GST is the single indirect tax that is levied on the supply of goods and services between different entities. GST returns are the tax return forms that are required to be filed up these entities with the Income Tax authorities of India.
All individuals registered under the GST Act has to furnish the details of the sales and purchases of goods and services along with the tax collected and paid. This can be done by filing online returns. GST Returns are the Goods and Services Tax Return forms that taxpayers of all types have to file with the income tax authorities of India under the new GST rules.
Implementation of a comprehensive Income Tax system like GST in India will ensure that taxpayer services such as registration, returns, and compliance are transparent and straightforward. Individual taxpayers will be using 4 forms for filing their returns such as the return for supplies, return for purchases, monthly returns, and annual return. Small taxpayers who have opted for composition scheme will have to file quarterly returns. All filing of returns will be done online.
From manufacturers and suppliers to dealers and consumers, all taxpayers have to file their tax returns with the GST department every year. Under the new GST regime, filing tax returns has become automated. GST returns can be filed online using the software or apps provided by Goods and Service Tax Network (GSTN) which will auto-populate the details on each GSTR forms. Listed below are the steps for filing GST returns online:
|Return form||Who should file the return and what should be filed?||Due date for filing returns|
|GSTR-1||Registered taxable supplier should file details of outward supplies of taxable goods and services as effected.||10th of the subsequent month.|
|GSTR-2||Registered taxable recipient should file details of inward supplies of taxable goods and services claiming input tax credit.||15th of the subsequent month.|
|GSTR-3||Registered taxable person should file monthly return on the basis of finalization of details of outward supplies and inward supplies plus the payment of amount of tax.||20th of the subsequent month.|
|GSTR-4||Composition supplier should file quarterly return.||18th of the month succeeding quarter.|
|GSTR-5||Return for non-resident taxable person.||20th of the subsequent month.|
|GSTR-6||Return for input service distributor.||13th of the subsequent month.|
|GSTR-7||Return for authorities carrying out tax deduction at source.||10th of the subsequent month.|
|GSTR-8||E-commerce operator or tax collector should file details of supplies effected and the amount of tax collected.||10th of the subsequent month.|
|GSTR-9||Registered taxable person should file annual return.||31 December of the next fiscal year.|
|GSTR-10||Taxable person whose registration has been cancelled or surrendered should file final return.||Within 3 months of date of cancellation or date of cancellation order, whichever is later.|
|GSTR-11||Person having UIN claiming refund should file details of inward supplies.||28th of the month, following the month for which the statement was filed.|
GST return can be filed using different forms depending on the type of transaction and registration of the taxpayer. Return forms for normal taxpayers are:
GSTR-1 return form has to be filed by a registered taxable supplier with details of the outward supplies of goods and services. This form is filled by the supplier. The buyer has to validate the auto-populated purchase information on the form and make modifications if required. The form will contain the following details:
GSTR-1 has to be filed by 10th of the following month.
GSTR-2 return form has to be filed by a registered taxable recipient with details of the inward supplies of goods and services. The form will contain the following details:
GSTR-2 has to be filed by 15th of the following month.
GSTR-3 return form has to be filed by a registered taxpayer with details that are automatically populated by from GSTR-1 and GSTR-2 returns forms. The taxpayer has to verify and make modifications, if any. GSTR-3 return form will contain the following details:
GSTR-3 has to be filed by 20th of the following month.
GSTR-4 return form has to be filed by taxpayers who have opted for the Composition Scheme. Taxpayers with small business or a turnover of up to Rs.75 lakh can opt for the Composition Scheme wherein he or she have to pay tax at a fixed rate based on the type of business. Taxpayers under this scheme will not have input tax credit facility. GSTR-4 quarterly return form will contain the following details:
GSTR-4 has to be filed by 18th of the following month.
GSTR-5 return form has to be filed by all registered non-resident taxpayers. This form will contain the following:
GSTR-5 has to be filed by 20th of the following month.
GSTR-6 return form has to be filed by all taxpayers who are registered as an Input Service Distributor. This form will contain the following:
GSTR-6 has to be filed by 13th of the following month.
GSTR-7 return form has to be filed by all registered taxpayers who are required to deduct tax at source under the GST rule. This form will contain the following:
GSTR-7 has to be filed by 10th of the following month.
GSTR-8 return form has to be filed by all e-Commerce operators who are required to collect tax at source under the GST rule. This form will contain details of supplies effected and the amount of tax collected under Sub-section (1) of Section 43C of Model GST Law. Other details include:
GSTR-8 has to be filed by 10th of the following month.
GSTR-9 return form is filed by normal taxpayers with details of all income and expenditure for the year. This detail will be regrouped in accordance with the monthly returns. The taxpayer will have the opportunity to make modifications in the information provided if required. GSTR-9 has to be filed by 31st December of the following financial year along with the audited copies of the annual accounts.
GSTR-10 return form has to be filed by any taxpayer who opts for cancellation of GST registration. This form will contain the following:
GSTR-10 final return form has to be filed within 3 months of the date of cancellation or date of cancellation order, whichever is later.
GSTR-11 return form has to be filed by everyone who has been issued a Unique Identity Number (UIN) and claims a refund of the taxes paid on inward supplies. This form will contain the following details:
Based on the above mentioned details, the tax refund will be made. GSTR-11 form has to be filed on 28th of the month, following the month for which supply was received.
