GST Return Filing
A GST return is a document where a taxpayer reports income, expenses, sales, purchases, and tax liability to tax authorities using their GSTIN. It provides essential details for tax administrative authorities.
The Goods and Services Tax (GST) is an indirect tax levied on the supply of goods and services in India. Every taxpayer registered under GST has to file GST returns. These returns are used to calculate the tax liability by the government. GST is an evolving system of taxation and the government keeps updating the rules and regulations around it. So, it is important to stay up-to-date to be able to file your returns correctly. Our GST return filing service helps taxpayers to get it done easily. Our professionals will take care of the filings so you don’t have to worry about keeping up with the due dates and staying GST compliant.
Benefits of GST Return Filing
- GST Eliminates Cascading Effect
Earlier there were many instances where tax on tax was paid for a single transaction. As GST did away with several other taxes like central excise duty, service tax, customs duty, and state-level value-added tax, you no longer are subjected to paying tax on tax. This saves you money.
- Higher Threshold
The threshold for GST is aggregate turnover exceeding 40 lakhs for sale of goods and aggregate turnover exceeding 20 lakhs for sale of services. This means small businesses falling below this threshold limit are not subject to GST Filing.
- Easier for Startups and E-commerce Businesses
The GST system has made it easier for startups and e-commerce companies to manage their taxes. E-commerce particularly suffered from different tax laws across different states which are now eradicated by GST.
- More Organised System
Before the GST tax return filing system was disorganised. Now, all taxes are paid online and major hassles that were a part of tax filing have been eliminated in the process of introducing GST.
Documents Required for GST Return Filing
- Invoices issued to persons with GSTIN or B2B invoices
- Invoices issued to persons without GSTIN or B2C invoices
- This needs to be submitted only when its total value is above ₹2.5 lakhs
- A consolidation of inter-state sales
- HSN-wise summary of all goods sold
- Any other debit or credit notes or advance receipts
Upcoming Due Dates to File GST Returns
It is crucial to complete the filing within the due date to file GST. This will help in avoiding late payment charges and interests. The due dates for filing GST returns can be extended as per the issuing order or through notifications. Certificate Bazar has gathered a list of due dates to file GST for the financial year 2021- 2022 and 2022 – 2023.
Who Is Eligible for GST Return?
- Regular enterprises with an annual aggregate revenue of more than ₹5 crore
- Taxpayers who did not choose the QRMP plan are required to file two monthly returns and one yearly return under the GST system
- QRMP filers must submit nine GSTR files annually, which include four GSTR-1 and three GSTR-3B forms as well as an annual return. It should be noted that even if QRMP filers submit their returns on a quarterly basis, they must pay tax on a monthly basis
- Additionally, separate statements and returns must be filed in other circumstances, such as in the case of composition dealers, who must submit five GSTR files annually (4 statement-cum-challans in CMP-08 and 1 annual return GSTR-4).
