Preparing Tax Invoices Under the GST System

Preparing Tax Invoices Under the GST System

Invoices have always been an important part of business operations. However, as the GST regime is going to be implemented from July 1, the government has laid down new rules and formats for issuing GST-compliant invoices.

By following the correct procedure for the GST invoices, a taxpayer will be able to claim Input Tax Credits, which is one of the biggest reforms in the regime.

Under the GST system there can be two types of invoices, which are:

  1. Tax Invoices

Every businessperson who is registered under GST as a standard taxpayer is required to issue tax invoices for their supply of goods and/or services.

The following is a sample invoice format for the GST tax invoices:

The typical entries that have to be filled in a GST tax invoice are:

  • Your name, address, and the GSTIN number.
  • A consecutive serial number that doesn’t contain any special symbols (alphabets and numbers only) and is different for every financial year. For instance, for the financial year 2017-2018, you can use 2017NameOfCompany.
  • Issuing date.
  • The total value of the goods and services.
  • The rate of tax levied (CGST, SGST, or IGST).
  • Place of supply and state name, in case supplied to someone in another state.
  • Description of the goods and services.

Every invoice for the supply of goods has to be issued when:

  • The goods are removed from your place (if the goods are supplied to some other place)
  • The goods are given to the buyer (if the goods are sold at the same place)

Every invoice for the supply of services has to be issued when:

  • Within 30 days from the date, you have supplied the service.
  • Within 45 days from the date, you have supplied the service (if you are a bank or NBFC).

Copies of Invoices

If you are supplying goods then you will have to make two copies of the original invoice:

  • Duplicate- for the transporter of your goods.
  • Triplicate- for yourself.

Of course, the original invoice will be issued to the buyer/recipient. If you are supplying services then you will have to make only one copy for yourself, and the original one will be issued to the buyer/recipient.

  1. Bill of Supply

If you are not liable for GST registration but have opted for the GST composition scheme, then you have to issue a bill of supply instead of a tax invoice. The same is also to be issued when you are supplying exempted goods and/or services. The typical entries that have to be filled in a GST bill of supply are:

  • Your name, address, and the GSTIN number.
  • A consecutive serial number that doesn’t contain any special symbols (alphabets and numbers only) and is different for every financial year. For instance, for the financial year 2017-2018 you can use 2017NameOfCompany.
  • Issuing date.
  • The total value of the goods and services.
  • Accounting code (in the case of services) or HSN code (in the case of goods).
  • Place of supply and state name, in case supplied to someone in another state.
  • Description of the goods and services.

How to Fix Mistakes in Issued Invoices?

You are allowed to rectify errors in the invoices issued by you through credit and debit notes. You can provide the tax and value details of the concerned goods and/or services through these notes which are already given in GSTR-1 and GSTR-2.

While a debit note has to be issued when a short tax is charged (smaller than the applicable tax), a credit note is issued when an excess tax is charged.

Understanding the new invoice formats and regulations is important for every business to become GST-ready. If you haven’t learned about these yet, then it’s best to familiarize yourself as soon as possible.

Transfer Your Existing Input Tax Credit to the GST System

How to Transfer Your Existing Input Credits to the GST System?

The introduction of the GST regime has left many businesses, especially the SMEs in bewilderment. There are many doubts concerning how it will affect them, and one of these is the migration of the input tax credit from the current VAT or Service Tax system to the new GST system.

Transfer of Credits

The GST taxation system allows a taxable person to collect the credits of the taxes paid by them in the current regime and carry them to the new regime. However, you will need to show a proof of your last return filed under the previous regime.

For instance, since the implementation date for the GST regime is July 1, 2017, you must make sure you have taken the account of your stock you have with you on June 30, 2017.  This way, you can claim the input credits when you will file the returns for the period ending on June 30, 2017.

Central Excise Credits

You can carry forward the balance of your CENVAT credit to the GST regime. However, the closing balance of the credit must reflect in the last return filed by you.