The Goods and Service Tax Network will store information of all GST registered sellers and buyers, combine the submitted details, and maintain registers for future reference. Companies have to file 3 monthly returns every 3 months and one annual return in a financial year (37 returns in total). GSTN has launched a simple excel based template to make filing of returns easier for businesses. This excel workbook can be downloaded from the GST common portal free of charge. Taxpayers can use this template to collate invoice data on a regular basis. The details of inward and outward supplies can be uploaded on the GST portal on or before the due date. The data preparation can be done offline. Only while uploading the prepared file on the GST portal will the taxpayer need Internet.
A penalty will be levied on the taxpayer in case he/she fails to file the returns on time. This penalty is called the late fee. As per the GST Law, the late fee is Rs.100 for each day for each Central Goods and Services Tax (CGST) and State Goods and Services Tax (SGST). Thus, the total fine amount will be Rs.200 per day. However, this rate is subject to changes which will be announced through notifications. The maximum amount of fine that can be levied is Rs.5,000. Integrated GST or IGST does not attract any late fee in case the return filing is delayed. The taxpayer will also be required to pay an interest at the rate of 18% p.a. in addition to the late fee. This interest has to be calculated by the taxpayer on the amount of tax that is to be paid. The time period will be calculated from the day following the filing deadline till the date when the actual payment is made.
For taxpayers who have an aggregate turnover of up to Rs.5 crore in the previous year, the regular returns that are to be used are either Sugam, Sahaj, or normal (quarterly) returns.
Form RET-1 can be filed through SMS in the case of Nil returns, where supplies have not been made or received.
Suppliers can only make amendments in the documents if the document has been rejected by the recipient, and not if they have been left pending.
Yes, the period of filing can be changed by the taxpayer once. This can only be done at the time that the first return of the financial year is filed.
The facility to shift such documents to the correct table is available but is provided only once the documents are rejected by the recipient.
GST taxpayers who are filing ‘NIL’ returns can now file their final/quarterly sale statement of the GSTR-1 via SMS. The new facility will be available from the 1st week of July.
According to a statement given by the Central Board of Indirect Taxes and Customs (CBIC), the move will help around 12 lakh taxpayers. Currently, the taxpayers will have to log in to their respective accounts on a common portal in order to file their statements. Taxpayers can now file the GSTR-1 by sending an SMS to 14409 in order to initiate this facility. According to CBIC, the status confirmation of the returns that have been filed can be tracked on the GST portal. The facility can be found under the ‘Services’ section. Earlier in the month, the CBIC started allowing taxpayers to file ‘NIL’ GSTR-3B returns via SMS. Therefore, businesses will no entry or nil returns can file the GSTR-3B returns via SMS from their registered mobile number. Any returns that are filed via SMS will be verified by the One Time Password (OTP) facility.
In the latest GST Council Meeting which was held today (12 June 2020), the council has implemented a few modifications to the maximum late fee which will be applicable in the case of non-filing of the GSTR-3B returns for the period of July 2017 to January 2020.
As per the new announcement, the maximum late fee has been capped at Rs.500 for the period mentioned above. The Council has notified that the revision in the maximum applicable late fee will be applicable to all the returns which have been submitted between 1 July 2020 and 30 September 2020.
In an attempt to make the compliance easier for all taxpayers, the Government had allowed the filing of Nil GST return in FORM GSTR-3B by using SMS.
This will surely improve the ease of GST compliance for more than 22 lakh registered taxpayers who would have to otherwise log into the account on a portal and file their returns on a monthly basis.
Now, with NIL liability, they do not have to log on to the GST Portal and can file the NIL returns via SMS. A statement released had said that the functionality of filing Nil FORM GSTR-3B via SMS is now available on the GSTN portal.
The Finance ministry has extended the deadline for filing GST return for FY19 till 30 September. The extension meant that no return can be filed through Short Messaging Service (SMS). The validity of e-way bill expiring between March 20 and April 15 has also been extended till 31 May. The move will help in smooth movement of trucks stranded at various places across the country given the lockdown. The decisions were taken the Central Board of Indirect Taxes and Customers (CBIC) on Tuesday evening to provide relief to various categories of GST assesses.
Restrictions on businesses to be able to avail GST credit from February to August have been lifted by the government to help them tide over the economic challenges caused by the outbreak of the Covid-19 virus on the economy. Businesses are able to avail credit in excess of 10% for invoices uploaded for the months of February to August. This can now be cumulatively done in the GSTR-3B returns in the month of September instead. This menas that even if invoices have not been uploaded in the months of February to August by suppliers, taxpayers can still claim input tax credit in September. The tax credit for those 7 months will have to be reconciled at one go in September, however, uploading all the bills to support the tax claims. There has also been a waiver of the late fee for uploading of GSTR-3B returns for the months of February to April. For those with a turnover of over Rs.5 crore, the last date is now 24 June. For those with a turnover between Rs.1.5 crore to Rs.5 crore, the last date is now 29 June for February and March GSTR-3B returns and 30 June for the April GSTR-3B returns. For turnovers of up to Rs.1.5 crore, the last date is 30 June for returns of February, 3 July for returns of March, and 6 July for returns of April.
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