GST RETURN FILLING

Introduction

With the aim of “One Nation One Tax”, Goods and Services Tax (GST) was introduced in India on 1st July 2017 to unify different indirect taxes. The commencement of GST regime in India brought with itself the concept of GST return- a document in which the taxpayer under the Goods and Services Tax (GST) need to file the details of his/her income to the tax authorities. All the business entities need to get themselves separately registered under GST Regime and file their GST return in an online or offline mode.

As per the 37th GST Council Meeting, new GST return mechanism has taken its presence in GST regime from April 2020 (in acceptance of the proposal from October 2019).

Eligibility for GST Return Filing

All business dealers and entrepreneurs who are registered under the GST mechanism have to mandatorily file the GST returns in the relevant GST form either in online mode or offline.

The types and number of GST return to be filed depends on the taxpayer’s type like a regular taxpayer, TDS deductor, composition dealer, Distributor(ISD), e-commerce operator, non-resident taxpayer, Input Service provider and so on. In general, the two monthly returns viz. GSTR-1, GSTR-3B has to be filed by a regular taxpayer along with an annual return (GSTR-9/9C) for each GST registration individually, thereby summing up a total of 25 GSTR to be filed in a year.

Types of GST Returns

1. GSTR - 1: Return for Outward Supplies

GSTR-1 is a monthly return that reflects outward supplies carried out by a normal taxpayer registered under GST. In simple words, GSTR-1 is a monthly return that contains the sales transactions executed by a business in a specific month.
Who Must File GSTR-1?
Every normal taxpayer who is registered under GST needs to file GSTR-1 every month. This return reflects detailed information about

• Invoices,
• Debit notes,
• Credit notes and
• Revised invoices issued in relevance to the outward supplies.

Due Date to File GSTR-1
The deadline to file GSTR-1 is 10 days from the completion of the month in relevance to which the return is to be filed. For some individuals, the due date can be deferred beyond the 10th date by the commissioner, however, the reason for the extension of the due dates must be notified.
Two types of GSTR-1 Return can be filed by taxpayers according to their turnover:

*Subject to notification issued by government

2. GSTR - 1: Return for Outward Supplies

GSTR-2 is a monthly return that reflects the inward supply of goods and services in agreement with the recipient of such goods and services. In simple words, GSTR-2 is a monthly return that contains detailed information about the purchases made by the recipient in a specific month. The information in GSTR-2 gets auto-populated with the information available in GSTR-2A. The recipient can make an important correction, if required, in GSTR-2 after checking the details auto-populated in GSTR-2A from the information that was uploaded in GSTR-1 by the supplier.

Who Must File GSTR-2?
Every normal taxpayer registered under GST needs to file GSTR-2 to provide details about inward supplies or purchases made in each month. GSTR-2 encompasses details about the purchases made from registered as well as unregistered taxable individuals, along with the credit notes, debit notes issued w.r.t the inward purchases.

Due Date to File GSTR-2
11th and 15th date of the succeeding month in the relevance to which the return is to be filed are the deadlines to make any changes in the return and to file the same.

3. GSTR - 2A: Read the Only Document

GSTR-2A is a read-only document which gets auto-populated upon the presentation of the information in GSTR-1 by the supplier. In simple language, GSTR-2A is a read-only return that allows the recipient to check the information uploaded in GSTR 1 by the supplier. Under the verification, the recipient is allowed to accept, edit, reject or hold the invoices pending in case of mismatch. However, the changes can be made in GSTR 2 by the recipient.

Who Must File GSTR-2A?
GSTR-2A is available for every normal taxpayer who is filing return under GST to match the details uploaded by the supplier in GSTR-1.

Due Date to File GSTR-2A
As this is a read-only document which gets auto-populated using the information uploaded by the supplier in GSTR-1, the recipient is allowed to accept, edit, reject or hold the invoices pending in case of disparities. The changes can be made only in Form GSTR 2 while filing this return between 11th and 15th day of the month succeeding the month in relevance to which the return is to be filed.

