Everything You Need to Know About Filing GST Returns

The GST Council recently released the final draft of the laws governing CGST (Central GST) and IGST (Integrated GST), and efforts are in full swing as we get closer to the implementation date i.e. 1st July 2017.

According to the GST regime, every taxable person has to submit their Tax details online through the GST portal at https://www.gst.gov.in.

There are in total 4 types of forms that every normal taxpayer will have to fill and submit in the new GST regime. These are:

Return Form What to file? By Whom? By When?
GSTR-1 Details of the outward supplies that are taxable under GST Registered taxable supplier 10th of every month
GSTR-2 Details of the inward supplies that are taxable under GST Registered taxable recipient 15th of every month
GSTR-3 Monthly GST returns that are based on the details of outward supplies and inward supplies Registered taxable person 20th of every month
GSTR-9 Annual Return Registered taxable person 31st December of the next financial year

GST filing

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Details to be added in the returns:

GSTR-1

  • Your business name, GSTIN, and the period for which the return is filed.
  • Details of the invoices issued in the previous month along with the taxes paid on them.
  • Details of the advances paid for a supply to be delivered in the future.

GSTR-2

GSTR-2 will be prefilled based on the details provided by you through GSTR-1. You will need to just go through it, and make changes if required.

For instance, if you have bought raw material from a certain company A. Then company A will file a GSTR-1 form and put your name as the buyer in it.  As you will check your GSTR-2 form, you will find these details already filled. You will just need to verify the auto-populated details of the purchases made by you.

GSTR-3

GSTR-3 is just GSTR-1, and GSTR-2 put together. Just like GSTR-2 the GSTR-3 form is also auto-populated from the information received. You just have to approve the details provided in it, which are:

  • Details of the cash ledger, liability ledger, and ITC ledger.
  • Tax payment details of different taxes- SCGT, CGST, and IGST.
  • The option of claiming a refund for excess payment.

GSTR-9

GSTR-9 sums up the transactions and tax payments made in a financial year. So, you need to fill all the details of all the monthly returns along with the collective tax payment details.

Composition Businesses

The government has issued a Composition Scheme to make GST compliance easier for small businesses. If your annual turnover does not exceed Rs. 50 lakhs then you can opt for GST payment under the composition scheme. By doing so, you have to file returns in the following manner:

Return Form Frequency Due Date Details to be included
GSTR-4A Quarterly NA This form will be prefilled/auto-populated with the details provided by your supplier via form GSTR-1
GSTR-4 Quarterly 18th of the next month Details of all the outward supplies of goods and services along the prefilled details of the form GTSR-4A. If there are any changes required in the Form GSTR-4A then you can also add those in the Form GSTR-4.
GSTR-9A Yearly 31st December of the next financial year Combined details of all the quarterly returns along with the tax payment details.

 

How to file GST Returns?

Since GST returns can only be filed online in a digital form, you need to login in the GST portal with your credentials. Otherwise, you can also prepare the returns yourself and submit the same through a facilitation center or a tax return preparer (TRP).

Every business will be assigned a unique identification number called the GSTIN number. You will be filing your returns against the very same number.

GST has also proposed to impose an automated late fine for those who don’t file the returns on time. This is to discourage non-filers. For each day of delay, you will have to pay a fine of Rs. 100 (tentative), with a maximum limit of Rs. 5,000. In the case of annual return again the fine is Rs. 100 per day, but the maximum limit is 0.25% of the aggregate turnover. Thus, be sure to file the returns on a timely basis.

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