GST Return Filing Process - Complete Guide
GST Return-Introduction
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 13 active 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.
GST registered businesses typically have to file two returns per month (GSTR-1 and GSTR-3B) in each state where they operate. An annual GST return is also required. This means a business will have to complete 25 returns per annum in each state where they are trading.
What is GST Return?
A GST Return is a document that mentions all details related to GST invoices, payments, and receipts for a specific period. A taxpayer is liable to declare all transactions related to the revenue of the business based on which the authorities will calculate the amount of tax to be paid by the business.
Business owners can file GST return online on the official portal provided by GSTN.
While filing GST returns, the registered dealer requires the following details for the concerned period.
- Total Sales
- Total Purchases
- Output GST (GST paid by customers)
- ITC or Input Tax Credit (GST paid by the business for purchases)
Once filed, a registered dealer can check GST Return filing status online and comply with necessary requirements accordingly.
In addition, you also need to understand and choose the right form before you initiate the GST return filing procedure. There are 11 types of returns applicable under the GST regime and each form has a different purpose and due date. For example, you will have to file GSTR-1 by the 10th of every month in case you are filing details of outward supplies of taxable goods. Once you have this information and know your GST number, choose the appropriate GST form and file GST online by the due date.
Who should file GST return?
All business owners and dealers who have registered under the GST system must file GST returns according to the nature of their business or transactions.
- Regular Businesses.
- Businesses registered under the Composition Scheme.
- Other types of business owners and dealers.
- Auto-drafted Returns.
Types of GST Returns with Due Dates
S. No. | Category | Return Form | Particulars | Frequency | Due Date |
1 | Regular Dealer | GSTR-1 | Details of outward supplies of taxable goods and/or services affected | Monthly | 11th of the next month with effect from October 2018 |
2 | Regular Dealer | GSTR-2 (Suspended) | Details of inward supplies of taxable goods and/or services affected claiming the input tax credit. | Monthly | 15th of the next month |
3 | Regular Dealer | GSTR-3 (Suspended) | Monthly return on the basis of finalization of details of outward supplies and inward supplies along with the payment of tax. | Monthly | 20th of the next month |
4 | Regular Dealer | GSTR-3B | Simple Return in which summary of outward supplies along with Input Tax Credit is declared and payment of tax is affected by taxpayer | Monthly | 20th of the next month |
5 | Composite Tax Payer | GSTR-4/CMP-08 | Return for a taxpayer registered under the composition levy | Quarterly | 18th of the month succeeding quarter |
6 | Foreign Non-Resident Taxpayer | GSTR-5 | Return for a Non-Resident foreign taxable person | Monthly | 20th of the next month |
7 | Input Service Distributor | GSTR-6 | Return for an Input Service Distributor | Monthly | 13th of the next month |
8 | Tax Deductor | GSTR-7 | Return for authorities deducting tax at source. | Monthly | 10th of the next month |
9 | E-commerce | GSTR-8 | Details of supplies effected through e-commerce operator and the amount of tax collected | Monthly | 10th of the next month |
10 | Regular Dealer | GSTR-9 | Annual Return for a Normal Taxpayer | Annually | 31st December of next financial year |
11 | Composite Tax Payer | GSTR-9A | Annual Return a taxpayer registered under the composition levy anytime during the year | Annually | 31st December of next financial year |
12 | Final Return (for taxable persons whose registration has been surrendered or cancelled) | GSTR-10 | Final Return | Once, when GST Registration is cancelled or surrendered | Within three months of the date of cancellation or date of cancellation order, whichever is later. |
13 | Specialised agency of the United Nations Organisation or any multilateral Financial Institution and notified United Nations Bodies, Consulate or Embassy of foreign countries | GSTR-11 | Details of inward supplies to be furnished by a person having UIN and claiming a refund | Monthly | 28th of the month following the month for which statement is filed |
Note : Due dates is subject to changes by Govt. Notification or Orders.
