GST Return Filing
GST Return Filing
-
Input Tax Credit (ITC) in GST Filing
-
Reconciliation of GST Returns
GST Return Filing
GST Return Filing in India refers to the process of submitting details of sales, purchases, tax collected, and tax paid to the Goods and Services Tax (GST) department. Every registered taxpayer under GST is required to file GST returns periodically, based on the type of taxpayer and business activity.
Types of GST Returns
The nature of GST returns varies depending on the type of taxpayer. Here’s a breakdown
| Form | Applicable For | Frequency | Due Date |
|---|---|---|---|
| GSTR-1 | Details of outward supplies of goods or services | Monthly/Quarterly | 11th of the next month (monthly) or last day of next month following the quarter (quarterly) |
| GSTR-2A | Read-only return for inward supplies | Auto-generated | NA |
| GSTR-3B | Summary of outward and inward supplies along with tax liability | Monthly | 20th of the next month |
| GSTR-4 | For taxpayers under the Composition Scheme | Quarterly | 18th of the month after the quarter |
| GSTR-5 | For Non-Resident taxable persons | Monthly | 20th of the next month |
| GSTR-6 | Input Service Distributors (ISD) | Monthly | 13th of the next month |
| GSTR-7 | For those required to deduct TDS (Tax Deducted at Source) under GST | Monthly | 10th of the next month |
| GSTR-8 | For e-commerce operators who are required to collect TCS (Tax Collected at Source) | Monthly | 10th of the next month |
| GSTR-9 | Annual return for regular taxpayers | Annually | 31st December of the next financial year |
| GSTR-9C | Reconciliation statement certified by CA for taxpayers with turnover exceeding ₹2 crores | Annually | 31st December of the next financial year |
| GSTR-10 | Final return for taxpayers whose GST registration is canceled | Once | Within three months of the date of cancellation |
| GSTR-11 | For those with UIN (Unique Identification Number) to claim a refund | Monthly | 28th of the next month |
Who Needs to File GST Returns?
Regular Taxpayers: File GSTR-1 and GSTR-3B monthly or quarterly (based on turnover).
Composition Scheme Taxpayers: File GSTR-4 quarterly and GSTR-9A annually.
E-commerce Operators: File GSTR-8.
Input Service Distributors (ISD): File GSTR-6.
Non-Resident Taxable Persons: File GSTR-5.
Tax Deductors (TDS): File GSTR-7.
Steps to File GST Returns
Log in to the GST Portal:
- Visit https://www.gst.gov.in and log in using your GSTIN and password.
Choose the Relevant Return Form:
- Select the appropriate return form (GSTR-1, GSTR-3B, etc.) based on your type of registration.
Enter Details:
- Fill in the required details related to sales, purchases, input tax credit (ITC), and tax liability.
- For GSTR-1, include details of outward supplies (B2B and B2C sales).
- For GSTR-3B, declare a summary of outward and inward supplies.
Review the Information:
- Before submitting, ensure all details match your business transactions.
Submit the Return:
- After review, submit the form.
Pay GST Liability (if applicable):
- If there is any tax liability, pay the amount via online banking, credit/debit card, or through the NEFT/RTGS mode.
Download the Filed Return:
- After submission, download the acknowledgment and return form for your records.
Penalty for Late Filing
A late fee of ₹50 per day (₹25 CGST + ₹25 SGST) is charged for failing to file the return by the due date.
For Nil returns, the late fee is ₹20 per day (₹10 CGST + ₹10 SGST).
Interest is charged at 18% per annum on the unpaid tax amount.
Benefits of Timely Filing
- Claiming Input Tax Credit (ITC): You can only claim ITC on time if returns are filed regularly.
- Compliance Rating: Your GST compliance score improves with timely filing, which may attract more business.
- Avoiding Penalties: Regular filing helps avoid penalties and interest on unpaid tax.
Important Points to Remember
- Returns must be filed even if there are no business transactions during the period.
- Composition scheme taxpayers cannot avail of Input Tax Credit (ITC).
- Once the return is filed, it cannot be revised. Any corrections must be made in the subsequent returns.
