Filing for AY 2024-25 is coming soon
Keep calm and sign up for early access to our super filing platform

GST Returns: A Comprehensive Guide to Types, Forms, Due Dates & Penalty

Introduction

Returns under Goods and Services Tax (GST) play a crucial role in the taxation system in India. These returns are documents that provide details related to the income and sources of a business, which are required by the tax authorities to calculate the tax liability. Filing GST returns accurately and on time is essential for businesses to comply with legal requirements and ensure the proper calculation of their tax liability.

In this comprehensive guide, we will explore the various aspects of GST returns, including the information required to be furnished, the importance of filing returns, the consequences of not filing, different filing options, types of returns, and their due dates. We will also discuss the penalties for non-compliance and the potential impact of incomplete details in GST returns. So let's dive in!

1. What are the various information, which are required to be furnished in GST Returns?

GST Returns require businesses to provide various details related to their income and sources. These details include:

  • Nature of business activities
  • Tax payable and Input Tax Credit (ITC)
  • Business turnover for the period
  • Deductions and exemptions availed

Furnishing these details accurately is crucial for the proper calculation of tax liabilities and compliance with legal requirements.

2. Why Filing of GST returns is important?

Filing GST returns holds significant importance for both taxpayers and the government. Let's explore the reasons why filing these returns is essential:

For Return Filer

  • Legal Compliance: Filing GST returns is a necessary step to adhere to legal compliances and avoid penalties or legal consequences.
  • Calculation of Tax Liability: GST returns help in calculating the correct tax liability for the taxpayer, ensuring accurate payment of taxes.
  • Claiming Input Tax Credit (ITC): GST returns serve as a tool for claiming Input Tax Credit, allowing businesses to reduce their tax liability.

For the Government

  • Financial Statistics: GST returns provide a source of collecting financial statistics of organizations, helping the government analyze economic trends and make informed policy decisions.
  • Effective Tax Administration: By scrutinizing the relevant cases effectively and efficiently, GST returns help the government track tax evasions and take necessary actions against non-compliant taxpayers.
  • Policy Making: The data collected from GST returns forms a basis for future policy-making, allowing the government to make informed decisions regarding tax reforms and compliance procedures.

Filing GST returns, therefore, acts as a bridge between taxpayers and the government, ensuring transparency, accountability, and effective tax administration.

3. What are some of the steps involved in filing of the GST returns?

The process of filing GST returns involves several steps. Here are some of the key steps:

  1. Uploading Invoice/Sale Details: Taxpayers need to upload the details of invoices or sales made during the tax period.
  2. Auto Population of Purchase Details: The GST portal auto-populates the purchase details based on the information provided by the supplier in their GST returns.
  3. Auto Population and Auto Reversal of ITC: Input Tax Credit (ITC) is auto-populated and reconciled based on the invoices uploaded by the supplier.
  4. E-Filing of Returns: Taxpayers need to file their GST returns electronically using either the Government Portal or third-party software.
  5. Payment of Tax: After filing the returns, taxpayers must pay the tax liability, if any, through the designated payment methods.

By following these steps, taxpayers can ensure the accurate and timely filing of their GST returns.

4. What are the different options for filing GST Returns?

GST Returns can be filed online using any of the following options:

  • Online: Taxpayers can file their returns online either through the Government Portal or third-party software authorized by the GSTN.
  • Offline: The GST Return can also be prepared offline using utilities available on the Government Portal and GST Suvidha Providers (GSPs).

Both online and offline methods offer convenience and flexibility for taxpayers to choose the mode of filing that suits their requirements.

5. Are there any consequences of not Filing GST Returns?

Yes, non-filing or delayed filing of GST returns can have consequences for taxpayers. These consequences include:

  1. Late Fee: Any registered person who fails to file GST returns by the due date may attract a late fee. For instance, the late fee for failure to file GSTR-3B is Rs 100 per day, up to a maximum of Rs 5,000. The late fee for GSTR-9, the annual return, is also subject to penalty.
  2. Interest: In case of outstanding tax payments, interest is charged at the rate of 18% per annum on the net tax liability from the next day of the filing due date until the actual date of payment.
  3. Penalties: Furnishing GST returns with incomplete or incorrect information can attract penalties of up to Rs 25,000. It is important to ensure the accuracy and completeness of the details provided in the returns.
  4. Denial of Input Tax Credit: Non-filing of GST returns within the due dates can result in the denial of Input Tax Credit, affecting the taxpayer's ability to claim tax benefits.
  5. Legal Consequences: Non-compliance with GST return filing requirements can lead to legal consequences, including legal notices, audits, and potential legal action by the tax authorities.

To avoid these consequences, it is crucial for taxpayers to file their GST returns accurately and within the specified time limits.