4. GSTR - 3B: Summary of Inward and Outward Supplies

GSTR 3B is a monthly summary return having details about inward and outward supplies. GSTR-3B acts as a self-declaration of the taxpayer’s GST liabilities for the tax period and helps the taxpayer execute his/her tax liabilities in stipulated time-frame. GSTR-3B is an irreversible form and does not need any compliance to compare the invoices between supplier and purchaser. So, the suppliers and the recipients need to separately file the GSTR-3B form.

Who Must File GSTR-3B?
Every normal taxpayer who is filing GST Returns needs to file GSTR-3B, even during the tax periods when there is zero tax liability. A Nil return is to be filed for the month when any outward or inward transactions have not taken place.

Due Date to File GSTR-3B
The GSTR-3B must be filed by the 20th of the month succeeding the tax period in relevance to which GST is to be filed.

5. GSTR - 4: Annual Return for Composition Dealers

GSTR-4 is an Annual return that every taxpayer who is registered under the Composition Scheme has to file.

Who Needs to File GSTR-4?
Every registered taxpayer choosing for Composition Scheme which was brought under GST irrespective to turnover.

Due Date to File GSTR-4
The due date to file GSTR-4 is last day of next month of completion of financial year i.e. 30th April of every year.

6. GSTR - 5: Return for Non-Resident Taxable Persons

GSTR-5 is the only monthly return to be filed by every non-resident taxable person. This return reflects details about inward supplies, outward supplies, interest, penalty, fees, tax payable or paid and any other amount payable under the GST act.

Who Must File GSTR-5?

A non-resident taxable individual i.e. the individual who supplies goods or services as a principal/agent/ or any other capacity on an occasional basis and does not have any residence in India needs to file this return.

Due Date to File GSTR-5
The GSTR 5 must be filed either within a time-frame of 20 days after the completion of the calendar month or 7 days after the last date of registration validity, whichever is earlier.

7. GSTR - 6: Return for Input Service Distributors

GSTR 6 is a monthly return that is to be filed by an Input Service Distributor to furnish the information about all the invoices on which credit has been procured and issued. In simpler terms, GSTR-6 reflects the total availability of ITC for distribution during a month. So, the details about the invoices furnished by an ISD in GSTR 6 are made visible to every credit recipient in part B of form GSTR 2A. It also showcases the details about the debit and credit notes received in the ongoing taxation period.

Who Must File GSTR-6?
GSTR 6 has to be filed by every Input Service Distributor Input Service Distributor (ISD) means a business of the supplier of goods or services or both that receives tax invoices towards receipt of input services and issues a prescribed document for the purposes of distributing the credit of central tax (CGST), State tax (SGST)/ Union territory tax (UTGST) or integrated tax (IGST).

Due Date to File GSTR-6
GSTR-6 must be filed on the 13th day of the month just after the month in relevance to which the tax has to be paid.

8. GSTR - 7: Return for Taxpayers Deducting TDS

GSTR 7 is a monthly return to be filed by the individuals who need to deduct TDS under GST. GSTR-7 encompasses details about TDS, TDS Refund (claimed if any), liability towards TDS, Interest paid or payable, late fees paid or payable, etc.

Who Must File GSTR-6?
GSTR 6 has to be filed by every Input Service Distributor Input Service Distributor (ISD) means a business of the supplier of goods or services or both that receives tax invoices towards receipt of input services and issues a prescribed document for the purposes of distributing the credit of central tax (CGST), State tax (SGST)/ Union territory tax (UTGST) or integrated tax (IGST).

Due Date to File GSTR-6
GSTR-6 must be filed on the 13th day of the month just after the month in relevance to which the tax has to be paid.

9. GSTR - 8: Return for E-Commerce Operators Collecting TCS

GSTR 8 is a monthly return to be filed by every commerce operator who needs to deduct TCS (Tax Collected at Source) under GST. This return contains detailed information about the supplies made via e-commerce portal and the amount of TCS collected from the provider of goods and services.

Who Must File GSTR-8?
Every e-commerce operator who is also a TCS deductor under GST needs to file GSTR-8.

Due Date to File GSTR-8
GSTR 8 must be filed before the 10th day of the month just after the month in relevance to which TCS is collected along with deposition of the same TCS before the same due date.