Interstate vs. Intrastate Transactions in GST Filing
| Aspect | Interstate Transactions | Intrastate Transactions |
|---|---|---|
| Definition | Occur when the supplier and recipient are in different states. | Occur when the supplier and recipient are in the same state. |
| Tax Levied | Integrated Goods and Services Tax (IGST). | Central Goods and Services Tax (CGST) and State Goods and Services Tax (SGST) at separate rates. |
| Components of Tax | IGST is a combination of CGST and SGST. | CGST and SGST are separate components. |
| Place of Supply | Determined by the destination of goods or services. | Determined by the location of the supplier. |
| Tax Collection | Central Government collects IGST; distributes SGST to the destination state. | Both Central and State Governments collect their respective portions of CGST and SGST. |
| Returns to be Filed | GSTR-1, GSTR-3, and GSTR-22. | GSTR-1, GSTR-3, and GSTR-21. |
GST Filing Returns – Types and Due Dates
| GST Filing Returns | Purpose |
|---|---|
| GSTR1 | Tax returns for outward supplies are made using this form. It contains the details of the interstate as well as intrastate B2B and B2C sales including purchases under reverse charge and inter-state stock transfers made during the tax period. If Form GSTR-1 is filed late, the late fee will be collected in the next open return in Form GSTR-3B. From 1 January 2022, taxpayers will not be permitted to file Form GSTR-1 if they have not filed Form GSTR-3B in the preceding month. |
| GSTR1A | It is an amendment form used to correct the GSTR-1 document including any mismatches between the GSTR-1 of a taxpayer and the GSTR-2 of their customers. This can be filed between 15 and 17 of the following month. |
| GSTR2 | Monthly GST return for the received inward supplies are filed using this form. It contains taxpayer info, period of return and final invoice-level purchase information related to the tax period listed separately for goods and services. |
| GSTR2A | An auto-generated tax return for purchases and inward supplies made by a taxpayer is automatically compiled by the GSTN based on the information present within the GSTR-1 of their suppliers. |
| GSTR2B | GSTR-2B is an auto-generated document that acts as an Input Tax Credit (ITC) statement for taxpayers. The GST Council states that GSTR-2B will help in cutting down the time taken to file returns, minimise errors, ease reconciliation and simplify compliance. |
| GSTR3 | It is used to file consolidated monthly tax returns. It contains The taxpayer’s basic information (name, GSTIN, etc), period to which the return pertains, turnover details, final aggregate-level inward and outward supply details, tax liability under CGST, SGST, IGST, and additional tax (+1% tax), details about your ITC, cash, and liability ledgers, details of other payments such as interests, penalties, and fees. |
| GSTR3A | It is a tax notice issued by the tax authority to a defaulter who has failed to file monthly GST returns on time. |
| GSTR3B | Temporary consolidated summary GST returns of inward and outward supplies that the Government of India has introduced as relaxation for businesses that have recently registered to GST. |
| GSTR4 | It is the quarterly GST returns filed by compounding vendors. This contains the total value of supply made during the period covered by the return, along with the details of the tax paid at the compounding rate (not more than 1% of aggregate turnover) for the period along with invoice details for inward supplies if they are either imports or purchased from normal taxpayers. |
| GSTR4A | It is the Quarterly purchase-related tax return filed by composition dealers. It’s automatically generated by the GSTN portal based on the information furnished in the GSTR-1, GSTR-5, and GSTR-7 of your suppliers. |
| GSTR5 | Variable return for Non-resident foreign taxpayers (It contains the details of the taxpayer, period of return and invoice details of all goods and services sold and purchased. It also includes imports by the taxpayer on Indian soil for the registered period/month. |
| GSTR6 | This is the monthly GST return for ISDs. It contains the details of the taxpayer’s basic information (name, GSTIN, etc), period to which the return pertains, invoice-level supply details from the GSTR-1 of counter-parties, invoice details, including the GSTIN of the taxpayer receiving the credit, separate ISD ledger containing the opening ITC balance for the period, credit for ITC services received, debit for ITC reversed or distributed, and closing balance |
| GSTR7 | It is filed as a monthly return for TDS transactions. It contains the taxpayer’s basic information (name, GSTIN, etc), period to which the return pertains, supplier’s GSTIN, invoices against which the tax has been deducted. It is categorised under the major tax heads – SGST, CGST, and IGST. Details of any other payments such as interests and penalties are also included in the form. |
| GSTR8 | It is the monthly return for e-commerce operators. It contains the taxpayer’s basic information (name, GSTIN, etc), the period to which the return pertains, details of supplies made to customers through the e-commerce portal by both registered taxable persons and unregistered persons, customers’ basic information (whether or not they are registered taxpayers), the amount of tax collected at source, tax payable, and tax paid). |
| GSTR9 | This is an annual consolidated tax return It contains the taxpayer’s income and expenditure in detail. These are then regrouped according to the monthly GST returns filed by the taxpayer. |
| GSTR9A | It is an annual composition return form that has to be filed by every taxpayer who is enrolled in the composition scheme |
| GSTR9B | It is an annual return form that has to be filed by e-commerce operators who collect tax at the source |
| GSTR9C | This Audit form has to be filed by every taxpayer who is liable to get their annual reports audited when their aggregate turnover exceeds ₹2 crores in a financial year. |
| GSTR10 | Filing GST returns before cancelling GST registration This final GST returns is to be filed when terminating business activities permanently/cancelling GST registration. It will contain the details of all supplies, liabilities, tax collected, tax payable. |
| GSTR11 | Variable tax return for taxpayers with UIN It contains the details of purchases made by foreign embassies and diplomatic missions for self-consumption during a particular month. |
GST Return Filing Process
The government has been making strides towards innovation and automation and has instituted facilities for the online filing of returns under GST on the government’s GST portal, through the Goods and Service Tax Network (GSTN).
