File GST Return
GST return is a document containing details of all income/sales and/or expenses/purchases that a GST-registered taxpayer (every GSTIN) is required to file with the tax administrative authorities. This is used by tax authorities to calculate net tax liability.
Under GST, a registered dealer has to file GST returns that broadly include:
Purchases
Sales
Output GST (On sales)
Input tax credit (GST paid on purchases)
To file GST returns or for GST filings, check out the Clear GST software that allows the import of data from various ERP systems such as Tally, Busy, custom Excel, to name a few. There is also the option to use the desktop app for Tally users to directly upload data and file. One of the key aspects of the GST era is that most of the indirect taxes - for which returns had to be filed separately for various businesses - have been subsumed. Today, irrespective of whether one is a trader, manufacturer, reseller or service provider, one needs to file GST returns online, in the prescribed formats.
Under GST, there are 19 GST return forms, which tax payers can use to file GST returns online. All these forms are required to be e-filed as per the GST return filing process laid down in the GST return rules section of the GST Act.
Eligibility Criteria
Who should file the GST returns?
GST Return filing in India is to be done by the following:
1. A person having a valid GSTIN has to compulsorily file the GST returns.
2. Also, a person whose annual turnover is crossing Rs. 20 lakh has to obtain a GST registration and file the GST returns mandatorily.
3. In the cases of Special states, the limit for the annual turnover is Rs.10 lakh.
Documents Required for GST Return Filing
To ensure your application for Goods and Services Tax return doesn’t get rejected, you must submit the following documents with the concerned authority:
Customer GSTIN
Type of Invoice
Place of Supply
Invoice Number
GST Rate
Taxable Value
List of Invoices (B2B Services, B2C Services)
Amount of applicable SGST, CGST, IGST and GST Cess.
HSN wise summary details.
Consolidated intra-state and inter-state sales.
Summary of requisite documents i.e. Debit and Credit notes.
Different Types of GST Returns
Here is a look at the different types of GST returns.
1. GSTR-1- GSTR-1 has to be filed against all goods and services rendered by a company. This includes all the invoices raised as well as credit-debit notes against sales for a tax period.
2. GSTR-2A- GSTR 2A is a view-only GST return for buying goods and services. It contains the details of all purchases made by the recipient in any month. All kinds of inward supplies to the recipient can be viewed as purchases made from other GST registered suppliers.
3. GSTR- 2B- This is also a static, view-only GST return. It is important for buyers of goods and services. GSTR-2B is available every month from August 2020 and contains ITC data of any period when it is checked back.
4. GSTR- 3B- GSTR 3B is a monthly self-declaration. It furnishes the summarised details of:
All outward supplies made
Input tax credit claimed
Tax liability
Taxes paid
5. GSTR-4- GSTR-4 is an annual return to be filed by composition taxable persons. It is to be filed by April 30th following the relevant financial year. This return replaced GSTR-9A.
6. GSTR-5- GSTR-5 is for those non-resident foreign taxpayers who carry out transactions in India. What do these returns entail? They contain details of the following:
Outward supplies made
Inward supplies received
Credit-debit notes
Tax liability
Taxes paid
7. GSTR-5A- GSTR-5A summarises all the outward taxable supplies and tax payable by OIDAR, which stands for the Online Information and Database Access or Retrieval Services provider.
You have to file this return by the 20th of every succeeding month.
8. GSTR-6- GSTR-6 must be filed by an Input Service Distributor (ISD) every month. Its composition details are:
Input tax credit distributed and received by ISD
All the details of all documents related to the input tax credit
The due date of the GSTR-6 is the 13th of every succeeding month.
9. GSTR-7- GSTR-7 is to be filed by the persons who are required to deduct the TDS under GST. TDS stands for “Tax deducted at source.” Here’s what the GSTR-7 entails:
Details of TDS deducted
TDS liability payable and paid
TDS refund if any
The due date of the GSTR-7 is the 10th of every succeeding month.
10. GSTR-8- This form is required to be filed by the e-commerce operators registered under GST. They are usually required to collect tax at the source. All the details of supplies made through the e-commerce platform and the TCS on the same are recorded.
It is to be filed by the 10th of every succeeding month.
11. GSTR-9- This is an annual return to be filed by taxpayers who are registered under GST. It is due by December 31st for the year following the specific financial year. What does the GSTR-9 contain? It consists of the following:
Details of outward supplies made
Inward supplies received
Summary of supplies received under HSN code
Details of tax payable and paid
12. GSTR-9C- It is a statement filed by all the taxpayers registered under GST whose turnover exceeds Rs. 2 crores in a financial year. This is a unique form in that it has to be certified by a Chartered Accountant or a Cost Management Accountant after a GST audit and looking over the GST-9.
It is to be filed by December 31st of the year that follows the relevant financial year.
