GST Return: Benefits, Filing, and Due Dates

Introduction to GST Return

A GST return is a crucial document that every GST-registered taxpayer must submit to the tax administrative authorities. It contains detailed information about the income, sales, expenses, and purchases related to Goods and Services Tax (GST). By filing this return, taxpayers help the tax authorities calculate their net tax liability accurately.

What is GST?

Before we delve deeper into GST return, let’s quickly understand what GST is. GST stands for Goods and Services Tax, and it is a value-added tax imposed on the majority of goods and services sold for domestic consumption. This means that when you buy goods or services, you pay GST as a consumer. However, the responsibility of remitting this GST to the government lies with the businesses that sell these goods and services.

Purpose of GST Return

The primary purpose of filing a GST return is to provide a comprehensive overview of the financial activities of a GST-registered taxpayer. This document includes details of both income and expenses related to GST. By submitting accurate information through GST returns, businesses enable the tax authorities to calculate the exact amount of tax they owe.

Benefits of Filing GST Returns

• Filing GST returns is not only a legal obligation but also offers several advantages that can positively impact your business. Let’s explore the benefits of filing GST returns:
• Compliance with GST Law: Filing GST returns ensures that you are complying with the GST law and fulfilling your tax obligations. This helps you avoid penalties, fines, and legal actions that may arise due to non-compliance.
• Claiming Input Tax Credit (ITC): By filing GST returns, you can claim Input Tax Credit on the taxes you have paid on your purchases. This reduces your overall tax liability, leading to cost savings for your business.
• Accurate Reporting of Sales and Purchases: GST returns require you to report your sales and purchases accurately and transparently. This promotes better financial record-keeping and helps in maintaining the integrity of your business transactions.
• Proper Maintenance of Business Records: Filing GST returns necessitates the proper maintenance of business records and accounts. This organized approach to record-keeping enables you to track your financial activities effectively.
• Enhanced Business Reputation and Credibility: Complying with GST regulations and filing returns on time can enhance your business’s reputation and credibility in the eyes of customers, suppliers, and other stakeholders. It reflects a commitment to transparency and responsible business practices.
• Seamless Business Operations: Timely filing of GST returns ensures that your business operations run smoothly without interruptions or delays due to non-compliance issues.
• Availability of Tax Refunds: If you have paid excess tax or are eligible for a tax refund, filing GST returns is essential to claim these refunds promptly.
• Facilitates Input Tax Reconciliation: Regular filing of GST returns aids in the reconciliation of input tax credits with the outward supplies, reducing any potential discrepancies.
• Compliant with Government Requirements: As a responsible taxpayer, filing GST returns demonstrates your commitment to fulfilling government requirements and contributing to the nation’s economic development.
•  Preparedness for Business Expansion: Filing GST returns diligently lays the groundwork for your business’s expansion and growth, as it reflects a well-organized and transparent financial management system.

Understanding GST Return Components

Key Information in a GST Return

A GST return can vary based on the type of return and the nature of the taxpayer. However, some common information can be found in most GST returns. Let’s closely examine these points.

key components:

• GSTIN: Goods and Services Tax Identification Number, GSTIN is a 15-digit unique identification number assigned to every taxpayer registered under GST. It is based on the taxpayer’s PAN and state code.
• Legal Name and Trade Name: The legal name is the name of the taxpayer as per their PAN, while the trade name is the business name used in the market.
•  Period: The period refers to the specific timeframe for which the GST return is being filed, which can be monthly, quarterly, or annually, depending on the type of return.
• Turnover: The turnover represents the total value of taxable supplies made by the taxpayer during the specified period. It includes outward and inward supplies, as well as exempt, nil-rated, and non-GST supplies.
• • Taxable Value: This is the value of supplies on which GST is levied. It is calculated after deducting any discounts, abatements, or concessions from the turnover.
    