Let’s consider an example. Say, you are an electronics manufacturer in Mumbai and registered under the Excise and Maharashtra VAT. Let’s assume you have a CENVAT closing balance of Rs. 30,000 on March 1, 2017. So, the question is- can you transfer this balance credit in the new regime? The answer is both “yes” and “no”.

The answer is “yes” if you can meet the two requirements:

  • Your returns filed under ER-1 must show the CENVAT balance
  • The transfer must be allowed as per GST’s Input Tax Credit system

For CENVAT, the input tax credit will be called CSGT credit.

Service Tax Credits

In the current regime, a service provider has to inflate the prices on the basis of the following taxes that are levied:

  • A standard service tax of 14%
  • Krishi Kalyan Cess of 0.5%
  • Swachh Bharat Cess of 0.5%

However, the input tax credit facility is available only for Krishi Kalyan cess and Service Tax. If you want to carry forward these input credits then you must file your returns under Form ST-3. The closing balance of the service tax input credit will be transferred to the GST regime as CGST input tax credit.

Value Added Tax (VAT) Credits

Businesses that are registered under VAT have to file returns on a monthly as well as a quarterly basis. Just like in the case of Service Tax and CENVAT, you can carry forward the balance of input VAT credit to GST regime as SGST input tax credit.

Let’s take an example. If your business’s VAT Form 100 reflects credit forwarded as Rs. 10,000 as of March 31, 2017, then your input VAT credit balance is also Rs. 10,000. Again, you are entitled to carry forward this balance if your returns reflect this balance and if GST approves it as input tax credit. If both conditions are met then you can transfer the credits as SGST credit.

In all the three instances that are given above, you are allowed to transfer your pre-GST input credits to the GST regime if you meet the following requirements:

  • You must be eligible for claiming Input Tax Credits under GST
  • You should have all the invoices or other relevant documents regarding the closing stock of the inputs that you want to claim input tax credits for.
  • The invoices must not be older than 12 months from the date of GST migration.
  • The benefit of transferred credits must be forwarded to your customers through reduced prices.

As the date of GST roll-out is coming closer, it’s important that you prepare accordingly. Delaying the same can rob you of the benefits that can claim now.

How to Create GST Ready Invoice?

Prerequisite steps for GST ready invoice –

  1. You should be registered with numberz.
  2. You should have GSTIN number.
  3. You should have item name handy with you.

Step 1: Log in to GST Invoicing here and click on ‘Create GST invoice seconds’. This will make you land on welcome screen.

This is your welcome screen. You will be prompted with on-screen help to guide you further.

Step 2: Click on ‘Add Customer’ to add the customer you are willing to send your invoice.


Step 3: Clicking on ‘next’ will land you on Customer Information tab. Here you can insert your customer details such as name, email address and phone number. For tax info input, you will be needing Pan card details & GSTIN ID.

Do note that fields marked with star are required whereas field marked with thumbs up are recommended for the user.

Step 4: Once you have entered all the required inputs, head on to ‘Save’ button to register your customer information in your numberz account.


Step 5: Once you have saved your customer information, it is now time to add items to your GST invoice.


Step 6: Adding a new item will require you to update item information. Enter the item name, item description along with HSN/SAC code to categories your items and services. For easy accessibility, you can just start typing your name and we will automatically suggest your respective HSN/SAC code.


Step 7: In the next step, you will be required to select the tax rate. Our intelligent tax system will automatically select the tax slab based on your HSN/SAC but you can change it accordingly. Depending upon the place of supply, we will apply the tax rate to CGST/SGST or IGST.

Click on Save in top right corner to save your item information

Step 8: Clicking on the save will bring you back to the screen on step 6. Here you can check the GST tax rates.


Make sure all your calculations are correct in order. You can check net total at the lower right corner. Click on preview to see your invoice in PDF format.


