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GST Return Filing – How to File GST Return?

The Goods and Services Tax (GST) is a significant tax reform implemented in India, and it has impacted businesses of all sizes and sectors. GST has replaced multiple indirect taxes such as excise duty, service tax, value-added tax (VAT), etc., with a single, comprehensive tax. The introduction of GST has simplified the taxation process and has made it more transparent, but at the same time, it has also increased the compliance burden on businesses.

Since GST is a new tax regime, businesses need to invest time and effort in understanding its provisions, rules, and regulations. They need to comply with various GST compliances, such as registration, return filing, invoice management, and payment of taxes. Any non-compliance with GST rules can attract severe penalties and fines, which can be a significant burden on businesses.

Therefore, businesses need to be well-equipped with the knowledge and understanding of GST rules and regulations and adopt an efficient GST compliance management system to avoid any issues related to GST. It is also essential for businesses to stay updated with the latest developments and changes in the GST laws to ensure compliance and avoid any legal and financial implications.

What is GST return?

A GST return is a document that contains details of a taxpayer's sales, purchases, and tax paid during a specific period. It is a document that taxpayers registered under the Goods and Services Tax (GST) regime need to file periodically with the GST authorities.

There are various types of GST returns, and the type of return to be filed depends on the nature of the taxpayer's business and the period for which the return is being filed. Filing GST returns is mandatory for all taxpayers registered under the GST regime, and non-compliance can attract penalties and fines. The due date for filing GST returns varies depending on the type of return and the nature of the taxpayer's business.

Different Types of GST Return

Under the GST regime, there are various types of GST returns, and the due dates for filing these returns vary depending on the type of return and the taxpayer's turnover. The following are the different types of GST returns:

GSTR-1:

This return contains details of a taxpayer's outward supplies or sales. The due date for filing GSTR-1 is the 11th of the succeeding month for taxpayers with a turnover of up to Rs. 1.5 crores and the 11th of the succeeding month of the quarter for taxpayers with a turnover of more than Rs. 1.5 crores.

GSTR-2A:

This return contains details of a taxpayer's inward supplies or purchases. It is auto-populated based on the details provided by the suppliers in their GSTR-1 return. There is no due date for filing GSTR-2A, but taxpayers need to reconcile it with their books of accounts regularly.

GSTR-3B:

This return is a summary return, and it contains details of a taxpayer's sales, purchases, and tax paid. It needs to be filed monthly by taxpayers with an annual turnover of more than Rs. 5 crores. The due date for filing GSTR-3B is the 20th of the succeeding month.

GSTR-4:

This return is for taxpayers registered under the Composition Scheme, and it contains details of their turnover and tax paid. The due date for filing GSTR-4 is the 18th of the month succeeding the quarter.

GSTR-5:

This return is for non-resident taxpayers who are registered under GST and conduct business in India. The due date for filing GSTR-5 is the 20th of the succeeding month.

GSTR-6:

This return is for taxpayers who are Input Service Distributors (ISD) and distribute input tax credit to their branches or units. The due date for filing GSTR-6 is the 13th of the succeeding month.

GSTR-9:

This return is an annual return, and it contains details of a taxpayer's sales, purchases, and tax paid for the entire financial year. The due date for filing GSTR-9 is the 31st of December of the subsequent financial year.

GSTR-10:

This return is for taxpayers who have canceled their GST registration. The due date for filing GSTR-10 is within three months of the date of cancellation.

GSTR-11:

GSTR-11 is used by foreign diplomatic missions and embassies that do not pay tax in India but need a tax refund. It is used by people who have been issued a Unique Identity Number (UIN) to request a refund for products and services purchased in India. These returns provide information about the inside supplies received and the refunds claimed.

Documents Required for GST Return Filing

To file GST returns, businesses need to maintain accurate records and documents of their sales, purchases, and other transactions. The documents required for GST Return Filing are as follows:

Sales invoices: These are the invoices issued by the taxpayer to their customers for the sale of goods or services. The sales invoices should contain details such as the name of the customer, address, GSTIN, description of goods or services, quantity, value, and tax charged.

Purchase invoices: These are the invoices received by the taxpayer from their suppliers for the purchase of goods or services. The purchase invoices should contain details such as the name of the supplier, address, GSTIN, description of goods or services, quantity, value, and tax paid.