6. What can incomplete details in GST Returns result in?

Furnishing GST returns with incomplete or incorrect information can have various consequences. Some of the potential outcomes of incomplete details in GST returns include:

  • Penalties: Incomplete or incorrect details in GST returns can attract penalties under the provisions of the CGST Act. The penalties can amount to a significant sum, depending on the severity of the non-compliance.
  • Reconciliation Issues: Incomplete details may lead to difficulties in reconciling the information provided by the taxpayer with the supplier's details, resulting in delays and potential disputes.
  • Increased Scrutiny: Incomplete details may trigger increased scrutiny by the tax authorities, leading to audits and investigations to verify the accuracy and completeness of the information provided.
  • Loss of Input Tax Credit: Incomplete details can result in the denial of Input Tax Credit, leading to an increase in the tax liability for the taxpayer.
  • Legal Consequences: Non-compliance with the requirements of filing complete and accurate GST returns can have legal consequences, including legal notices, audits, and potential legal action by the tax authorities.

It is crucial for taxpayers to ensure that they provide complete and accurate details in their GST returns to avoid these potential issues.

7. What are the various types of GST returns and who is required to file it?

GST returns are categorized into different types based on the nature of the taxpayer and the purpose of the return. Let's explore the various types of GST returns and who is required to file them:

GSTR-1

  • Who is required to file GSTR-1?: Every registered taxable person, including regular and casual registered taxpayers, must file GSTR-1. Input service providers, composition taxpayers, and persons collecting or deducting tax at source are exempt from filing GSTR-1.
  • What is the Due date of filing GSTR-1?: The due date for filing GSTR-1 depends on the taxpayer's turnover. For taxpayers with an aggregate turnover exceeding Rs. 1.5 crores, GSTR-1 is filed monthly and is due on the 11th of the following month. For taxpayers with an aggregate turnover up to Rs. 1.5 crores, GSTR-1 is filed quarterly, and the due date is the 31st of the month following the end of the quarter.

GSTR-1A

  • Who is required to file GSTR-1A?: GSTR-1A is an auto-generated statement that updates the details of outward supplies or sales previously filed using GSTR-1. Taxpayers are required to accept or reject the information updated by the buyer in GSTR-2A.
  • What is the Due date of filing GSTR-1A?: GSTR-1A is not a separate return that needs to be filed. It is an auto-populated form, and taxpayers need to review and accept or reject the changes made by the buyer in GSTR-2A during the specified period.

GSTR-2

  • What is GSTR-2?: GSTR-2 is a monthly return used to provide the details of inward supplies or purchases made by the registered dealer. However, GSTR-2 has been temporarily suspended by the GST authorities.
  • Who is required to file GSTR-2?: Registered dealers under GST are required to furnish GSTR-2. However, due to the suspension of GSTR-2, this return is not currently applicable.
  • What is the Due date of filing GSTR-2?: The due date for filing GSTR-2 was the 15th of the next month of the tax period. However, due to the suspension of GSTR-2, this due date is not currently applicable.

GSTR-2A

  • What is GSTR-2A?: GSTR-2A is an auto-generated statement of inward supplies. It is created based on the invoices uploaded by the counterparty in their GSTR-1.
  • Who is required to file GSTR-2A?: GSTR-2A is an auto-populated form, and no filing is required by taxpayers. However, they need to review and reconcile the information provided in GSTR-2A with their own records.

GSTR-3B

  • What is GSTR-3B?: GSTR-3B is a monthly summary return used to declare the GST liability for the tax period and pay off such liability. It is a simplified return form that includes the summary of outward supplies, inward supplies liable to reverse charge, ITC eligible, and tax details.
  • Who is required to file GSTR-3B?: Registered regular taxpayers are required to file GSTR-3B periodically.
  • What is the Due date of filing GSTR-3B?: The due date for filing GSTR-3B is the 20th of the following month for which the return is to be submitted. However, taxpayers in Jammu and Kashmir have a different due date due to the special status of the region.

GSTR-4

  • What is GSTR-4?: GSTR-4 is an annual return for taxpayers who have opted for the Composition Scheme.
  • Who is required to file GSTR-4?: Taxpayers who have opted for the Composition Scheme and are liable to pay taxes are required to furnish GSTR-4 annually.
  • What is the Due date of filing GSTR-4?: The due date for filing GSTR-4 is the 30th of April of the next financial year. However, the due date may vary based on any notifications issued by the government.

GSTR-4A

  • What is GSTR-4A?: GSTR-4A is an auto-generated form based on the invoices uploaded by the supplier in their GSTR-1. It is created for the taxpayers who have opted for the Composition Scheme.
  • Who is required to file GSTR-4A?: GSTR-4A is an auto-populated form, and no filing is required by taxpayers. However, they need to review and reconcile the information provided in GSTR-4A with their own records.

