Overview of GST Return Filing
GST refers to Goods and Services Tax which came into force on 1st July 2017. It is an indirect tax imposed on the exchange of goods and services between organisations. GST should be paid at each step of the production process. The main motto of GST is “One Nation One Tax.”
GST Return is a document that has all the details regarding the sales purchases output tax, i.e. the tax collected on sales, and input tax i.e. the tax paid on purchases. The businesses must file the GST Return to pay the tax liability.
All the businesses registered under GST have to do GST Return Filing either quarterly, monthly or annually based on the type of business. The GST Return Filing helps businesses to generate GST compliant Invoices.
Types of GSTR
The different types of GSTR are enlisted below:
- GSTR-1 - Description of Outward Supplies: GSTR-1 is a return filed monthly by the businesses which provides the details of the outward supplies of all services and goods. Every individual /entity registered under GST should file GSTR-1 except Input service distributor and Composition taxpayer. The return shall be filed even if there is no business activity.
Due Date: The due date for filing GSTR-1 is the 11th of the next month if the annual turnover is more than 5 Cr. Or if the business has not opted for the QRMP scheme. However, if the business has opted for the QRMP scheme, then the GSTR needs to be filed. This is to be paid every quarter and due date shall be the 13th on every month by the end of each quarter
Note – GSTR 2 and GSTR 3 are currently suspended.
- GSTR-2A: GSTR-2A this form is about all GST return filing related to all the inward supplies of goods/services, that is, purchases made by registered suppliers. This return is auto-filled, where the data will be fetched from the GSTR-1 filed by the supplier.
Note: So there is no particular due date for this form
- GSTR-3B: GSTR-3B is a monthly self-declaration form that helps in providing systemize details of all outward stocks made, input tax credit claimed, tax account defined, and taxes paid. The form is registered by all normal taxpayers enrolled under GST.
Due Date- Every 20th of next month for taxpayers with an aggregate turnover in the previous financial year of more than Rs 5 crores. (From January 20201 onwards). However, the taxpayers having aggregate turnover equal to or below Rs 5 crores shall file by 22nd of next month for taxpayers in category X states/Union Territories and 24th of next month for taxpayers in category Y states/Union Territories.
- GSTR-4: GSTR-4 is the return filed by the taxpayer who opts for the 'Composition Scheme' under GST. This form replaced GSTR 9A
Due Date- 18th of the month succeeding the quarter
- GSTR-5: GSTR-5 return is to be filed by Non-resident foreign taxpayers carrying business transactions in India. It acquires all outward supplies made; inward stocks received, credit/debit notes, tax liability, and taxes paid.
Due Date: Monthly (20th of each month)
- GSTR-6: GSTR-6 is a monthly return filed by an 'Input Service Distributor'. It contains the details of the input tax credit received and distributed by the ISD.
Due Date-Monthly (13th of the every month)
- GSTR-7: GSTR-7 is a Return for government authorities deducting tax at source (TDS). The return contains the particulars of TDS deducted, the TDS liability payable and paid, and the TDS refund claimed if any.
Due Date- 10th day of each month.
- GSTR-8: GSTR-8 is a monthly return that has to be filed by E-commerce operators registered under the GST (Tax Collected at Source). It will contain particulars of all supplies made through the E-commerce platform, and the TCS received on the same.
Due Date- 10th day of each month
- GSTR-9: It is the annual return filed by a normal taxpayer under GST.
Due Date-Annually (31stDecember of the next Financial Year).
This form contains the details of all inward supplies received during the financial year under different tax heads, outward supplies made and a summary value of supplies reported under every HSN code, along with details of taxes payable and paid. It is a compilation of all the monthly or quarterly returns (GSTR-1, GSTR-2A, and GSTR-3B) filed during that financial year.
However, there are few exceptions, such as:
- Taxpayers opted for the composition scheme;
- Input service distributors;
- Casual taxable persons;
- Whosoever paying TDS under section 51 of the CGST Act.
- GSTR-9A: Suspended
- GSTR-9C: GSTR-9C is the reconciliation statement to be filed by all taxpayers whose turnover is more than two cr. In the financial year.