• Rate-wise Tax Liability: The rate-wise tax liability shows the amount of tax payable by the taxpayer at different GST rates applicable to their supplies. It includes CGST, SGST/UTGST, and IGST.
• Input Tax Credit (ITC): ITC is the amount of tax paid by the taxpayer on their inward supplies of goods and services. It can be claimed as a deduction from their output tax liability, subject to GST rules.
• Tax Payment: This section includes the amount of tax paid by the taxpayer after adjusting their ITC against their tax liability. It also covers any interest, penalty, or late fee payable for any delay or default in filing GST returns or paying taxes.

Additional Details in Specific GST Returns

In addition to the common components, certain GST returns may require taxpayers to furnish specific details. Some examples include:

• Details of outward and inward supplies to registered and unregistered persons.
• Information on advances received, adjusted, or refunded for supplies of goods and services.
• Amendments made to invoices or debit/credit notes issued or received in previous periods.
• Information about supplies made through e-commerce operators liable to collect tax at source (TCS).
• Details of tax deducted at source (TDS) by deductors on payments made to suppliers.
• Information on the distribution of input tax credit by Input Service Distributors (ISDs) to their branches.
• Details of refund claimed or sanctioned for any period.
• Information about any additional liability arising from audit, assessment, or adjudication for any period.

Types of GST Returns and Their Due Dates

When it comes to GST returns, there are various types that cater to different taxpayers based on their nature and category. Each return serves a specific purpose and has its own due date for filing. Let’s take a closer look at each type of GST return:

1. GSTR-1: Outward Supplies Return

• Filed by: Regular taxpayers
• Content: This return reports the details of all outward supplies of goods and services in a month.
• Due Date: For monthly filers, it’s the 11th of the next month, and for quarterly filers, it’s the 13th of the following quarter.

2. GSTR-2A: Inward Supplies Return (Read-Only)

• Filed by: All taxpayers
• Content: This is a read-only document showing details of inward supplies reported by suppliers in their GSTR-1 or IFF.
• Purpose: Helps taxpayers verify and reconcile purchase data with suppliers’ data.
• Due Date: Same as GSTR-1.

3. GSTR-3B: Summary Return

• Filed by: All taxpayers
• Content: This return summarizes the consolidated tax liability and tax payment in a month.
• Due Date: For monthly filers, it’s the 20th of the next month, and for quarterly filers, it’s the 20th of the following quarter.

4. GSTR-4: Return for Composition Scheme

• Filed by: Taxpayers under the composition scheme (annual turnover up to Rs. 1.5 crore)
• Content: This return reports quarterly turnover and pays a fixed rate of tax.
• Due Date: 18th of the following quarter.

5. GSTR-5: Return for Non-Resident Taxable Persons

• Filed by: Non-resident taxable persons making taxable supplies in India
• Due Date: Within 20 days from the end of the month or 7 days from the last day of registration, whichever is earlier.

6. GSTR-5A: Return for OIDAR Service Providers

• Filed by: Online Information and Database Access or Retrieval (OIDAR) service providers outside India, providing services to unregistered persons in India.
• Due Date: Within 20 days from the end of the month.

7. GSTR-6: Return for Input Service Distributors (ISDs)

• Filed by: Input Service Distributors who distribute input tax credit to their branches.
• Due Date: Within 13 days from the end of the month.

8. GSTR-7: Return for Tax Deductors at Source (TDS)

• Filed by: Tax Deductors at Source who deduct tax from payments made to suppliers.
• Deadline: You are required to submit it within 10 days from the end of the month.

9. GSTR-8: Return for E-commerce Operators

• Filed by: E-commerce Operators collecting tax at source from suppliers on their platforms.
• Deadline: You are required to submit it within 10 days from the end of the month.

10. GSTR-9: Annual Return

• Filed by: All taxpayers
• Content: Consolidates monthly/quarterly returns filed during the financial year and includes additional liability or refund details.
• Due Date: 31st December following the end of the financial year.

11. GSTR-10: Final Return

• Filed by: Taxpayers whose GST registration has been canceled or surrendered.
• Due Date: Within three months from the date of cancellation or the order of cancellation, whichever is later.

