Comprehensive Guide to GST Returns
Who Needs to File GST Returns?
Businesses, professionals, and other entities registered under GST are required to file GST returns. Filing depends on the type of business, turnover, and the scheme under which the entity is registered. This includes:
- Regular taxpayers.
- Composition scheme taxpayers.
- Non-resident taxable persons.
- E-commerce operators.
- Input service distributors (ISD).
- Taxpayers under TDS/TCS provisions.
How Many Types of GST Returns Exist?
GST involves multiple returns tailored for specific taxpayers. These include regular returns, annual returns, and specialized returns for specific categories like e-commerce operators and non-resident taxpayers.
GSTR-1: Return for Outward Supplies
This return captures the details of all sales or outward supplies made during a specific tax period. It forms the basis for other returns like GSTR-3B and GSTR-2A.
GSTR-2A: Dynamic Read-Only Input Tax Credit (ITC) Statement
A system-generated return reflecting inward supplies based on the GSTR-1 filed by suppliers. It is dynamic and updates as suppliers upload invoices.
GSTR-2B: Static ITC Statement for Inward Supplies
This is a static, system-generated report available monthly, providing a consolidated summary of Input Tax Credit (ITC) for the taxpayer.
GSTR-2: Deferred Return for Inward Supplies
Initially planned as a detailed return for inward supplies, GSTR-2 has been deferred and is not currently required for filing.
GSTR-3: Deferred Monthly Consolidated Return
Originally designed as a comprehensive monthly return, GSTR-3 was replaced with GSTR-3B for simplicity in compliance.
GSTR-3B: Summary Return for Tax Liability
A consolidated summary return filed monthly, reflecting total taxable value, tax liability, ITC claimed, and tax paid. It is a must for all regular taxpayers.
Deadlines for Submitting GST Returns
Each GST return has specific deadlines, which vary based on the type of return and taxpayer category. Adhering to these deadlines is critical to avoid penalties.
GSTR-4: Return for Composition Scheme Taxpayers
This annual return is mandatory for taxpayers registered under the GST Composition Scheme. It consolidates quarterly payment details.
GSTR-5: GST Return for Non-Resident Taxpayers
Non-resident foreign taxpayers who operate in India temporarily must file this return, detailing their sales and purchases.
GSTR-5A: GST Return for OIDAR Service Providers
Providers of Online Information and Database Access or Retrieval (OIDAR) services file this return, detailing the services offered to Indian customers.
GSTR-6: Return for Input Service Distributors (ISD)
ISDs file this return to distribute input tax credit (ITC) to their branches or units.
GSTR-7: TDS Deduction Return
Entities deducting TDS under GST provisions must file this return, declaring the amount deducted and deposited.
GSTR-8: Return for E-commerce Operators
E-commerce platforms facilitating supplies must file this return to report TCS (Tax Collected at Source) deductions.
GSTR-9: Annual GST Return
This annual return summarizes all transactions of the financial year, including outward and inward supplies, ITC claimed, and taxes paid.
Deadlines for Filing Various GST Returns
Timely compliance ensures smooth operations and avoidance of penalties. Common deadlines include:
- GSTR-1: 11th of the following month (monthly) or 13th of the following quarter (quarterly).
- GSTR-3B: 20th of the following month (monthly scheme).
- GSTR-4: 30th April of the following financial year.
- GSTR-9: 31st December of the following financial year.
Penalties for Late Filing of GST Returns
Non-compliance leads to penalties:
- Late Fees: Rs. 50 per day (Rs. 20 per day for nil returns), subject to a maximum cap.
- Interest: 18% per annum on the unpaid tax amount for the period of delay.
- Other Consequences: Blocking of e-way bills, cancellation of GST registration, etc.