However, as per the Union Budget 2021, the mandate for the GST audit by CAs and CMAs has been removed.
13. GSTR-10- The GSTR-10 form is to be filled by a person whose registration was surrendered or cancelled. It is also called a final return which needs to be filed within three months of the cancellation order or the date of cancellation, whichever comes first.
14. GSTR-11- GSTR-11 is for foreign diplomatic missions and embassies that do not pay tax in India but require a refund of taxes. It is filed by those persons who have been issued a Unique Identity Number (UIN) to get a refund for the goods and services incurred by them in India. These returns have details of the inward supplies received and refunds claimed.
These were the different types of GST returns and who should file them.
Benefits of GST Return Filing
The Benefits of GST Return Filing are listed below.
GST Return Filing through a Single Form - There are different types of taxes collected under the GST Act, i.e. IGST, CGST & SGST, and all the three taxes paid or collected can now be recorded in a single form. This helps to ease the complex process of GST Return Filing.
Eliminates the Cascading Effect- The introduction of GST into the Indian tax system has removed several other taxes like central excise duty, service tax, customs duty, and state-level value-added tax. Thus, a single GST has abolished the cascading effect of tax.
Higher Threshold Benefits- Before the introduction of Goods and Service Tax, VAT was applicable to every business having an annual turnover of 5 lacs. But with the introduction of GST, the amount of annual turnover has increased to 20 lakhs. This has provided higher threshold benefits to small-scale businesses.
Start-up Benefits- Before GST, start-ups with an annual turnover of 5 lakh had to pay VAT which was very difficult for a start-up during the initial stages. GST has replaced VAT, where businesses can set off the service tax on their sales
E-commerce for the Quick Supply of Goods- With the increase in competition, every business is making a strong presence online by offering its services and products on their websites. Under VAT, many types of VAT laws and compliances were required to be followed, which were very complicated and often resulted in the confiscation of goods by the Authority. GST has now removed all such confusing processes and has made the E-commerce business easy.
Better Regulations and Accountability- Before the introduction of GST, the tax filing system was quite unorganized; all the taxes were paid conveniently, and the major inconvenience that was a part of tax filing has now been eliminated. This has resulted in better regulation of the tax laws and better enhanced the accountability of the taxpayers.
How to File GST Return Online?
Every manufacture, dealer, consumer, and supplier is obligated to file their returns of GST with the department of Goods and Services Tax every year. As per the new GST regime, filing tax returns have been made online and automated.
You can file returns online directly through the app rendered by GSTN (Goods and Service Tax Network) which will automatically fill up all your details on each GSTR form.
We have listed below steps to file Goods and Services Return online:
Step 1: Visit the GST Portal- To file the Goods and Services Tax return online, you are first required to visit the official website of GST at www.gst.gov.in and log in with your username and password.
Step 2: Issuance of GSTIN- Secondly, you will receive a 15-digit identification number based on your PAN number and state code.
Step 3: Upload Invoices - Next, you need to upload invoices on the GST portal or whatever app or software you are using. You will be then issued an invoice reference number against each invoice.
Step 4: Fill in the Return Filing Period- Tap on the ‘Return Dashboard’ and then, fill in the return filing period as well as the financial year from the drop-down menu.
Step 5: Preparation for Filing Goods and Services Tax Return Online- Now, choose from the returns you want to file and tap on ‘Prepare Online.’ Check whether your documents are good to go and to the point. Cross-check all of them and be ready to file returns online.
Step 6: Enter the Correct Amount- Now fill up the required amount and any late fee, if required.
Step 7: Save the Details Filled- Now, when you are done with all the above steps, you need to tap on the ‘Save’ button. By doing so, you will get a success message displayed on your screen.
Step 8: Submit the Details- After you have successfully saved the details filled, click on the ‘Submit’ button available at the bottom of the page to file the GST tax return.
Step 9: Clear Your Liabilities- Once you have submitted the details, click on the ‘Payment of tax’ block > Check Balance to view your credit balance and the cash. It’s important to be informed of such details prior to paying taxes.
Now, to clear your liabilities, you need to mention the credit amount you would like to utilize from the credit balance. Then, tap on ‘Offset liability’ to initiate the payment. Click on ‘OK’ when the confirmation is displayed.
Step 10: File the Return with an Authorised Signatory- Finally, you have to check-mark the box against the declaration. Then, choose an authorised signatory from the dropdown list. Later, tap on ‘File form with DSC’ or ‘File form with DSC’ and click on the ‘Proceed’ tab.
You can pay in the next step for your respective GST.
What is the penalty for the late filing of GST returns?
If you have failed to pay the GST returns, there is an interest and late fee to be paid. The interest is at 18% per annum to be calculated on the amount of outstanding tax. And under the CGST and SGST, there is a late fee of Rs.100 to be paid each day, so the total comes to Rs.200 per day.