Overview of GST Return Filing

By consolidating many taxes into one system, the Goods and Services Tax (GST) return filing signified a substantial change in the indirect tax structure. Businesses are required to file regular GST returns outlining their sales, purchases, and tax liabilities. Tax authorities can evaluate tax liabilities using the online procedure, encouraging compliance and promoting the smooth flow of credits. GST return filing has become an essential part of the GST regime to streamline the tax structure, lower the compliance burden, maintain accountability, and foster a more effective indirect tax system.

The income tax system, like the GST in India, will guarantee the transparency and simplicity of taxpayer services, including registration, returns, and compliance. The four forms return for supplies, return for purchases, monthly returns, and yearly returns will be used by individual taxpayers to file their GST returns. Small taxpayers that chose a composition plan must provide quarterly reports. Every return will be filed online.

What is GST Return?

A GST return is a formal necessary paper that details all sales, purchases, taxes paid on purchases, and taxes collected on sales. The individual must pay their tax liability after submitting the GST returns.

Who needs to submit GST Returns?

• All business entities that are registered under the GST system are required to file GST returns. Based on the type of business, the filing procedure must be determined.
• A GST return must be filed by any registered dealer who participates in any of the following activities:
• Sales
• Purchase Output (On Sales) Goods and Services Tax
• Credit for Input Tax with Purchase GST

GST Return Types Under the New GST Law

The GST regime in India requires taxpayers to submit various GST filings beginning in September 2021.

GSTR-1

Regular taxpayers must file GSTR-1 returns containing information on the sales (outward supplies) they made within a specific period. It contains information like sales invoices, credit notes, and debit notes. A registered taxable supplier must submit the GSTR-1 form with information about the outward shipments of goods and services. The provider completes this form. The buyer must review the automatically filled-in purchase information on the form and make any required changes. The following information is required in the form:

• Name of the company, the period for which the return is filed, and the Goods and Services Taxpayer Identification Number (GSTIN).
• Invoices from the previous month and the associated taxes paid.
• Money received before a supply order that needs to be delivered later.
• Revisions made to the invoices for outgoing sales from earlier tax periods.
• By the 10th day of the following month, GSTR-1 must be filed.

GSTR-2

A registered taxable receiver must submit the GSTR-2 form with information about the inward supplies of goods and services. The following information will be on the form:

• A period for which the return is filed, the business name, and the Goods and Services Tax Identification Number (GSTIN).
• Invoices were sent out the previous month, and the associated taxes were paid.
• Revisions made to the invoices for outgoing sales from earlier tax periods.
• GSTR-2 must be filed by the 15th day of the following month.

GSTR 3

A registered taxpayer must submit the GSTR-3 form, which is automatically filled out with information from the GSTR-1 and GSTR-2 return forms. The taxpayer is required to confirm and, if necessary, make changes. The following information will be on the GSTR-3 return form:

• Information about the cash ledger, liabilities, and input tax credit.
• Details of CGST, SGST, and IGST taxes paid.
• Request a refund of the extra payment or ask to carry the credit over.
• The 20th day of the following month is the deadline for filing GSTR-3.

GSTR-3B

This monthly self-declaration report lists the taxpayer's outgoing supplies, incoming supplies, and input tax credits (ITCs). Regular taxpayers file GSTR-3B until the new GST return filing system is implemented.

GSTR 4

Taxpayers who chose the composition scheme are required to submit a GSTR-4 form. The Composition Scheme allows taxpayers with small businesses or revenue of up to Rs. 75 lakhs to pay tax at a predetermined rate based on the type of business. The tax credit facilities would not be available to taxpayers under this plan. The following information will be on the GSTR-4 quarterly report form:

• The sum of all consolidated supplies made during the return period.
• Information about taxes paid.
• Details of purchases at the invoice level.
• The deadline for filing GSTR-4 is the 18th of the following month.

GSTR 4A

An essential necessary paper that a composition dealer must file in GSTR-4. A dealer who chooses the composition plan is only required to file one return, the GSTR 4, once a year by April 30 following the end of the fiscal year, as opposed to a regular taxpayer who must submit monthly returns.

GSTR-5:

Non-resident foreign taxpayers doing business in India must file this return. It details their outgoing purchases, taxes paid, and ITC received.

All registered non-resident taxpayers are required to file the GSTR-5 form. The following will be on this form:

• Name, address, GSTIN, and period of the taxpayer.
• Information on both external and internal supplies.
• Information about imported items, including changes to products imported during past tax periods.
• Services imported, changes to services imported
• Details of credit or debit notes, final items inventory, and reimbursements requested from the cash ledger.
• The 20th day of the following month is the deadline for filing GSTR-5.

GSTR-6:

Input Service Distributors (ISD) file this report to provide information about the input tax credit distributed to their branches or other entities.

All taxpayers who are registered as Input Service Distributors are required to file the GSTR-6 form. The following will be on this form:

• Name, address, GSTIN, and period of the taxpayer.
• Details on the distribution of input credit.
• The total amount of input credits claimed for this tax period.
• The GSTR-1 and GSTR-5 return forms will automatically fillin the information about the supplies.
• Information on the recipient of input credit that corresponds to their GSTIN.
• Information about credit or debit notes.
• Received input tax credit, reverted input tax credit, and distributed input tax credit as SGST, CGST, and IGST.
• The 13th day of the following month is the deadline for filing GSTR-6.

