Understanding The Different Types Of GST Returns: A Complete Guide

Introduction to GST Returns

A GST return is a document containing details of income which a taxpayer is required to file with the tax administrative authorities. This is used by tax authorities to calculate tax liability. Under GST, a registered dealer has to file GST returns that include:

• Purchases
• Sales
• Output GST (On sales)
• Input tax credit (GST paid on purchases)

To file GST returns, GST compliant sales and purchase invoices are required.

Types of GST Returns

• GSTR-1

• Description: This return form is used by registered taxpayers to detail all outward supplies of goods and services made, or in other words, sales transactions. It needs to be filed even if there is no business activity (nil return) during a given tax period.
• Frequency: Monthly/Quarterly
• Due Date: 11th of the next month/End of the month following the quarter

• GSTR-2A

• Description: A read-only document for information purposes that shows the details of purchases of a recipient, auto-populated from the GSTR-1 filed by their suppliers. It helps in reconciling data for claiming input tax credit.
• Frequency: Monthly
• Due Date: Auto-populated

• GSTR-2B

• Description: Similar to GSTR-2A but provides a static view of the purchases for a particular month. It aids taxpayers in knowing the input tax credit available.
• Frequency: Monthly
• Due Date: Auto-populated

• GSTR-3B

• Description: A simplified monthly return that summarizes GST liabilities for a given tax period. Taxpayers must declare their GST liabilities for the tax period and discharge these liabilities. This is a mandatory return for all GST registered entities.
• Frequency: Monthly
• Due Date: 20th of the next month

• GSTR-4

• Description: For taxpayers who have opted for the GST Composition Scheme. It is a simplified quarterly return.
• Frequency: Quarterly
• Due Date: 18th of the month succeeding the quarter

• GSTR-5

• Description: For non-resident foreign taxpayers who are registered under GST and carry out business transactions in India. It includes details of all outward and inward supplies.
• Frequency: Monthly
• Due Date: 20th of the next month

• GSTR-6

• Description: Filed by Input Service Distributors (ISD). It includes details of input credit distributed and is used to distribute the credit of CGST, SGST, IGST, and Cess.
• Frequency: Monthly
• Due Date: 13th of the next month

• GSTR-7

• Description: For authorities deducting tax at source. Taxpayers who are required to deduct TDS (Tax Deducted at Source) under GST must file GSTR-7.
• Frequency: Monthly
• Due Date: 10th of the next month

• GSTR-9

• Description: Annual return to be filed by regular taxpayers under GST. It consolidates the information furnished in the monthly/quarterly returns during the year.
• Frequency: Annually
• Due Date: 31st December of the next financial year

• GSTR-9C

• Description: A reconciliation statement to be filed by taxpayers whose turnover exceeds the prescribed limit. It is essentially an audit form for the annual return filed in GSTR-9.
• Frequency: Annually
• Due Date: 31st December of the next financial year

• GSTR-10

• Description: Final return to be filed by a taxpayer whose GST registration is cancelled or surrendered.
• Frequency: Once, when GST registration is cancelled or surrendered
• Due Date: Within three months of the date of cancellation or date of cancellation order, whichever is later

• GSTR-11

• Description: For individuals who have been issued a Unique Identification Number (UIN) and need to claim a refund under GST for the goods and services purchased by them in India.
• Frequency: Monthly
• Due Date: 28th of the month following the month for which the statement is filed

Late Filing of GST Returns

Filing GST returns within the stipulated time frame is crucial for maintaining compliance under the GST regime. Late filing can lead to penalties and affect the creditworthiness of a business. Here’s what you need to know about the consequences of late filing:

• Mandatory Filing: Even if there were no transactions during a period, a nil return must be filed to avoid penalties.
• Consecutive Filing: You cannot file a return for a current period if the previous period's return has not been filed.
• Penalties for Late Filing: A late fee is charged if the GST returns are not filed on time. This fee is usually a daily penalty, with a maximum cap, depending on the type of return and the length of the delay.

Interest and Late Fees

• Interest on Late Payment: Interest is charged on the tax amount due, calculated from the day following the due date till the date of payment. The current interest rate is 18% per annum.
• Late Fee: The late fee for delayed filing of GSTR-1, GSTR-3B, and other returns is Rs. 100 per day, per Act (CGST and SGST), with a maximum of Rs. 5,000. There is no late fee under the IGST Act for these returns.

GST Compliance for Efficient Business Operations

Adhering to GST compliance not only avoids penalties but also ensures smooth business operations. Here are some tips for maintaining GST compliance:

• Regular Reconciliation: Regularly reconcile your purchase ledgers with GSTR-2A and GSTR-2B to claim the correct Input Tax Credit (ITC).
• Timely Return Filing: Keep track of all GST return due dates and file them promptly to avoid interest and late fees.
• Accurate Invoicing: Ensure all invoices are GST-compliant, containing all necessary details as prescribed under the GST law.
• Stay Updated: GST laws and regulations are subject to change. Stay updated with the latest notifications and circulars issued by the GST council.

Conclusion

Understanding and complying with the GST return filing requirements is essential for every registered taxpayer. By keeping abreast of the types of GST returns, their due dates, and the consequences of late filing, businesses can ensure compliance, avoid penalties, and maintain a good compliance rating under the GST regime. Regular updates from the GST council and adherence to the compliance checklist can help businesses navigate the GST landscape more effectively.

For further assistance or queries regarding GST returns and compliance, consider consulting with a GST expert or utilizing comprehensive GST software solutions designed to simplify GST compliance and filing.