Running a business in India throws open a lot of opportunities, but also brings its own set of responsibilities. One of the key aspects of complying with regulations is understanding and efficiently managing your Goods and Services Tax (GST) returns. With numerous forms and varying due dates, it can feel overwhelming at times. But fear not, fellow entrepreneur! This comprehensive guide will break down the different types of GST returns, their filing deadlines, and everything else you need to stay compliant and penalty-free.

What is a GST return, anyway?

Think of a GST return as a report card for your tax compliance. It's a document electronically submitted to the tax authorities, detailing your business's outward and inward supplies (sales and purchases), along with the calculated tax liability. Filing them accurately and on time is crucial to avoid penalties and maintain a good reputation with the government.

Types of GST returns

While there are 13 different GST return forms, not all apply to every business. The specific ones you need to file depend on factors like your registration type, turnover, and business activities. Here's a breakdown of the most common types:

1. GSTR-1: Outward Supplies Details
This monthly return showcases all your sales of goods and services during the month, along with the tax charged (CGST, SGST, or IGST). Think of it as a detailed invoice log for your outward transactions.

2. GSTR-3B: Summary Return
This monthly return is the hero of GST compliance for most businesses. It summarizes both your outward and inward supplies (purchases), calculates your tax liability, and lets you pay the taxes directly. It's a one-stop shop for tax payment and reporting.

3. GSTR-4: Composition Scheme
If your annual turnover is less than Rs. 1.5 crore, you might be under the composition scheme. This quarterly return simplifies your filing with a fixed tax rate based on your turnover, simplifying compliance for eligible businesses.

4. GSTR-5: Non-Resident Taxpayers
If you're a foreign business making taxable supplies in India, this return is your ticket to GST compliance. It's like GSTR-1 for non-residents.

5. GSTR-5A: ISD Return
This monthly return is filed by Intermediary Suppliers of Services (ISDs) who facilitate the supply of online information and database access or retrieval services from a supplier located outside India to a recipient in India.

6. GSTR-6: Input Tax Credit Return
This monthly return is filed by registered buyers under the reverse charge mechanism, where they pay GST on behalf of the supplier and claim the ITC later.

7. GSTR-7: TDS Deductor
If you deduct tax at source (TDS) on certain payments, like rent or professional fees, this monthly return details that information, and helps you track and report it. It's your GST contribution as a tax collector.

8. GSTR-8: E-commerce Operator
This monthly return applies to e-commerce platforms like Amazon or Flipkart. It tracks taxable supplies made through their platform.

9. GSTR-9 & GSTR-9A: Annual Recap
These annual returns offer a consolidated overview of all your monthly/quarterly filings for the financial year. GSTR-9 is for regular taxpayers, while GSTR-9A caters to composition scheme businesses. They ensure your annual tax liability is accurately represented.

10. GSTR-10: Final Return
This final return is filed when your GST registration is canceled or surrendered.

11. GSTR-11: Refund Claim
If you paid excess tax or faced input tax credit issues, this return allows you with a Unique Identification Number (UIN) to claim refunds on taxes paid for your purchases.

12. CMP-08: Composition Levy
This quarterly return is filed by taxpayers who have opted for the composition levy scheme, where they pay a fixed tax rate on their turnover instead of calculating and paying GST on individual sales and purchases.

13. ITC-04: Inter-State B2C Supplies Refund Claim
This return is filed by registered taxpayers to claim a refund of input tax credit (ITC) on inward supplies of goods received from unregistered suppliers located in another state.

Remember, not all returns apply to all businesses. The ones you need to file depend on your specific registration type and activities.

Due dates: Mark your calendars!

Missing deadlines can attract penalties and disrupt your business operations. So, mark your calendars! Here's a quick overview of the due dates for various returns:

Please note:

This table is intended for informational purposes only and may not be exhaustive.

Specific due dates and filing requirements may vary depending on state regulations and holidays.

Always double-check with your local tax authorities, a trusted advisor, or the official GST portal for the latest information and exact deadlines applicable to your case.

Interest and late fee

Filing your GST returns on time is crucial, but sometimes, unforeseen circumstances might lead to delays. While that's understandable, remember that late filing comes with financial consequences. Here are some things to note:

Interest:

Think of interest as the price you pay for borrowing time from the government. For any delay in filing your GST returns, you'll be liable to pay interest at the rate of 18% per annum on the tax amount payable. This interest is calculated from the due date of the return till the date of actual payment.

Late Fee:

Late fees are charged at Rs.100 per day/Act. Hence, it will be Rs.100 under SGST and Rs.100 under CGST. The total will be Rs.200/day, up to a maximum of Rs.5,000. Please note that from the month of/quarter ended June 2021, the maximum amount of late fees has been revised as below:

Late fee capped at Rs.250^ for taxpayers whose total amount of central tax payable is Nil

Rs.1,000^ for taxpayers with an annual aggregate turnover up to Rs.1.5 crore in the previous financial year

Rs.2,500^ for taxpayers with an annual aggregate turnover exceeding Rs.1.5 crore and up to Rs.5 crore in the previous financial year

^Please note that under SGST an equal penalty will apply. And there are no late fees under IGST.

Remember:

Late fees and interest are cumulative, meaning they add up over time. The longer the delay, the heavier the financial burden.
While late fees have maximum limits, interest continues to accrue until the tax is paid in full.
Filing even a nil return on time can save you from late fees, even if you have no tax liability for that period.

Final thoughts

In conclusion, understanding the types of GST returns, their filing process, and due dates is pivotal for businesses aiming for seamless compliance. By staying informed and proactive, businesses can navigate the GST landscape with ease, ensuring financial transparency and contributing to a robust tax ecosystem. Stay informed, and stay compliant!

FAQs

1. Who should file GST returns?
Any business or individual registered under GST is required to file GST returns. This includes regular taxpayers, composition scheme taxpayers, non-resident taxpayers, and those registered under TDS or TCS.

2. How many returns are there under GST?
There are currently 13 GST return forms, ranging from monthly and quarterly returns to annual. However, the specific returns you need to file depend on your business profile.

3. What are GST returns and why are they important for businesses?
They are mandatory reports to the government, ensuring accurate tax assessment and compliance. Filing them on time helps avoid penalties and ensures smooth business operations. They are essential for businesses as they ensure compliance with tax regulations and help in claiming input tax credits.

4. How frequently should businesses file their GST returns?
The frequency depends on your registration type and turnover. Most businesses file GSTR-1 monthly and GSTR-3B monthly/quarterly. Consult a tax advisor for specific guidance.

5. What information and documents are required to file GST returns?
You'll need details of your sales, purchases, tax rates, invoices, and bank statements. Consult your accountant for specific requirements and maintain proper records to facilitate smooth filing.

6. Are there any penalties or consequences for late or incorrect GST return filings?
Yes, late filing attracts interest and late fees. Incorrect filing might lead to penalties and tax demands. It's important to file your returns accurately and on time to avoid these consequences.

7. Can businesses claim input tax credits on their GST returns? If so, what are the requirements and procedures?
Yes, businesses can claim input tax credits on the GST they paid on their purchases. However, certain conditions and procedures need to be followed to claim ITC. It's best to consult a tax advisor for specific guidance on ITC claims.

Note: This blog provides general information and should not be construed as professional tax advice. Always consult a qualified tax advisor for specific guidance on your business's GST.