GST Returns That Your Company Needs To File Every Month – A Quick Guide

The Goods & Services Tax was introduced in July’17 with the intent to simplify the indirect tax schemes and help entrepreneurs in India to grow their business.

The complicated tax structure that existed in India before GST was a deterrent for many aspiring entrepreneurs who found it difficult to oblige with all the taxes that were levied. One of the most important benefits of GST is that it provides Input Tax Credit to businesses and eradicates the cascading effect of taxes. GST is more in line with the digital era and has an electronic portal for filing taxes.

All business owners who are registered under the GST scheme have to file GST returns using appropriate GST forms. Returns can be filed using both online and offline methods. A normal business has to file a total of 25 GST related returns annually. These include one annual return GST termed as GSTR-9 and two monthly returns GSTR-1 and GSTR-3B.

The businesses registered under the composition GST scheme have to file GST returns using the form CMP-08 (GSTR-4). As per the latest GST news, an extension in the deadline has been provided for the annual return filings and monthly return filings. Let’s dive deeper to understand the return filing process and the due dates for various types of GST returns.

GST Return Filing Process

GST provides an easy way to file returns online using various forms applicable for different types of returns. The GST return form is a type of document that helps evaluate the GST liability for any given enterprise during a particular financial year. It contains important information regarding sales, purchase, Input Tax Credit, output GST, etc. Let’s take a glimpse into how the return filing process works.

• Login to the GST portal by entering your credentials
• Navigate to the relevant section and upload relevant invoices on the portal
• An invoice number will be issued against each invoice uploaded
• Input outward return, inward return and the cumulative monthly return
• File the outward supply returns under GSTR-1 form by navigating to the information section
• Preview the details filled and submit the data on the GST portal

Types of GST Return & Their Due Dates

GSTR-1

This return has to be filed by every normal taxpayer, and it includes information regarding the outward supplies of goods and services during a given financial year. Businesses with a turnover of less than Rs. 1.5 crore can file it quarterly on 31st of every succeeding quarter. Businesses with a turnover of more than Rs. 1.5 crore have to file this monthly, by 11th of the succeeding month.

GSTR-3B

This return also has to be filled by every regular taxpayer registered under the GST scheme. This contains a summary of GST liabilities during a given tax period. It has to be filed on a monthly basis, on the 20th of every succeeding month.

CMP-08 (GSTR-4)

This form contains the details regarding the summary of outward supplies and the import of services eligible for reverse charge mechanism. It has to be filed on a quarterly basis by the 18th of the month succeeding the quarter.

GSTR-5

This form is for the non-resident taxpayers. It has to be filed by non-resident taxpayers when they do not wish to avail the Input Tax Credit benefit. It has to be filed on a monthly basis, by the 20th of the succeeding month.

GSTR-5A

This return has to be filed by OIDAR service providers who are situated outside India and provide their services to an unregistered person in India. OIDAR stands for Online Information and Database Access or Retrieval. It is also filed on a monthly basis, by the 20th of the succeeding month.

GSTR-6

This return has to be filed by taxpayers who are registered as Input Service Distributors (ISD) for the distribution of ITC. It has to be filed on a monthly basis by the 13th of succeeding month.

GSTR-7

This has to be filed by companies deducting tax at source to declare their TDS liability. This return has to be filed on a monthly basis, by the 10th of succeeding month.

GSTR-8

This has to be filed by e-commerce companies to declare the Tax Collected at Source (TCS). This return is also filed on a monthly basis by the 10th of every month.

GSTR-9

This return has to be filled by all normal taxpayers to declare the details of the purchase, sales, demand created, refund claimed, Input Tax Credit data, etc. This is filed on an annual basis.

GSTR-9A

This return has to be filed by people registered under the composite scheme. It contains the details regarding, inward supply, outward supply, refund claimed, ITC, etc. It is filed on an annual basis.

GSTR-10

This return has to be filed by the taxpayers who have surrendered their GST registration or those whose registration has been cancelled. It is also known as a final return as is filed once from the date of cancellation.

Penalties & Fines

GST filing is mandatory for all businesses registered under this tax scheme irrespective of their income. Even those with no activity have to file for NIL returns. Delay in filing for relevant GST forms will invite late filing fees and interest rate penalty. It is recommended to file your relevant GST returns on time.

The late filing fees for intra-state dealings are Rs. 200 per day. A fixed amount of Rs. 5000 has been set as the maximum late fee for late returns filed under each act – Central Goods and Services Act, 2017 & State Goods and Services Act, 2017 (or) Union territory Goods and Services Act, 2017. For NIL return filers, the combined penalty under both the GST Acts per day is Rs. 100. Same is the case for intra-state dealings with late filing.

Interest rates are also applicable to the outstanding tax amount. In case of delayed GSTR filings, an interest rate of 18% per annum is charged. The interest amount is calculated from the next day of the due date. If in case a taxpayer avails additional Input Tax Credit or reduces the output tax liability, they have to pay an additional interest rate of 24% on the difference.