- Step 1: Go to the GST portal – www.gst.gov.in
- Step 2: Obtain a 15-digit GST Identification Number (GSTIN), which is issued based on your state code and PAN
- Step 3: Upload the relevant invoices on the GST portal. An invoice reference number against each invoice will be allotted
- Step 4: Once all the invoices, inward returns, outward returns, and cumulative monthly GST filing returns are uploaded, verify all the data you have inputted and file your returns.
Certificate Bazar is well-known for its user-friendly online platform with which you can avail of GST filing services from the comfort of your home. The dedicated representatives of Certificate Bazar will be in constant touch with you right from the start. They will collect all the required documents and do the needful.
Penalty for Late Filing
| Type of Offence | Penalty | Type of Offence | Penalty |
|---|---|---|---|
| Late Filing: | – ₹100 per day during which the failure continues, up to a maximum of ₹5,000 | Late Filing: | – ₹100 per day during which the failure continues, up to a maximum of ₹5,000 |
| – ₹100 per day during which the failure continues, subject to a maximum of quarter percent of the person’s turnover in the state where he is registered for annual return | – ₹100 per day during which the failure continues, subject to a maximum of quarter percent of the person’s turnover in the state where he is registered for annual return | ||
| Late Payment of Tax: | Interest on the tax due calculated from the first day the tax was due to be paid | Late Payment of Tax: | Interest on the tax due calculated from the first day the tax was due to be paid |
| Excess Claim of Input Tax Credit or Reduction: | Interest on the undue excess claim or undue reduction in output tax liability | Excess Claim of Input Tax Credit or Reduction: | Interest on the undue excess claim or undue reduction in output tax liability |
| Delayed Payment to Supplier: | Interest on the amount due added to the recipient’s liability | Delayed Payment to Supplier: | Interest on the amount due added to the recipient’s liability |
| Cancellation of Registration: | Registration may be canceled if: | Cancellation of Registration: | Registration may be canceled if: |
| – Regular dealer hasn’t furnished returns for 6 continuous months | – Regular dealer hasn’t furnished returns for 6 continuous months | ||
| – Composition dealer hasn’t furnished returns for 3 quarters | – Composition dealer hasn’t furnished returns for 3 quarters | ||
| – Voluntary registered person hasn’t commenced business within 6 months of registration | – Voluntary registered person hasn’t commenced business within 6 months of registration | ||
| – Registration obtained by fraud, wilful misstatement, or suppression of facts | – Registration obtained by fraud, wilful misstatement, or suppression of facts | ||
| Confiscation of Goods and/or Conveyances: | Confiscation of goods and/or conveyances and fine of ₹10,000 or an amount equal to the tax evaded | Confiscation of Goods and/or Conveyances: | Confiscation of goods and/or conveyances and fine of ₹10,000 or an amount equal to the tax evaded |
| Imprisonment and Fine: | Imprisonment and fine applicable for specific offenses | Imprisonment and Fine: | Imprisonment and fine applicable for specific offenses |
| Other Penalties: | – ₹10,000 or amount equivalent to the tax evaded for specified offenses | Other Penalties: | – ₹10,000 or amount equivalent to the tax evaded for specified offenses |
| – Penalty of up to ₹25,000 for aiding or abetting offenses listed above | – Penalty of up to ₹25,000 for aiding or abetting offenses listed above |