GST Return Filing Process - A Step-By-Step Guide
In GST, returns are self-assessed by the registered persons. A taxable person can take help of GST Practitioner in filing returns etc.
- Make sure that you are registered under GST and have the 15-digit GST identification number with you based on your state code and PAN. In case you do not have this number, first register online to get it.
- Next, visit the GST portal.
- Click on the ‘Services’ button.
- Click on ‘Returns dashboard’ and then, from the drop-down menu, fill in the financial year and the return filing period.
- Now select the return you want to file and click on ‘Prepare online’.
- Enter all the required values including the amount and late fee, if applicable.
- Once you have filled in all the details, click on ‘Save’ and you will see a success message displayed on your screen.
- Now click on ‘Submit’ at the bottom of the page to file the return.
- Once the status of your return changes to ‘Submitted’, scroll down and click on the ‘Payment of tax’ tile. Then, click on ‘Check balance’ to view cash and credit balance, so that you know these details before paying tax for respective minor heads. Next, to clear your liabilities, you need to mention the amount of credit you want to use from the credit already available. Then click on ‘Offset liability’ to make the payment. When a confirmation is displayed, click on ‘OK’.
- Lastly, check the box against the declaration and select an authorised signatory from the drop-down list. Now click on ‘File form with DSC’ or ‘File form with EVC’ and then click on ‘Proceed’. Make the payment in the next step for your respective GST.
Impact of GST
Positive impact:
- For those looking to start a business, GST will be an advantage. It being a one tax system for all states of India, you would not need to pay various taxes in different states, and would be free of certain duties on your businesses.
- Before the GST was implemented, there were a number of indirect taxes levied on various goods and services, including Value Added Tax (VAT), Swachh Bharat Cess, Krishi Kalyan Cess, Service Tax, Central Excise Tax, etc. Now, the government has replaced all these with Central GST and State GST.
- With the implementation of GST, India is now a unified market, proving an attractive proposition for foreign investment.
Negative impact:
- The proposed GST rates are higher on certain goods, than the previous VAT rates, leading to an increased cost on these goods.
- GST is divided into two categories, controlled by the state and central governments.
- Certain sectors enjoyed an excise duty fee and no tax additions before GST. Such sectors may now face losses as GST gets added.
Late filing of GST returns result - Late Fee and Interest
All About Late Fee under GST
Not filing the GST return within the time period given by the department (including the extension), is considered as non-compliance with the law and attracts strict penalty amount. The amount of late fees differs according to the type of return filing. The amount will depend upon the number of days of delay from the due date.
However, currently, the GST portal is aligned to charge a late fee only on returns GSTR-3B, GSTR-4, GSTR-5, GSTR-5A, GSTR-6, GSTR-8, GSTR-7 and GSTR-9 only.
Late Fees for GSTR-3B
Late fees for GSTR-3B is Rs. 20 (Rs. 10 for CGST and Rs. 10 for SGST) per day for NIL returns and Rs. 50 (Rs. 25 for CGST and Rs. 25 for SGST) in other cases. A return in which there is no sales but has purchases is also considered as NIL return. Maximum amount of penalty will be Rs. 10,000 (Rs. 5,000 for CGST and Rs. 5,000 for SGST)f or every return.
Late fees for GSTR-3B for a month is required to be paid in the next month. You cannot file a month’s return before making payment of late fees of previous month.
Late Fees for GSTR-1
Late fees for GSTR-1 is Rs. 200 (Rs. 100 for CGST and Rs. 100 for SGST) per day. Currently government is not taking late fees related to GSTR-1.
Late Fees for GSTR-9 and GSTR-9A
Late fees for GSTR-9 and GSTR-9A is Rs. 200 (Rs. 100 for CGST and Rs. 100 for SGST) per day up to a maximum of 0.50% (0.25% for CGST and 0.25% for SGST) of turnover.
Late Fees for GSTR-10
Late fees for GSTR-10 is Rs. 200 (Rs. 100 for CGST and Rs. 100 for SGST) per day. There is no maximum limit on amount of penalty. Late fees is to be paid to enable filing of your return.