Due Date-Annually (31ST December of the following Financial Year)
- GSTR-10: GSTR-10 is to be filed by taxpayers whose GST registration has been cancelled or surrendered.
Due Date-Within 3 months from the date of cancellation or date of cancellation of the order, whichever is earlier.
- GSTR-11: GSTR-11 is the return filed by taxpayers who have been allotted a Unique Identity Number (UIN) to claim a refund under GST.
Due Date- 28th of the month following the month for which the statement is filed.
GST Return Filing
Benefits of GST Return Filing
The Benefits of GST Return Filing are listed below.
- GST Return Filing through a Single Form
There are different types of taxes collected under the GST Act, i.e. IGST, CGST & SGST, and all the three taxes paid or collected can now be recorded in a single form. This helps to ease the complex process of GST Return Filing.
- Eliminates the Cascading Effect
The introduction of GST into the Indian tax system has removed several other taxes like central excise duty, service tax, customs duty, and state-level value-added tax. Thus, a single GST has abolished the cascading effect of tax.
- Higher Threshold Benefits
Before the introduction of Goods and Service Tax, VAT was applicable to every business having an annual turnover of 5 lacs. But with the introduction of GST, the amount of annual turnover has increased to 20 lakhs. This has provided higher threshold benefits to small-scale businesses.
- Start-up Benefits
Before GST, start-ups with an annual turnover of 5 lakh had to pay VAT which was very difficult for a start-up during the initial stages. GST has replaced VAT, where businesses can set off the service tax on their sales.
- Offers Higher Compliance Rating
To observe the compliance structure, the GST system has introduced the mechanism of compliance rating. This is where all the registered entities/individuals are provided grades based on their invariability of fulfilling the compliance and payment of taxes. The rating of entity’s/individual’s compliance is publicly available on the website, and a unique taxpayer is ranked with higher compliance ratings.
- E-commerce for the Quick Supply of Goods
With the increase in competition, every business is making a strong presence online by offering its services and products on their websites. Under VAT, many types of VAT laws and compliances were required to be followed, which were very complicated and often resulted in the confiscation of goods by the Authority. GST has now removed all such confusing processes and has made the E-commerce business easy.
- Better Regulations and Accountability
Before the introduction of GST, the tax filing system was quite unorganized; all the taxes were paid conveniently, and the major inconvenience that was a part of tax filing has now been eliminated. This has resulted in better regulation of the tax laws and better enhanced the accountability of the taxpayers.
Eligibility Criteria for GST Return Filing
The businesses whose annual turnover exceeds 20 lacs or 40 lacs are eligible to file GST Return. Any person who is engaged in the below-mentioned Activities is required to file the GST Return. The activities are –
- Output Tax
- Input Tax
Important Invoices Required while Filing the GST Return
If the taxpayer's business is registered under GST, he is required to provide GST-complaint invoices to his clients for the sale of goods and services. The GST-listed merchants will provide GST-compliant buying invoices to the taxpayer. He can personalize the bill with his company’s logo. A tax invoice is generally assigned to load the tax and pass on the input tax credit. A GST return filing Invoice must have the subsequent necessary fields-
- Date of Invoice
- Customer title
- Transportation and billing location
- Client and taxpayer’s GSTIN
- Area of supply
- HSN / SAC code
- Item details, i.e. classification, quantity (number), unit (meter, kg,etc.), the total amount
- Taxable value and discounts
- Rate and volume of taxes, i.e. CGST/ SGST/ IGST
- Whether GST is payable on the reverse charge basis
- Signature of the supplier
Essential Documents for GST Return Filing
Below mentioned documents are required for GSTR Return filing-
- List of Invoices (B2B Services, B2C Services)
- Customer GSTIN
- Type of Invoice
- Invoice Number
- Place of Supply
- GST Rate
- Taxable Value
- Amount of CGST, SGST, IGST and GST Cess applicable.
- Consolidated intra-state and inter-state sales.
- HSN-wise summary details.
- Summary of requisite documents, i.e. Debit and Credit notes.