12. GSTR-11: Return for UIN Holders

• Filed by: Persons with a Unique Identity Number (UIN) claiming refunds on taxes paid for inward supplies.
• Due Date: Within 28 days from the end of the quarter.

13. CMP-08: Statement-cum-Challan

• Filed by: Taxpayers under the composition scheme to declare self-assessed tax liability and make quarterly tax payments.
• Due Date: Within 18 days from the end of each quarter.

14. ITC-04: Return for Job Work

• Filed by: Taxpayers involved in sending or receiving goods for job work under GST.
• Due Date: Within 25 days from the end of each quarter.

By understanding the different types of GST returns and their respective due dates, taxpayers can ensure timely and accurate filing, thus complying with GST regulations effectively.

Documents Required for Filing GST Returns

When it comes to filing GST returns, having the necessary documents in order is essential for accurate and timely reporting. The specific documents required may vary based on the type of return and the nature of transactions. Let’s explore the common documents that are typically needed:

• GSTIN of the Taxpayer and Return Period: Your Goods and Services Tax Identification Number (GSTIN) is a fundamental requirement for filing GST returns. This 15-digit unique identifier is crucial for all GST-related transactions. Additionally, you must be aware of the specific return period for which you are filing the return, whether it is monthly, quarterly, or annually.
• Sales Invoices or Bills of Supply: To report your outward supplies accurately, you need to maintain records of sales invoices or bills of supply issued to your customers. These documents should contain all the relevant details, including the GSTIN of the buyer, description of goods or services, value of the supply, applicable GST rate, and the amount of tax charged.
• Purchase Invoices or Bills of Entry: On the other hand, for your inward supplies, you must keep a record of purchase invoices or bills of entry received from your suppliers. These documents should provide information about the supplier’s GSTIN, description of goods or services purchased, the value of the supply, applicable GST rate, and the amount of tax paid.
• Debit Notes or Credit Notes: Debit notes and credit notes play a vital role in adjusting prices or taxes for specific transactions. Make sure to maintain a record of all debit notes issued to customers or received from suppliers and credit notes issued by suppliers or received from customers.
• Payment Vouchers or Receipts for Advance Payments: If you receive or make any advance payments related to your supplies, you should keep payment vouchers or receipts as evidence of these transactions.
• Tax Payment Challans or Receipts: For all tax payments made through cash or credit ledger, ensure you have the tax payment challans or receipts to support the payments.
• Bank Statements or Ledgers: It’s essential to maintain bank statements or ledgers that reflect the tax payments made through electronic modes. This will serve as further proof of your tax transactions.
• Digital Signature Certificate (DSC) or Electronic Verification Code (EVC): Finally, to authenticate and submit your GST return, you will need either a Digital Signature Certificate (DSC) or an Electronic Verification Code (EVC).

Understanding Due Dates for Filing GST Return

Filing GST returns within the specified due dates is essential to comply with tax regulations and avoid penalties. The due dates for different types of GST returns may vary based on the nature of the return and the category of the taxpayer. Let’s take a closer look at the detailed due dates for each type of GST return:

GSTR-1: Monthly or Quarterly Return for Outward Supplies

• For regular taxpayers making outward supplies of goods and services.
• Due Date: 11th of the month following the quarter (for quarterly filers) or 31st of the month following the month (for monthly filers).

GSTR-2A: Read-Only Return for Inward Supplies

• A read-only return showing details of all inward supplies received from registered suppliers.
• No specific due date as it is only for viewing and verification purposes.

GSTR-2B: Summary Statement of Input Tax Credit (ITC)

• A static statement showing the summary of available ITC for a given month.
• No specific due date as it is only for viewing and claiming ITC purposes.

GSTR-3B: Monthly Summary Return

• For all regular taxpayers, summarizing outward and inward supplies, output tax, input tax, tax payable, and tax paid.
• Due Date: 20th or 22nd or 24th of the month following the month, depending on turnover and state of registration.

