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What is GST Returns? Who Should File & Types of GST Returns

A GST return is an official record that contains all the information about purchases, sales, taxes paid on purchases, and taxes received on sales of a product or service rendered by the business. Read to know more!

17 May, 2024 11:31 IST 555
What is GST Returns? Who Should File & Types of GST Returns

The Goods and Services Tax (GST) introduced in 2017 has truly transformed India's indirect tax system. Along with this change, it has now become the responsibility of businesses across India to file regular GST returns. Regardless of the fact that you are a seasoned entrepreneur or just starting out or an already established enterprise, understanding GST return filing is crucial. This guide simplifies the concept for you by breaking down the different types of returns, benefits, how to file and other important considerations to ensure you navigate the process seamlessly and avoid any penalties.

What is GST Returns?

A GST return is an official record that contains all the information about purchases, sales, taxes paid on purchases, and taxes received on sales of a product or service rendered by the business. Once the GST returns have been submitted, then the business owner should settle their tax debt.

Who needs to file GST Returns?

Each and every business that is registered under the GST system should undergo the GST Return filing process. The filing process has to be identified on the basis of the nature of the business.

The entities that must file GST returns are: 

  • A registered businessman dealing with purchases and sales, output GST (on sales), and input tax credit (GST paid on purchases).
  • A trader with a yearly turnover of ₹1.5 Crores or less who has opted for the composition scheme.
  • Entities with over ₹20 Lakhs in annual turnover must have a valid GST registration and file returns. In some states, the annual turnover limit is set at ₹10 Lakhs.

What are the Benefits of filing GST Returns

  • Avoid Penalties and Late Fees: Filing on time ensures you avoid these financial burdens.
  • Claim Input Tax Credit (ITC): ITC allows businesses to claim credit for the GST paid on purchases used for business purposes. However, you can only claim ITC if you file your GST returns.
  • Maintain Compliance and Credibility: Regular filing demonstrates your commitment to tax compliance which in the long term can be beneficial when applying for loans, tenders, or attracting investors.
  • Track Business Performance: The data available from your GST returns can be used to analyze your business performance, identify areas for improvement, and make informed financial decisions.
  • Reduced Risk of Audits: Timely filing reduces the chances of your business being selected for an audit by the tax authorities which saves you time, resources, and potential stress associated with tax audits.
  • Streamlined Business Operations: Filing GST returns regularly helps maintain organized financial records and simplifies tax compliance for your business. 
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What are the types of GST Returns?

Type of GST Return

Who should file

What should be filed

Frequency 

Filing Due Date

GSTR-1

Registered Taxable Supplier

Details of the outward supplies of all the taxable goods and services.

Monthly

 

Quarterly (if opted under the QRMP scheme)


 

11th of the following month

 

13th of the month succeeding the quarter (for quarterly filing)

GSTR-3B

Registered Taxable Supplier

Details of all the outward supplies and the input tax credit claimed along with the tax amount paid.


 

Monthly

 

Quarterly (if opted under the QRMP scheme)

20th of the following month

 

22nd or 24th of the month succeeding the quarter (for quarterly filing)

GSTR-4

Business Owners

Those who have opted for Composition scheme

Annually 

30th of the month succeeding the given financial year

GSTR-5

Non-resident taxable persons

GST Returns details 

Monthly


 

20th of the following month

GSTR-5A

Non-resident OIDAR service providers

GST Returns details 

Monthly


 

20th of the following month

GSTR-6

Input tax distributor

GST returns to distribute the input tax credit to its branches.

Monthly


 

13th of the following month

GSTR-7

Registered businesses 

GST returns filed by businesses that deduct TDS

Monthly

10th of the following month

GSTR-8

e-commerce operators 

Details about the supplies affected and the amount of tax collected at source

Monthly

10th of the following month

GSTR-9

Regular GST-registered businesses

Details of GST Annual returns 

Annually

31st December of the next financial year

GSTR-9C

Applicable Taxpayer

Self-certified annual audit.

Annually

31st December of the next financial year

GSTR-10

Business owners whose GST has been cancelled

Details of final GST returns

When the registration is cancelled

Within three months of cancellation of registration

GSTR-11

Person having UIN 

Details of inward supplies 

Monthly


 

28th of the following month

How to file GST Returns Online?

Filing your GST returns is a simple process, and the government has made provisions for you to do it online, saving valuable time and effort. To understand the GST Returns filing process, just follow the steps below:

Step 1: Go to the official GST website at www.gst.gov.in and log in with your credentials

Step 2: Once logged in, you will be redirected to the “Dashboard.” Then click on “Continue to Dashboard.

Step 3: Thoroughly check your ledger balance, if any, and click on the tab of “File Returns”

Step 4: Enter the financial year, the return filing period in the designated space, and click on “Search”

Step 5: Select the type of return you wish to file, for eg., GSTR - 1 or 3B, and then click on “Prepare Online.

Step 6: Based on your tax liability, pick the appropriate choice. If you have no liability, click on the “File Nil GSTR option and click on File Statement

Step 7: Confirm the check box in this part of the GST return filing process. See if all the data is correct or not.

Step 8: Go to the dropdown menu and select the authorised signatory

Step 9: Select the File with EVC; option, and provide the OTP you receive on your registered mobile


Conclusion:

Understanding GST return filing might seem complex at first, but once you have understood the steps outlined above, it is a cakewalk. By getting to know about the different return types, their due dates, and the online filing procedure, you can ensure timely compliance and avoid penalties.

Sapna aapka. Business Loan Humara.
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