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GST return is basically paperwork. It carries details, such as purchases, sales, output and input taxes. Output tax is the tax that is collected on sales whereas the tax paid on purchases is called input tax.
Once this paperwork is filed, the tax liability, which is the money owed to the government, need to be paid.
Under this tax scheme, all business owners and dealers have to file returns with the GST department every year. For individual taxpayers, there are a total of four forms for return of purchases, return of supplies, monthly and annual returns. So, in total, a taxpayer collectively files 26 returns every year.
The filing of returns every quarter, on the other hand, is for small taxpayers. Either way, GST returns must be filed online.
All taxpayers have to file their tax returns with the GST department every year, whether they are manufacturers, suppliers or dealers. Under the new GST rule, filing tax returns has become automated which means returns can be filed online via software/apps provided by Goods and Service Tax Network abbreviated as GSTN. It will auto-populate the details on each GSTR form.
Let us go through the various steps for filing GST returns online:
As per the GST law, the following table lists all the returns that need to be filed, including the due dates for each. Please keep in mind that the following details are subject to change as per the CGST Act and official notifications circulated by the Central Board of Indirect Taxes and Customs (CBIC).
GST Return Form | What does the form contain and who should file it? | How often should the return be filed and what is the due date? |
GSTR-1 | Registered taxpayers should mention the details of:
| For businesses with turnover more than INR 1.5 crore:
For businesses with turnover less than INR 1.5 crore:
|
GSTR -2 | Registered taxpayers should file it. The return should contain the details of:
Note: Since GST’s implementation, GSTR-2 has been suspended. | Frequency of filing return is monthly and the due date is the 15th of the upcoming month. |
GSTR-3 | A registered taxpayer files GSTR-3 return with particulars that are auto-retrieved from details mentioned in GSTR-1 and GSTR-2. GSTR-3 returns carry details, such as:
Note: Since GST’s implementation, GSTR-3 has been suspended. | Frequency of filing return is monthly and the due date is the 20th of the upcoming month. |
GSTR-3B | Registered taxpayer files this monthly self-declaration/return with details about outward supplies, the input tax credit that is claimed, tax paid, and liability. | Frequency of filing return is monthly and the due date is the 20th of the upcoming month. |
GSTR-4 Or CMP-08 | For registered taxpayer under the Composition Scheme who runs a small business or with an INR 75 lakh turnover. The rate for the tax paid is fixed on the nature of business and input tax credit facility is absent. Return carries the following details:
| Frequency of filing return is quarterly and the due date is 18th of the upcoming month after the quarter. |
GSTR-5 | For NRI registered taxpayers. The return has details such as:
| Frequency of filing return is monthly and the due date is the 20th of the upcoming month. |
GSTR-6 | For registered Input Service Distributors. The return contains details such as:
| Frequency of filing return is monthly and the due date is the 13th of the upcoming month. |
GSTR-7 | For registered taxpayers, who according to the GST ruling have to deduct tax at source. The return contains details such as:
| Frequency of filing return is monthly and the due date is the 10th of the upcoming month. |
GSTR-8 | For those conducting e-commerce operations required by GSR rule to collect tax at source. Information contained under this return contains details of tax collected at source and supplies effected under Sub-section (1) of Section 43C (Model GST Law). Apart from the information above, the return encloses particulars, such as:
| Frequency of filing return is monthly and the due date is the 10th of the upcoming month. |
GSTR-9 | For registered taxpayers with a history of income and expenditure for a particular financial year. This history will be collated based on monthly returns. Information can be modified by the taxpayer who must attach audited annual accounts. | Frequency of filing return is yearly and the due date is the 31st of the upcoming financial year. |
GSTR-9A | For registered taxpayers under the Composition Scheme. Details contain collated quarterly returns filed for a particular financial year. | Frequency of filing return is yearly and the due date is the 31st of the upcoming financial year. |
GSTR-10 | For a registered taxpayer who cancels GST registration. The return contains details such as:
| Frequency of filing return is the time when GST registration is cancelled/surrendered. As for the duration, it is (whichever is later) — date of cancellation order or within a period three months of the cancellation date. |
GSTR-11 | For an individual claiming a refund of the taxes paid on inward supplies and possessing a Unique Identity Number (UIN). The return contains details such as:
| Frequency of filing return is monthly and the due date is 28th of the month after the month for which statement is filed. |
GST is applicable to all business owners, small or big and even those with zero returns. Missing the GST return deadline will result in penalties and additional interest. Do note that the penalties are subject to change as per the CGST Act and official notifications circulated by the Central Board of Indirect Taxes and Customs (CBIC). Here’s what a defaulter can expect for not filing GST returns on time.
INR 100 per day as per Central Goods and Services Act, 2017 and INR 100 as per State Goods and Services Act, 2017 or Union Territory Goods and Services Act, 2017, bringing the total penalty to INR 200 per day.
Reminder: For yearly or monthly filing of GST return, the maximum penalty cannot be more than INR 5000. Also, the late fee for missing deadline for filing of — annual— GSTR-9 cannot exceed 0.25% of the annual turnover.
Missing IGST return deadline results in a penalty, which is a sum total of penalties stipulated by CGST and SGST or UTGST Acts. In other words, the total penalty is INR 200 per day.
Reminder: For yearly or monthly filing of IGST return, the maximum penalty cannot exceed INR 10,000 for each filing. Also, the late fee for missing deadline for filing of — annual— GSTR-9 cannot exceed 0.25% of the annual turnover.
GST ACT | For Inter-state activities | For Intra-state activities | For individuals filing Nil Returns |
IGST | INR 100 per day | – | INR 20 per day |
CGST | – | INR 50 per day | INR 10 per day |
SGST | – | INR 50 per day | INR 10 per day |
For taxes that accumulate and go unpaid, the defaulter is charged additional interest as penalty which is 18% on the outstanding tax. In the event of a taxpayer claiming reduced output tax liability in excess @24% per annum or excess Input Tax Credit (ITC), an interest has to be paid.
To conclude, it can be said that the main purpose of introducing GST was to discontinue multiple taxes.
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