GSTR-4: Annual Return for Composition Scheme

• For taxpayers under the composition scheme, providing details of total turnover and tax payable at a fixed rate.
• Due Date: 30th April of the year following the financial year.

GSTR-5: Monthly Return for Non-Resident Taxable Persons

• For non-resident taxable persons with taxable supplies in India but no fixed place of business here.
• Due Date: 20th of the month following the month or within 7 days after registration expiry, whichever is earlier.

GSTR-6: Monthly Return for Input Service Distributors (ISDs)

• For ISDs distributing Input Tax Credit (ITC) to their branches or units.
• Due Date: 13th of the month following the month.

GSTR-7: Monthly Return for Tax Deductors at Source (TDS)

• For taxpayers deducting TDS under GST.
• Due Date: 10th of the month following the month.

GSTR-8: Monthly Return for E-commerce Operators

• For e-commerce operators collecting TCS under GST.
• Due Date: 10th of the month following the month.

GSTR-9: Annual Return for Regular Taxpayers

• For regular taxpayers not under the composition or QRMP scheme.
• Due Date: 31st December of the year following the financial year.

GSTR-9A: Annual Return for Composition Scheme Taxpayers

• For taxpayers under the composition scheme.
• Due Date: 31st December of the year following the financial year. (However, this return has been waived off from FY 2017-18 onwards by the GST Council.)

GSTR-9B: Annual Return for E-commerce Operators

• For e-commerce operators collecting TCS under GST.
• Due Date: 31st December of the year following the financial year

GSTR-9C: Reconciliation Statement and Audit Report

• For taxpayers with turnover exceeding Rs. 5 crore in a financial year.
• Due Date: 31st December of the year following the financial year.

GSTR-10: Final Return for Canceled or Surrendered Registration

• For taxpayers whose registration has been canceled or surrendered.
• Last Date: You must file it within three months from the date of cancellation or the order of cancellation, whichever comes later..

GSTR-11: Statement of Inward Supplies for UIN Holders

• For persons having Unique Identification Number (UIN) claiming refund of GST paid on their purchases in India.
• Submission Deadline: The due date is the 28th of the month following the month for which the statement is filed.

Step-by-Step Guide to Filing GST Returns Online

Filing GST returns online is a crucial task for all registered taxpayers. It ensures compliance with tax regulations and helps maintain accurate financial records. Follow these simple steps to file your GST returns online:

Step 1: Login to the GST Portal: Head to the official GST portal at www.gst.gov.in and log in using your username and password.

Step 2: Get Your GST Identification Number (GSTIN): Upon registration, you’ll receive a 15-digit GSTIN, which combines your state code and PAN number. This unique number is essential for all GST-related transactions.

Step 3: Upload Invoices on the GST Portal: You can now upload your invoices on the GST portal or use compatible software to do so. An invoice reference number will be generated for each invoice, facilitating easy tracking.

Step 4: File Outward Returns: Proceed to the returns dashboard and find the specific return you need to file. To begin the process, click on the “File Return” link. This step involves providing details of outward supplies and any credit or debit notes issued.

Step 5: File Inward Returns and Claim Input Tax Credit: Next, file the inward returns, which entail recording details of purchases made from both registered and unregistered suppliers. Here, you can also claim input tax credit. You can view your purchase details in the GSTR-2A or GSTR-2B forms.

Step 6: File Summary Return and Pay Taxes Online: For the summary of your tax liability and tax payments, file the GSTR-3B form. This step ensures you fulfill your tax payment obligations online.

Step 7: File Annual Return and Reconcile Accounts: Lastly, file the GSTR-9 form to submit your annual return. This form includes the details of any additional liability or refund claimed. If your turnover exceeds Rs. 5 crore, you’ll also need to file a reconciliation statement using the GSTR-9C form.