10. GSTR - 9: Annual Return for Normal Registered Taxpayer Under GST

As per the Section 44(1), every registered person shall e- furnish an annual return in form of GSTR-9 for every F.Y. in the specified form, except the individuals who is an

• Input Service Distributor
• Casual taxable individual
• Non-resident taxable individual
• Person paying tax u/s 51 or section 52

Note: Individuals registered under GST who did not carry any transaction in the year also needs to file an Annual Return- Nil Annual Return.

Due Date to File GSTR-9
Such a return needs to be furnished by the 31st day of December following the completion of such F.Y.
Due date for the return is irrespective of notification issued by central government
Due date for the F.Y 2018-19 Annual return has been extended up to 30th September

11. GSTR - 9B: Annual Return for E-Commerce Operators Collecting TCS

Every e-commerce operator who needs to collect tax at source u/s 52 and file monthly return in form GSTR 8 shall furnish annual statements in FORM GSTR -9B.

Due Date to File GSTR-9B
31st December following the end of the F.Y. is the due date to file GSTR-9B.

12. GSTR - 9C: Return for Registered Individuals Getting Accounts Audited from CA

Every registered individual with an aggregate turnover of above 2 crores in an F.Y. has to get his accounts audited by a Chartered Accountant or Cost Accountant. The annual return alongside a copy of the audited accounts and a reconciliation statement in Form GSTR 9C needs to be submitted by such registered persons.

Due Date to File GSTR-9C
31st December of the year following the relevant FY under audit is the due date to file GSTR-9C.
Extended Due date for GSTR 9C for the F.Y. 2018-19 is 30th September 2020

13. GSTR - 10: Return for Registered Individual Whose GST Registration Gets Revoked

GSTR-10 is a final return that needs to be furnished by a registered individual whose GST Registration gets revoked

Who cannot file GSTR10

• Input Service Distributor
• Non-resident taxable individual
• Individual paying tax under composition scheme
• Individual collecting TDS or TCS.

Due Date to File GSTR-10
The registered individual whose GST Registration has been revoked needs to furnish the final return in Form GSTR-10 within 3 months from the date of revocation or Date of the revocation order.

14. GSTR - 11: Return for UIN (Unique Identification Number) Holders

GSTR-11 is a return to be furnished by an individual who has been provided with a Unique Identification Number (UIN) to claim GST refund of the tax paid by them on goods & services bought in India.

Due Date to File GSTR-11
The deadline to File GSTR-11 is 28th of the month just after the month in relevance to which supplies are procured by the UIN holders.

Penalty On Late Filing of GST Returns

GSTR filing is mandatory for all the dealers and businesses registered under GST, including those who have nil returns. GSTR filing after the due dates leads to the imposition of late filing fees along with penalty interest.
Late Filing Fees applicable to Intra-State Dealings

Note: The highest amount of late filing fees for each monthly or quarterly filing cannot be above INR 5000 for each CGST and SGST. Whereas the highest amount imposable as late filing fee for each GSTR 9 cannot be above 0.25% of the annual turnover.

Late Filing Fees applicable to Inter-State Dealings

According to the Integrated Goods and Services (IGST) Act, the penalty for late filing of IGST returns is equivalent to the total of the penalties based on the CGST Act and SGST/UTGST Act. So, the late filing of IGST would sum a fine of INR 200/day. It must be noted that the highest late filing fee for quarterly or monthly IGST return cannot be above INR 10,000 for each filing. Whereas the highest amount of late filing fee for each annual GSTR (GSTR 9) cannot be above 0.25% of the turnover.

Non-filing of GST Return

Non-Filing of GST returns within the prescribed time may lead to the attraction of penalties and cancellation of GST registration. The cancellations of GST Registration occur when the registered person under GST does not submit the GST Return for a continuous period of six months. Once the GST Return is cancelled he/she would not be able to obtain another GST registration unless the entire late filing penalty is paid.

Process of GST Return Filing

Here we go for the step by step process to file GSTR.

1. Login and Go to the GSTR-1 page.
2. Choose the quarterly or monthly GSTR.
3. Generate the summary of GSTR-1.
4. Fill the detailed information for the current tax period encompassing the amendments.
5. Preview GSTR-1.
6. Verify and Submit GSTR-1, to save the data entered.
7. E-file the GST Return- 1 with DSC or EVC.