Quick View: Late Fees for GST Return as per GST Act
All returns except Annual Returns: Rs. 200 per day (Rs. 100 CGST + Rs. 100 SGST) of default up to a maximum of Rs 5,000.
Annual Returns: Rs. 200 per day (Rs. 100 CGST + Rs. 100 SGST) of default up to a maximum of 0.25% of Turnover.
All about Interest under GST
When the late fee is accrued, interest is also charged on non-payment of late fees. On the total penalty liability, interest at the rate of 18% per annum is applied. This interest is paid by the taxpayer at the time of paying the fees. The fees, as well as the interest, is calculated for the period of the due date to the date of actual filing of return.
Interest has to be paid by every taxpayer who:
- Makes a delayed GST payment i.e. pays GST after the due date.
- Claims excess Input Tax Credit
- Reduces excess Output Tax Liability
If GST is not paid within the due dates of filing return Interest at following rates has to be paid:
Particulars | Interest Rate |
Tax paid after due date | 18% p.a. |
Excess ITC Claimed or excess reduction in Output Tax | 24% p.a. |
Conclusion
For businesses that need to charge GST, it is necessary to file the GST returns on time as specified by the tax department. Missing the deadline can result in heavy penalties and interest. There are various types of GST returns which can be beneficial to the public. However, one should always take care of preparing all the documents and exemptions under the section. There have been a few amendments under the new act and there are also a portion of which interest is charged on incurrence of late fees under certain circumstances.
Frequently Asked Questions
1. What is a GST Return?
A return is a statement of financial activity by a taxable person for a prescribed period. This allows a taxable person to self-assess the tax they owe for that period.
2. Can the taxpayer change the period (whether monthly or quarterly) of filing his return?
The taxpayer will have the option to change the period (from quarterly to monthly and vice versa) of filing his returns only once – at the time of filing his first return for that financial year.
3. Is it Possible to Revise GSTR-3B?
Not possible to revise GSTR-3B once filed.
4. What do I do if my vendor does not upload my invoice in their GSTR-1?
Ensure that you record the purchase in your GSTR-2. Since there will be a mismatch between your vendor’s GSTR-1 and your GSTR-2, it will be reflected in your vendor’s GSTR-1A. The GSTR-1A allows your vendor to update the sales information filed in their GSTR-1 and shows any mismatches in the details provided by the buyer in their GSTR-2.
Once your vendor accepts the changes shown in the GSTR-1A, their GSTR-1 will be automatically updated.
5. How do I claim Input tax credit?
Input credit means at the time of paying tax on output, you can reduce the tax you have already paid on inputs. We will help you claim input tax credit if you have tax invoice from registered dealers.
6. What are B2B invoices?
B2B invoices are invoices of taxable supplies made to registered taxpayers is considered as B2B.
7. What are B2C Large invoices?
B2CL are invoices for taxable outward supplies made to unregistered taxpayers where:
- Supply is made interstate, and
- Total invoice value is more than Rs 2,00,000
8. Can I edit my data after filing my returns for the month?
Yes, you are allowed to make corrections. As a registered taxpayer, you are legally bound to file the details of every modification made to the return data to the GSTN either through an amendment form (if the edit was made before 17th of the following) or using the amendment sections under the next month’s tax return (if the edit was made after 17th of the following month). This is because modifications to invoices and other documents can result in a mismatch between your data and the data held by your customer or vendor and this will lead to litigation. Hence, by declaring the details of all edits made by you, you stay true to the law.
9. What should I do if E-sign does not work while filing?
If e-sign does not work, you can always file a GST return using other methods which involve an OTP from your registered phone number, your PAN information and a DSC.
10. Should only the business owner be able to file GST return? (as his/her number is mapped)
Technically, you need the DSC of the registered person along with an OTP that will be sent by the GSTN to the registered person’s phone while filing GST returns. Hence it is better if the business owner is made aware before you initiate the filing process.
Ramesh Kumar Gupta (Team TAXAJ)
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