GST Returns

Registered taxpayers must file returns for Goods and Services Tax (GST) every month, a ‘return’ is stated as the paperwork that a taxpayer is required to file in accordance with the tax authorities. It is a record of all the taxes collected from the customers.

Every individual registered under the new regime of GST would need to file timely returns. Even if a legal entity has no ongoing activity, it must file returns as ‘GST nil returns’ to avoid GST compliance issues. Some of the benefits of GST return filing are;

Greater Tax Base

Lower taxes, subsuming of taxes

Ease of doing Business

Unified Platform

Returns must be filed online through a government approved portal (GSTN). One can prepare the return documents offline and submit the same through the online portal. GST return can be filed in different forms depending upon the nature of transactions. Return Forms that are applicable for Normal Taxpayers and their due dates are as below;

1. Monthly Details of inward supplies in FORM GSTR-1 by the 10th of next month.
2. Monthly Details of outward supplies in FORM GSTR-2 by the 15th of next month.
3. Monthly Filing of Return in FORM GSTR-3 by the 20th of next month.
4. Annual Filing of Return in FORM GSTR-9 by 31st December of next financial year.

In composition scheme, only a quarterly return will be uploaded under GSTR-4 by:

1st quarter – 18th July
2nd quarter – 18th Oct.
3rd quarter – 18th Jan.
4th quarter – 18th April

This will ease the compliance burden for SMEs, and they can focus more on their business rather than getting occupied in the compliance procedures.

Late fee & Penalty –

Filing GSTR-3B is mandatory. Even if a business has no transactions during July, it will still have to file nil return.

Interest is 18% per annum. It has to be calculated by the taxpayer on the amount of outstanding tax to be paid. Time period will be from the next day of filing to the date of payment.

Late fee is Rs. 100 per day per Act,sSo it is 100 under CGST & 100 under SGST. Total will be Rs. 200/day. Maximum is Rs. 5,000. There is no late fee on IGST.

To read more about GST related updates