Congratulations! You have successfully created your GST compliant Invoice.


E-Ledgers Under GST

E-Ledgers Under GST: Here’s What You Need to Know

GST is all about transparency, simplicity, and growth. However, adopting digital technology is a must for all of these. This is why GST Model Law will ensure that the records of all the transactions, generated invoices, refunds, tax credits, etc. are maintained online. This resulted in the need of e-ledgers.

A taxable person who comes under GST regime has to create an account on the GST portal. Once this is done they will get access to three e-ledgers:

  • e-cash ledger
  • e-credit ledger
  • e-liability ledger

But what are these ledgers, and how do they work? Let’s take a look at them, one at a time.

e-Cash Ledger

The e-cash ledger will reflect your payments towards tax, penalty, interest, etc. You can make these payments through any of the following modes:

  • Debit or credit card
  • Internet banking
  • NEFT or RTGS
  • Over the Counter (OTC) payment for amounts up to Rs. 10,000 in cash, or through DD or cheque

e-Credit Ledger

All the input credits under the main heads i.e. SGST, CGST, and IGST will be credited to the e-credit ledger. In other words- the total amount of tax payable will be reflected in this ledger. However, if you will claim refunds through input tax credits, the appropriate amount will be debited from it.

Note: you will be allowed to use the balance of this ledger for the payment of taxes only. For other payments such as interest, fee, etc. you will have to use e-cash ledger.

e-Liability Ledger

The e-liability ledger will reflect your tax liability for a particular month after final netting is done. It is also auto-populated.

To understand how all the 3 e-ledgers will work in reality, let’s consider an example:

  • S is a supplier who has to file the GST return for a month. So, he/she will use the form GSTR 1 and add the details of outward supplies for the month.
  • B is the buyer who will find the details of the supplied filed by S in the form GSTR 2a.
  • S will check his/her e-ledger to find out their tax liability and the payment of the same. He/she will check the e-liability ledger for checking the tax amount liable to him and e-credit ledger to see if he/she has enough credits for the payment of CGST, SGST, and IGST. If there are, he/she will pay the taxes using the same. If not, then he/she will use the e-cash ledger to pay the taxes through any of the modes mentioned above.

Note: It seems there is no provision for cross adjustments in the GST scheme. So, you can pay CGST only from the CGST balance, IGST only from the IGST balance, and SGST only from the SGST balance in your e-credit ledger.

Summing it Up

To simplify the entire system:

  • e-cash ledger is for recording your payments, taxes, fees, etc.
  • e-credit ledger is for reflecting your SGST, CGST, and IGST credits available through ITC (Input Tax Credits) which you can also use for paying these taxes.
  • e-liability ledger is for showing your tax liabilities in an easy and simple manner.

Understanding the working of all these three e-ledgers is important to move to the GST regime smoothly. If you have a strong grasp of the basics, that’s enough to get you going when the Goods and Services Tax is rolled out on 1st July.

Composite supply and Mixed supply under GST

What is Mixed Supply and Composite Supply in GST?

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GST is different than the current taxation system in many ways. However, one of the biggest changes is what constitutes as a taxable event. Talking about today, while the taxable event for VAT is the “sale of goods”, and of Service Tax is “provision of taxable services”, and of Central Excise is “removal of excisable goods”, GST has just one, which is “supply of goods and/or services”. Once GST is implemented, the concept of manufacturing, selling, etc. will be eliminated from the taxation point of view. Instead, the focus will be only on the “supply” of goods and/or services.

Supply in GST

While the concept of “supply” is fairly easy to understand in GST, there are two categories of the same which may be somewhat confusing for an individual.

These are:

● Composite supply

● Mixed supply

Understanding the difference between the two is important as it will help you determine how GST is levied in both cases.

