GST, or Goods and Services Tax, was implemented on 1st July 2017 as an indirect tax levied on the
exchange of goods and services between organizations. It applies at every step of the production
process, with the primary goal of establishing "One Nation, One Tax."
A GST Return is a document that contains detailed information on sales, purchases, output tax (tax
collected on sales), and input tax (tax paid on purchases). Businesses must file their GST Returns to
fulfill their tax obligations.
All businesses registered under GST are required to file GST Returns either quarterly, monthly, or
annually, depending on the nature of their business. Filing GST Returns also ensures the generation of
GST-compliant invoices for businesses.
Types of GSTR
Below is a list of the different types of GSTR forms:
- GSTR-1 - Details of Outward Supplies
GSTR-1 is a monthly return filed by
businesses, providing details of outward
supplies of goods and services. All GST-registered individuals or entities, except Input Service
Distributors and Composition Taxpayers, must file GSTR-1, even if there is no business activity
during the period.
- Due Date: The due date for filing GSTR-1 is the 11th of the next month
if the annual turnover exceeds ₹5 crores or if the business has not opted for the
QRMP scheme. For businesses under the QRMP scheme, GSTR-1 must be filed quarterly,
with the due date being the 13th of the month following the end of each quarter.
Note: GSTR-2 and GSTR-3 are currently suspended.
- GSTR-2A - Inward Supplies
GSTR-2A is an auto-populated form that reflects
details of all inward supplies of goods and services, i.e., purchases made from registered
suppliers. The data in this return is auto-filled based on the GSTR-1 filed by the suppliers.
- Due Date: There is no specific due date for GSTR-2A.
- GSTR-3B - Monthly Self-Declaration
GSTR-3B is a monthly self-declaration form
used to provide a summary of outward supplies, input tax credit claimed, tax liabilities, and
taxes paid. All normal taxpayers registered under GST must file this form.
- Due Date: For taxpayers with an aggregate turnover exceeding ₹5 crores
in the previous financial year, the due date is the 20th of the following month. For
taxpayers with a turnover of ₹5 crores or less, the due date is the 22nd of the
following month for Category X states/Union Territories and the 24th for Category Y
states/Union Territories.
- GSTR-4 - Composition Taxpayers
GSTR-4 is the return filed by taxpayers who have
opted for the 'Composition Scheme' under GST. This form has replaced GSTR-9A.
- Due Date: The 18th of the month following the quarter.
- GSTR-5 - Non-Resident Taxpayers
GSTR-5 is to be filed by non-resident foreign taxpayers conducting business
transactions in India. It includes details of outward supplies, inward supplies received,
credit/debit notes, tax liabilities, and taxes paid.
- Due Date: Monthly, on the 20th of each month.
- GSTR-6 - Input Service Distributor
GSTR-6 is a monthly return filed by Input
Service Distributors (ISD). It contains details of the input tax credit received and distributed
by the ISD.
- Due Date: Monthly, on the 13th of each month.
- GSTR-7 - TDS Deductors
GSTR-7 is a return for government authorities deducting
tax at source (TDS). It includes details of TDS deducted, TDS liability payable and paid, and
any TDS refund claimed.
- Due Date: The 10th of each month.
- GSTR-8 - E-commerce Operators
GSTR-8 is a monthly return filed by E-commerce
operators registered under GST for Tax Collected at Source (TCS). It contains details of all
supplies made through the E-commerce platform and the TCS collected.
- Due Date: The 10th of each month.
- GSTR-9 - Annual Return
GSTR-9 is the annual return filed by regular taxpayers
under GST. It summarizes details of inward supplies received, outward supplies made, tax
liabilities, and taxes paid, along with HSN code summaries. This form consolidates the
information from GSTR-1, GSTR-2A, and GSTR-3B for the financial year.
- Due Date: Annually, by the 31st of December of the following financial
year.
- Exceptions:
- Composition taxpayers
- Input service distributors
- Casual taxable persons
- Non-resident taxable persons
- Taxpayers paying TDS under Section 51 of the CGST Act
- GSTR-10 - Final Return
GSTR-10 is a final return to be filed by taxpayers whose
GST registration has been canceled or surrendered.
- Due Date: Within three months from the date of cancellation or the date
of the cancellation order, whichever is earlier.
- GSTR-11 - UIN Holders
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: The 28th of the month following the month for which the
statement is filed.
Benefits of GST Return Filing
Here are some benefits of GST return filing:
- Simplified Filing Through a Single Form
GST allows businesses to record the
taxes paid or collected under IGST, CGST, and SGST in a single form, streamlining the previously
complex process of filing multiple returns.
- Eliminates the Cascading Effect
GST has replaced several other taxes, such as
central excise duty, service tax, customs duty, and state-level VAT. By consolidating these
taxes into a single GST, the cascading effect of tax on tax has been eliminated.
- Higher Threshold Exemption
Before GST, businesses with an annual turnover of ₹5
lakhs were subject to VAT. GST has raised the threshold to ₹20 lakhs, offering significant
relief to small-scale businesses.
- Support for Start-ups
Start-ups previously had to pay VAT if their annual
turnover exceeded ₹5 lakhs, which was a burden during the early stages. GST has replaced VAT,
allowing businesses to offset service tax against their sales, providing start-ups with
much-needed financial relief.
