Return
GST Return Form is a document containing details of all purchases, sales, output GST (on sales) and input tax credit (GST paid on purchases) to calculate an assessor’s GST liability for a particular tax period. Currently GST returns can be filed either on monthly, quarterly or annually depending on various applicable factors.
A GST return is a document containing details of all income/sales and/or expenses/purchases that a GST-registered taxpayer (every GSTIN) is required to file with the tax administrative authorities. This is used by tax authorities to calculate net tax liability.
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AN OVERVIEW ON GST RETURN
GST Return Form is a document containing details of all purchases, sales, output GST (on sales) and input tax credit (GST paid on purchases) to calculate an assessor’s GST liability for a particular tax period. Currently GST returns can be filed either on monthly, quarterly or annually depending on various applicable factors.
A GST return is a document containing details of all income/sales and/or expenses/purchases that a GST-registered taxpayer (every GSTIN) is required to file with the tax administrative authorities. This is used by tax authorities to calculate net tax liability.
The four forms- return for supplies, return for purchases, monthly returns, and yearly return, will be used by individual taxpayers to file their GST returns. Small taxpayers that chose a composition plan must provide quarterly reports. Every return will be filed online.
Under GST, a registered dealer has to file GST returns that broadly include:
Purchases
Sales
Output GST (On sales)
Input tax credit (GST paid on purchases)
TYPE OF GST RETURN:
1. GSTR-1
The details of outward supplies of both goods and services are required to be furnished by every registered person including casual registered person except the following:
• input service distributor (ISD)
• non-resident taxable person (NRTP)
• person paying tax under composition scheme
• person deducting tax at source
• person collecting tax at source i.e., e-commerce operator (ECO), not being an agent
• supplier of online information and database access or retrieval services (OIDAR) located in non-taxable territory and providing such services to a non-taxable online recipient [Provisions relating to OIDAR services and non-taxable online recipient
The details of outward supplies are required to be furnished, electronically, in Form GSTR-1 for the month or quarter
Monthly filing of GSTR-1: GSTR-1 for a particular month is filed on or before the 10th day of the immediately succeeding month.
Quarterly filing of GSTR-1: GSTR-1 has been allowed to be filed quarterly by small taxpayers with aggregate annual turnover up to ` 5 crore in the preceding financial year under Quarterly Return Monthly Payment Scheme [QRMP Scheme 2] file 13th day of the month succeeding such tax period.
Nil GSTR-1 Filing of GSTR-1 is mandatory for all normal and casual taxpayers, even if there is no business activity in any particular tax period. For such tax period(s), a Nil GSTR-1 is required to be filed as prescribed under Rule 67A of the CGST Rules
2. GSTR-2A
Form GSTR-2A – is a system generated read only statement of inward supplies for a recipient. This statement is updated on a real time basis. The details become available to the recipient for view/download and are updated
3. GSTR-2B
Form GSTR-2B – an auto-drafted read only statement containing the details of eligible ITC – is made available to the registered person (recipient) for every month. It is a static statement and is available only once a month.
4. GSTR-3B
GSTR-3B is a simple return containing summary of outward supplies, inward supplies liable to reverse charge, eligible ITC, payment of tax etc. Thus, GSTR-3B does not require invoice-wise data of outward supplies. GSTR-3B can be submitted electronically through the common portal, either directly or through a Facilitation Centre notified by the Commissioner. Further, a Nil GSTR-3B can be filed through an SMS using the registered mobile number of the taxpayer.
As discussed above, GSTR-3B can be filed monthly or quarterly.
Due date for filing return
(i) Monthly GSTR-3B -on or before 20th of the month succeeding the month for which return is furnished.
(ii) Quarterly GSTR-3B- on or before 22nd or 24th of the month succeeding the quarter for which return is furnished in case of a taxpayer opting for QRMP scheme
5. GSTR-4
Person eligible to file return, periodicity and form of return
A registered person paying tax under the provisions of section 10, shall, for each financial year or part thereof, furnish a return, electronically, of turnover in the State or Union territory, inward supplies of goods and/or services, tax payable, tax paid and such other particulars in such form and manner, and within such time, as may be prescribed.
GSTR-4 for a financial year or part of a financial year should be filed electronically through the common portal either directly or through a Facilitation Centre notified by the Commissioner.
Quarterly statement for payment of self-assessed tax
The persons required to file GSTR-4 are also required to furnish a statement in the Form GST CMP-08 containing details of payment of self-assessed tax, for every quarter (or part of the quarter), by 18th day of the month succeeding such quarter.
