OVERVIEW
Under the Goods and Services Tax (GST) system, every registered taxpayer is required to file GST returns, which contain details of their income, purchases, sales, and output tax liability for a specific period. These returns are submitted online through the GST portal and are used to calculate the taxpayer's tax liability. Regardless of whether a taxpayer has made any sales or purchases during the period, they are still required to file GST returns. Failure to comply with this requirement or to file within the due date can result in severe penalties and consequences, underscoring the importance of timely and accurate GST return filing.
There are various types of GST returns that taxpayers must file, such as GSTR-1 for sales, GSTR-2 for purchases, GSTR-3 for a summary of sales and purchases, and GSTR-9 for an annual return. The due date for filing these returns depends on the type of return and the taxpayer's turnover. GST returns are a critical compliance requirement, and non-compliance can lead to the suspension of the taxpayer's GST registration, along with hefty penalties and interest charges. Therefore, taxpayers must be mindful of the filing requirements and ensure that they file their GST returns on time and with accurate information to avoid any adverse consequences.
TYPES OF GST RETURNS
Under the GST regime, there are various types of GST returns that taxpayers must file, depending on their business operations and turnover. The following are the different types of GST returns and their respective due dates:
i. GSTR-1
It is a type of GST return that registered taxpayers need to file to provide details of their outward supplies, i.e., sales or outward transactions made during a particular tax period. It is a monthly or quarterly return, depending on the turnover of the taxpayer. The due date for filing GSTR-1 is the 11th of the next month for monthly filers and the last day of the month following the end of the quarter for quarterly filers.
For example, for the month of February, the due date for monthly filers to file GSTR-1 is March 11th, and for quarterly filers, it is April 30th. It contains various details related to the outward supplies made by the taxpayer, such as the name and GSTIN of the recipient, the taxable value, the rate of tax, the tax amount, and the place of supply, among others. It is essential to provide accurate and timely information in GSTR-1 to avoid any penalties or consequences for non-compliance.
Registered taxpayers with a turnover of up to Rs. 1.5 crore can opt to file GSTR-1 on a quarterly basis. However, the government has introduced a new QRMP (Quarterly Return Monthly Payment) scheme for such taxpayers, where they can opt to file GSTR-1 and GSTR-3B on a quarterly basis and pay tax on a monthly basis.
ii. GSTR-2A
It is a return generated automatically by the GST portal that provides information on purchases made by registered taxpayers from their suppliers. This return is based on the details filed by the suppliers in their GSTR-1 returns and is available for the recipient taxpayer to view from the 12th of the next month following the tax period.
The purpose of the GSTR-2A return is to enable taxpayers to verify the accuracy of the information provided by their suppliers and claim input tax credit (ITC) for the GST paid on their purchases. The auto-population of the GSTR-2A return reduces the burden of manual data entry and eliminates errors in the return filing process. However, it is important to note that the GSTR-2A return is not a conclusive proof of ITC eligibility, and taxpayers are required to verify the accuracy of the information provided by their suppliers.
In addition to the GSTR-2A return, registered taxpayers are also required to file the GSTR-3B return, which is a summary of the GST liability for a tax period. The GSTR-3B return must be filed by the 20th of the following month and is based on the details provided in the GSTR-1 and GSTR-2A returns. Therefore, it is essential for taxpayers to ensure the accuracy of the information provided in the GSTR-2A return before filing the GSTR-3B return to avoid any penalties or legal consequences.
iii. GSTR-3B
It is a monthly summary return that is filed by registered taxpayers under the Goods and Services Tax (GST) regime. It is a summary of inward and outward supplies made by the taxpayer and the tax liability arising from those supplies. This return must be filed by all taxpayers, including those who have no transactions to report for the given period.
The GSTR-3B return is a simplified return form that allows taxpayers to report their tax liability for a specific period. It contains information about the taxpayer's sales, purchases, input tax credit, and output tax liability. Taxpayers must provide accurate information in the GSTR-3B return to avoid any penalties or consequences. The due date for filing GSTR-3B is the 20th of the next month. For example, the GSTR-3B for the month of February is due on the 20th of March. Failure to file the return by the due date can result in a late fee of Rs. 50 per day for each day of delay. Additionally, the taxpayer may not be able to claim input tax credit for the given period.
In the GSTR-3B return, taxpayers must report their taxable outward supplies made during the period, along with the tax payable on those supplies. They must also report their input tax credit claimed on purchases made during the period. The GSTR-3B return also requires taxpayers to provide details of any tax liability arising from reverse charge mechanism transactions and any adjustments or modifications made to the previous period's return.
Taxpayers who are unable to file the GSTR-3B return by the due date may file a belated return. However, a belated return may attract a higher late fee of Rs. 200 per day of delay, subject to a maximum of 0.25% of the taxpayer's turnover in the state or union territory.
iv. GSTR-4
It is a GST return that is filed by taxpayers who have opted for the composition scheme under the GST regime. The composition scheme is an alternative scheme of taxation for small taxpayers, with an annual turnover of up to Rs. 1.5 crores. Under this scheme, taxpayers are required to pay a fixed percentage of their turnover as GST, instead of paying GST based on the value of their supplies.