Composite Supply

Composite supply is not something that’s entirely new. It’s similar to the concept of bundled services under the Service Tax Law. As per GST Act, Section 2(30), composite supply means a supply of two or more goods/services in a bundle, in which one is the principal supply (the predominant or primary item in the bundle).

For a supply to be considered as a composite supply the following two conditions must be met:

● It should comprise of 2 or more goods and/or services

● It should be a natural bundle. In other words- the goods and/or services

In the bundle should be provided together in the normal course of business and can’t be separated.

Since in a composite supply there are multiple items which may attract different GST rates, the bundle is taxed at the rate of the principal supply.

Let’s consider an example:

A hotel offers a 3 days-2 nights package under which food is also covered. Now, let’s say the rate of GST for accommodation is 28%, and that for food is 18%.

Since the whole package is supplied as a natural bundle, and the principal supply is the accommodation, the rate of tax levied on the entire bundle would be 28%.

Mixed Supply

As per GST Act, mixed supply is a supply of two or more supplies of goods and/or services that are combined together for a single price. However, unlike composite supply (refer the second condition), here the supplier can sell both supplies individually too.

In a mixed supply, the rate of tax on the bundle is determined by the item that has the highest rate of tax.

Let’s consider an example:

A trader is selling pastries, cakes, and namkeen in a bundle. This would constitute as a mixed supply because it’s possible for the seller to sell these items separately. Now, since pastries and cakes attract an 18% GST rate, and namkeen a 12% GST rate, the rate applicable on the complete bundle would be 18% (it being the highest).

If you are going to sell goods/services under GST regime then you can bundle them in a way that you can get the maximum benefit. And of course, understanding the types of supply- composite and mixed is essential for that.

GST Impact on Tourism and hospitality Industry

GST Impact on Hospitality and Tourism Industry

The tourism and hospitality industry is very diverse. It encompasses a variety of elements including food, entertainment, accommodation, and services like spa, yoga, etc. for the visitors/travelers.

Needless to say, there is a lot going on here, and now that the government has finally issued taxation slabs under the GST bill, the impact of the same on the tourism and hospitality industry would be a major one.

So, what are the exact changes that one must expect? Let’s find out

Industry Now

In the current taxation system, there are three main types of taxes that the hospitality industry has to pay:

  1. Value Added Tax, or VAT

VAT is usually applicable on food bills only. However, a hotel owner may include it with the room rent if the customer has also ordered food from them during their stay.

The rate of VAT varies from one state to another and is levied on the total bill amount (which may or may not include service charges). It typically ranges from 12% to 14.5%.

  1. Luxury Tax

The Luxury tax is levied on the room rent and just like VAT, it varies from one state to another. The rate also varies on the basis of the rent a hotel charge per day.  For instance, for a hotel in Delhi, there is no luxury tax applicable if the rent per day is less than Rs. 750. However, a rate of 3% is applicable if the rent is higher than Rs. 750 but lower than Rs. 1000. Similarly, a 10% rate is applicable if the rent is higher than Rs. 1000.

  1. Service Tax

Hotels where the room rent is more than Rs. 1,000 per day a service tax of 15% is applicable. However, a relaxation of 40% if allowed which makes the actual tax about 9%.  Service tax is also applicable on food and beverages served in the hotel. However, they are two separate categories with two different rates.

Industry After GST

One of the biggest problems that the hospitality industry has been facing since a long time is the bifurcation of goods and services. This is because hotels tend to offer service (rooms for rent) and goods (food and beverages) both. However, GST will bring standardization and uniformity by considering goods and services as the same.

Since GST has the provision for ITC (Input Tax Credits), the hospitality industry will be able to offer lower rates, and it will help attract more tourists in comparison to other neighbor countries.

With multiple taxes subsumed into one, calculation of taxes will become easier. Moreover, tourists will see only a single tax on their bills, which will help them get a better idea of what they are paying for. They will also save time as preparing bills will be easier.