By following these steps diligently, you can easily file your GST returns online and maintain proper compliance with GST regulations

How to Check GST Return Status on the GST Portal

Checking the status of your GST return is essential to ensure that your return has been successfully filed and processed by the tax authorities. Follow these simple steps to check your GST return status using the GST portal:

• Step 1: Visit the GST Portal: Go to the official GST portal by typing www.gst.gov.in in your web browser. Access the portal using your registered username and password.
• Step 2: Access the Return Status: Once logged in, navigate to the “Services” tab on the top menu bar. From the drop-down menu, select “Returns” and then click on “Track Return Status.”
• Step 3: Enter Details for Search: In the “Track Return Status” page, you will find various options to search for your return status.

1. Enter your GSTIN or UIN (Unique Identification Number) in the designated field.
2. Alternatively, you can select the financial year and return filing period for which you want to check the return status.
3. If you have the ARN (Application Reference Number) of your return, you can also enter it for a more specific search.

• Step 4: Perform the Search: After entering the required details, click on the “Search” button to proceed with the search.
• Step 5: View Return Status: The portal will display the status of your GST return based on the information provided.

The status may fall into one of the following categories:

• “To be filed”: Indicates that the return is due but has not been filed yet.
• “Submitted but not filed”: Shows that the return has been validated but is pending filing.
• “Filed – Valid”: Indicates that the return has been filed successfully, and the tax payment has been made.
• “Filed – Invalid”: Indicates that the return has been filed, but the tax payment is either not made or is short paid.

Checking Refund Application Status (if applicable):

• If you have filed a refund application and want to check its status, you can do so on the GST portal as well.
• To check the refund application status, go to the “Services” tab, then select “Refunds,” and click on “Track Application Status.”
• Enter your ARN or select the financial year and refund application type.
• Click on “Search” to view the status and details of your refund application.

Late Fees and Penalties for Delayed GST Return Filing

Filing GST returns on time is crucial to avoid incurring late fees and penalties. The consequences of delayed filing may vary based on the type of GST return and the taxpayer’s turnover. Here are the details of the late fees and penalties for not filing GST returns on time:

Late Fees for Delayed Filing:

• The late fee for filing GST returns after the due date is Rs. 100 per day per Act, i.e., Rs. 100 under CGST and Rs. 100 under SGST, subject to a maximum of Rs. 5,000.
• There is no late fee for delayed filing in the case of IGST.
• The late fee may differ based on the type of GST return and the taxpayer’s turnover.

Examples of Late Fees for Different GST Returns:

• For Nil GST Return Filing: The maximum late fee is Rs. 500 (Rs. 250 under CGST and Rs. 250 under SGST).
• For GSTR-1 Filing with Turnover < Rs.1.5 Crore: The late fees maximum  amount will be Rs. 2,000 (Rs. 1,000 under CGST and Rs. 1,000 under SGST).
• For GSTR-9 Filing with Turnover up to Rs. 5 Crore: The maximum late fee is Rs. 50 per day (Rs. 25 under CGST and Rs. 25 under SGST), subject to a maximum of 0.04% of turnover in the state or union territory.
• For GSTR-9 Filing with Turnover > Rs. 5 Crore but up to Rs. 20 Crore: The maximum late fee is Rs. 100 per day (Rs. 50 under CGST and Rs. 50 under SGST), subject to a maximum of 0.04% of turnover in the state or union territory.

Interest for Delayed Payment:

• Interest is charged for paying GST after the due date or for paying less than the actual tax liability.
• The interest rate is 18% per annum on the outstanding tax amount.
• However, the interest rate may vary based on the type of GST return and the reason for delay or shortfall in payment.

Examples of Interest Rates for Different Situations:

• For GSTR-3B Filing with Delayed Tax Payment but No Delay in Filing: The interest rate is reduced to 9% per annum for the first 15 days from the due date and then increased to 18% per annum thereafter.
• For GSTR-3B Filing with Delayed Tax Payment and Filing: The interest rate is reduced to nil for nil tax liability or for taxpayers with an annual turnover of up to Rs. 5 crore in the preceding financial year, subject to certain conditions.
• For GSTR-3B Filing with Excess Input Tax Credit Claim or Reduced Output Tax Liability: The interest rate is increased to 24% per annum on the excess or reduced amount.