Due date for filing GSTR-4 and Statement for payment of self-assessed tax
GSTR-4 for a financial year should be furnished by 30th April of the succeeding financial year.
6. GSTR-5 – Return for Non-Resident Taxable Persons
Non-Resident Taxable Persons (NRTPs) are those suppliers who do not have a business establishment in India and have come for a short period to make supplies in India. They would normally import their products into India and make local supplies.
Monthly return
A registered NRTP is not required to file the Statement of Outward Supplies and return applicable for a normal taxpayer. In place of the same, a simplified monthly tax return has been prescribed in Form GSTR-5 for a NRTP for every calendar month or part thereof. The details of outward supplies and inward supplies of a NRTP are incorporated in GSTR-5.
Last date of filing return
GSTR-5 should be furnished within 20 days after the end of the calendar month or within 7 days after the last day of validity period of the registration, whichever is earlier.
7. GSTR-6 – Return for Input Service Distributor
ISD is not required to file statement of outward supplies with its return. It needs to file only a monthly return in Form GSTR-6 electronically through the common portal. Form GSTR-6 contains the details of ITC received for distribution, total ITC/ eligible/ ineligible ITC to be distributed for the tax period, distribution of ITC, details of debit/ credit notes
Last date of filing return
The details in GSTR-6 should be furnished on/before 13th of the month succeeding the calendar month. GSTR-6 can only be filed after 10th of the month and before 13th of the month succeeding the tax period.
Auto-population of ITC received for distribution
The details of ITC received for distribution by an ISD will be auto populated in Form GSTR-6A. Such details are auto-populated in Form GSTR-6A when the registered suppliers file their GSTR-1. ISD can view the auto-populated details of ITC received for distribution in GSTR-6A.
8. GSTR-7 – Return for tax deducted at source
Whenever taxable goods or services or both are supplied to a Central/ State Government’s Department/ establishment or, local authority, or Governmental agencies, recipient is required to deduct tax at source under section 51.
Monthly return- Diductor shall furnish a monthly return in Form GSTR-7 electronically through the common portal.
Last date of filing return
The details in GSTR-7 should be furnished on/before 10th of the month succeeding the calendar month in which tax has been deducted at source.
Tax Deduction at Source (TDS) Certificate
A TDS certificate is required to be issued by deductor (the person who is deducting tax) in Form GSTR-7A to the deductee (the supplier from whose payment, TDS is deducted), within 5 days of crediting the amount to the Government.
9. GSTR – 8 – Statement for tax collection at source
Monthly statement- An ECO liable to collect tax at source shall furnish a monthly statement in Form GSTR-8 electronically through the common portal. Form GSTR-8 contains the details of supplies of goods or services or both effected through ECO, including the supplies of goods or services or both returned through it and the amount of tax collected at source.
Last date of filing statement – The details in GSTR-8 should be furnished on/before 10th of the month succeeding the calendar month in which tax has been collected at source.
Further, the amount of tax collected by ECO (TCS amount) is required to be deposited by the 10th of the month succeeding the calendar month in which tax has been collected at source.
TCS details available to suppliers on common portal – The details of TCS furnished by the ECO in GSTR-8 shall be made available electronically to each of the suppliers on the common portal after filing of GSTR-8. The supplier can take this amount as credit in his electronic cash ledger after validation and use the same for payment of tax or any other liability.
10. GSTR – 9/9A and GSTR-9B – Annual Return & Annual Statement
Who is required to furnish the annual return and what is the due date for the same?
All registered persons are required to file an annual return. However, following persons are not required to file annual return:
• Casual taxable persons
• Non-resident taxable person
• Input service distributors
• Persons authorized to deduct/collect tax at source under section 51/52, and
• Person supplying OIDAR services from outside India to unregistered persons in India
The annual return for a financial year needs to be filed by 31st December of the next financial year.
BENEFITS OF fILING GST RETURNS
Input Tax Credit (ITC) Claims: GST return enables businesses to claim input tax credit for the taxes paid on their purchases. By filing GST returns accurately and timely, businesses can reduce their tax liability by claiming credit for the taxes paid on input goods and services used in their business operations.
Compliance and Transparency: GST return filing ensures compliance with the GST regulations and promotes transparency in business transactions. It helps in maintaining proper records and documentation, ensuring that businesses are accountable for their tax obligations.
Seamless Flow of Input Tax Credit: Timely filing of GST returns facilitates the smooth flow of input tax credit across the supply chain. This ensures that businesses can avail themselves of the benefits of ITC and prevents any disruptions in the credit mechanism.
