GST Return Filing: A complete overview

GST Return Filing is a mandatory compliance for every business that is registered under the GST Act/regime.

Under GST (Goods and Services tax), filing the GST returns is a crucial activity that works as a link between the government and the taxpayer.

While filing the return, the taxpayer has to provide the information such as the details of the business activity, payment of taxes, declaration of tax liability, and other information as required by the government.

GST returns are supposed to be filed electronically, i.e. on the GST portal. However, there’s a facility where one can also file GST returns manually.

Such returns are prepared offline and then uploaded to GSTIN portal either through the taxpayer or a facilitation centre.
 

Who all are required to file GST Returns?

Every GST registration holder who is taxable under the GST Act, 2017 are required to file GST returns as based on the nature of their business.

Therefore, whether you are engaged in the selling of goods or render services to others, you must obtain GST registration and file the returns periodically.

Under GST, a registered dealer involved in the following activities needs to file GST return:

  • Sales
  • Purchase
  • Output GST (on Sales)
  • ITC (Input Tax Credit) with GST paid on purchase.

 

Who doesn’t require filing GST Returns?

If you are GST registration holder but your business turnover is below the threshold limit of Rs. 40 lakh, then you don’t require filing GST returns.

However, for those in the North-Eastern and hilly regions with the turnover below Rs. 20 lakhs, do not need to file GST returns.

Types of GST Return Filing in India

There are various types of GST returns in India. The number of returns required to be filed depend on the nature of taxpayer:

Returns to be filed by a Normal Taxpayer

Returns Particular Due Date
GSTR-1 Particulars of Outward Supplies 10th of the next month
GSTR-2 Particulars of Inward Supplies 15th of the next month
GSTR-3 Monthly Return of tax payment 20th of the next month
GSTR-4 Annual Return 31st December of next financial year

Additional Returns based on the Nature of the Business

Returns Particular Due Date Filled by
GSTR-5 Particulars of Inward and Outward Supplies. Tax liability computation 20thof the next month. For the last month either 20thof the next month or 7 days after expiration, whichever is earlier Non-Resident Taxable Person
GSTR-6 Distribution of Input Tax credit 13thof next month Input Service Distributor
GSTR-7 TDS details or any related modifications 10thof next month Authorities deducting tax at source
GSTR-8 Details of supplies effected through them. 10thof the next month E-commerce Operator who collects tax at source

The above-stated returns are made compulsory by the Central Goods and Services Act (CGST) Act, 2017. However, the GST is altogether a new concept; therefore, it’s not that easy for the taxpayers to adjust the right way.

Hence, with a motto to make this transition to the new tax regime easy some relaxations have been introduced by the authorities.

Notifications issued by the GST Council in reference to the GST Return Filing

  • Filing of GSTR-2 and GSTR-3 are suspended until any further notice arrives on the same.
  • Only GSTR-1 needs to be filed.
  • GSTR-3B is supposed to be filed on the 20th of next month. Such returns contain the details of inwards as well as outward supplies, tax liability computation, and tax payment. It must be filed whenever there is any delay in filing of the regular returns.
  • All the registered taxpayers with the expected business turnover of Rs. 1.5 crores or less are given an option to file quarterly returns instead of monthly returns.

Penalty for not Filing GST Returns on time

If GST returns aren’t filed within the prescribed time, then the taxpayers would have to pay interests as well as the late fee.

An interest of 18% per annum would be liable. The taxpayer can calculate the interest on the amount of outstanding tax to be paid. The time period must be from the next day of the return filing to the date of payment.

Late fee includes Rs. 100 per day per Act. Therefore, it is Rs. 100 under CGST & Rs. 100 under SGST (State Goods and Services Tax). In total, it amounts to Rs. 200 per day.

The maximum amount will result to Rs. 5000. However, there’s no late on the Integrated Goods and Services Act (IGST).