GST Return

About GST Return & GST Return filing

GST is a unified and comprehensive tax burden on the supply of goods and services across India. A GST return is a document that contain detail of earnings that a taxpayer is required to file with the tax authorities. It includes information about sales, purchases, Taxes collected on sales (output tax), and taxes paid on purchases (input tax).

• Sales: Details of sales made by the taxpayer, both within the state (intra-state) and outside the state (inter-state).
• Purchases: Information about purchases made for goods and services.
• Output Tax: Tax collected on sales made by the taxpayer.
• Input Tax: Tax paid on purchases can be used as a credit against the output tax liability.

GST return filing is the process of submitting these details to the government. Businesses and individuals registered under GST must file their returns regularly. The frequency of filing depends on the type of registration and turnover.

Type of GST Return filing & GST Return

There are the following types of GST return like GSTR 1, GSTR 3B and many more. They are explain below:

GSTR-1

• Contains details of outward supplies (sales) by registered taxable persons.
• Includes information such as invoices issued, credit and debit notes, and any modifications.
• They are filed monthly by the 11th of the following month.

GSTR-3B

• A summarized return comprising details of outward and inward supplies, along with the payment of taxes.
• Includes total tax liability, Tax paid, and input tax credit (ITC) claimed.
• They are typically filed monthly by the 20th of the succeeding month.

GSTR-4

• Quarterly returns filed by composition dealers.
• Contains details of outward supplies, Taxes payable, and payment of taxes.
• It is due by the 18th of the month following the quarter.

GSTR-5

• For non-resident foreign taxpayers conducting business in India.
• Contains details of outward supplies, imports, and taxes paid.
• They are filed monthly by the 20th of the succeeding month.

GSTR-6

• Input Service Distributor (ISD) return detailing the distribution of input tax credit.
• They are filed monthly by the 13th of the succeeding month.

GSTR-7

• Return for Tax Deducted at Source (TDS) contains details of TDS deducted, paid, and payable.
• They are filed monthly by the 10th of the following month.

GSTR-9

• Annual return for regular taxpayers providing a consolidated summary of outward and inward supplies, taxes paid, ITC availed, etc.
• This is due by December 31st of the subsequent financial year.

GSTR-9C

• Reconciliation statement that reconciles the turnover declared in the annual return with the audited financial statement.
• Filed along with GSTR-9.

GST ITC-04

• Details goods/capital goods sent or received from a job worker.
• They are filed quarterly by the 25th of the month succeeding the quarter.

GSTR-8

• E-commerce operators file this return containing details of supplies made through their platform.
• It is due by the 10th of the following month.

List of GST Return & GST Return filing

GST Return Form	Description
GSTR-1	Outward supplies return; contains details of outward supplies (sales) made by registered taxpayers.
GSTR-3B	Summary return; includes summary details of outward(sales) and inward(purchases) supplies, tax liability, and input tax credit (ITC) claimed.
GSTR-4	Return for composition dealers; filed by taxpayers registered under the composition scheme.
GSTR-9	Annual return; a yearly return summarizing the details furnished in regular returns filed during the financial year.
GSTR-9C	Reconciliation statement; includes the reconciliation between the audited financial statements and the annual return.
GSTR-5	Return for non-resident foreign taxpayers providing details of supplies, tax liability, and ITC.
GSTR-6	Return for input service distributors providing details of ITC distributed to recipients.
GSTR-7	The return filed by entities responsible for deducting tax at source (TDS) showing details of TDS deducted, TDS liability, and payment details.
GSTR-8	E-commerce operator return showing supplies made through their platform and the tax collected.
GSTR-10	Final return for taxpayers whose GST registration has been canceled or surrendered.

What is GST filing?

