GST Return Filing

GST Return Filing

GST Return Filing

GST Returns require your business details of

• Nature of business activities
• Tax Payable and ITC
• Business Turnover for the period
• Deductions and exemptions availed

He filing of GST Returns has manifold importance, such as For Return Filer

• Necessary to adhere the legal compliances
• Helps in calculating the correct tax liability of self and others
• A tool for claiming ITC

For Government

• Source for collecting Financial Statistics of Organisations
• Scrutinize the relevant cases effectively and efficiently
• A basis for future policy making
• Helps in making the future compliance procedures
• Evasions can be better tracked
• Effective mode of procuring information from the taxpayers

Consequences Of Not Filing GST Returns

Yes, non filing or delayed filing of GST Returns can attract you

• Late Fee and
• Penalty
• Late Fee
• Any registered person who is liable to file Goods and Services Tax return under section 37,38,39 or section 45. Fails to do so by the due date, shall attract a late fees of Rs 100 per day, aggregating maximum upto Rs 5000 [Section 47(1)] of the CGST Act.
• Also, any person liable to furnish return under Section 44 i.e. annual return, if fails to furnish the same by due date then, late fee of Rs 100 per day aggregating maximum upto 0.25% of quarterly turnover in State or Union Territory. The same is governed by provisions mentioned under section 47(2) of the CGST Act.
• No late fees shall be attracted under IGST Act.
• Interest In case tax payment is outstanding interest is 18% per annum shall be calculated on the Net tax liability from the next day of filing due date till the actual date of payment.

Types of GST Returns:

• GSTR-1: Details of outward supplies. It is typically filed monthly by regular taxpayers.
• GSTR-3B: A monthly summary return. It includes details of outward and inward supplies and the tax liability.
• GSTR-4: Quarterly return for businesses opting for the Composition Scheme.
• GSTR-5: Return for non-resident foreign taxpayers.
• GSTR-6: Return for Input Service Distributors.
• GSTR-7: Return for Tax Deducted at Source (TDS).
• GSTR-8: Return for Tax Collected at Source (TCS).
• GSTR-9: Annual return for regular taxpayers.
• GSTR-9A: Annual return for Composition Scheme taxpayers.

Charges for Late Filing:

• Late Fee: A late fee is charged for filing GST returns after the due date. The late fee is Rs. 50 per day of delay (Rs. 20 per day for taxpayers with nil liabilities) under CGST and SGST. So, it is Rs. 100 per day in total.
• Interest: Interest is charged at a specified percentage on the outstanding tax amount for the period of delay in payment of taxes.

Due Dates (Typical as of September 2021):

• GSTR-1: 11th of the next month (for most businesses).
• GSTR-3B: 20th of the next month.
• GSTR-4: 18th of the month after the end of the quarter.
• GSTR-5: 20th of the next month.
• GSTR-6: 13th of the next month.
• GSTR-7: 10th of the next month.
• GSTR-8: 10th of the next month.
• GSTR-9: 31st December of the next financial year (annual return).
• GSTR-9A: 31st December of the next financial year (annual return for Composition Scheme).

GST returns are documents filed by taxpayers with the tax authorities that summarize their sales, purchases, tax collected, and tax paid under the Goods and Services Tax (GST) system in India. GST returns play a crucial role in the GST regime as they provide vital information to the government, which is used to calculate the tax liability of a taxpayer.

• Purpose: Details of all outward supplies (sales) made by the taxpayer during a specific period. This return is used by the recipient to avail input tax credit.
• Filing Frequency: Monthly for regular taxpayers.
• This return is to be filed, or the changes in GSTR-1A can be accepted or rejected between 15th and 17th of next month.

GSTR 3B contains the details relating to

• Outward Supply (Sales)
• Inward Supply (Purchases)liable to reverse charge
• ITC eligible
• Tax details
• TDS / TCS credits available
• Inter-state Supply made

It can be filed as nil return even when there is no transactions and tax liability for that particular tax period. GSTR-3B is to be filed electronically using the GST portal.

3. GSTR-4 (Composition Scheme Return):

• Purpose: Quarterly return filed by taxpayers registered under the composition scheme. It includes details of outward supplies, inward supplies attracting reverse charge, and taxes paid.
• Filing Frequency: Quarterly for composition scheme taxpayers.

4. GSTR-5 (Non-Resident Foreign Taxpayer's Return):

• Purpose: Monthly return filed by non-resident foreign taxpayers. It includes details of sales, purchases, and tax paid.
• Filing Frequency: Monthly for non-resident foreign taxpayers.
• The due date to file GSTR-5 for NR for the period for which they get registration is within 7 days of the expiry of such period. And if the period of registration is more than one month, the monthly return would be filed by the 20th of the following month of the tax period.
• In simple words it should be furnished within 20 days after the end of the calendar month or within 7 days after the last day of validity period of the registration, whichever is earlier.

5. GSTR-6 (Input Service Distributor's Return):

• Purpose: Monthly return filed by Input Service Distributors (ISD) to distribute input tax credit to other branches of the business.
• Filing Frequency: Monthly for Input Service Distributors.

6. GSTR-7 (Tax Deducted at Source Return):

• Purpose: Monthly return filed by taxpayers deducting tax at source (TDS). It includes details of TDS deducted and deposited.
• Filing Frequency: Monthly for TDS deductors.