Even though the government is certain that GST will have a positive impact on the hospitality industry, many people are rather upset. The following are some of the reasons why:

Varying Tax Liabilities

The GST Council has set a GST rate of 18% for air-conditioned restaurants and 12% for non-air-conditioned restaurants. A 12% rate has been fixed for hotels when the room rent is between Rs. 1,000 and Rs. 2,500. 18% when it’s between Rs. 2,500 and Rs. 5,000, and 28% when it’s higher than Rs. 5000. Thus, while the rate burden is reasonable for the budget hotels, for the luxury hotels it could be a lot.

Increased Competition with Other Countries

The tax rates in other popular tourist destinations in Asia are quite low.  For instance, in Singapore and Japan, the tax rates are 7% and 8% respectively. However, the lowest tax slab for hotels in India is fixed at 12% which could put a dent in the country’s tourism industry.

At this point, it’s unclear how GST will impact the tourism industry exactly. While it may bring a financial challenge for the luxury hotels, the budget hotels that are paying a high tax under the current regime may benefit from the fixed 12% rate. At any rate, GST will make taxation simpler, transparent, and easier. For the actual results, however, we will have to wait and observe.


Consequences for GST taxpayer on Non-Compliance

Is it ok if I don’t Register for GST? What are the Consequences of Non-Compliance?

One of the many reasons behind the implementation of the GST Model Law is to prevent tax evasion and make the system more transparent. Thus, the government will take stringent measures against those who will be found non-compliant with the set regulations. 

To better prepare against non-compliance, the center is also establishing several departments that will handle business intelligence, analytics, etc. The current tax department will also be bolstered in according to the new GST regime. Thus, if you are liable to register for GST then you must absolutely get your business registered if you don’t want to face any kind of legal action.

Penalties Under GST 

You are liable to pay a fine up to Rs. 10,000 or more if you have been found guilty of any of the following:

  • Obtaining tax refunds through fraudulent ways.
  • Supplying goods and/or services without releasing invoices.
  • Releasing invoices without supplying the goods and/or services.
  • Providing false registration information, invoices, etc.
  • Not paying the tax collected within 3 months.
  • Forging financial details such as profits and supply of goods, etc.
  • Misrepresenting annual turnover with an intent of tax evasion.

Although the penalties imposed under the GST regime are stringent themselves, a taxpayer may also need to do a jail time under some serious offenses. These are discussed below.

Imprisonment Under GST

The following are some of the conditions that can actually cause imprisonment:

  1. If a taxpayer is found to be tampering with evidence or obstructing any officer in carrying out their duties, or withholding any information that’s required from them as per the law then they can face imprisonment of 6 months with fine.
  2. If a taxpayer is found guilty of tax evasion or wrongly availing the Input Tax Credit then they can face imprisonment and a fine according to the following structure.


  • Imprisonment up to 1 year with fine if the amount of tax evaded or wrongly claimed ITC lies between Rs. 50 lakhs and Rs. 1 crores.
  • Non-bailable imprisonment up to 3 years with fine if the amount of tax evaded or wrongly claimed ITC lies between Rs. 100 lakhs and Rs. 2.5 crores.
  • Non-bailable imprisonment up to 5 years with fine if the amount of tax evaded or wrongly claimed ITC is more than 2.5 crores.

To ensure that a proper flow is maintained in the GST system the government has also decided to charge late fees. So, for every single day that has passed since the due date for furnishing details of inward or outward supplies, a taxpayer will need to pay Rs. 100 with the maximum total amount being Rs. 5,000. Similarly, Rs. 100 will be charged for each day that is passed after the due date for furnishing the annual return with the maximum total limited to 25% of the taxpayer’s annual turnover.


GST is one of the biggest government’s moves to tackle tax evasion and corruption in the country. Thus, you must ensure you are compliant with the set standards and regulations. Besides, by doing so you and your customers will both be benefited by saving money and contributing towards the betterment of the country.