Procedure for GST Return Filing
GST Return filing is a detailed filing process that includes the following steps to be followed by every GST Taxpayer:
Step 1: Collecting the Documents and Invoices: All registered taxpayers must collect the requisite documents and invoices for GST Return Filing
Step 2: Filing the Application with the Necessary Documents: All the information and documents are required to be filed by the applicant
Step 3: Major Pre-Compliances before Filing the GST Return:
- Before filing the GST return, the initial step is to review the GST filing and records before submission.
- The second step is the confirmation that the records, invoices, and documents are correct.
Step 4: Completing the GST Return Filing:
The applicant can final complete the GST return Filing after cross checking all the documents
Highlights of GST Return Filing 2022
The 47th GST Council Meeting happened in Chandigarh on 28th and 29th of June, and the following things were discussed in the meeting.
- The GST council amended the GSTR 3B. It allowed the auto population of majority of information in this form and yearly return in GSTR 9
- It was mentioned that the Roadmap to the new GST return which was finalised in the 35th Council meeting, shall be discontinued and a new plan would be formulated for the same.
- Annual return for FY 2021-22 shall be notified with minor adjustments. The taxpayers whose threshold annual turnover is below 2 cr. Are exempted from filing GSTR 9 and GSTR 9A
- The due date for annual return under GSTR 9 for the FY 2017 – 18 has been extended till September 30, 2023. The return is filed under Section 73 of the CGST Act.
- The late fee for filing GSTR 4 for the year 2021-22 is waived off till 28 July 22
- The deadline for filing Form CMP 08 for Quarter 1 of FY 22-23 have been extended from 18 July 22 to 30 July 22.
- The council decided to ease the compliance requirements for E-Commerce.
- The e-commerce providers now register under the composition scheme for intrastate supplies, which reduces their tax liability and the registration burden.The GSTC said that a panel of advocates had been set up by NAA to ensure justice in case of occurrence of profiteering.
- The GST Council have agreed to empower the state and Centre to issue show cause notice even if the taxpayer does not fall in their jurisdiction.
- The Government will appeal in the Supreme Court cases where the High Court of the States has remanded NAA against order.
- The rate of rationalization of goods and services has also been reduced.
Penalty for Delay in GST Return Filing
Delayed GST Return Filing can lead to the initiation of punitive action against the defaulter in case of late filing of the GST Return. The taxpayers would have to pay interest and the late fee. Moreover, an interest of 18% per annum would be responsible. Nonetheless, the taxpayer can calculate the interest on the amount of outstanding tax to be paid. The Late fee includes Rs. 100 per day per Act; concurrently, it is Rs. 100 under CGST & Rs. 100 under SGST, which amounts to Rs. 200 per day. The maximum amount will be Rs. 5000. (Not applicable to the Integrated Goods and Services Act).
Revision of the Invoices issued before GST Return Filing
A taxpayer can analyze invoices that appeared before the GST Return Filing. Under the GST administration, all the dealers must check for provisional delegation before getting the registration certificate. As a dealer, one must issue an updated invoice against the previously issued invoices. The revised invoice has to be issued within1-month from the date of issuance of the registration certificate.
Corpbiz Procedure for GST Return Filing
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Frequently Asked Questions
It is the corporate office of a supplier of goods and services which receives tax invoices for inward supplies made by vendors on behalf of the branch offices to distribute tax credits.
Ensure that you record the purchase in your GSTR-2.
The recipient can check and validate/modify/delete such details and even adds features, and after that, submits the same in FORM GSTR-2 on or before the 15th of the succeeding tax period.
The information uploaded by the supplier in GSTR-1 would be communicated to the recipient in 'Part a of FORM GSTR-2A', which is an auto-drafted form
No. An assessee under the 'composition scheme' is not necessarily required to file GST return specifying the details of inward and outward supplies. Such assesses are required to register quarterly returns in FORM GSTR-4 within 18 days from the end of the quarter.
A non-resident taxable assessee is liable to file GST Return – GSTR-5 for furnishing the monthly details of 'inward' and 'outward supplies', debit/credit notes, tax paid details, details of closing stock and refund claimed, if any.
The rejected documents shall be intimated to the supplier only after the recipient has filed his return.