GSTR-5

  • What is GSTR-5?: GSTR-5 is a monthly return required to be filed by Non-Resident Taxable Persons (NRTP) who are not availing Input Tax Credit (ITC) on local purchases.
  • Who is required to file GSTR-5?: Non-Resident Taxable Persons (NRTP) who are not availing Input Tax Credit (ITC) on local purchases are required to file GSTR-5.
  • What is the Due date of filing GSTR-5?: The due date for filing GSTR-5 depends on the registration period. For a registration period of less than one month, the due date is within 7 days of the expiry of registration. For a registration period of more than one month, the due date is the 20th of the following month, and for the remaining period, it is within 7 days of the expiry of GST Registration.

GSTR-5A

  • What is GSTR-5A?: GSTR-5A is a monthly return for Online Information and Database Access or Retrieval (OIDAR) service providers. It is used to report services provided from a place outside India to unregistered persons or customers in India.
  • Who is required to file GSTR-5A?: Taxpayers providing Online Information and Database Access or Retrieval (OIDAR) services and providing services from a place outside India to unregistered persons or customers in India are required to file GSTR-5A.
  • What is the Due date of filing GSTR-5A?: The due date for filing GSTR-5A is the 20th of the following month.

GSTR-6

  • What is GSTR-6?: GSTR-6 is a monthly return for Input Service Distributors (ISD). It is filed for the distribution of Input Tax Credit (ITC) among the different units.
  • Who is required to file GSTR-6?: GSTR-6 is required to be filed by Input Service Distributors (ISD) for the distribution of Input Tax Credit (ITC) among the different units.
  • What is the Due date of filing GSTR-6?: The due date for filing GSTR-6 is the 13th of the following month of the tax period.

GSTR-7

  • What is GSTR-7?: GSTR-7 is a monthly return for persons who deduct tax at the time of making payment to suppliers (TDS) under section 51 of the CGST Act 2017.
  • Who is required to file GSTR-7?: Persons who are liable to deduct tax at source (TDS) under section 51 of the CGST Act 2017 are required to file GSTR-7.
  • What is the Due date of filing GSTR-7?: The due date for filing GSTR-7 is the 10th of the next month.

GSTR-7A

  • What is GSTR-7A?: GSTR-7A is a system-generated TDS certificate that is generated after furnishing the return in GSTR-7. It is required to be accepted by the deductee.
  • Who is required to file GSTR-7A?: GSTR-7A is not a separate return that needs to be filed. It is a TDS certificate that can be downloaded by both the deductor and the deductee.
  • What is the Due date of filing GSTR-7A?: There is no due date for filing GSTR-7A as it is not a separate return but a certificate generated after the filing of GSTR-7.

GSTR-8

  • What is GSTR-8?: GSTR-8 is a monthly return containing the details of taxable supplies and the amount collected by E-Commerce Operators related to the supplies and the amount of TCS collected.
  • Who is required to file GSTR-8?: GSTR-8 is required to be filed by E-Commerce Operators.
  • What is the Due date of filing GSTR-8?: The due date for filing GSTR-8 is the 10th of the following month of the tax period.

GSTR-9

  • What is GSTR-9?: GSTR-9 is an annual return containing information such as purchases, sales, input tax credit or refund claimed, etc., by regular taxpayers.
  • Who is required to file GSTR-9?: GSTR-9 is required to be filed by every registered regular taxpayer. Taxpayers with an aggregate turnover of up to Rs. 2 crores during the financial year are not required to file GSTR-9 for FY 2017-18 and FY 2018-19.
  • What is the Due date of filing GSTR-9?: The due date for filing GSTR-9 is the 31st of December of the subsequent financial year.

GSTR-9A

  • What is GSTR-9A?: GSTR-9A is an annual return for taxpayers who have opted for the Composition Scheme.
  • Who is required to file GSTR-9A?: Taxpayers who have opted for the Composition Scheme are required to file GSTR-9A. However, for FY 2017-18 and FY 2018-19, filing GSTR-9A is optional.
  • What is the Due date of filing GSTR-9A?: The due date for filing GSTR-9A is the 31st of December of the next financial year.

GSTR-9C

  • What is GSTR-9C?: GSTR-9C is an additional annual return submitted along with GSTR-9 by assesses having a turnover of more than Rs. 2 crores during the financial year. It requires the taxpayer to get their accounts audited by a Chartered Accountant (CA) or Cost Accountant (CWA).
  • Who is required to file GSTR-9C?: Regular taxpayers with an aggregate turnover of more than Rs. 2 crores during the financial year are required to file GSTR-9C along with GSTR-9.
  • What is the Due date of filing GSTR-9C?: The due date for filing GSTR-9C is the 31st of December of the year subsequent to the financial year.