Impact of GST on traders

GST Impact on the Traders in India

The Goods and Services Tax will bring several changes in almost every industry in India. However, the manufacturers and traders will be affected by it the most.

The following are some of the most important changes that the traders will need to wrap their head’s around with:

Goods vs Services

One of the biggest reasons why the current tax regime is so complicated is because there are frequent disputes on certain transactions as to whether they should be categorized as goods or services. Creating invoices is also difficult for the traders for the same reason as two separate rates are charged for goods and services. However, since GST will consider both of these equally and levy the same charge on both, it will make doing business a lot simpler and easier.

Common Market

At present, goods are mostly sold within the state to prevent the CST and entry tax. However, once GST is implemented, traders will be able to sell their products to the farthest corners of the country without worrying about taxes, as there will be no entry tax or CST.

Entry Tax

The business industry has to deal with great losses in the current system because the trucks responsible for goods transportation waste a lot of time at the check-posts. In fact, it has been found that long-distance trucks are parked 60% of the time.

Since GST aims at eliminating the practice of tax collection at the borders, it will benefit the businesses in two ways:

  • They will save money on the border tax.
  • They will be able to deliver goods to their customers faster and thus improve business efficiency and also minimize transportation costs.

Rate of Tax

The GST regime will follow a four-tier tax structure of 5%, 12%, 18% and 28%, with lower rates for the essential goods and higher rates for the luxury goods. In fact, for the essential items such as food, a zero rate will be levied. On the other hand, luxury items such as tobacco and aerated drinks will be levied an additional cess apart from the base rate itself.

To extend relief to small traders, the Goods and Services Council has also settled for the rates 2%, 1% and 5% for small manufacturers, small traders, and small restaurants, respectively. These entities will come under the new Composition scheme, the eligibility criteria for which is an annual turnover of less than Rs.50 lakhs.

Input Tax Credit

One of the most anticipated reforms of GST is Input Tax Credit which allows the traders to claim the repeat tax paid by them. However, there are a few challenges to this system. For instance, if a trader has paid a repeat tax to their supplier then they can claim a refund (credit) only if the supplier paid the tax themselves. Since there is a chain of vendors, manufacturers, and traders in the process, they all have to comply with the GST law and pay taxes so that the eligible taxpayers can claim input credit.

GST will make invoicing, filing of returns, and registration electronic, and the traders will have to deal with these by entering information through their accounts via the Internet. Although some of the traders and small business owners might not be happy with the implementation of digitization in terms of the same, replacing the traditional way, it’s in their best interest to adapt accordingly.

GST impact on startups and micro enterprises

GST Impact on Micro Enterprises and Startups

The GST law has been in talks for many years, but it’s only now that it’s finally going to be implemented in the nation from July 1. The business industry awaits this day, although there is still a lot of confusion and uncertainty.

Regardless of how everyone feels about the new taxation regime, one thing is for sure that it will be beneficial for the businesses and the consumers both. However, startups and micro-enterprises are going to be at a big advantage because of the following:

Starting Business Made Easy

Under the current system, the troubles for startups and small business owners begin from the first step itself, which is registration. The business owners have to pay a number of visits to the Sales Tax department for VAT registration. Also, if the business has multiple branches in multiple states, then getting VAT registration can easily become a nightmare due to different rules and regulations followed by different states.

GST is here to change all the problems mentioned above. It is a centralized system that will allow aspiring entrepreneurs to register their businesses online. They can also file returns, claim input tax credit, send invoices, etc. through their GST account. Thus, there will be less room for corruption and tax evasion.

One Big Central Market

A mobile phone of a particular model is today sold at a different price depending on which state you buy it from. This is because the rate of VAT and other taxes can vary in different states under the current system. The brick and mortar stores have thus suffered a lot due to this as they are unable to match the prices of the products sold in the states that have lower tax rates.