GST filing refers to the process of submitting the Goods and Services Tax (GST) returns to the government. Under the GST regime in India, registered businesses and individuals need to file their GST returns periodically, detailing their sales, purchases, tax collected on sales, and tax paid on purchases. Filing GST returns involves reporting these transactional details to the tax authorities via the GST portal in a prescribed format and within specified deadlines. Those registered under GST must comply with the filing requirements as per the provisions laid out by the government.

Advantages of GST Return & GST Return filing

GST return and filing has various advantages, such as input tax credit, transparency and compliance, streamlined taxation, and many more. They are explained below:

1. Input Tax Credit (ITC)

One of the significant advantages of GST return filing is the ability for businesses to claim Input Tax Credit. This allows them to offset the tax paid on purchases against the tax liability on sales, reducing the overall tax burden and promoting cost efficiency.

2. Transparency and Compliance

GST return filing promotes transparency in business transactions, ensuring accurate recording of sales and purchases. This fosters compliance with tax regulations, reducing the chances of discrepancies and fostering trust between taxpayers and tax authorities.

3. Streamlined Taxation

GST simplifies the tax structure by replacing multiple indirect taxes with a single comprehensive tax. This streamlined system helps in easing complexities for businesses, thereby improving operational efficiency.

4. Ease of Business Operations

With a unified tax system, businesses can focus more on their core operations rather than navigating through intricate tax structures. GST return filing, being a digital process, also reduces paperwork and manual errors, making compliance easier.

5. Reduced Tax Burden and Boost to Economy

By eliminating cascading taxes and ensuring a more uniform tax structure, GST aims to reduce the overall tax burden on businesses. It also aims to promote economic growth by creating a unified national market, encouraging trade, and fostering a favorable business environment.

Disadvantage of GST Return & GST Return filing

There are various disadvantages of GST return and filing, such as compliance complexity, technological dependency, etc. They are explained below:

1. Compliance Complexity

GST laws and return filing procedures can be difficult, particularly for small businesses or those with limited resources. Navigating through various forms, regulations, and frequent changes in compliance requirements may pose challenges.

2. Technological Dependency

The online nature of GST return filing requires a reliable internet connection and technological infrastructure. Businesses lacking adequate technology or internet access may struggle to comply with filing requirements.

3. Frequent Filings and Deadlines

Depending on turnover and registration type, businesses might have to file GST returns regularly, which can be administratively burdensome. Meeting the stringent deadlines for filing can be challenging for some businesses.

4. Penalties for Non-Compliance

Inaccurate or delayed filing of GST return can result in penalties and fines. This poses a risk, particularly for small businesses or those unfamiliar with the intricacies of the tax system.

5. Technical Glitches and Issues

The GSTN (Goods and Services Tax Network) portal, used for GST return filing, might encounter technical glitches or downtime. Such issues can hinder smooth filing and compliance efforts, causing frustration for taxpayers.

Steps for GST return filing

1. Access the GST Portal: Visit the official GST portal at www.gst.gov.in to initiate the GST registration process.
2. Obtain the GSTIN: Upon registration, a 15-digit GST identification number (GSTIN) will be allocated based on your state code and PAN number.
3. Invoice Upload: Upload invoices onto the GST portal or using compatible software. Each invoice will receive an invoice reference number for tracking purposes.
4. Filing Returns: File outward and inward returns, along with a cumulative monthly return, online. If errors occur, corrections can be made, and returns can be refiled.
5. GSTR-1 – Outward Supply Returns: File details of outward supplies using the GSTR-1 form by the 10th of the subsequent month.
6. Recipient Verification: Details of outward supplies furnished by the supplier will be available in GSTR-2A for the recipient to review.
7. Recipient Modifications: The recipient needs to verify, validate, and make any necessary modifications to the outward supply details and provide information on credit or debit notes.
8. GSTR-2 – Inward Supply Details: Furnish details of taxable goods and services received in the GSTR-2 form.
9. Supplier Review: Suppliers can review and either accept or reject modifications made by recipients regarding inward supplies, as reflected in GSTR-1A.