Input Tax Credit (ITC) in GST Filing
Input Tax Credit (ITC) is a fundamental component of the GST system, allowing businesses to reduce their tax liability by claiming credit on taxes paid for inputs (raw materials, goods, and services used in business).
Claiming ITC:
- To claim ITC, the buyer must ensure that:
- The supplier has filed GSTR-1 with the correct details.
- The details of outward supplies match the buyer’s inward supplies in GSTR-2A or GSTR-2B.
- The supplier has paid the due tax.
- Goods or services have been received.
- The buyer possesses a valid tax invoice from the supplier.
Reconciliation of GST Returns
Reconciliation is a critical step that ensures the data filed in various GST returns (like GSTR-1, GSTR-3B, and GSTR-2A) is accurate and consistent.
Why Reconciliation Matters:
- Ensures correct tax liability.
- Avoids mismatches, which can lead to penalties or disallowance of ITC.
- Helps maintain accurate records of sales, purchases, and tax payments.
Types of Reconciliation:
- Outward Supplies (GSTR-1 with GSTR-3B): Ensure that sales data filed in GSTR-1 matches the sales summary in GSTR-3B.
- Inward Supplies (GSTR-2A with GSTR-3B): Match purchase details in GSTR-2A (auto-generated from suppliers) with the claimed input tax credit in GSTR-3B.
- Annual Reconciliation (GSTR-9): Ensure that the annual summary return (GSTR-9) matches the details filed throughout the financial year.
Role of Technology in GST Return Filing
Several technology-driven solutions simplify GST compliance:
- GST Suvidha Providers (GSPs): Authorized platforms that offer a range of services for GST compliance, including filing returns, generating e-invoices, and reconciliation.
- Accounting Software Integration: Many businesses use accounting software like Tally, Zoho Books, or QuickBooks that seamlessly integrate with the GST portal, automating return filing and reconciliation.
- Automated Tax Calculation: These tools auto-calculate tax liability based on sales and purchase data, minimizing human errors.
- E-Way Bills: Some platforms also generate e-way bills (a document required for the movement of goods) integrated into the GST system, ensuring smooth logistics.
Key Points to Ensure Smooth GST Return Filing
- Maintain Digital Records: Keep your invoices, tax payment receipts, and other documents well-organized and digitized.
- Timely Filing: File your GST returns on or before the due date to avoid penalties.
- Use Automation: Leverage accounting software or GST service providers to simplify filing and ensure accuracy.
- Regular Reconciliation: Periodically reconcile your sales and purchase data to avoid mismatches.
- Monitor Compliance: Keep an eye on changes in GST rules and ensure your business complies with the latest updates.
Frequently Asked Questions (FAQs)
Q1: Can I file a GST return after the due date?
- Yes, but late fees and interest will apply. The late fee is ₹50 per day (₹25 each for CGST and SGST) for regular returns and ₹20 per day for Nil returns.
Q2: What happens if I don’t file GST returns for an extended period?
- Your GST registration may be canceled if you fail to file returns for a prolonged period. Additionally, penalties and interest will accumulate.
Q3: Can I revise a GST return once filed?
- No, GST returns cannot be revised. However, any errors can be rectified in subsequent returns.
Q4: What is the penalty for non-compliance under GST?
- Besides late fees, non-compliance can attract interest at 18% per annum for tax liabilities. Repeated defaults may lead to prosecution or cancellation of GST registration.
Q5: How do I check the status of my GST return?
- You can check the status of your GST return by logging in to the GST portal, navigating to the “Returns” section, and selecting “Track Return Status.”
Q6: What is a Nil GST return, and when should I file it?
- A Nil return is filed when there is no sale or purchase activity during the return period. Even if your business has no transactions, you must file a Nil return to remain compliant.
Q7: What is GSTR-2B?
- GSTR-2B is a static auto-drafted statement generated for each taxpayer based on the data furnished by their suppliers in GSTR-1, GSTR-5, and GSTR-6. It reflects the eligible ITC for the month.
Do you have any query?
We will be more than happy to be of help to you!