How to File Nil GST Returns

If your business has not made any sales or purchases and there is no output tax, input tax, tax payable, or tax paid in a specific period, you can file a nil GST return for that period. Here’s a step-by-step guide on how to file a nil GST return:

Step 1: Visit the GST Portal: Go to the official GST portal by typing www.gst.gov.in in your web browser. Access the portal using your registered username and password.

Step 2: Access the Returns Dashboard: Once logged in, navigate to the “Services” tab on the top menu bar. From the drop-down menu, select “Returns” and then click on “Returns Dashboard.”

Step 3: Select the Return Period: In the “Returns Dashboard,” choose the relevant financial year and the specific return period for which you want to file the nil return.

Step 4: Choose Filing Option: After selecting the return period, click on either the “Prepare Online” or “Prepare Offline” option, depending on your preference for filing.

Step 5: Fill in Nil Return Details: Now, you need to fill in your nil return details. Since there are no sales, purchases, or taxes involved, you will enter zero values in all the relevant sections or tables of the return form.

Step 6: Validate Data and Check Errors: Once you have entered all the necessary details, validate the data and check for any errors or warnings in the return form.

Step 7: Submit the Return: After ensuring that all details are correct, you can proceed to submit the nil return. Use your Digital Signature Certificate (DSC) or Electronic Verification Code (EVC) to authenticate and finalize the submission.

Step 8: Download Acknowledgement Receipt: After successfully filing the nil return, you will receive an acknowledgement receipt. Download or print this receipt for your records and future reference.

Consequences of Not Filing GST Returns

Failing to file GST returns can lead to serious consequences and impact your business in various ways. Here are the potential repercussions of not filing GST returns:

• Loss of Input Tax Credit (ITC): One of the significant implications of not filing GST returns is the inability to claim Input Tax Credit (ITC) on your purchases. ITC allows you to reduce your tax liability by offsetting the tax paid on inputs against the tax collected on outputs. Failure to file returns on time may result in the loss of ITC benefits, leading to increased tax burden.
• Business Reputation and Customer Trust: Not filing GST returns and issuing valid tax invoices can erode customer trust in your business. Customers may question your compliance with tax regulations, affecting your business reputation and potentially leading to a loss of clients.
• Legal Consequences: Non-compliance with GST return filing obligations may lead to legal repercussions. The GST authorities have the power to initiate audit, scrutiny, assessment, and prosecution procedures against non-filers. This can result in fines, penalties, or even imprisonment, depending on the severity of the non-compliance.
• Loss of Business Opportunities: Non-filing of GST returns may hinder your ability to participate in government tenders, apply for licenses, or access other business opportunities that require a clean compliance record.
• Recovery of Tax, Penalty, and Interest: The GST authorities may take actions to recover the outstanding tax, penalty, and interest from non-filers. This can lead to financial strain on the business and hamper its growth.
• Inability to File Subsequent Returns: Failure to file one return may prevent you from filing subsequent returns, as the GST portal often requires all past returns to be filed before allowing the filing of the current return. This can lead to a chain of non-compliance issues.

How to Revise or Rectify GST Returns

Although there is no provision to revise or rectify GST returns once filed, you can make corrections or amendments in subsequent returns. Follow these steps to rectify errors or omissions in your previous GST returns:

• Identify the errors or omissions in your previous returns, such as GSTR-1 or GSTR-3B.
• Correct the mistakes in the relevant fields in your subsequent return, such as the next month’s GSTR-1 or GSTR-3B.
• Ensure that the amendments are made within the time limit prescribed by the GST law, which is generally up to the due date of the September return or the annual return, whichever is earlier, for the financial year to which the amendment pertains.

Understanding and complying with GST return requirements are crucial for every GST-registered taxpayer. Filing GST returns on time not only fulfills legal obligations but also offers numerous benefits like claiming input tax credit and enhancing business credibility. By following the correct procedures, businesses can avoid penalties, maintain proper financial records, and contribute to the nation’s economic development.