What is GST Return?
When you have a registered your business, it becomes mandatory for you to file a monthly/quarterly and a yearly GST (Goods and Service Tax) return. Your GST return will be based on the type of business you have. The government has simplified the process to file the GST returns on the GST portal.
For business owners, big or small, GST is a way of letting the government know about all the transactions taking place in a particular duration in your business. It. therefore, becomes important that you make yourself familiar with the facts related to GST such as GSTIN, registering for GST, and so on.
This article concentrates on the following facets of the GST:
- What is GST Return?
- Who must File GST Returns?
- Types of GST Returns (based on the New GST Law)
- How to File GST Returns Online?
- How to check the Status of GST Returns?
- Downloading GST Returns
- Fine or Penalties for Late Filing of GST Returns
What is GST Return?
An official document that provides exhaustive data of all your purchases, sales, tax paid on your purchases, along with the tax collected on your sales is called a GST Return. This is to be paid by every GSTIN or the taxpayer so that the tax administrative authorities can calculate the net tax liability.
When you register for GST, you have to file GST returns on the categories broadly depicted here:
- Sales
- Purchases
- Sales Output on GST
- Paid GST on Purchases (also called Input Tax Credit)
Who Must File GST Returns?
All the business owners who have a registered business under the GST system must file the GST returns, based on the nature of their transactions and business.
- Regular Businesses
- Amendments
- Businesses registered with Composition Scheme
- Auto-drafted returns
- Tax Invoice
Types of GST Returns (based on the New GST Law)
There are 3 categories that broadly classify the GST returns. Here is a comprehensive list of the types of GST Returns:
Regular Businesses
GST Returns | Purpose |
GSTR1 | It consists of the details of the outward supplies. (Basically, comprises the reports of B2B and B2C sales made in and outside the state, including purchases under reverse charge and interstate transfers of stocks). |
GSTR2 | It consists of the details of the monthly return for the received inward supplies. (Fundamentally, it has information regarding the taxpayer, duration of return, and the information related to the final invoice-level purchase during the tax period. These are listed separately for goods and services). |
GSTR2B | GSTR 2B is an automatically-generated document that serves as a statement of Input Tax Credit (ITC). According to GST Council, GSTR 2B helps reduce the time required to file returns, minimize errors, simplify reconciliation, and simplify compliance. |
GSTR3 | This is the consolidated tax return for each month. (It consists of the taxpayer’s basic information, the reporting period, turnover details, details of the final aggregate, details about your ITC, other information such as interests or penalties. It also contains fields for acquiring details such as tax liability under CGST, SGST, etc.) |
GSTR3B | It is a summary of the temporarily consolidated returning of the inward and outward supplies. It is introduced by the Government of India for providing some relief to businesses that have recently switched to the GST system. Consequently, tax payments will be determined instead by using the GSTR-3B during the months of July and August 2017. |
GSTR9 | This is a consolidated annual tax return. (It contains the taxpayer’s income and expenditure grouped based on the monthly returns it files). |
GSTR9C | Every taxpayer whose aggregate turnover exceeds Rs. 2 crores in a financial year is required to file the audit form GSTR9C. |
Companies registered under the Composition Scheme
GST Returns | Purpose |
GSTR4 | The compounding vendors need to file this Quarterly GST Return. The returns contain the total value of all supplies made during the period covered by the report. It also comprises the details of the tax paid at the compounding rate for the period. It also has the details placed invoice-wise for inward supplies if they were purchased from normal taxpayers or were imports. |
GSTR9A | Taxpayers who are enrolled in the composition scheme must submit Form GSTR9A. |
Other types of businesspeople and dealers
GST Returns | Purposes |
GSTR5 | Return for Non-Resident Taxpayers |
GSTR6 | This form is for the monthly returns of the ISDs. |
GSTR7 | This is the monthly return for the TDS transactions. |
GSTR8 | This form is for the e-commerce operators to file their monthly returns. |
GSTR9B | This form is applicable to the e-commerce operators who collect tax at the source to file their annual returns. |
GSTR10 | This form applies when the member cancels their registration This is the final form for filing returns. |
GSTR11 | This variable tax return form applies to the taxpayers with UIN. |
Amendments
GST Returns | Purposes |
GSTR1A | GSTR-1 amendment form is used to correct the GSTR-1 form, such as matching errors between the GSTR-1 and GSTR-2 of a taxpayer. Filed between the 15th and 17th of the month following. |
Auto-drafted Returns
GST Returns | Purposes |
GSTR2A | GSTN compiles an auto-drafted tax return based on the information in the GSTN GSTR-1 of the supplier of a taxpayer's inward supplies and purchases. |
GSTR4A | Composition dealers must file a quarterly tax return related to their purchases. Your GSTN portal automatically produces this report based on the information in your supplier's GSTR-1, GSTR-5, and GSTR-7. |
Tax Notice
GST Returns | Purposes |
GSTR3A | This form applies to the Untimely GST returns filed by a defaulter who has not been issued a tax notice by the tax authority. |
How to File GST Returns Online?
