Welcome to DOCS, your premier destination for comprehensive business solutions, including expert Goods and Services Tax (GST) return services. We understand the complexities of GST compliance and offer tailored solutions to ensure accurate and timely filing of GST returns. Let us handle your GST return filing while you focus on growing your business with confidence.
Understanding GST Return Filing:
Goods and Services Tax (GST) return filing is a critical aspect of GST compliance for businesses operating in India. It involves reporting the details of sales, purchases, and input tax credits to the tax authorities. Timely and accurate GST return filing is essential to avoid penalties, fines, and legal issues
Let us first understand the meaning of GST return. GST return is a periodical statement that has all financial record of GST registered person that enables the calculation of his tax liability under GST laws.
Following are the most critical elements included in GST return:
Sale: This encompasses the details of sales made by the taxpayer.
Purchase: This includes details of goods & services procured by taxpayer
Output GST: Output GST is the GST charged by taxpayer on the sales transactions. In general, the buyer to whom goods or services have been sold, gets the credit of GST charged by supplier.
Input Tax Credit: This element contains the details of GST paid by buyer on the goods and services purchased from a GST registered dealer.
For the purpose of filing GST return, taxpayers may be classified under following three categories:
1.Regular businesses having more than INR 5 crore as annual aggregate turnover: This category of taxpayers have to file GST returns monthly. Total 25 returns have to be filed in a year i.e. two monthly returns and one annual return.
2.Regular businesses having turnover up to INR 5 crore: This category of taxpayers have the option to file GST returns under the QRMP (Quarterly Return and Monthly Payment) scheme. If they opt for QRMP they will have to file 9 returns in a year i.e. two returns each quarter (i.e. GSTR-1 and GSTR-3B) and an annual return. If they don’t opt for QRMP then the taxpayer will have to file 25 returns in a year, as mentioned in serial number 1 above.
3.In special cases such as composition scheme, taxpayer has to file 5 returns each year i.e. 1 statement cum challan each quarter and 1 annual return.
Following is the step-by-step procedure to file GST return:
Step 1: Login to GST portal
To file a GST return you first need to login to official GST portal i.e. www.gst.gov.in using username and password
Step 2: Go to return dashboard
In the “Services” menu, click on “Return Dashboard”, then choose the appropriate financial year and return from drop down list.
Step 3: Choose how you want to prepare the GST return
For preparing the GST report online, select “Prepare Online” option
Step 4: Fill the required information in the return form
Enter all the required details in respective fields. Then, save and submit the form.
Step 5: Offset Liability and Payment of Tax
When the status of the return is “submitted”, then click on ‘Payment of Tax’ Then click on ‘Check Balance’ option. Next you will see the cash balance and credit balance. Mention the amount of credit balance you want to utilise for payment of liability and click on “offset liability” button. Next you will make payment of balance amount payable.
Step 6: Sign declaration
After making payment you will be ticking on declaration and choosing the authorized signatory in relevant field from drop-down list. Now select the method for filing the return i.e. either “file form using DSC” or “File form using EVC”. Now click on “Proceed” button to file the return.
Following is the list of GST form and their relevant details:
Form number | Form used for | Frequency | Due date |
---|---|---|---|
GSTR-1 | Used to report details or sale of Goods and/or Services | Monthly Quarterly (if opted for QRMP scheme) | 11th Day of succeeding month. 13th day of succeeding month following the quarter (in case of quarterly filing) |
IFF (Invoice Furnishing Facility), Optional under QRMP scheme) | To report details of sale of Goods and/or Services to B2B | Monthly (for first two months of the quarter) | 13th of the succeeding month. |
GSTR-3B | Summary return of sales & input tax credit claim | Monthly Quarterly (if opted for QRMP scheme) | 20th of the next month 22nd or 24th of the following month as notified by different States/UTs |
CMP-08 | Statement cum challan to make payment by composition scheme dealers | Quarterly | 18th of the month following the quarter |
GSTR-4 | Annual return by Composition scheme dealer | Annually | 30th April up to FY2023-24 30th June from FY 2024-25 (revised in 53rd GST Council meeting) |
GSTR-5 | To file details of sale & purchase by a non-resident | Monthly | 13th of the next month |
GSTR-5A | Return to be filed by non-resident engaged in Online Information and Database Access or Retrieval (OIDAR) Services. | Monthly | 20th of the next month |
GSTR-6 | Return by Input Service Distributor, distributing Input tax to its branches | Monthly | 13th of the next month |
GSTR-7 | Return of TDS deducted, TDS payable, TDS refund etc. | Monthly | 10th of the next month |
GSTR-8 | To be filed by E-commerce Operator for detail of Sales and TDS collected by them | Monthly | 10th of the next month |