These businesses don’t only have to compete with other businesses that could afford to offer low prices but also with imports that often cost less due to the lack of cascading effect of taxes. Thus, GST will promote the growth of domestic companies and startups to do business without fearing the businesses based overseas.

For the most part, GST will be helpful for SMEs and startups. However, there will a few challenges too. For starters, businesses that supply both goods and services and have an annual turnover of less than 1.5 crores may have to face compliance issues due to the nature of their business and deal with both state and central administration. Also, the threshold level for GST registration is 10 lakhs for the North-Eastern States and 20 Lakhs for the rest of India. Although this is better from the previous 5 lakhs and 10 lakhs respectively, it will still cause startups and small businesses owners to pay a high tax.

All in all, while there are a few hardships that GST will bring to the table, it will be a welcoming change for the entire business industry nonetheless. The specifics of the law such as exact rate for different product and service categorized, however, will be finalized by the GST council soon.

Types of GSTR, due dates and their applicability

Types of GST Returns, and Their Applicability to your Business

The average taxpayer who runs a business has to deal with a number of taxes. If they are compliant under VAT, Service Tax, etc. then they have to file returns as per the law of their respective state (as these taxes vary from one Indian State to another). Apart from the returns, there are annexures and registers for all these taxes that are to be provided on a monthly, half yearly or yearly basis. Without a doubt, the process is tedious and complicated.

GST aims at making filing the returns easier and simpler as the compliant businessmen will need to file only the GST returns. The GST council has released the details of the all 11 types of returns which are to be filed electronically through the Common Portal. You may need to file only a few of these depending on your business type.

Regular Businesses

If you are a GST compliant business who has to pay the GST in the standard manner then your business will be considered as a regular business.

You will need to file three types of returns on a monthly basis, which are GSTR-1, GSTR-2, and GSTR-3. However, the returns GSTR-2 and GSTR-3 will be automatically created for you using the details from the GSTR-1 return.

The GSTR-1 is to be filed along with the details of the outward supplies made by you in the previous month. These details will result in the auto-population of the inward supplies, i.e. form GSTR-2A. You can confirm these details which will result in the creation of the form GSTR 2.

Once you have provided the details of goods/services bought and sold through the forms GSTR-1 and GSTR-2 respectively, the information will result in the automatic creation of GSTR-3. You can now approve this return or make changes if required.

You can refer to the table below to understand the timelines associated with all the returns:

Return Form Details to be filed Concerned Person Deadline
GSTR-1 Outward supplies that are taxable under GST Registered Taxable Supplier 10th of the next month
GSTR-2 Inward supplies that are taxable under GST Registered Taxable Recipient 15th of the next month
GSTR-3 Monthly GST returns that are based on the details of outward supplies and inward supplies Registered Taxable Person 20th of the next month
GSTR-9 Annual Return Registered Taxable Person 31st December of the next financial year


Composition Businesses

The government has issued a Composition Scheme to make GST compliance easier for small businesses. The scheme has various benefits for eligible businesses, such as lower GST tax rate, quarterly tax returns (as opposed to monthly), etc.

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 Details to be filed Concerned Person Deadline
GSTR-4 Quarterly return for compounding taxable person. Composition Supplier 18th of the next month after each quarter
GSTR-9A Annual return Compounding Taxable Person 31st December of the next financial year


Other Businesses

There are a few businesses that are not covered in the previous categories. These belong to non-resident foreign taxable persons, electronic commerce operators, etc. Their returns along with the timelines are given in the table below.

Return Form Details to be filed Concerned Person Deadline
GSTR-5 Return for Non-Resident foreign taxable person Non-Resident Taxable Person 10th of every month
GSTR-6 Return for Input Service Distributor Input Service Distributor 13th of every month
GSTR-7 Return for authorities deducting tax at source. Tax Deductor 10th of every month
GSTR-7 Taxable supplies of an e-commerce operator, and the overall tax collected E-commerce Operator/Tax Collector 10th of every month