Introduction
The Goods and Services Tax (GST) was introduced on July 1, 2017, as a landmark reform in India’s tax system. It replaced various indirect taxes like VAT, service tax, and excise duty, aiming to create a unified tax structure across the country. By simplifying the taxation process and removing barriers to inter-state trade, GST promotes ease of doing business and boosts economic growth.
One of the key components of GST compliance is the timely filing of GST returns, where businesses provide details about their sales, purchases, input tax credits (ITC), and tax liabilities. Filing GST returns not only fulfils a legal obligation but also ensures businesses claim eligible benefits under the GST system.
What Are GST Returns?
A GST return is essentially a record of a GST-registered business’s income/sales and expenses/purchases filed with the tax authorities. This document helps calculate the net tax liability of a business. It is mandatory for all businesses registered under GST to submit returns periodically.
GST returns broadly cover:
- Details of Purchases
- Details of Sales
- Output GST (Tax on sales)
- Input Tax Credit (Tax paid on purchases)
Who Should File GST Returns?
Below is a breakdown of the different categories of taxpayers who must file GST returns and their respective threshold limits:
Category of Taxpayer | Description | Threshold Limit |
Regular Taxpayers | Businesses registered under GST(other than composition scheme) | Above 20 lakh (*10 lakh for special category states) |
Composition Scheme Taxpayers | Small businesses opting for a simplified tax structure | Up to *1.5 crore |
E-commerce Operators | Platforms collecting TCS on behalf of sellers | No threshold |
Input Service Distributors | Entities distributing input tax credit (ITC) | No threshold |
Non-Resident Taxable Persons | Foreign taxpayers supplying goods or services in India | No threshold |
Entities Deducting TDS | Government bodies or PSUs deducting TDS | No threshold |
UIN Holders | Foreign diplomats or international organizations claiming refunds | No threshold |
Businesses Cancelling GST Registration | Entities whose GST registration is cancelled | No threshold |
Annual Return Filers | All regular taxpayers (excluding composition taxpayers) | Above 20 lakh (*10 lakh for special category states) |
Types of GST Returns
The GST system offers multiple return types depending on the nature of the business, its turnover, and specific activities. Below is an overview:
Return Type | Purpose | Who Must File | Frequency | Due Date |
GSTR-1 | Details of outward supplies (sales) | Regular taxpayers | Monthly/Quart erly | 11th of the following month |
GSTR- 3B | Summary return for tax payable and ITC | All registered taxpayers | Monthly | 20th of the following month |
GSTR-4 | Return for composition scheme taxpayers | taxpayers Composition scheme | Quarterly | 18th of the month after the quarter |
GSTR-5 | Return for non- resident foreign taxpayers | Non-resident taxpayers | Monthly | 20th of the following month |
GSTR-6 | Return for Input Service Distributors | Input Service Distributors (ISD) | Monthly | 13th of the following month |
GSTR-7 | Return for TDS deducted under GST | Entities deducting TDS | Monthly | 10th of the following month |
GSTR-8 | Return for e- commerce operators | E-commerce operators | Monthly | 10th of the following month |
GSTR-9 | Annual return summarizing yearly activities | All regular taxpayers | Annually | December 31 of the following year |
GSTR-10 | Final return after registration cancellation | Businesses with cancelled registration | One-time | Within three months of cancellation |
GSTR-11 | Return for UIN holders | Entities with UIN | Annually | Based on claim period |
GSTR-1
GSTR-1 is the return used to report details of all outward supplies of goods and services. It includes invoices and debit/credit notes related to sales transactions for a given tax period. All normal taxpayers registered under GST, including casual taxable persons, are required to file GSTR-1.
What are the details required to be furnished under GSTR 1?
GSTR 1 contains the details of outward supplies made during the period of tax. This form is required to be submitted electronically on GST Portal with the following set of information:
- Details of invoices of supplies made to the registered persons including those having UIN;
- Details of Inter-State supplies of invoice having a value higher than Rs. 2,50,000 to unregistered persons or end user;
- Details of Credit/Debit Notes against invoices issued by the supplier;
- Details related to the export of goods or services or both including deemed exports (SEZ);
- Summary of state-level details of supplies to unregistered persons, i.e., consumers;
- Summary of Advances received in relation to the supply of goods on a future date;
- Nil-rated, exempted, and non-GST supplies; and
- HSN/SAC wise summary of outward supplies.
Is it mandatory to file GSTR 1?
GSTR 1 return is mandatory to be filed even if there is no business activity in the tax period.
What is the Due date of filing GSTR 1?
GSTR 1 could be filed monthly or quarterly depending upon the taxpayer’s turnover.
Turnover Limit (in a FY) | GSTR-1 Periodicit |
Up to 1.5 crores | Quarterly (by 13th of the following month) |
Exceeding 1.5 crores | Monthly (by 11th of the following month) |
GSTR-3B
What is GSTR 3B?
