GST is a single indirect tax that is imposed on the supply of goods and services between different entities. GST return is the goods & services tax return forms that taxpayers of all types have to file with the Income-tax authorities of India under the new GST rules. Under GST regime, a registered dealer has to mandatorily e-file GST return that includes:
Purchase of Goods
Sales of Goods
Input Tax credit
Output GST on sales
Any regular business has to file 3 monthly and one annual GST returns. The beauty of this system is that one has to enter details of one monthly return GSTR-1 manually. The two other returns GSTR-2 AND GSTR-3 will get auto-populated by deriving information from GSTR-1 filed by you and your vendors.
1. Wider the tax base, lower the tax rates: The number of taxes and duties are imposed on the item when it is production state to when it is consumed. These are imposed in the form of VAT, excise duty, service tax, etc. The total of these taxes is around 35 to 40% while the rate of GST does not exceed 16 to 18%. This is one of the important aspects of introducing GST.
2. Ease of doing business: With the help of GST difficulties in doing business is reduced. Earlier companies faced problems concerning VAT registration, dealing with tax authorities, etc. The benefits of GST have companies to carry out business with ease.
3. Unorganized sector regulations under GST: Regulations with continuous accountability of unregulated and unorganized sectors like textile and construction industries are created.
4. Common National Market GST helps in creating a common national market and facilitates in eliminating economic distortion. It led to a uniform tax law among different sectors in indirect taxes.
5. Tackling corruption The taxpayers can directly make payments without interacting with tax authorities. A mechanism has been developed to match the invoices of the supplier and buyer. This will bring more business in the economy and also keeps a check on tax frauds and evasion.
Form GSTR-1 is the monthly return for outward supplies and is normally due on the 10 th of every month. In GSTR-1 return, details of invoices, credit notes, debit notes and revised invoices issued in relation to outward supplies that are made during the tax period must be provided.
GSTR-2 is the return of Inward supplies and must be filed before the 15 th of each month. In this the return of outward supplies that is filed by the supplier, the receiver is required to match his receipts with the details of supplies that are filed by the supplier. The receiver must verify, validate, delete or even modify if necessary the details supplied by the supplier.
It is the Monthly GST return and is due on the 20 th of every month. GSTR-3 return Part A will be automatically generated based on the information received from other returns filed by the taxpayer i.e. GSTR-1, GSTR-2 and based on other liabilities of preceding tax periods.
GSTR-4 is a quarterly return for composition suppliers. GSTR-4 return will be due on 18 th April, 18 th July, 18 th October, and 18 th January. The taxpayer can file the quarterly return in Form GSTR-4 after adding, correcting, or deleting the details.
It is filed by a person who is registered as a Non-resident taxable person under GST before the 20 th and within 7 days from the last day of registration. The taxpayer must need to file information and details or inward supplies and outward supplies.
This return is filed by a person registered as Input Service Distributor before or on the 13 th of every month. The taxpayer can file a return after correcting, adding or deleting the details, furnish results and also containing the details of tax invoices on which credit has been received
GSTR-7 return must be filed by a person registered under GST for TDS (Tax deducted at source). It is due on or before the 10 th of every month.
GSTR-8 is filed by e-commerce operator before or on the 10 th of every month. E-commerce operators must file details including outward supplies of goods and services or both made through it, supplies returned through it and amount collected by it.
It is the annual GST return which must be filed on or before 31 st of December by the taxpayer. GSTR-9 return will not be filed by those individuals registered under a composition scheme, casual taxable person, Non-resident taxable person, TDS Deductor, TCS collector.
GSTR-10 is a final GST return and must be filed within 3 months from the date of cancellation of GST registration
Form GSTR-11 is for UIN holders and must be filed by individuals having UIN under GST to claim for the refund of taxes on his inward supplies.
1. What is the return?
It is a statement of financial activity by a taxable person for an authorized period. This can allow a person who is taxable to self-assess the tax they owe for that period.
2. Who is required to file returns regularly under GST?
Every taxable person is required to file returns under GST. In case a person hasn't performed any business activities during the period covered by the return then he needs to file a Nil return.
3. Who is not required to file return regularly under GST?
There are some entities who need to register for GST but they aren’t required to file returns regularly, such as UN bodies they must register for GST but are required to file returns only for the month they make any purchase.
Whereas, there are some entities who do not require to register or file a return as well such as Public sector undertakings (PSUs) and government entities, entities dealing with non-GST supplies and who deal with Nil rated/exempted/non GST goods and services. Such entities will neither be required to register under GST nor file returns.
4. How many types of GST returns are there?
There are a total of 11 types of GST returns
Monthly return for outward supplies
Monthly return for inward supplies
Contains details from other monthly returns filed by a taxpayer
It is a variable return filed by Non-Resident taxpayers
Monthly Return filed by Input service distributors
Monthly return filed for TDS (Tax Deducted at Source) transactions
Monthly return filed by e-commerce operators
Return filed annually
It is the last and final return filed when terminating business activities permanently
Filed by taxpayers with a Unique identity number.
5. What type of Outward supply details are to be filed in the return?
A registered taxable person has to file the outward supply details in GSTR-1 in relation to the supplies made in a month that are outward supplies to a registered or unregistered person, details of credit/debit Notes, exempted and non-exempted supplies, exports, and advances received for the foreign supply.
6. Is OTP required for every stage of filing?
Yes, OTP is required for every stage of filing process whether for pushing data into GSTN, for filing GST returns or for reconciling uncategorized transactions from GSTN. Every OTP sent to a phone number that is registered is valid for only 10 minutes. If you are filing GST returns through a GST filing software, the life of your OTP gets extended.
7. Do the taxpayers under the composition scheme also need to file GSTR-1 and GSTR-2
No, taxpayers under the composition scheme do not need to file any statement for inward and outward supplies. However, they have to file a quarterly return in Form GSTR-4 by the 18 th of the month. There is no relevance of GSTR-2 for them as they are not eligible for input tax credit and since the credit of tax paid under the composition levy is not eligible, there is no relevance of GSTR-1 as well. But In their return, they have to give outward supplies details along with the details of taxpayers, details of their purchases in their quarterly return.
8. Who is required to file an Annual Return?
All taxpayers filing return in GSTR-1 to GSTR-3 except ISDs, Non-resident taxpayers, taxpayers under composition scheme, TDS/TCS Deductors are required to file a return annually.
9. Is Annual return and final return are same?
No, Annual return has to be filed by all the registered taxpayers whereas the final return has to be filed only by those registered people who have applied for the cancellation of registration. The final return has to be filed within 3 months of the cancellation date or the date of the cancellation order.
10. What are the consequences of not filing the return within the prescribed date?
A registered person who files a return after the prescribed date has to face the penal consequences. A penalty of Rs.100 will be charged per day for the late filing subject to a maximum of Rs. 5 thousand.