The due date for filing GSTR-4 is the 18th of the month succeeding the quarter. This means that taxpayers need to file this return every quarter, i.e., on the 18th of July, October, January, and April. GSTR-4 is a simplified return that does not require taxpayers to provide detailed information about their sales and purchases. Instead, it only requires taxpayers to provide the aggregate turnover and tax liability for the quarter.
The following are the key features of GSTR-4:
Aggregate Turnover - Taxpayers need to provide details of their aggregate turnover, i.e., the total value of supplies made during the quarter.
Tax Liability - Taxpayers need to pay tax as per the composition scheme, which is a fixed percentage of their turnover. They need to provide details of the tax liability and pay the tax due before filing GSTR-4.
Input Tax Credit - Taxpayers under the composition scheme are not allowed to claim input tax credit. Hence, GSTR-4 does not require any details of input tax credit.
Other Details - Taxpayers also need to provide other details such as the GSTIN, name of the taxpayer, and the period for which the return is being filed.
v. GSTR-5
Under the Goods and Services Tax (GST) regime, non-resident taxpayers who supply goods or services in India are required to register and file GST returns. GSTR-5 is the return that non-resident taxpayers need to file to report their taxable supplies in India during a specific period. Non-resident taxpayers are those who do not have a fixed place of business in India and make supplies of goods or services in India. Examples of non-resident taxpayers include foreign companies that supply goods or services to Indian customers and foreign individuals who provide services in India.
The due date for filing GSTR-5 is the 20th of the next month following the tax period. For example, the GSTR-5 return for the month of January is due on the 20th of February. The GSTR-5 return contains details of the supplies made by the non-resident taxpayer, including the value of supplies, tax liability, and input tax credit.
vi. GSTR-6
Input Service Distributors (ISDs) are entities that receive invoices for input services and distribute the input tax credit to other units or branches of the same entity. The purpose of filing GSTR-6 is to report the details of input tax credit received by the ISD and the distribution of input tax credit to the various units or branches. The due date for filing GSTR-6 is the 13th of the next month following the tax period. For example, the GSTR-6 return for the month of January is due on the 13th of February.
It contains details of the input tax credit received by the ISD, including the name and GSTIN of the supplier, the total amount of input tax credit, and the amount of input tax credit distributed to the various units or branches. It also contains information on the opening balance of input tax credit, input tax credit received during the tax period, input tax credit distributed, and the closing balance of input tax credit.
vii. GSTR-7
Itis a type of GST return that needs to be filed by taxpayers who are deducting tax at source (TDS) from the payments made to suppliers. The GSTR-7 return contains details such as the GSTIN of the taxpayer, the GSTIN of the supplier, the total amount paid to the supplier, the amount of TDS deducted, and other relevant details. The due date for filing GSTR-7 is the 10th of the next month. Failure to file GSTR-7 or filing it after the due date can result in penalties and other consequences.
viii. GSTR-8
Taxpayers who are collecting tax collected at source (TCS) from their customers are required to file GSTR-8. The GSTR-8 return contains details such as the GSTIN of the taxpayer, the GSTIN of the customer, the total amount collected as TCS, and other relevant details. The due date for filing GSTR-8 is also the 10th of the next month. Non-compliance with this requirement can lead to penalties and other consequences.
ix. GSTR-9A
It is an annual return that must be filed by taxpayers who are registered under the Composition Scheme. The Composition Scheme is a scheme that allows small taxpayers to pay a fixed percentage of their turnover as tax and simplifies the compliance process. Taxpayers who have opted for the Composition Scheme must file GSTR-9A once a year, providing details of their outward supplies, inward supplies, and tax liability for the financial year.
The due date for filing GSTR-9A is 31st December of the next financial year. For example, if the financial year ends on 31st March 2023, the due date for filing GSTR-9A for that year would be 31st December 2023. It is important for taxpayers to file this return on time to avoid penalties and other consequences.
x. GSTR-9C
It is a reconciliation statement and certification that must be filed by taxpayers whose annual turnover exceeds Rs. 2 crores. This return provides a reconciliation of the taxpayer's declared turnover, tax paid, and input tax credit claimed with the audited annual financial statements. The reconciliation statement and certification must be obtained from a Chartered Accountant or Cost Accountant.
The due date for filing GSTR-9C is also 31st December of the next financial year, the same as GSTR-9A. Taxpayers must ensure that they file this return accurately and on time to avoid any penalties or consequences.
CONCLUSION
GST return filings are essential for all registered taxpayers under the GST regime as they provide a record of their income, purchases, sales, and output tax liability for a specified period. Various types of GST returns need to be filed, and the due date for filing GST returns varies depending on the type of return and the turnover of the taxpayer. Failure to file returns or filing them after the due date can result in penalties and other consequences, making timely and accurate filing crucial for all registered taxpayers.
Filing GST returns accurately and timely is crucial for taxpayers to avoid any legal consequences or penalties. Recent case laws have highlighted certain aspects of GST return filings, such as the denial of input tax credit on the ground of non-filing of returns, the extension of due dates, and the suspension of GST registration. Therefore, it is crucial for taxpayers to stay updated with the latest developments and comply with the filing requirements to avoid any penalties or legal repercussions. Overall, GST returns are a vital part of the GST compliance process and require careful attention to ensure compliance with the law.
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