Tax deductors are required to:

• Declare his total TDS liability for a given period (monthly) in this Form,
• Furnish information related to the TDS under three major heads viz., Central tax, State/UT tax and Integrated tax related to that return;
• File correct and complete return within due date, given the fact that the TDS credit will be available to the counterparty supplier upon the filing of TDS return in Form GSTR-7 by the Deductor (i.e., the person liable to deduct TDS).
• Issuance of TDS certificate to the deductee.

Person deducting TDS under GST is required to furnish return in form GSTR 7. Following are the deductors liable to deduct TDS as per section 51 of the CGST Act

• Department or establishment of central government or state government, or
• Local authority, or
• Governmental agencies, or
• An authority or a board or any other body
• Set up by an Act of Parliament or State Legislature, or
• Established by any government (with 51% or more participation by way of equity or control to carry out any function)
• A society established by Central Government or State Government or Local Authority under Societies Registration Act, 1860.
• Public sector undertakings

The due date to file this return is 10th of the next month. And no need to file a return for a period in which no TDS is deducted.

7. GSTR-8 (Tax Collected at Source Return):

• Purpose: Monthly return filed by e-commerce operators who collect tax at source. It includes details of supplies made through the platform.
• Filing Frequency: Monthly for e-commerce operators.

Below are some of the following details required to be furnished while filing GSTR 8

• Details of TCS and outward supply
• Tax and Interest paid
• Tax and Interest payable
• Details of Refund etc

The due date of filing Form GSTR-8 is 10th of the following month of the tax period. Currently, there is no late fee for filing return with the delay, but interest is levied on delay in discharging the liability of TCS.

8. GSTR-9 (Annual Return):

• Purpose: Annual return filed by regular taxpayers. It includes details of outward and inward supplies, taxes paid, and input tax credit availed.
• Filing Frequency: Annually for regular taxpayers.

GSTR 9 contains information such as purchases, sales, input tax credit or refund claimed, etc. Details required to be disclosed under the Form GSTR-9 in respective serial number are:

• Serial Number 4: Details of advances, inward and outward supplies made during the financial year on which tax is payable
• Serial Number 5: Details of Outward supplies made during the financial year on which tax is not payable
• Serial Number 6: Details of ITC availed during the financial year
• Serial Number 7: Details of ITC reversed and Ineligible ITC for the financial year
• Serial Number 8: Other ITC related information
• Serial Number 9: Details of tax paid as declared in returns filed during the financial year
• Serial Number 10,11,12&13: Details of the previous Financial Year's transactions reported in the next Financial Year
• Serial Number 14: Differential tax paid on account of declaration in table no. 10 & 11
• Serial Number 15: Particulars of Demands and Refunds
• Serial Number 16: Supplies received from Composition taxpayers, deemed supply by job worker and goods sent on an approval basis
• Serial Number 17: HSN wise summary of Outward Supplies
• Serial Number 18: HSN wise summary of Inward Supplies

This return is to be filed by a person who is registered as a regular taxpayer and taxpayer who has withdrawn from composition scheme to regular taxpayers. For the assessee having turnover more than Rs. 2 crores during the financial year, they are required to get their accounts audited by CA and CWA. And file return in the form GSTR-9C.

Assesses can file a Nil Return only if the following conditions are satisfied:

• Not made any outward supply or sale.
• Not received any inward supply of goods/services or purchase.
• No other liability for reporting.
• Not claiming any input tax credit
• Not claiming any refund under the act.
• Not received any order creating demand for any liability for tax.
• There is no late fee due to delay in filing return is to be paid etc.

9. GSTR-9A (Annual Return for Composition Taxpayers):

• Purpose: Annual return filed by taxpayers registered under the composition scheme. It includes details of outward and inward supplies and taxes paid.
• Filing Frequency: Annually for composition scheme taxpayers.

In this form, the assessee is required to file the information related to

• Purchases (inward supply)
• Sales (outward supply)
• Taxes Paid
• Demands and Refunds
• Credit reversed or availed
• Late Fees payable or paid

GSTR 9A is required to be filed by all taxpayers who opted for composition scheme, for any period during the financial year, and includes:

• Who are registered under composition scheme from the start and never opted out in the subsequent year.
• Who opted for composition scheme at any time during the financial year.
• Who opted for composition scheme but opted out in the subsequent year.

10. GSTR-10 (Final Return):

• Purpose: Filed by taxpayers whose GST registration has been canceled or surrendered. It includes details of inputs and capital goods held and the tax liability.
• Filing Frequency: Once, at the time of cancellation or surrender.

Form GSTR-10 is to be filed by every taxpayer excluding the following:

• Input Service Distributor
• Non-resident taxable persons
• Persons deduct tax at source (TDS) under section 51
• Composition Taxpayer paying tax under section 10
• Persons collect tax at source (TCS) under section 52

The time limit for filing this return is:

• Date of order of cancellation or
• Within 3 months from the date of cancellation, whichever is later.

GSTR-11

This form is required to be filed by UIN holders. The purpose is to refund back any amount of tax collected from the person holding UIN. his form is for specifying details of inward supply of goods or services or both, required to be filed by an assessee who has been assigned with the Unique Identification Number (UIN). The person holding UIN is required to file GSTR 11. GSTR-11 is required to be filed monthly based on the inward supply of UIN holder. And the due date for filing this return is 28th of the month following the month in which the UIN holder make the inward supply. This Return does not have any due date to file. Assessee can file it any time after the end of the relevant quarter.