GSTR-9 | Annual return to be filed by regular taxpayer to furnish the details of sale, purchase, input tax credit etc. | Annual | 31st December of the next financial year |
GSTR-9C | Reconciliation between turnover reported in annual return and reported in audited annual financial statement. | Annual | 31st December of the next financial year |
First let us take a look at late fee for not filing the GST return in due time:
In general, CGST Act and SGST Act both have imposed a late fee of INR 100 per day, which means total INR 200 per day is chargeable for the number of days of delay. However maximum amount of penalty is capped at INR 10,000 (i.e. INR 5,000 in each Act)
However, in its 43rd meeting GST council has rationalised some late fees & penalties:
1.For GSTR-3B and GSTR-1, the late fee has been reduced to INR 50 per day (INR 20 per day for Nil return) and further maximum capping of late fee has also been revised and is based on turnover. Refer the following table for maximum capping of late fee in case of GSTR-3B and GSTR-1:
Annual turnover of preceding financial year | Maximum late fee |
---|---|
Up to 1.5 crore | Max. INR 2,000 (i.e. INR 1,000 each in CGST and SGST) |
Between 1.5 crore to 5 crore | Max. INR 5,000 (i.e. INR 2,500 each in CGST and SGST) |
Exceeds INR 5 crore | Max. INR 10,000 (i.e. INR 5,000 each in CGST and SGST) |
For GSTR-4, maximum late fee for delay in filing (from FY 2021-22) will be INR 500 for Nil return and INR 2,000 for non-Nil return. (vide notification 21/2021 dated 1st June 2021)
3.For GSTR-7, late fee for delay in filing has been revised to INR 50 per day, with a maximum capping of INR 2,000, vide notification 22/2021 dated 1st June 2021.
Interest on late payment
Every taxpayer is liable to pay interest if they delay the payment of GST (after the due date), claim excess input tax, reduce excess output tax liability.
Following interest rates are applicable
•Tax paid after due date – 18% interest per annum
•Excess ITC claimed or Excess output tax liability reduced – 24% interest per annum
Legal Compliance:
GST return filing is a legal requirement for businesses registered under the GST regime. Compliance ensures adherence to tax regulations and avoids penalties and fines.
Input Tax Credit:
Filing GST returns enables businesses to claim input tax credits on purchases, thereby reducing their tax liabilities and improving cash flow.
Transparency: GST returns promote transparency in tax compliance by requiring businesses to accurately report their sales and purchases, reducing the scope for tax evasion.
Ease of Compliance: GST returns simplify tax compliance for businesses by replacing multiple indirect taxes with a single, unified tax system, streamlining the process and reducing paperwork.
Input Tax Credit (ITC): Under GST, businesses can claim input tax credit on the taxes paid on their purchases. GST returns facilitate the seamless claiming and utilization of ITC, leading to reduced tax cascading and lower overall tax costs.
Digitalization: GST returns are filed electronically through online portals, promoting digitalization and reducing the administrative burden associated with manual paperwork, leading to greater efficiency and accuracy.
Uniformity: GST returns ensure uniformity in tax reporting across states and sectors, creating a level playing field for businesses and fostering economic integration across the country.
No, copy of invoices is not required to be attached with GSTR-1. Only invoice details such as invoice number, Invoice Amount, Tax Amount etc. are required to be mentioned.
Even If a business has zero sales, the taxpayer still has to report NIL transactions in GST return. For this you will have to log into the GST portal, submit the NIL return, e-sign, declare that there were no transactions and file the GSTR-1 report.
No, service of Chartered Accountant is not mandatory to file monthly/quarterly GST returns. However, looking at number of rules & regulations that GST law has it is recommended to take professional help to minimise the errors and for the ease of business.
No, all businesses registered under GST are required to file applicable GST returns within due dates. Even if the turnover becomes NIL, registered entity is required to file NIL return.
If you are unregistered and your aggregate turnover surpasses the GST turnover threshold, you are required to apply for GST registration within 30 days from the date when turnover exceeds the threshold.
GST returns can be filed online on the GST portal (www.gst.gov.in) by a registered taxpayer having a valid GSTIN and password to log into the website.
You can pay late fee and interest under “User Services” option on GST portal (www.gst.gov.in)
Consequence / burden for non-compliances will keep on increasing, if you don’t pay GST late fee in timely manner. GST late fee is auto populated in the following GST return and GST portal will not allow you to file the return without paying late fee. Thereby increasing the non-compliance on your part.
In general, Yes GST is payable monthly by regular taxpayers. Even for those who have opted for QRMP scheme it is mandatory to pay GST monthly. However, for small taxpayers, (whose annual aggregate turnover is up to INR 1.5 crore for manufacturers/dealers and INR 50 lakh for pure service providers) there is an option to choose the composition scheme. Taxpayers under composition scheme can file a quarterly statement-cum-challan and pay taxes quarterly.