Reduced Tax Evasion: GST returns play a crucial role in curbing tax evasion. By mandating regular and accurate filing of returns, GST creates a trail of transactions, making it difficult for businesses to evade taxes or underreport their sales and purchases.
Streamlined Tax Administration: GST return filing simplifies tax administration by bringing all the indirect taxes under a single umbrella. It eliminates the need for multiple returns for different taxes and reduces the compliance burden for businesses, especially those operating in multiple states.
Efficient Cash Flow Management: Regular GST return filing helps businesses in managing their cash flows effectively. It allows them to track their input tax credit, claim refunds if eligible, and ensure timely payment of taxes, thereby avoiding any penalties or interest charges.
Facilitates Business Expansion: Filing GST returns on time and maintaining a clean compliance record can enhance the reputation of businesses. This, in turn, can facilitate business expansion, access to credit, and collaboration with other entities, as compliance is often a prerequisite for business partnerships.
Access to Government Schemes: Many government schemes and benefits are linked to GST compliance. By filing GST returns regularly, businesses become eligible for various government initiatives, tax incentives, and subsidies, contributing to their growth and development.
Easier Audit and Assessment: Proper GST return filing makes the process of audit and assessment by tax authorities more convenient and efficient. Accurate records and timely returns reduce the chances of scrutiny, inquiries, and disputes, providing a hassle-free experience for businesses.
Contribution to National Development: By filing GST returns and paying taxes promptly, businesses contribute to the nation’s development. The revenue generated through GST is utilized for various developmental initiatives, infrastructure projects, and welfare programs, benefiting the overall economy.
FREQUENTLY ASKED QUESTIONS
Q1: What is GST Return?
GST return is a document that contains details of a taxpayer’s income, sales, purchases, and tax liability under the Goods and Services Tax (GST) regime. It is filed by registered businesses to report their GST transactions to the tax authorities.
Q2: Who is required to file GST Returns?
All businesses registered under GST, including regular taxpayers, composition scheme dealers, and input service distributors, are required to file GST returns. However, small businesses with turnover below the prescribed threshold may have the option to avail of composition scheme benefits with simplified return filing.
Q3: How often do I need to file GST Returns?
The frequency of GST return filing depends on the type of taxpayer. Regular taxpayers generally file monthly returns (GSTR-1, GSTR-3B, etc.), while composition scheme dealers file quarterly returns (GSTR-4). Additionally, there are annual returns (GSTR-9) and a few other returns for specific purposes.
Q4: What are the different types of GST Returns?
There are various types of GST returns, including GSTR-1 (outward supplies), GSTR-3B (summary return), GSTR-4 (composition scheme), GSTR-9 (annual return), GSTR-9C (reconciliation statement), and more. The specific returns to be filed depend on the nature and turnover of the business.
Q5: What information is required to file a GST Return?
The information required to file a GST return typically includes details of sales and purchases, tax invoices, input tax credit (ITC) availed, output tax liability, tax paid, and other relevant transactional details. The exact information required may vary depending on the specific return being filed.
Q6: What happens if I fail to file or delay filing my GST Returns?
Failure to file or delay in filing GST returns may attract penalties and late fees. It can also result in the taxpayer being unable to claim input tax credit, potential cancellation of registration, and non-compliance with GST regulations. It is important to file returns on time to avoid such consequences.
Q7: Can I revise my GST Returns after filing?
Yes, in certain cases, taxpayers are allowed to revise their GST returns. However, revisions are generally only permitted for certain types of returns within a specified time limit. It is advisable to ensure accuracy while filing returns initially to avoid the need for revisions.
Q8: Can I claim input tax credit (ITC) if my supplier fails to file their GST Returns? A8: To claim input tax credit (ITC), it is necessary for the supplier to have filed their GST returns accurately and on time. If the supplier fails to file their returns, the recipient may face difficulties in claiming the corresponding ITC. It is crucial to ensure that suppliers are compliant with GST regulations.
Q9: Can I file my GST Returns online? A9: Yes, GST returns can be filed online through the Goods and Services Tax Network (GSTN) portal. The GSTN provides an online platform for taxpayers to file returns, make payments, and manage their GST-related activities. Offline tools and software are also available to assist in return filing.
Q10: Is it necessary to reconcile my GST Returns with my books of accounts? A10: Yes, it is essential to reconcile GST returns with the books of accounts to ensure accuracy and consistency of financial records. Reconciliation helps identify any discrepancies, rectify errors, and maintain proper compliance with GST regulations.
