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What is GST return filing?

For companies registered under GST, it is mandatory to submit returns on a monthly, quarterly, and annual basis as per their business requirements. These returns must include comprehensive details on the sales or purchases of goods and services, along with the related taxes collected and paid. The effective deployment of an all-inclusive income tax system, such as GST in India, has facilitated taxpayer services like registration, returns, and compliance that are optimally streamlined and aligned.

To file GST returns in India, an individual taxpayer must complete four forms, including forms for supplies, purchases, monthly returns, and annual returns. Regardless of business activity, sales, or profitability during the filing period, all entities with valid GST registration are required to file GST returns. This requirement even applies to dormant businesses with valid GST registration. A GST return serves as a document that outlines all income and expenses that a taxpayer must report to the appropriate tax authorities.

Eligibility Criteria

Who should file the GST returns?

The process of filing a GST Return in India is mandatory for those with a valid GSTIN. Additionally, individuals with an annual turnover exceeding Rs. 20 lakh are obligated to obtain GST registration and file GST returns.

However, in special states, this annual turnover limit is reduced to Rs. 10 lakh. It is important for all eligible individuals to abide by these regulations to avoid penalties or legal implications.

The submission of the GST return file is deemed necessary for taxpayers belonging to the following categories:

·         Registered businesses with an annual turnover above a certain threshold are classified as regular taxpayers and must regularly file GST returns. The frequency of filing depends on their turnover, with monthly or quarterly returns required.

·         Small businesses with an annual turnover below the prescribed threshold can opt for the composition scheme. Taxpayers registered under this scheme need to file quarterly returns.

·         Input Service Distributors (ISDs) receive input services and distribute them to different branches or units of the same organization. They are required to submit monthly returns that detail the input services they received and distributed.

·         Non-resident individuals and companies conducting business in India must file monthly GST returns for the period they carry out taxable supplies, regardless of turnover. This information is intended for businesses operating in India.

·         E-commerce operators are required to file tax returns on behalf of sellers registered with their platform. This is to provide details of the supplies made through their site and inform businesses of their tax obligations as an e-commerce operator.

·         TDS (Tax Deducted at Source) deductors, namely government departments, local authorities and statutory bodies, are obligated to deduct TDS on payments made to suppliers. They must file monthly returns to provide details of the TDS deducted and deposited.

India's New GST Return Filing System

Attention taxpayers, the 31st GST Council Meet has announced that a new return framework will be implemented to simplify the filing process. The framework comprises a primary return, GST RET-1, and two annexures, GST ANX-1 and GST ANX-2, which will be submitted monthly, except for small taxpayers with a turnover of up to Rs 5 crore in the previous financial year, who have the option to file quarterly returns. Get ready to experience convenience and ease in filing your GST returns.

- The new GST Return Filing System is for filing GST returns

- The essential GST Return Filing is GST RET-1

- GST RET-1 includes details of all supplies made, input tax extension benefited, and alteration of taxes

- GST RET-1 consists of two Annexure forms: GST ANX-1 and GST ANX-2

- GST ANX-1 is for announcing details of outward supplies, internal supplies liable to reverse charge, and import of goods and services

- GST ANX-2 is for publishing details of every internal supply

- Most details in GST ANX-2 will be auto-drafted from the details transferred by the providers in their GST ANX-1

New return system introduced for GST filing

- Harmonized System of Nomenclature (HSN) code details must be submitted in a different HSN outline.

- User will get HSN using GST ANX-2 and the provider must announce the HSN code.

- Offline Demo Tool will allow taxpayers to work across different pages and perform tasks such as drop-down lists.

- Provider in GST ANX-1 need not show the B2B supply mechanism, but the total amount should show in GST RET-1.

- Inward supplies at risk to RCM must be declared in GST ANX-1 at the GSTIN level beneficiary of provisions.

- The B2C-L hypothesis got sold and the limit for small taxpayers will be Rs 5 crores.

- Any recipient can report avoiding solicitations at a receipt level.

 

Online GST return filing procedures

·         - The government has introduced Goods and Service Tax Network (GSTN) to file GST returns online

·         - Visit the GST portal to begin the process

·         - Obtain a 15-digit GST Identification Number (GSTIN) based on state code and PAN

·         - Upload necessary invoices on the portal and obtain an invoice reference number for each

·         - Review and verify all uploaded data before submitting the returns

 

Tuition Fee for Prototype of the New Return Filing System Offline Tool:

·         Offline tool for new return includes GST ANX-1 and GST ANX-2

·         Matching tool for auto-drafted details

·         Screens for filling out Form GST ANX-1 and GST ANX-2 were granted to a specimen taxpayer for their monthly return

·         All quarterly returns will be similar

·         The Manage Profile section is included, but information cannot be saved or updated in the prototype

