GST RETURN FILING
The Goods and Services Tax (GST) is an indirect tax applied to goods and services in India, requiring all registered taxpayers to submit GST returns. These returns aid in determining tax liability for the government. Given the evolving nature of GST regulations, it's essential to stay informed to accurately file returns. Our GST return filing service simplifies this process, ensuring compliance without the hassle of tracking deadlines. Organizations in India must file GST returns according to their business frequency—monthly, quarterly, or yearly. Though this obligation may appear daunting, our team of GST professionals at Prayog Enterprise offers online assistance, making the process straightforward. Adhering to designated deadlines is crucial, as these returns are pivotal for the Indian government to assess national tax obligations. Simplify your GST return filing process and maintain compliance effortlessly with Prayog Enterprise. Benefit from the user-friendly LEDGERS GST platform, granting access to real-time business financials from any location. LEDGERS seamlessly integrates with existing apps, ensuring a smooth workflow.
Within the Goods and Services Tax (GST) system, there are 13 returns catering to various aspects of a taxpayer's financial transactions. It's important to note that not all taxpayers are required to file every type of return; the specific returns to be filed depend on the taxpayer's category and the details of their GST registration.
Here is an overview of the 13 GST returns --->>
GST Filing Returns - Types and the Terminologies
GSTR-1: Filed to disclose details of outward supplies, primarily sales.
GSTR-3B: A summarized return outlining both sales and purchases, including tax payments.
GSTR-4: Applicable to those under the Composition Scheme, summarizing turnover and corresponding tax.
GSTR-5: For non-resident taxpayers conducting taxable transactions in India.
GSTR-5A: For providers of online information and database access or retrieval services.
GSTR-6: Used by Input Service Distributors to detail input tax credit distribution.
GSTR-7: For entities required to deduct TDS under GST.
GSTR-8: To be filed by e-commerce operators reporting transactions on their platform.
GSTR-9: An annual comprehensive return summarizing all periodical filings over the fiscal year.
GSTR-10: The final return upon cancellation or surrender of GST registration.
GSTR-11: For those with a Unique Identity Number, claiming refunds on their purchases.
CMP-08: A quarterly statement for Composition Scheme taxpayers detailing tax liability.
ITC-04: For manufacturers to declare details about goods dispatched to and received from a job worker.
Additionally, there are return-related statements for input tax credits:
GSTR-2A (dynamic): Offers a real-time perspective of inward supplies as suppliers report.
GSTR-2B (static): Provides a fixed snapshot of inward supplies based on the suppliers' filings.
For small taxpayers enrolled in the Quarterly Return Monthly Payment (QRMP) scheme, the Invoice Furnishing Facility (IFF) permits the declaration of B2B sales during the first two months of a quarter. However, these taxpayers must still remit taxes monthly using Form PMT-06.
Among the key GST returns:
GSTR-1: Mandatory for detailing outward supplies of goods and services.
GSTR-3B: A monthly summary declaration for normal taxpayers.
GSTR-4: The yearly return for those under the Composition Scheme.
GSTR-5: For non-resident foreign taxpayers conducting business in India.
GSTR-6: Filed by Input Service Distributors to report ITC received and allocated.
GSTR-7: For entities deducting TDS under GST.
GSTR-8: For e-commerce operators recording supplies made and tax collected at source.
GSTR-9: An annual return summarizing outward and inward supply details.
Submission deadlines vary based on the frequency of filing and the turnover of the taxpayer, ensuring timely compliance with GST regulations.
Documents Required for GST Return Filing
Invoices issued to individuals with GSTIN, also known as B2B invoices.
Invoices issued to individuals without GSTIN, or B2C invoices.
This requirement applies only when the total value exceeds ₹2.5 lakhs.
A compilation of inter-state sales.
Summary of all goods sold categorized by HSN.
Any additional debit or credit notes or advance receipts.
Penalty for Late Filing GST Returns
The penalty for late filing of GST returns in India is as follows:
Late Fee: For late filing of GSTR-3B, a late fee of ₹50 per day of delay is imposed, with a maximum late fee of ₹5,000.
Interest: Interest is levied on the outstanding tax liability from the due date of filing the return until the date of payment, at an interest rate of 18% per annum.
Additionally, apart from late fee and interest, the GST department may impose other penalties for delayed GST return filing, including:
Suspension of GST Registration: The GST department may suspend the GST registration of a business that fails to file GST returns for three consecutive months.
Cancellation of GST Registration: The GST department may cancel the GST registration of a business that fails to file GST returns for six consecutive months.
Therefore, businesses must ensure timely filing of their GST returns to avoid penalties and other adverse consequences.
Start GST Return Filing
Different Types of Tax Payer
The GST payment process follows a standard procedure for all taxpayers. If the electronic cash ledger contains sufficient funds, no payment is required. However, if the cash balance is inadequate, taxpayers must deposit money into the cash ledger using a prescribed challan and payment methods. Below is an outline of the payment process for different types of taxpayers:
Regular Taxpayer
During the submission of GSTR-3B, regular taxpayers must utilize the PMT-06 challan to make GST payments to the electronic cash ledger. Payment details are included in GSTR-3B. Taxpayers can generate a challan and make payments before or after logging in or while completing GSTR-3B returns.
Quarterly Taxpayer:
These taxpayers participate in the GST QRMP scheme and must deposit tax directly using PMT-6 in the first two months of a quarter. Payment is made while filing GSTR-3B in the last month of the quarter.
Taxpayers Filing Nil GST Returns:
If taxpayers have no sales or purchases for the relevant tax period, and no tax is due, they are not required to use a challan or make any payment.
Composition Taxable Persons:
These taxpayers must compile their sales/turnover information for the quarter in challan CMP-08 and pay the tax accordingly.
Frequently asked questions
Who can file a GST return?
All individuals, businesses, or entities registered under GST must file GST returns, encompassing regular taxpayers, composition scheme taxpayers, Input Service Distributors (ISD), Non-Resident Taxable Persons (NRTP), and other entities obligated to remit GST.
Is it possible for me to file GST returns independently?
Absolutely, individuals can file GST returns themselves using online platforms. However, for enhanced compliance and accuracy, professional assistance or specialized software is recommended.
What is the frequency of filing for GST?
Typically, GST returns are filed monthly. However, certain returns such as GSTR-4 (composition scheme) and GSTR-9 (annual return) follow different filing schedules.
When are the due dates for GSTR-1 and GSTR-3B?
GSTR-1 is due on the 11th of the subsequent month, whereas GSTR-3B is due on the 20th of the following month.
Is GST payment mandatory every month?
No, GST payment frequency varies based on business turnover. Businesses with turnover up to ₹1.5 crores file GST returns quarterly. Those with turnover exceeding ₹1.5 crores but less than ₹5 crores file monthly, while those with turnover over ₹5 crores file monthly returns.
What constitutes a tax invoice?
A tax invoice is a document provided by a registered taxpayer to a recipient upon the supply of goods or services. It must include essential details such as the supplier and recipient's GST numbers, a description of the goods or services supplied, the value of the supply, and the GST amount charged.