Here are the steps we need to follow to file the GST Returns online:
Step 1 | Visiting the GST website (www.gst.gov.in). |
Step 2 | Depending on your state code and PAN, you will receive a 15 digit GST identification number (GSTIN). |
Step 3 | This step requires you to upload your invoices on the GST website, following which, you will receive the corresponding invoice reference number. |
Step 4 | Next, you will be filing outward return, inward returns along cumulative monthly returns after the upload of invoices is done. In case you spot mistakes, you can make corrections and resume filing. |
Step 5 | Here, you will be filing the outward supply returns through the GSTR-1 form. This has to be done at the GSTN portal on or before the 10th of the next month. |
Step 6 | In this step of the process, details of outward supplies furnished by the supplier are provided to the recipient in Form GSTR-2A. |
Step 7 | Now, the verification, validation, and modifications in the outward supplies will be done by the recipient. The recipient must also file the statements of debit and credit notes. |
Step 8 | The recipient will have to provide information of the inward supplies and services of taxable goods through the GSTR-2 form. |
Step 9 | It is up to the supplier to accept or reject the modifications made by the recipient in the inward supplies in GSTR-1A. |
How to Check the Status of GST Returns?
You can easily check the status of your filed returns on the GST portal. Here are the three techniques to achieve that:
- Use the ‘Return Filing Period’ option to fetch status
- Use the ‘ARN’ to fetch status
- Use the ‘Status’ to fetch status
Here’s how you can use the ‘Return Filing Period’ option
- Log in to the GST portal at https://www.gst.gov.in/ using your credentials.
- On the top menu, click ‘Services’.
- Under the Refunds option, go to ‘Track Application Status’.
- Choose the ’Filing Year’ option.
- On the next page, you will have to choose the applicable financial year and corresponding filing period.
- In this step, click ‘Search’, which will present the status of your GST Return.
Here’s how you can use the ‘ARN’ option
- Log in to the GST portal at https://www.gst.gov.in/.
- Go to the ‘Services’ tab in the top menu.
- Under the Refunds option, go to ‘Track Return Status’.
- Here, choose the ’ARN’ option.
- Fill in the ARN in the given field.
- Finally, click Search, which gives you the status of your GST Return.
Here’s how you can use the ‘Status’ option
- Log in to the GST portal at https://www.gst.gov.in/.
- Go to the ‘Services’ tab in the top menu.
- Under the Refunds option, go to ‘Track Return Status’.
- Select the ‘Status’ option.
- Choose the Status of Return from the provided drop-down box.
- Upon clicking the search button, you shall be presented with the status of your GST return.
Downloading GST Returns
Here are the steps you need to take to download the GST returns:
- Log in to the GST portal at https://www.gst.gov.in/.
- Go to the ‘Services’ tab in the top menu.
- Under the ‘Returns’ option, go to ‘Returns Dashboard’.
- You’ll be taken to the next page where you’ll be selecting the financial year and the return filing period.
- Click the Search button. Then choose the GSTR.
- Under the chosen GSTR, click on the ‘Prepare Offline’.
- Click ‘Download’ and then on ‘Generate File’.
- In this step, you shall have the file generated along with the download link.
- Here, in the final step, opt for the ‘Click Here’ option which downloads the ZIP file giving you all details of your GST Returns.
Fine or Penalties for Late Filing of GST Returns
GST Returns should be filed within the timeframe mentioned to avoid any late fees. A rate of 18% per annum is charged as a late fee. The taxpayer must calculate it based on the amount of tax that still needs to be paid. The time period considered will be from the next day of filing to the date of payment.
There is a late fee of Rs. 100 per day per Act. The CGST and the SGST have a late fee of Rs. 100 each. Rs.5000 rupees is the maximum amount. IGST does not have a late fee. For those who file GSTR-1 and GSTR-3B, a reduced late fee of Rs. 50 per day of delay is currently applicable, whereas it is Rs. 20 for NIL returns.
How can Deskera Books Help You with Filing GST Returns?
It is essential that the returns are filed in a standardized format. While it is challenging to understand the process and then follow it as prescribes, Deskera Books comes to our rescue in such as scenario.
It is an innovative system for invoicing, accounting, and inventory management, all in one place that helps businesses focus on their core tasks and goal accomplishment.
With Deskera Books, it is now easy to view your financial reports anytime, anywhere, and create invoices apart from tracking expenses and getting a real-time view of the inventory details.
Key Takeaways
Let us run through the vital points discussed in the document:
- An official document that provides exhaustive data of all your purchases, sales, tax paid on your purchases, along with the tax collected on your sales is called a GST Return.
- GST is to be paid by every GSTIN or the taxpayer so that the tax administrative authorities for calculation of the net tax liability.
- GST is applicable to any business that processes Sales, Purchases, Sales Output on GST, and/or, Paid GST on Purchases (also called Input Tax Credit).
- All the business owners who have a registered business under the GST system must file the GST returns.
- The GST returns are based on the nature of the business and that of transactions.
- The types of GST returns can be broadly classified as Regular Businesses, Companies registered under the Composition Scheme, Other types of business people and dealers, Amendments, Auto-drafted Returns, and Tax Notice.
- GST can be filed online conveniently by logging in to the GST Portal.
- There are 3 ways in which the status of the GST returns filing can be checked. These are through the Return Filing Period, ARN, and Status, on the GST website.
- GST returns can be downloaded from the website following some simple steps.
- In events of late filing, a rate of 18% per annum is charged as a late fee.
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