. This exempts many small traders and service providers from the requirement of GST registration, reducing compliance burdens for them.
- Composition Scheme for Small Businesses: The government has introduced a composition scheme for small businesses with a turnover between 20-75 lakhs. This scheme allows them to pay lower taxes and simplifies the compliance process.
- Easy Online Process: GST registration and return filing processes are conducted online, making it convenient for businesses. This streamlined online system simplifies the overall process, especially for new businesses that previously had to register and file returns for multiple taxes separately.
- Reduced Compliance: Earlier, businesses had to register and file returns for multiple taxes such as VAT, service tax, and excise duty. With GST, a single registration and filing of GST returns suffice, reducing the compliance burden and simplifying the process.
- Regulation of the Unorganized Sector: GST has brought accountability and regulation to previously unorganized sectors such as construction and textiles. The online compliance and payment provisions ensure that businesses in these sectors are now accountable and regulated.
Overall, GST return filing offers benefits such as the elimination of cascading effects, higher registration thresholds, simplified compliance for small businesses, easy online processes, reduced compliance requirements, and the regulation of previously unorganized sectors. These advantages contribute to a more efficient and streamlined tax system in India.
The checklist/requirements for GST return filing:
- Monthly Purchases: Keep a record of all purchases made during the month, including details of invoices received from suppliers.
- Monthly Sales: Maintain a record of all sales made during the month, including details of invoices issued to customers.
- Invoices: Ensure that invoices for both purchases and sales are properly documented and include all required information such as GSTIN, product/service details, quantity, rate, and tax amount.
- HSN Wise Summary: Prepare a summary of goods/services sold or purchased based on the Harmonized System of Nomenclature (HSN) codes. This summary provides a categorization of products/services for reporting purposes.
- Number of Invoices: Keep track of the total number of invoices issued during the month. This information is necessary for reporting and reconciling purposes.
By maintaining these records and fulfilling the checklist requirements, businesses can ensure accurate and timely GST return filing, fulfilling their compliance obligations under the GST regime.
Here’s a step-by-step list outlining the process of GST return filing:
- Gather Required Documents: Collect all the necessary documents and invoice copies, including purchase invoices, sales invoices, and relevant supporting documents.
- Calculation of Tax Liability: Calculate the tax liability for the specified return period based on the applicable tax rates and input tax credits.
- Upload Information: Use the GST portal or a GST software to upload the required information, including the details of purchases, sales, and input tax credits. Ensure accuracy and completeness of the information provided.
- Generation of Challan: Generate a challan to make the payment of the tax liability determined in Step 2. This can be done through the GST portal or authorized banks.
- Payment: Make the payment by remitting the tax liability amount using the generated challan. Choose the appropriate mode of payment, such as online banking, NEFT, or over-the-counter payment.
- OTP Verification: Complete the OTP (One-Time Password) verification process for authentication purposes. This step ensures the security of the transaction and confirms the filing of the return.
- File the Return: Submit the return on the GST portal, providing all the required information and ensuring accuracy in reporting. Choose the appropriate return form based on the type of registration and return period.
- Share Deliverables: After successfully filing the return, share the necessary deliverables, such as acknowledgment receipts or filing reference numbers, with the concerned parties or authorities as required.
It’s important to note that the actual process may vary based on the specific return form, compliance requirements, and any updates or changes in the GST regulations.
Key deliverables in GST return filing:
- Acknowledgment Receipt: A receipt that confirms the successful filing of the GST return.
- Filing Reference Number: A unique identification number assigned to each filed GST return for tracking and referencing purposes.
- Tax Payment Receipt/Challan: A receipt or challan serving as evidence of the payment made towards the tax liability.
- Filed Return: The completed GST return form containing the details of sales, purchases, and input tax credits for the specified return period.
- Reconciliation Statement (if applicable): A statement that reconciles the annual financial statements with the filed GST returns (e.g., GSTR-9C).
These key deliverables are important for compliance, record-keeping, and future reference in relation to GST return filing.
What do you want to know?
Input credit means at the time of paying tax on output, you can reduce the tax you have already paid on inputs. This way the tax can be calculated and if the input tax is more than the output, all the excess input tax after calculations needs to be filed with the government.
A GST compliance tax invoice generally includes the below 9 components in the invoice
- Name, Address, and GST details of the supplier
- Invoice number
- Date of invoice
- Name, address, and GST details of the recipient
- HSN code
- Description of the goods and services
- Quantity of goods
- Value after discount
- Rate and amount of GST
Yes, any individual or business who wants to sell on e-commerce platforms needs to have a valid GST registration and GST number.
You have to file the returns for every GST registration obtained. Even if there are zero transactions, the person should file for nil GST returns.
As per GST Act Late fee is Rs. 100 per day per Act. So, it is 100 under CGST & 100 under SGST. Total will be Rs. 200/day. The maximum is Rs. 5,000. There is no late fee on IGST.