·         User selects GSTIN and tax period from dropdown on login page to proceed

·         Proceed button leads to screens for filling out GST ANX-1 and GST ANX-2 features

·         GST ANX-2 details are auto-drafted with their purchase register in the Matching Tool

 

Introducing LEDGERS GST Software - a comprehensive solution for all your GST needs

- Comes with expert advice from GST advisor support

- Easy management of invoicing, payments, returns filing, and accounting

- Features include customer and supplier management, GST invoicing, estimate issuance and tracking, accounts receivable and payable tracking, purchase register, payments tracking, and payables management

- Automated GST return filing, input tax credit reconciliation, eWay bill generation and management

- Integrated with ICICI bank for greater ease and convenience

Types of GST Registration

GSTR 1: Details of outward supplies of taxable goods and/or services

  Frequency: Monthly, Quarterly (if opted under QRMP scheme)

GSTR 3B: Summary return for declared outward supplies, input tax credit and tax payment

  Frequency: Monthly, Quarterly

CMP 08: Statement cum challan for tax payment by taxpayers registered under composition scheme

 Frequency: Quarterly

GSTR 4: Return for taxpayers registered under composition scheme

 Frequency: Annually

GSTR 5: Return for non-resident taxable person

 Frequency: Monthly

GSTR 6: input service distributors to distribute eligible input tax credit

Frequency: monthly

GSTR 7: filed by government authorities

Frequency: monthly

GSTR 8: e-commerce operators to report supplies and tax collected at source

Frequency: monthly

GSTR 9: annual return for normal taxpayers

Frequency: Annually

GSTR 9C: Officially verified statement of reconciliation.

Frequency: annually

GSTR 10: filed when GST registration is cancelled or surrendered

Frequency: Upon cancellation or surrender of the GST registration.

GSTR 11: filed monthly by a person with UIN claiming a refund for inward supplies

Frequency: monthly

GST Return Filing for Composition Scheme

 - Composition Scheme registered persons must pay taxes using CMP-08 every quarter and file GSTR-4 annually

- GST return filing due on the 18th of the month following a quarter (April 18th, July 18th, October 18th, January 18th)

- Return should include invoice-wise inter-state and intra-state inward supplies and consolidated details of outward supplies made

- Registered persons opting for the composition scheme from the start of the financial year must file monthly GST returns until September of the succeeding financial year or the preceding financial year's annual return, whichever is earlier

- Even if a taxable person opts for a composition scheme from April, they must file monthly GST returns until September

Due dates for filing the GST returns

 GSTR 1: The 11th of Subsequent of that month

GSTR 3B: The 20th of that subsequent month

CMP 08: 18th of the month succeeding the quarter of the specific fiscal year.

GSTR 4: 18th of the month succeeding the quarter.

GSTR 5: 20th of the subsequent month

GSTR 6: 13th of the subsequent month

GSTR 7: 10th of the subsequent month

GSTR 8: 10th of the subsequent month

GSTR 9: 31st December of the Fiscal year.

GSTR 10: Within 3 months of the date of cancellation or the date of cancellation order whichever is earlier.

GSTR 11: 28th of the month that is following the month for which the statement was filed.

 GST return due dates for GSTR 1 to GSTR 11

 GSTR-1 (Monthly)

- Filing due date: 11th of every month

- Turnover limit for filing: more than Rs. 1.5 crores

- Monthly GSTR 1 returns must be filed by taxpayers with turnover above Rs. 1.5 crores on 11th of every month.

GSTR-1 (Quarterly)

- Quarterly returns filing

- Turnover limit of less than Rs.1.5 crores

- Due date for filing is the 13th of every quarter

- Intended for business note-taking purposes

CMP-08- Quarterly-Composition Scheme

- GST composition scheme taxpayers must file CMP-08

- Filing is required every quarter

- Turnover limit for filing is up to Rs. 1 Crore

- Deadline for filing is 18th of every quarter

GSTR-4- Annual-Composition scheme

- GSTR 4 has a due date of 30th of the month following the financial year

- This is for composite taxpayers filing their annual return

- The deadline applies to all relevant financial periods

- Failure to file by the due date may result in penalties or other consequences.

GSTR-9- Annual returns

- Annual GST return filing for the financial year

- Due on 31st December

- Mandatory for all entities

GSTR-1 Return

- GSTR 1 or return of outward supplies must be filed by regular GST-registered taxpayers

- Due date for filing GSTR 1 is the 10th of every month

- GST return due dates for July, September and October are different from the normal schedule

GSTR-2 Return

- GSTR2 or return of inward supplies must be filed by all taxpayers with regular GST registration

- Due date for GSTR2 is on the 15th of every month

- Different due dates apply for July, September, and October

GSTR-3 Return

• GSTR3 is a monthly GST return that must be filed by taxpayers.

