GST Filing

What is GST Return Filing

What is GST Return

A GST file return is a document which has details of income which a taxpayer needs to file with the tax administrative authorities. This is used by tax authorities to calculate tax liability.

Eligibility for GST Return Filing

In the GST norms, any regular business has to file three monthly returns and one annual return.

GST should also be filed by entities that make no sales or purchases during a given period (year) in the form of nil-returns (meaning no returns).

The best part in this system one has to manually enter details of one monthly return – GSTR-1. The other two returns – GSTR 2 & 3 will get auto-populated by deriving information from GSTR-1 filed by you and your vendors. Compounding taxpayers have to file returns quarterly which is for every three months and regular taxpayers such as, foreign non-residents, casual taxpayers and Input Service Providers (ISD) have to file returns monthly.

Additional Read : Types of GST Returns

Types of GST Returns

Following are the different Types of GST returns

GST Return Due Date

This GSTR is due every month on 20th. Besides your quarterly and monthly returns, you also need to file an annual return by 31st of December. The GST reconciliation statement should be filed by a chartered accountant appointed by you.

Penalty for Late Filing of GST Return

If you Fail to file GST returns on time it can lead to penalties and cancellation of GST registration. If one does not submit a GST return for six months, then the GST registration would be cancelled, and the person would not be able to obtain another GST registration - unless all the late filing penalty is paid.

For people having NIL return and persons having turnover, the penalty for late filing GST return is different. NIL GST return must be filed for an individual with no business . Failure to file NIL GST return can lead to a penalty of Rs.20 per day for each of the GSTR-3B return and GSTR-1 return. So, failure to file NIL GST return can result in a penalty of Rs.40 per day or Rs.1200 per month.

In case a person has business activity during the period for which GST return is late-filed, then a penalty of Rs.50 per day will be applicable for late GSTR-3B return and Rs.50 per for GSTR-1 return. Hence, a penalty of more than Rs.3000 per month would be applicable.

In addition to the above late filing fees, the person would also have to pay interest at the rate of 18% on GST payment remitted late to the Government.

GST Return Filing - Composition Scheme

Anyone registered under the Composition Scheme is required to file FORM GSTR-4A every quarter through the GST Common Portal or through a GST Facilitation Centre. The due date for GST return for those enrolled under Composition Scheme is on the 18th of the month, succeeding a quarter. Hence, GST return for composition scheme would be due on April 18th, July 18th, October 18th and January 18th. The GST return filed by a Composition Scheme supplier must include details of the following:

1. Invoice wise inter-State and intra-State inward supplies received from registered and unregistered persons

2. Consolidated details of outward supplies made

Also, if a registered person opted to pay tax under composition scheme from the beginning of a financial year, then the taxpayer must file monthly GST returns on the 10th, 15th and 20th of each month and monthly returns till the due date of furnishing the return for the month of September of the succeeding financial year or furnishing of annual return of the preceding financial year, whichever is earlier. Hence, even if a taxable person under GST opted for a composition scheme from April onwards, the taxpayer must continue filing monthly GST returns until September.

Read More : GST Return Filing Due dates

Benefits of GST Return Filing from LegalDocs

1. Timely Submission - We will submit your GST returns within a period of 3 days from the date of submission of all details. There is also no chance of penalties in future.

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