- Enhanced Compliance Rating
The GST system has introduced compliance ratings to
monitor adherence to tax laws. Registered entities and individuals are graded based on their
consistency in filing returns and paying taxes. These ratings are publicly available on the GST
website, promoting transparency and encouraging higher compliance standards.
- Facilitates E-commerce
E-commerce businesses often faced complex VAT laws and
compliance requirements, leading to issues such as confiscation of goods. GST has simplified
these processes, making it easier for businesses to operate and sell goods online.
- Improved Regulation and Accountability
The tax filing system prior to GST was
disorganized, leading to numerous inconveniences. GST has brought about better regulation of tax
laws and increased the accountability of taxpayers, leading to a more efficient tax system.
Eligibility Criteria for GST Return Filing
Businesses with an annual turnover exceeding ₹20 lakhs or ₹40 lakhs are required to file GST returns.
Additionally, any individual or entity engaged in the following activities must file GST returns:
Sales- Purchases
- Output Tax
- Input Tax
Important Invoices Required for GST Return Filing
If a business is registered under GST, it must provide GST-compliant invoices to its clients for the sale
of goods and services. Similarly, GST-registered vendors will issue GST-compliant purchase invoices to
the business. The taxpayer can customize the invoice with their company’s logo. A tax invoice is
generally used to apply the tax and transfer the input tax credit.
A GST return filing invoice must include the following essential details:
- Date of Invoice
- Customer's Name
- Shipping and Billing
Address
- Customer's and
Taxpayer's GSTIN
- Place of Supply
- HSN/SAC Code
- Item Details
(description, quantity, unit, etc.)
- Taxable Value and
Discounts
- Rate and Amount of
Taxes (CGST/SGST/IGST)
- Indication of GST
Payable on Reverse Charge Basis
- Supplier's Signature
Documents Required 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 (Debit and Credit Notes)
Procedure for GST Return Filing
GST return filing is a comprehensive process that involves the following steps for every GST taxpayer:
- Collecting the Documents and Invoices: All registered taxpayers must gather the
necessary documents and invoices required for GST return filing.
- Filing the Application with the Required Documents: The applicant must submit all
the relevant information and documents during the filing process.
- Key Pre-Compliances Before Filing the GST Return:
- The first step is to review the GST filing and records thoroughly before submission.
- The second step is to ensure that all records, invoices, and documents are accurate
and up-to-date.
- Completing the GST Return Filing: After verifying all necessary documents, the
applicant can proceed with the final submission of the GST return.
Penalty for Delay in GST Return Filing
Delayed GST return filing can result in penalties for the defaulter. Taxpayers who file late must pay
both interest and a late fee. The interest rate is 18% per annum, calculated on the outstanding tax
amount. The late fee is ₹100 per day under the CGST Act and ₹100 per day under the SGST Act, totaling
₹200 per day. The maximum penalty is capped at ₹5000. (This does not apply to the Integrated Goods and
Services Tax Act).
Revision of Invoices Issued Before GST Return Filing
A taxpayer has the option to review invoices issued before filing their GST return. Under the GST
regime, dealers must complete provisional assessments before receiving their registration certificate.
As a dealer, you are required to issue revised invoices to replace previously issued ones. These revised
invoices must be issued within one month from the date of the registration certificate's issuance.
why choose SeaRoot for GST Return Filing
SeaRoot stands out for GST return filing due to its extensive expertise and experience in handling GST
compliance. We offer a comprehensive range of services, from document collection and invoice management
to detailed reviews of GST filings. Our efficient processes and advanced technology ensure that your GST
returns are filed accurately and on time, reducing administrative burdens. We provide personalized
support tailored to your specific business needs, helping you navigate complex GST regulations with
ease. By staying updated with the latest regulatory changes, SeaRoot ensures your filings remain
compliant with current laws, minimizing the risk of penalties. With a commitment to accuracy and
reliability, we help prevent costly mistakes and ensure that your tax obligations are met promptly and
efficiently.
Frequently Asked Questions
1.What is GST Return Filing?
GST return filing is the process of submitting the required documents and details related to
sales, purchases, and taxes paid or collected under the Goods and Services Tax (GST) system. It
ensures compliance with GST regulations and helps in the accurate calculation of tax
liabilities.
2.Who needs to file GST returns?
Businesses registered under GST must file returns. The frequency and type of returns depend on
the business’s turnover and the type of GST scheme under which it is registered.
3.What are the different types of GST returns?
The main types of GST returns include GSTR-1 (outward supplies), GSTR-3B (monthly
self-declaration), GSTR-4 (composition scheme), GSTR-5 (non-resident taxpayers), GSTR-6 (input
service distributors), and GSTR-9 (annual return), among others.
4.What documents are required for GST return filing?
Key documents include GST-compliant invoices, purchase invoices, proof of tax payments, and any
relevant financial records. These documents support the details entered in the GST returns.
5.What is the deadline for filing GST returns?
The due date for GST returns varies depending on the type of return and the taxpayer's turnover.
For instance, GSTR-1 is due on the 11th of the following month for businesses with a turnover
above ₹5 crore, while GSTR-3B is due on the 20th of the following month for large taxpayers.
6.What happens if I miss the GST return filing deadline?
Missing the deadline can lead to penalties and interest on the outstanding tax. The late fee is
₹100 per day per Act, up to a maximum of ₹5000. Interest is charged at 18% per annum on the
unpaid tax.