• It should be filed after filing the GSTR1 and GSTR2 returns.

• The due date for GSTR3 is the 20th of every month.

• For July, September, and October, GSTR2 return due dates are different from the normal schedule.

GSTR-4 Return

- GSTR4 return is for taxpayers under the GST composition scheme

- It is a quarterly return

- Due on 18th of October, January, April, and July.

GSTR-5 Return

- GSTR5 return for non-resident taxable persons

- Must be filed under GST

- Due on the 20th of every month

GSTR-6 Return

- GSTR6 return is for persons registered under GST as an input service distributor

- It must be filed on the 13th of every month

- The purpose is to report input tax credit received and distributed among branches or units

- The audience is businesses who are registered under GST as input service distributors.

 

GSTR-7 Return

- GSTR7 return must be filed by taxpayers who deduct tax at source (GST TDS).

- Only certain government agencies are required to deduct tax at source under GST.

- GSTR7 is due for entities with GST TDS registration.

- GSTR7 is due on the 10th of every month.

GSTR-8 Return

- GSTR8 return must be filed by taxpayers collecting tax at the source

- E-commerce operators are required to collect tax at the source

- E-commerce ventures must register for TCS

- Collect tax at the source

- File GSTR8 return before the 10th of every month

GSTR-9 Return

- GSTR9 is the GST annual return to be filed by regular taxpayers

- It is mandatory for entities with a turnover of over Rs.2 crores to get the details audited before submitting

- Due date for GSTR9 is December 31^st

GSTR-10 Return

- GSTR10 return must be filed

- Filed by anyone whose GST registration has been cancelled or surrendered

- Must be filed within 3 months of the date of cancellation order or surrender.

GSTR-11 Return

- GSTR11 must be filed by persons with Unique Identity Number.

- Unique Identity Number is allotted to Consulate, Embassies and UN Bodies.

- Unique Identity Number is for claiming refunds on inward supplies.

 Gradual reintroduction of GSTR-3B

- Turnover deadline for December 2020

- More than 5 crores: 20th of every month, applicable to all states and UTs

- Less than 5 crores:

  - Group A states: 22nd of every month

    - Chhattisgarh, Madhya Pradesh, Gujarat, Daman and Diu, Dadra and Nagar Haveli, Maharashtra, Karnataka, Goa, Lakshadweep, Kerala, Tamil Nadu, Puducherry, Andaman and Nicobar Islands, Telangana, and Andhra Pradesh

  - Group B states: 24th of every month

    - Jammu and Kashmir, Laddakh, Himachal Pradesh, Punjab, Chandigarh, Uttarakhand, Haryana, Delhi, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand, and Odisha

Different types of invoices in the system:

   - Missing invoices: ITC claimed but invoices not transferred

   - Locked invoices: Recipient can confirm details in the invoice

   - Unlocking invoices: invoices that have already benefited from ITC will be locked and cannot be updated, new invoices would need to be created. Providers must issue charge/credit notes for any changes to locked invoices

 GST Return Filing Invoices in India

As per Notification No. 45/2017 - Central Tax dated 13th October 2017, it is stated that if a registered person supplies taxable and exempt goods/services to an unregistered person, they are eligible to issue a single "invoice-cum-bill of supply" for all such stocks. Additionally, it should be noted that a stock bill is only identified with a GST Return Filing receipt and does not include any tax cost since it cannot be enforced on the customer. Such bills are issued in situations where tax cannot be charged, such as when the registered person is dealing with excluded goods/services and has opted for the "composition scheme."

There are some important things to consider when it comes to receipts and notes in business transactions. Here are the key points:

- Aggregate receipts can be given by sellers for bills under Rs. 200, but buyers must still register.

- Vendors issue debit notes in cases where the payable amount has increased or the tax invoice reflects a lower taxable value.

- Credit notes are given by vendors to reflect decreases in receipt expenses, higher taxable values on tax invoices, or discounts for buyers.

Penalties and Consequences under GST: Late Filing, Non-Compliance, and Offenses

 Late filing of GST returns can result in a penalty, referred to as a late fee. Under the Goods and Service Tax, this penalty is Rs. 100 under CGST and Rs. 100 under SGST, totaling to Rs. 200 a day. In addition to the late fee, there is an 18% per annum interest rate that must be paid on the tax amount owed.

·         Non-compliance with GST regulations, such as not filing returns, can result in an inability to file subsequent returns. It is important to file GST returns on time to avoid steep fines and penalties that can lead to further financial consequences.

·         For 21 offenses without fraud or tax evasion, a penalty of 10% of the tax due or Rs.10,000 (whichever is higher) must be paid for non-payment or short payment of taxes.

·         For 21 offenses with fraud or tax evasion, the offender will be penalized for the amount of tax evaded or short deducted.

·         Even if there is no business, the taxpayer must file Nil GST returns.