GSTR-7:

• Taxpayers who must withhold GST tax at source (TDS) must file this report. It includes information on payments made, TDS deductions made, and TDS certificates issued.
• All registered taxpayers obligated to deduct tax at source following the GST law must file the GSTR-7 form. This form will include the taxpayer's name, address, GSTIN, and reporting period.
• TDS information and modifications to invoice amounts, TDS amounts, or contract information.
• TDS liability will automatically be filled in. Information on late filing penalties and interest charges for TDS payments.
• The Electronic Cash Ledger refund will automatically populate.
• The 10th day of the following month is the deadline for filing GSTR-7.

GSTR-8:

• E-commerce companies that collect tax at source (TCS) on purchases made through their platform must file GSTR-8 returns. It contains information on manufactured supplies, taxes gathered, and TCS certificates issued.
• All e-Commerce businesses mandated by the GST rule to collect tax at source must file the GSTR-8 form. Details about the supplies made and the tax amount collected under Subsection (1) of Section 43C of the Model GST Law are included in this form. Additional information is as follows:
• Name, address, GSTIN, and period of the taxpayer.
• Information about the supplies given to a registered taxable person and any changes.
• Information about the supplies given to unregistered individuals.
• Details of Source Tax Collection.
• TDS liability will automatically be filled in. Information on late filing penalties and interest charges for TDS payments.
• By the 10th day of the next month, GSTR-8 must be filed.

GSTR-9:

This yearly return, which ordinary taxpayers submit, contains a combined summary of all outgoing and incoming supplies and taxes paid and ITC claimed throughout the fiscal year.

GSTR-9A:

This is a yearly report submitted by taxpayers enrolled in the composition scheme that includes a summary of the annual information on outward supplies, taxes paid, and ITCs claimed.

GSTR-9C:

This is a reconciliation statement and certification that taxpayers with more revenue than a certain threshold must file. It provides additional audit-related information in addition to reconciling the financial statements with the annual returns.

Any taxpayer cancelling their GST registration must submit a GSTR-10 form. The following will be on this form:

• ARN, or Application Reference Number.
• The date that the GST registration was cancelled.
• Individual Order Cancellation ID.
• The order's cancellation date.
• Information about closing stock, including the tax due on closing stock.

How to File GST Returns Online?

All taxpayers, including manufacturers, suppliers, dealers, and customers, must file tax returns with the GST department each year. The process of filing tax returns has been automated under the new GST system. Using the software or apps made available by the Goods and Service Tax Network (GSTIN), GST returns can be submitted online with the information on each GSTR form automatically filled in. The procedure for submitting a GST return online is as follows:

Step -1

Visit the GST website (www.gst.gov.in)

Step 2:

Depending on your state code and PAN number, a 15-digit GST identity number will be given.

Step 3.

Upload the invoices using the programme or the GST portal. For each invoice, a reference number will be provided.

Step 4:

Online filing for the outgoing, incoming, and cumulative monthly returns is required following the submission of invoices. You have the option of fixing any problems and resubmitting the tax returns.

Step 5:

On or before the 10th of the month, submit the GSTR-1, and provide returns through the GSTIN.

Step 6:

The recipient will get information on the outgoing supplies provided by the provider in GSTR-2A.

Step 7:

The recipient must confirm, authenticate, and change the information on outgoing supplies and file the specifics of any credit or debit notes.

Step 8:

In the GSTR-2 form, the recipient must include information about inward supplies of taxable goods and services.

Step 9:

The supplier can accept or reject any changes made to the GSTR-1A information provided by the recipient regarding inward supply.

How to File GST Returns with GSTN?

The Goods and Service Tax Network will collect the provided data, store information on all GST-registered buyers and sellers, and maintain a register for future use. Every three months, businesses are required to submit three monthly returns, and once the fiscal year is over, they must submit one annual return for a total of 37 returns.

Penalty for late filing of GST Returns

If the taxpayer misses the deadline for submitting the returns, they will be penalised. This fine is known as the late charge. According to the GST Law, the late penalty for the Central Goods and Services Tax (CGST) and State Goods and Services Tax (SGST) is Rs. 100 daily. The daily charge will therefore be Rs. 200.

The maximum penalty that can be imposed is Rs. 5,000. The integrated GST, or IGST, is exempt from late fees if the return filing is delayed. The taxpayer will have to pay interest at 18% annually in addition to the late payment penalty. The taxpayer must calculate this interest based on the amount of tax that needs to be paid. The period shall be calculated starting the day following the filing deadline and ending on the day the payment is paid.

Enterslice Offers

• Assistance with GST registration: Assisting businesses with GST registration and obtaining a GST identification number (GSTIN).
• GST return preparation: Assisting businesses in gathering the data required to file GST returns correctly.
• GST return filing: Submitting GST returns to the proper tax authorities on behalf of businesses within the allotted deadlines.
• Assisting with the correctness of the data reconciliation between the company's books of accounts and GST returns.
• Reviewing a company's GST compliance thoroughly to spot any potential mistakes or anomalies and provide advice on fixing them.
• Expert advice and direction on a range of GST-related topics, such as categorization, input tax credits, valuation, and compliance requirements, are provided through GST advisory and consultancy services.