Returns Under GST Law

With the goal of "One Nation, One Tax" the GST was implemented as substantial tax reform in India in 2017.

By combining the information about products and services provided by vendors and customers, GST has simplified the process of submitting tax returns. The GST Council and the Finance Ministry developed the GSTN (goods and services tax network) system, which allows taxpayers to correctly record all information on invoices, purchases and sales, dates, and locations.

This provides a simple platform for taxpayers who have registered for GST to connect and conveniently access and submit the GST return form, claim ITC, and other things according to the type of taxpayers they belong to.

What is a GST Return?

A GST return is a taxpayer’s report to administrative tax authorities detailing their revenue, sales, expenses, and purchases. The rules utilise this to determine the net tax obligation.

Additionally, the GST method makes it simple to finish, efficient and best.

Regular taxpayers are obliged to submit monthly returns and an annual return under GST. Additionally, there are individual returns for taxpayers registered under several different schemes, including the composition scheme, taxpayers reported as input service distributors, non-resident taxpayers, individuals liable to deduct or collect tax (TDS or TCS), and individuals granted a unique identification number.

Who Should File GST Returns?

A taxable person is qualified to be registered under the GST Act if they have a business established in India in any state. This individual must participate in trade, commerce, or other economic activity. This covers municipal government, LLPs, HUFs, people, cooperative societies, trusts, and AOPs/BOIs. The GST regime, therefore, requires all such firms to submit GST returns.

All companies are required under the GST system to submit GST returns. However, the frequency and timing of the filing are determined by the kind of company and the total yearly sales. Businesses may opt to offer their GST returns under the QRMP scheme if their combined annual revenue is up to Rs. 5 crores. Each year, they must submit 4 GSTR-1 returns, 4 GSTR-3B returns, and one annual return for 9 GST returns.

Businesses must submit GST returns twice a month if their combined yearly revenue exceeds Rs. 5 crores and they have not opted for the QRMP programme. They also have to submit one annual return. There are 25 GST returns in all each year. Remember that other returns must often be produced and presented by the GST system, such as in the case of composition dealers.

Updates from Budget 2025 Affecting GST Returns

The Budget 2025 has introduced several changes to the GST framework, which will impact how businesses file their returns. Here are some key updates:

• Input Tax Credit (ITC) Distribution: From April 1, 2025, Input Service Distributors (ISDs) will be able to distribute ITC for inter-state supplies where tax is paid on a reverse charge basis. This will streamline the process of ITC distribution for businesses with multiple locations.

• Other Changes: ○ Amendments to Section 17(5)(d) of the CGST Act.
  ○ Changes to voucher supply provisions.
  ○ Clarification of the definition of "Local Authority".
  ○ Changes to the Appellate Authority Pre-Deposit.
  Businesses should familiarize themselves with these updates and ensure their GST return filing processes are aligned with the new regulations.

What Are the Different Types of GST Returns and the Due Dates to File Them?

Current GST returns come in various formats and may be submitted monthly, quarterly, or yearly based on the numerous applicable elements. GST return form categories include the following:

01. GSTR 1

The record of all sales is GSTR 1. The suppliers must record their outgoing supply using this form throughout the reporting month. All registered taxpayers are typically expected to submit their taxes by the 11th of the following month.

Who has to submit form GSTR 1?

• Every registered taxpayer must submit a monthly GSTR 1 form.
• However, the taxpayer may submit every quarter if his annual revenue exceeds INR 1.5 crores. GSTR 1 Due Date: Every month, the eleventh day of the following month.

02. GSTR 2A

GSTR-2A is an automatically generated statement that gives the receiver access to all the inbound supplies your supplier disclosed on GSTR-1. The information will be accessible when the return is submitted via the Portal.

In addition to the information from GSTR-1, auto-populating data will also include the information from GSTR-5 (Supplies from Non-resident Taxable Person), GSTR-6 (ISD), GSTR-7 (TDS Deductor), and GSTR-8 (TCS collected by e-commerce operator).

Who needs to submit the GSTR 2A form?
It is an automatically filled-out form.

03. GSTR 3B

A registered dealer is required to submit the GSTR-3B monthly self-declaration. The objective of the return, a streamlined summary return of inbound and outward supplies, is for taxpayers to report their total unpaid GST obligations for the tax period and promptly discharge those liabilities.

Who has to submit form GSTR 3?
Everyone registered for GST must submit the GSTR-3B return, even for Nil returns.

GSTR 3B Due date: The 20th day of every month for companies with five crores or more revenue. Depending on their state, the 22nd or 24th day of the month would be the due date for taxpayers with lower sales.

04. GSTR 6

Organisations that are also Input Service Distributors are required to submit a Goods and Services Tax Return 6 each month. This report must include information about the inbound supplies received from purchases from other registered taxpayers (B2B) and how input tax credits were allocated across the organisation’s branches.