Credit notes and debit notes: These are documents issued by the taxpayer to their customers or suppliers, respectively, to adjust the sales or purchase value or tax amount.

Payment vouchers: These are the documents issued by the taxpayer to their suppliers or employees as proof of payment made for goods or services received.

Input tax credit documents: These are the documents that support the claim of input tax credit by the taxpayer, such as invoices, debit notes, credit notes, and delivery challans.

E-way bills: E-way bills are required for the movement of goods from one place to another. For GST return filing, businesses need to maintain e-way bills generated for the movement of goods.

Bank statements: Bank statements are required to reconcile the tax paid and received by the taxpayer with the payments made and received in their bank account.

Most importantly, businesses need to maintain accurate records and documents of their transactions to ensure GST compliance and file GST returns timely.

Procedure for GST Return Filing

If you have been wondering how to file GST returns, it is not a laborious or confusing process. It can be filed with the software provided by the Goods and Services Tax Network (GSTN), which will auto-populate the forms. The process of GST return filing involves the following steps:

Collecting the necessary information and documents: The first step in the GST return filing process is to gather all the necessary information and documents required for filing the return. This includes invoices issued and received, details of sales and purchases, input tax credit claimed, and tax paid.

Login to GST portal: The next step is to log in to the GST portal using the GSTIN (Goods and Services Tax Identification Number) and the password.

Select the type of return: Once logged in, the taxpayer needs to select the type of return they want to file from the dashboard.

Filling the details: After selecting the type of return, the taxpayer needs to fill in all the necessary details such as the name and address of the business, the turnover for the period, and details of outward supplies, inward supplies, and taxes paid.

Verification: Once all the details are filled in, the taxpayer needs to verify the return by either digitally signing it using a digital signature certificate (DSC) or by using an electronic verification code (EVC).

Submitting the return: After verification, the taxpayer needs to submit the return by clicking on the submit button.

Payment of tax: If there is any tax liability, the taxpayer needs to pay the tax by generating a challan and making the payment through the GST portal.

Acknowledgment: Once the return is submitted and the tax is paid, an acknowledgment is generated, which confirms the successful filing of the GST return.

Features

Online filing: GST return filing is done online through the GST portal, which provides a simple and easy-to-use interface for taxpayers to file their returns.

Multiple returns: Under the GST regime, there are multiple returns that need to be filed based on the nature of the business and the type of transaction. This helps in ensuring greater compliance and transparency.
Auto-population of data: The GST portal automatically populates some of the data in the returns based on the invoices uploaded by the supplier. This reduces the time and effort required for filing the returns.

Input tax credit reconciliation: The GST returns contain details of input tax credit claimed by the taxpayer. The portal reconciles the input tax credit claimed by the taxpayer with the tax paid by the supplier, ensuring that there are no discrepancies.

Late fee and penalty: The GST portal automatically calculates the late fee and penalty for late filing or non-filing of returns. This helps in ensuring timely compliance by taxpayers.

Ease of rectification: In case of any errors or discrepancies in the returns filed, taxpayers can easily rectify them by filing an amendment return.

Real-time tracking: Taxpayers can track the status of their returns in real-time on the GST portal. They can also view the status of their payments and the amount of tax due.

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Frequently Asked Questions

Who is required to file GST returns?

Every person registered under GST, including regular taxpayers, composition taxpayers, and Input Service Distributors, is required to file GST returns.

Can GST returns be revised?

Yes, GST returns can be revised. If a taxpayer discovers any errors or omissions in the original return filed, they can file an amendment return to rectify the errors.

Is there a penalty for late filing of GST returns?

Yes, there is a penalty for late filing of GST returns. The late fee is Rs. 50 per day for filing GSTR-3B and Rs. 200 per day for GSTR-1. The maximum penalty is capped at 0.25% of the taxpayer's turnover in the relevant state or union territory.

Can the period of filing of returns be changed by the taxpayer?

Yes, the period of filing can be changed by the taxpayer once. This can only be done at the time that the first return of the financial year is filed.

What is an annual return under GST?

An annual return is a summary of all the GST returns filed during the financial year. All taxpayers, except those registered under the composition scheme, need to file an annual return in Form GSTR-9 by the 31st of December following the end of the financial year.