GST Returns

GST Returns are documents that a taxpayer registered under the Goods and Services Tax (GST) in India must file with the GST Department. These returns contain details of sales, purchases, input tax credit (ITC), and tax payments. Filing GST returns is a mandatory compliance requirement for businesses and individuals registered under GST.

The filing of GST returns is governed by the GST Act, 2017 and is facilitated through the GSTN (Goods and Services Tax Network) portal. Accurate and timely filing ensures that businesses remain compliant with tax laws and avoid penalties.

Who Needs to File GST Returns?

1. Regular Taxpayers:
   Businesses with annual turnover exceeding the exemption limit (₹20 lakh for most states and ₹10 lakh for special category states).

2. Composition Scheme Taxpayers:
   Small businesses opting for the composition scheme must file returns quarterly.

3. Input Service Distributors (ISD):
   Entities distributing input tax credit to their branches must file GST returns.

4. E-Commerce Operators:
   Entities facilitating supply through their platform must file GST returns.

5. Non-Resident Taxable Persons:
   Businesses not based in India but operating in the country must also file GST returns.

Types of GST Returns

1. GSTR-1:
   Details of outward supplies of goods or services.

   • Due Date: 11th of the subsequent month for monthly filers or quarterly for QRMP (Quarterly Return Monthly Payment) scheme taxpayers.

2. GSTR-2A and GSTR-2B:
   Auto-generated returns showing details of inward supplies. Used for reconciliation.

3. GSTR-3B:
   A summary return for declaring tax liability, ITC, and making tax payments.

   • Due Date: 20th of the subsequent month or staggered due dates for certain states.

4. GSTR-4:
   For composition scheme taxpayers.

   • Due Date: 30th of the month following the end of the financial year.

5. GSTR-5:
   For non-resident taxable persons.

   • Due Date: 20th of the subsequent month or within seven days of the expiry of registration.

6. GSTR-6:
   For Input Service Distributors (ISD).

   • Due Date: 13th of the subsequent month.

7. GSTR-7:
   For entities deducting TDS (Tax Deducted at Source) under GST.

   • Due Date: 10th of the subsequent month.

8. GSTR-8:
   For e-commerce operators collecting TCS (Tax Collected at Source).

   • Due Date: 10th of the subsequent month.

9. GSTR-9:
   Annual return summarizing all monthly/quarterly returns filed during the financial year.

   • Due Date: December 31st of the subsequent financial year.

10. GSTR-10:
    Final return to be filed upon cancellation of GST registration.

• Due Date: Within three months of cancellation or deregistration.

11. GSTR-11:
    For taxpayers with a Unique Identification Number (UIN) to claim refunds.

• Due Date: 28th of the subsequent month.

Steps to File GST Returns

Step 1: Gather Necessary Data

• Sales invoices, purchase invoices, debit/credit notes, and records of ITC.

Step 2: Log in to the GST Portal

• Visit GST Portal and log in using your credentials.

Step 3: Select the Return Type

• Choose the relevant GST return form based on your taxpayer type and filing frequency.

Step 4: Fill in the Details

• Enter details of outward and inward supplies, ITC claimed, tax paid, and other required information.

Step 5: Reconcile and Validate

• Reconcile GSTR-2A/2B with purchase invoices to ensure accuracy.

Step 6: Submit and Pay Tax

• Submit the return and pay any pending tax liability.

Step 7: E-Verify the Return

• Verify using Digital Signature Certificate (DSC), EVC (Electronic Verification Code), or Aadhaar OTP.

Benefits of Filing GST Returns

1. Legal Compliance:
   Filing returns on time ensures adherence to GST laws and avoids penalties.

2. Claiming ITC:
   Taxpayers can claim input tax credit only if they file returns correctly.

3. Avoiding Penalties:
   Timely filing avoids late fees, interest, and other penalties.

4. Facilitates Business Growth:
   Proper compliance improves credibility and facilitates loans or collaborations.

5. Smooth Refund Process:
   Filing accurate returns ensures quick processing of refunds.

6. Transparency:
   GST returns promote transparency by providing detailed records of transactions.

Documents Required for Filing GST Returns

1. GSTIN (Goods and Services Tax Identification Number).
2. Invoices of sales and purchases.
3. Credit/Debit notes.
4. Bank statements.
5. Tax payment challans (if applicable).
6. Digital Signature Certificate (DSC) for companies.

Penalties for Non-Compliance

1. Late Filing Fee:

   • ₹50 per day (₹25 CGST + ₹25 SGST) for normal returns.
   • ₹20 per day (₹10 CGST + ₹10 SGST) for NIL returns.

2. Interest on Late Payment:

   • 18% per annum on unpaid tax.

3. Other Penalties:

   • Up to ₹10,000 or the amount of tax evaded, whichever is higher, for serious offenses.