GSTR-10

  • What is GSTR-10?: GSTR-10 is a return for taxpayers whose registration has been canceled or surrendered. It is also known as the final return.
  • Who is required to file GSTR-10?: Taxpayers whose registration has been canceled or surrendered are required to file GSTR-10.
  • What is the Due date of filing GSTR-10?: The due date for filing GSTR-10 depends on the date of the order of cancellation or surrender. It should be filed within 3 months from the date of cancellation or surrender or the date of the order, whichever is later.

GSTR-11

  • What is GSTR-11?: GSTR-11 is a return having details of inward supplies of goods or services or both for an assessee who has been assigned with the Unique Identification Number (UIN) and claiming a refund.
  • Who is required to file GSTR-11?: GSTR-11 is required to be filed by UIN holders who receive inward supplies.
  • What is the Due date of filing GSTR-11?: The due date for filing GSTR-11 is the 28th of the following month in which the UIN holders receive the inward supply.

These are the various types of GST returns and the taxpayers required to file them. It is essential for taxpayers to be aware of the specific return they need to file based on their registration and business activities.

8. What are the upcoming due dates of some important GST returns?

Due dates for filing GST returns are subject to change based on notifications issued by the government. Here are some of the upcoming due dates for important GST returns:

  • GSTR-1 (Monthly): Due on the 11th of the following month (e.g., for September 2021, the due date is October 11, 2021).
  • GSTR-1 (Quarterly): Due on the last date of the month following the end of the quarter (e.g., for July-September 2021, the due date is October 31, 2021).
  • GSTR-3B: Due on the 20th of the following month (e.g., for September 2021, the due date is October 20, 2021).
  • GSTR-9: Due on December 31 of the subsequent financial year (e.g., for FY 2020-21, the due date is December 31, 2021).

It is important for taxpayers to stay updated with the latest notifications to ensure timely filing of their GST returns.

Conclusion

Filing GST returns accurately and on time is crucial for businesses to comply with legal requirements, calculate their tax liability correctly, and ensure smooth operations. This comprehensive guide has provided an in-depth understanding of various aspects of GST returns, including the information required to be furnished, the importance of filing returns, consequences of non-filing, different filing options, types of returns, and their due dates. By following the guidelines and deadlines set by the tax authorities, businesses can ensure compliance and maintain a smooth functioning under the GST regime.

It is important for taxpayers to understand the specific requirements and due dates for each type of GST return and file them accordingly. Regularly reviewing and reconciling the information provided in the returns will help businesses to avoid penalties, legal consequences, and unnecessary delays. By staying updated with the latest notifications and adopting a proactive approach towards GST compliance, businesses can optimize their tax management and contribute to the overall growth of the economy.

 

 

author

The Tax Heaven

Mr.Vishwas Agarwal✍📊, a seasoned Chartered Accountant 📈💼 and the co-founder & CEO of THE TAX HEAVEN, brings 10 years of expertise in financial management and taxation. Specializing in ITR filing 📑🗃, GST returns 📈💼, and income tax advisory. He offers astute financial guidance and compliance solutions to individuals and businesses alike. Their passion for simplifying complex financial concepts into actionable insights empowers readers with valuable knowledge for informed decision-making. Through insightful blog content, he aims to demystify financial complexities, offering practical advice and tips to navigate the intricate world of finance and taxation.

Frequently Asked Questions

A late fee is imposed for submitting GSTR-3B after the due date of the tax period. The fee is Rs. 50 per day for delayed filing and Rs. 20 per day for taxpayers with no tax liability for the month.

GSTR-9 is the annual return that taxpayers registered under GST must file. It is due by December 31st of the year following the relevant financial year, as per GST law. This return includes details of all outward supplies made and inward supplies received during the relevant financial year under different tax heads.

 

According to Rule 80 of the CGST Rules, 2017, every registered person who needs to file an Annual Return for each financial year must do so by December 31st of the following financial year. Therefore, the deadline for filing the Annual Return for the financial year 2022-23 is December 31, 2023.

Difference Between the Types of GST

Types of GST Collecting authority Benefiting authority
SGST State Government State Government
UGST Union Territory (UT) Government Union Territory (UT) Government
CGST Central Government Central Government
IGST Central Government State Government and Central Government

Individuals who did not make any supplies during the tax period will not face the maximum late fee of Rs 500 (Rs. 250 per Act). On the other hand, individuals with a total turnover of Rs 1.5 crores in the previous fiscal year, excluding those who filed nil returns, will be subject to a maximum late fee of Rs 2000 (Rs. 1,000 per Act).

Subscribe to the exclusive updates!