GST Return Filing

A GST return is a document that businesses registered under the GST law have to file with the tax authorities. GST return filing is a crucial aspect of complying with tax regulations in India. It contains details of sales, purchases, tax collected on sales, and tax paid on purchases. GST returns offer a standardized method for businesses to report their tax liabilities, making it easier for the government to implement and maintain a uniform tax structure nationwide.

What are the types of GST return forms and their due dates?

There are various types of GST returns that businesses need to file based on their nature of operation and turnover. Here is an detailed overview for each of them:

GSTR-1

It is a monthly or quarterly return that registered businesses must file to report details of all outward supplies (sales) of goods and services made during a tax period. It includes all sales transactions made to registered taxpayers (B2B), unregistered individuals (B2C), and exports. Both taxable and non-taxable supplies need to be reported.

1. Details to be filed for GSTR1

   1. Invoice-wise Details
   2. Summary of Supplies to Unregistered Persons (B2C)
   3. Export Sales
   4. Credit/Debit Notes
   5. Advances Received
   6. HSN Summary

1. Filing Frequency for GSTR-1:

   1. Monthly Frequency: Businesses with an annual turnover of more than ₹5 crore must file GSTR-1 on a monthly basis.
   2. Quarterly Filing: Businesses with an annual turnover between ₹20 lakh and ₹5 crore can opt for quarterly filing of GSTR-1 under the QRMP (Quarterly Return Monthly Payment) scheme.

1. Due Date:

   1. Monthly Filers: GSTR-1 must be filed by the 11th of the following month.
   2. Quarterly Filers: The due date is the 13th of the month following the end of the quarter (e.g., for April-June, it’s due by July 13).

GSTR-3B

GSTR-3B is a monthly summary return that businesses registered under the Goods and Services Tax (GST) must file. It is used to report the total outward supplies (sales), inward supplies (purchases), tax liability, and Input Tax Credit (ITC). This self-declaration form helps taxpayers determine the amount of GST they need to pay to the government each month. GSTR-3B is a must for regular taxpayers under GST, regardless of turnover, and it plays a crucial role in tax payment and compliance.

1. Details to be filed for GSTR-3B:

   1. GSTIN
   2. Period for which the return is filed
   3. Outward Supplies Details (Total Taxable Value, GST collected)
   4. Inward Supplies Details (Total Eligible ITC, ITC Reversed)

2. Filing Frequency of GSTR-3B:

   1. For Regular Taxpayers: All businesses with a turnover above ₹5 crore must file GSTR-3B monthly.
   2. For Small Taxpayers(under the QRMP Scheme): Taxpayers with annual turnover up to ₹5 crore can opt for the Quarterly Return Monthly Payment (QRMP) scheme, where they file GSTR-3B every month but pay taxes based on estimated or actual sales.

3. Due Date:

   1. The due date for filing GSTR-3B is the 20th of the following month. However, it can vary depending on the turnover and region.

GSTR-4

It is a quarterly return that must be filed by taxpayers registered under the Composition Scheme (businesses with an annual turnover of up to ₹1.5 crore or ₹75 lakh for special category states) of Goods and Services Tax (GST). This simplifies compliance by reducing the reporting burden, as businesses only need to file GSTR-4, which summarizes their total sales, purchases, and tax liability for the quarter. However, businesses registered under the Composition Scheme cannot claim Input Tax Credit (ITC) on their purchases, which differentiates them from regular taxpayers.

1. Details to be filed for GSTR-4:

   1. GSTIN
   2. Period for which the return is filed
   3. Outward Supplies Details (Total Taxable Value, GST collected)
   4. Inward Supplies Details (Total Eligible ITC, ITC Reversed)
   5. Exempt and Nil-rated Supplies

2. Filing Frequency of GSTR-4:

   1. Taxpayers registered under the Composition Scheme of GST are required to file this return every three months, summarizing their sales, purchases, and tax liability for the quarter.

3. Due Date:

   Each quarter’s GSTR-4 must be filed within 30 days from the end of the quarter.

   1. For the quarter ending June 30: Due by July 30.
   2. For the quarter ending September 30: Due by October 30.
   3. For the quarter ending December 31: Due by January 30.
   4. For the quarter ending March 31: Due by April 30.

GSTR-9:

It is a crucial annual return mandated under the Goods and Services Tax (GST) regime in India, designed for taxpayers to comprehensively report their financial activities over the financial year. This return is applicable to all regular taxpayers, including those registered under the Composition Scheme, and serves as a detailed summary of both outward and inward supplies, tax liabilities, and Input Tax Credit (ITC) claims. GSTR-9 serves as a reconciliation statement, allowing taxpayers to match their reported figures in GSTR-1 and GSTR-3B with the figures provided in GSTR-9.

1. Details to be filed for GSTR-9:

   1. GSTIN
   2. Summary of Outward Supplies
   3. Summary of Inward Supplies
   4. Tax Payable
   5. Input Tax Credit (ITC) claimed
   6. Refunds Claimed
   7. HSN Summary

2. Filing Frequency of GSTR-9:

   1. Annual

3. Due Date:

   1. The due date for filing GSTR-9 is December 31 of the subsequent financial year.

GSTR-2A

It is a dynamic, auto-generated read-only document that is automatically generated by the GST portal based on the details reported by suppliers in their GSTR-1 returns. The return contains information regarding inward supplies (purchases), including the total value of purchases, GST paid on these purchases, and the supplier details.

Impact on Compliance: Although GSTR-2A does not require a direct filing by taxpayers, it is essential for compliance purposes, as discrepancies between GSTR-2A and filed GSTR-3B may lead to audits or penalties.

GSTR-2B

GSTR-2B is a static statement generated monthly by the GST portal. It provides a summary of eligible and ineligible Input Tax Credit for the registered taxpayer based on the data reported by their suppliers in GSTR-1. It helps taxpayers determine the amount of ITC they are eligible to claim in their GSTR-3B for the month.

Impact on Compliance: Since GSTR-2B reflects the ITC that taxpayers are eligible to claim, it is vital for ensuring compliance with GST regulations.

Why Is GST Return Filing Important?

1. Legal Compliance: Filing GST returns on time ensures your business complies with the GST laws and avoids penalties.

2. Claim Input Tax Credit: You can claim Input Tax Credit (ITC) on taxes paid on your business purchases and to avail ITC, you must file GST returns on time.

3. Maintaining Business Reputation: Non-compliance with GST laws can harm your business reputation and may result in the suspension of GST registration.

Penalties for Late or Incorrect Filing

Failing to file your GST returns on time can lead to penalties, including:

1. Late Fees: ₹50 per day for late filing (₹20 per day for NIL returns).

2. Interest: An 18% interest is charged on any unpaid tax amount.

3. Restricted Input Tax Credit: Non-filing or incorrect filing of returns can result in the denial of Input Tax Credit.

How Jkstartup360 Can Help

At JKstartup360, we understand that businesses are busy with growth and expansion, leaving little time for managing tax compliance. That’s where we come in. Our team of experts handles all your GST return filing needs, ensuring your business remains compliant with the law, saving you time, and freeing you from the stress of penalties. We also assist in claiming Input Tax Credit and optimizing your tax liabilities, helping your business stay on track.