GST Return Filing – A guide for beginners

Goods & Service Tax (GST) is a tax applicable on goods and services in India. GST law requires certain businesses to comply with mandatory requirements of paying tax, filing return under the GST law.

Some businesses find it confusing to file return or do mistakes in filing. Through this blog we try to simplify the process and also help the beginners in filing the GST return.

Let’s decode what is GST return filing.

GST return filing is a mandatory requirement for the GST registered businesses. In GST returns the business files the details of sale, purchase, input credit utilization, tax payment etc. to the government.

The GST return filed at stipulated frequency i.e. different returns filed at different frequencies monthly/Quarterly/Annually. However, for certain returns frequency for businesses depend on their turnover and type of registration.

Who is required to file GST return?

While any business registered under GST required to file the GST return. This includes:

• Regular Taxpayers
• E-commerce Operators
• Composition Scheme Taxpayers
• Input Service Distributors
• Non-resident taxable persons.

What are different GST return forms and what are their purposes?

Different businesses require to file different GST return forms depending on their type of registration and size of business. Some popular GST return forms are:

1. GSTR-1 – This return form used to report the details of all outward supply of goods and services. This return filed monthly or quarterly depending of turnover of business. Monthly return filed by 11^th of the following month, while quarterly return filing due date is 13^th of the month following the quarter.
2. GSTR-2A/2B – These are view-only and auto-generated returns for inward supplies. Buyer of goods and services can view these reports and contact the seller if any invoice is missing. Further, GSTR 2B also categorises the invoices based on action to be taken i.e. for reversal, ineligible, subject to reverse charge etc.
3. GSTR-2 – Currently suspended.
4. GSTR-3 – Currently suspended.
5. GSTR-3B – This return is self-declaration of sales, input credit claimed, tax paid etc. Filed by all normal taxpayers. The frequency is monthly & quarterly. Due date of monthly filing is 20^th of every month while for the quarterly return it is 22^nd and 24^th depending on different states.
6. GSTR-4 – This is annual return for composition scheme taxpayers. Such taxpayers required to report outward supplies, inward supplies, import of services and supplies under reverse charge. The due date is 30^th of the month following the financial year.
7. GSTR-5 – This monthly return filed by non-resident taxpayers registered under GST and carry out business activity in India. The due date of filing is 20^th of the following month. Taxpayers report the details of outward supplies, input supplies, tax liability and tax paid etc.
8. GSTR-5A – This summary return filed by especially Online Information and Database Access or retrieval services providers. The due date is 20^th of the following month.
9. GSTR-6 – GSTR 6 is monthly return filed especially by Input Service Distributor (ISD). The due date is 13^th of the following month.
10. GSTR-7 – This return is for TDS under GST law. The person responsible for deducting TDS (Tax deducted at source) supposed to file the return by 10^th of the following month.
11. GSTR-8 – This return filed by e-commerce operators who are required to collect TCS (Tax collected at source). The due date of filing is 10^th of the following month.
12. GSTR-9 – This is annual return summarizing all transactions of the business. All regular taxpayers who file GSTR 1 and GSTR 3B are required to file GSTR-9. The due date is 31^st December following the financial year. The government from time to time exempt certain size of businesses from filing GSTR-9 through notification for specific financial year.
13. GSTR-9A – Currently suspended
14. GSTR-9C – This is reconciliation statement between GSTR-9 and books of accounts. Due date of filing this reconciliation is 31^st December following the financial year.
15. GSTR-10 – This is final return for businesses cancelling GST registration. Due date of this return is 3 months from the cancellation or cancellation order whichever is earlier.
16. GSTR-11 – GSTR 11 filed by certain taxpayers to whom Unique Identity Number (UIN) has been issued to get refund of GST input on inward supplies. This is specifically applicable to foreign diplomatic mission and embassies who are not subject to tax in India.  

Steps for filing GST return:

1. Gather the required information
2. Login to GST portal
3. Navigate to return filing section
4. Select the appropriate return form for filing
5. Enter the required details like sales, purchase, tax etc.
6. Review the details entered in the form
7. Pay tax if there is a tax liability
8. Submit the form after entering/verifying tax payment details (if any)
9. Download acknowledgement

Common mistakes to be avoided while filing GST returns:

• Filing incorrect return form
• Missing the due date
• Filing incorrect invoice details
• Not reconciling purchase and sale details & filing wrong details

Late fees and penalties

Following late fees is payable for delay in filing the GST return within due date:

• INR 50 per day for normal returns
• INR 20 per day for Nil return
• INR 200 per day for GSTR-9
• Interest on outstanding tax liability charged at 18% per annum from the due date to the date of payment.
• Interest of 24% per annum charged on excess ITC claimed and also on excess output tax reduction.

Benefit of outsourcing GST return filing

• Ensure timely compliance
• Save time & efforts
• Reduce risk of penalties
• Assistance in case of any query or notice from GST department
• Skilled and experienced consultant at reasonable cost
• Consultant keep their knowledge up to date, to assist number of clients