GST Return Filing Everything You Need to Know

GST return filing is the process of submitting details of the sales and purchases made during a particular period to the GST authorities. Here is everything you need to know about GST return filing:

Who should file GST returns?

All registered taxpayers under GST, including regular taxpayers, composition scheme taxpayers, and Input Service Distributors (ISDs), must file GST returns.

Types of GST returns

There are various types of GST returns that a taxpayer may have to file, depending on the nature of their business and the type of taxpayer they are. Some of the most common types of GST returns are:

➤ GSTR-1: This return includes details of outward supplies made by the taxpayer during a particular period. GSTR-1 must be filed by the 11th of every month (for taxpayers with turnover above Rs. 1.5 crores) and by the 13th of every month (for taxpayers with turnover up to Rs. 1.5 crores).

➤ GSTR-3B: This is a monthly summary return that provides a summary of both outward and inward supplies and the tax liability of the taxpayer. GSTR-3B must be filed by the 20th of every month.

➤ GSTR-2A: This return is a system-generated purchase register that provides details of inward supplies as uploaded by the suppliers. It is auto-populated and cannot be edited by the taxpayer.

➤ GSTR-9: This is an annual return that must be filed by all taxpayers, providing a summary of all supplies made during the financial year. It must be filed by 31st December of the following year.

➤ GSTR-4: This return is for taxpayers registered under the composition scheme, providing details of their outward supplies and tax liability. It must be filed on a quarterly basis by the 18th of the month following the end of the quarter.

➤ GSTR-6: This return is for Input Service Distributors (ISDs), providing details of the invoices received and the credit claimed. It must be filed on a monthly basis by the 13th of the following month.

These are just a few examples of the various types of GST returns that a taxpayer may have to file, depending on their business and registration status.

Due dates for filing GST returns

The due dates for filing GST returns depend on the type of return and the turnover of the taxpayer. For example, GSTR-1 must be filed by the 11th of every month for taxpayers with a turnover of more than Rs. 1.5 crores and by the 13th of every month for taxpayers with a turnover of up to Rs. 1.5 crores. Here are some examples of due dates for filing GST returns:

➤ GSTR-1: For taxpayers with turnover above Rs. 1.5 crores, GSTR-1 must be filed by the 11th of every month. For taxpayers with turnover up to Rs. 1.5 crores, GSTR-1 must be filed by the 13th of every month.

➤ GSTR-3B: This return must be filed by the 20th of every month.

➤ GSTR-2A: This is a system-generated return and does not have a due date for filing. However, it is recommended that taxpayers regularly reconcile their GSTR-2A with their own records to ensure accuracy.

➤ GSTR-9: This is an annual return that must be filed by 31st December of the following year.

➤ GSTR-4: This return is filed on a quarterly basis by the 18th of the month following the end of the quarter.

➤ GSTR-6: This return must be filed on a monthly basis by the 13th of the following month.

Late fees and penalties

If a taxpayer fails to file GST returns within the due date, a late fee of Rs. 50 per day (Rs. 20 for NIL returns) will be charged for every day of delay. Additionally, the taxpayer may also be liable to pay interest on the late payment of taxes. Here are some examples of the late fees and penalties that may be applicable:

➤ Late fee for GSTR-1: A late fee of Rs. 50 per day (Rs. 25 per day for taxpayers with turnover up to Rs. 1.5 crores) will be applicable for each day of delay beyond the due date, subject to a maximum of Rs. 5,000.

➤ Late fee for GSTR-3B: A late fee of Rs. 50 per day will be applicable for each day of delay beyond the due date, subject to a maximum of 0.25% of the taxpayer's turnover in the relevant state or union territory.

➤ Late fee for GSTR-4: A late fee of Rs. 200 per day (Rs. 100 per day for taxpayers with turnover up to Rs. 5 crores) will be applicable for each day of delay beyond the due date, subject to a maximum of 0.5% of the taxpayer's turnover in the state or union territory.

➤ Late fee for GSTR-9: A late fee of Rs. 200 per day will be applicable for each day of delay beyond the due date, subject to a maximum of 0.25% of the taxpayer's turnover in the relevant state or union territory.

In addition to the above late fees, interest may also be applicable on the outstanding tax liability. Therefore, it is important for taxpayers to ensure timely filing of their GST returns to avoid unnecessary fees and penalties.

Importance of accurate and timely GST return filing

GST return filing is crucial for businesses to comply with the GST regulations and avoid penalties. Additionally, timely and accurate GST return filing also helps in claiming input tax credit, maintaining proper accounting records, and managing cash flows. Accurate and timely GST return filing is important for several reasons:

➤ Compliance: As per the GST law, it is mandatory for registered taxpayers to file GST returns on time. Non-compliance with the GST law can result in penalties and legal consequences.

➤ Input Tax Credit (ITC): Accurate and timely filing of GST returns is necessary to claim Input Tax Credit (ITC) on purchases. ITC is a mechanism that allows taxpayers to claim credit for the GST paid on purchases and use it to offset their GST liability on sales. However, ITC can only be claimed if the supplier has filed their GST returns and the purchases have been correctly reported by the buyer.

➤ Business operations: Timely and accurate GST return filing helps businesses to maintain their financial records, prepare accurate financial statements, and make informed business decisions.

➤ Transparency: GST return filing helps to promote transparency and reduce tax evasion. The GST system is designed to track transactions from the point of origin to the point of consumption, and accurate GST return filing helps to ensure that all transactions are properly recorded and reported.

➤ Avoidance of penalties: Timely and accurate GST return filing helps to avoid late fees and penalties, which can be substantial and can impact the financial health of a business.

Therefore, it is important for taxpayers to take GST return filing seriously and ensure accurate and timely filing of their returns.

Filing of GST returns through GST portal

GST returns can be filed online through the GST portal (www.gst.gov.in). Taxpayers can log in to their GST account and file returns by providing the necessary details of sales and purchases made during the period.

GST returns can be filed online through the GST portal, which is a web-based application that facilitates various GST-related activities, including registration, return filing, and payment of taxes. Here are the steps involved in filing GST returns through the GST portal:

1. Log in to the GST portal using your GSTIN (Goods and Services Tax Identification Number) and password.
2. Navigate to the 'Returns Dashboard' and select the type of return you want to file.
3. Download the relevant offline utility tool and fill in the details. The offline utility tool is a software application that allows taxpayers to prepare their returns offline and then upload them to the GST portal.
4. Validate the details and generate the return in the prescribed format.
5. Upload the return to the GST portal and submit it. After submission, a reference number will be generated, which can be used to track the status of the return.
6. Make the payment of any tax liability due, if applicable.
7. After successful submission, download and save the acknowledgment receipt for future reference.

It is important to ensure that the details entered in the GST return are accurate and complete to avoid any penalties or legal consequences. Taxpayers can also take advantage of the various features available on the GST portal, such as the auto-population of details, which helps to minimize errors and save time.