Who has to submit form GSTR 6?
By every provider of Input Services.

GSTR 6 Due date: GSTR 6 is due on the thirteenth day of the following month.

05. GSTR 9

Each taxpayer registered for GST must submit an annual return in a particular form. The GSTR 9 is the name of such a form. The information on the supplies made and received throughout the year under the various tax headings CGST, SGST, and IGST is included in GSTR-9.

It compiles the data provided in the monthly/quarterly returns for the specific year. The tax agency has always firmly complied with law violations, and GSTR 9 is no exception. The taxpayer may incur high costs if they fail to file GSTR 9 on time or do so after the deadline.

The GSTR-9 must be submitted by December 31 of the year before

Who has to submit a GSTR 9?
Average taxpayers who submit GSTRs 1, 2, 3, and 3B during the fiscal year will be offered.

GSTR 9 Due date: Annually on December 31st of the next financial year.

06. GSTR 9C

GSTR 9C is a reconciliation between the data from the taxpayer's audited yearly financial statements and the annual returns submitted in GSTR 9 for a given fiscal year. Registered taxpayers must submit the GSTR-9C return form if their combined revenue exceeds ₹5 crores.

A copy of the taxpayer's audited annual accounts and reconciliation statements that compare the value of the supplies listed in return provided for the financial year to those declared in the case in question must also be submitted.

Who has to submit form GSTR 9C?
Taxpayers who are registered and have annual revenue of more than ₹5 crores.

GSTR 9C Due date: GSTR 9C is due on December 31 of the following calendar year.

Late Fees for Not Filing Returns on Time

A fine will be assessed if the taxpayer fails to submit the returns by the deadline. The late charge is the name of this fine. The late penalty for the Central Goods and Services Tax (CGST) and State Goods and Services Tax is Rs. 100 for each day under the GST Law (SGST). As a result, the daily fee will be ₹200. This rate is subject to adjustments, which will be disclosed through notifications. The highest fine that may be assessed is ₹5,000.

If the return filing is delayed, the integrated GST, or IGST, does not incur any late fees. In addition to the late charge, the taxpayer will be compelled to pay interest at 18% p.a. The taxpayer must compute this interest based on the amount of tax that has to be paid. The time frame shall be measured from the day after the filing deadline to the day on which the payment is settled.

How to File GST Returns?

As stated below, you may submit your GST return online.

01. Online GSTR-1 Form Filing

For the remainder, it must be filed monthly. Before submitting the return, you must keep the following three things in mind:

• If you have more than 500 sales invoices, you must download the software and complete the form offline.
• On the invoices, bulk actions are not possible.
• The HSN-wise summary will have to be filled up.

To submit a GSTR-1 online, you must do the following actions:

• Register on the GST website.
• A 15-digit GST Identification Number will be given to you based on the State Code and PAN.
• The Services ribbon is located in the upper left corner of the page. Place your mouse there and choose Returns > Returns Dashboard from the options.
• You are sent to the page for filing returns. The financial year and month you must submit the return must now be chosen.
• Click on Search now.
• A questionnaire for submitting the return on a monthly or quarterly basis may be found there.
  • If your turnover for the previous fiscal year was less than Rs. 1.5 crore?
  • Do you anticipate having a Turnover in the current FY of less than Rs. 1.5 Crore?
  • If the answer is yes, you might choose to file the GSTR-1 quarterly.
  • If the answer is no, you must submit the GSTR-1 monthly.
• You may now prepare your return either offline or online. We'll talk about the possibility of submitting a GST return online.
• Simply choose Prepare Online. The Outward Supply of Goods and Services must now be completed (sales details).
• The total turnover for the previous fiscal year and the total turnover for the preceding quarter up to the return period must be filled in.
• On the GST Portal, you must now submit invoices and other information.
• You must complete the HSN-wise Outward Supply summary.
• Additionally, you have the option to update your information online.
• The file is available for offline consumption through download.

02. Online GSTR-3B Form Filing

The following considerations should be made before submitting this return:

• Open the GST Portal and login.
• Dashboard for Returns > Services > Returns.
• Decide on an FY and a return period.
• After selecting Monthly Return, choose Prepare Online.
• 5 questions are posed to you. These determine which GSTR-3B tables are applicable.
• Each tile must have values entered, and each head must provide the total.
• Once all the information has been entered, click the Submit button.
• You must determine the amount of tax due and pay it.
• The return must be signed using either the EVC or DSC of the authorised signatory.
• Your return is filed correctly after you click the Proceed button.

These few processes will help you file your GST returns online. To guarantee hassle-free return filing, systematically follow these procedures. You may rapidly submit all two returns online without having to go somewhere.