Form GSTR-3B is a monthly summary return to declare the GST liability for the tax period and to pay off such liability. Regular taxpayers need to file this return for every tax period.
What are the details required to be furnished under GSTR 3B?
- Outward Supply (Sales)
- Inward Supply (Purchases)liable to reverse charge
- ITC eligible
- Tax details
- TDS / TCS credits available
- Inter-state Supply made
Is it mandatory to file GSTR 3B?
Yes, filing of GSTR 3B is mandatory even if there are no transactions, a nil return is required to be furnished.
GSTR-4
What is GSTR 4?
This return is for those taxpayers who opted for paying tax under the composition scheme.
What are the details required to be furnished under GSTR 4?
- Outward supplies or sales,
- Tax payable thereon
- TDS / TCS credit available
- Refund Claimed etc
Who is required to file GSTR 4?
Taxable persons who have opted for the composition scheme under GST and are liable to pay taxes are required to furnish GSTR 4 annually.
GSTR-5
What is GSTR 5?
A registered NRTP is not required to file separately the statement of the outward supplies, statement of inward supplies, and return like a normal taxpayer. In place of the same, a simplified monthly tax return GSTR 5 has been prescribed.
What are the details required to be furnished under GSTR 5?
- Details of Outward Supply
- Details of Inward Supply
- Tax, interest, penalty, late fee payment details, etc.
GSTR-6
What is GSTR 6?
GSTR 6 form is required to be filed by Input Service Distributors (ISD) for claiming the ITC.
The essentials for the filing of Form GSTR-6 are:
- The recipient should be registered as an Input Service Distributor,
- Should have an active GSTIN,
- Have a valid login User ID and password,
- Have non-expired/ unrevoked and valid Digital Signature Certificate for companies, LLPs, and FLLPs
- Have an active registered mobile number to GST Portal at the time of registration or changes for authentication through EVC.
Is it mandatory to file GSTR 6?
It is a mandatory monthly return that is required to be filed even when there is no transaction.
Who is required to file GSTR 6?
This return is to be submitted by the Input Service Distributor (ISD) for distribution of its credit among the different units.
GSTR-7
What is GSTR 7?
It is a monthly return required to be filed by the person who deducts tax at the time of making payment to suppliers (TDS) under GST.
What are the details required to be furnished under GSTR 7?
Tax deductors are required to:
- Declare his total TDS liability for a given period (monthly) in this Form,
- Furnish information related to the TDS under three major heads, viz., Central tax, State/UT tax, and Integrated tax related to that return;
- File correct and complete return within the due date, given the fact that the TDS credit will be available to the counterparty supplier upon the filing of the TDS return in Form GSTR-7 by the Deductor (i.e., the person liable to deduct TDS).
- Issuance of TDS certificate to the deductee.
Is it mandatory to file GSTR 7?
Yes, GSTR 7 is required to be filed by TDS Deductors as specified under section 51 of the CGST Act.
Who is required to file GSTR 7?
The person deducting TDS under GST is required to furnish the return in form GSTR 7. Following are the deductors liable to deduct TDS as per section 51 of the CGST Act
- Department or establishment of central government or state government, or
- A local authority, or
- Governmental agencies, or
- An authority or a board or any other body
- Set up by an Act of Parliament or State Legislature, or
- Established by any government (with 51% or more participation by way of equity or control to carry out any function)
- A society established by the Central Government or State Government or Local Authority under the Societies Registration Act 1860.
- Public sector undertakings
GSTR-8
What is GSTR 8?
It is a statement of Tax Collected at Source (TCS) by E-Commerce Operators. It contains the details of taxable supplies, the amount collected by the operator related to the supplies, and the amount of TCS collected on such supplies.
What are the details required to be furnished under GSTR 8?
Below are some of the following details required to be furnished while filing GSTR 8
- Details of TCS and outward supply
- Tax and Interest paid
- Tax and Interest payable
- Details of Refund, etc
- Is it mandatory to file GSTR 8?
- Yes, GSTR 8 is mandatory to be filed for the prescribed E-Commerce Operators.
GSTR-9
What is GSTR9?
GSTR-9 is the annual return which is required to be filed once in a financial year by regular taxpayers.
What are the details required to be furnished under GSTR 9?
GSTR 9 contains information such as purchases, sales, input tax credit or refund claimed, etc. Details required to be disclosed under the Form GSTR-9 for respective serial numbers are –
Serial Number 4: Details of advances, inward and outward supplies made during the financial year on which tax is payable
Serial Number 5: Details of Outward supplies made during the financial year on which tax is not payable
Serial Number 6: Details of ITC availed during the financial year
Serial Number 7: Details of ITC reversed and Ineligible ITC for the financial year
Serial Number 8: Other ITC-related information
Serial Number 9: Details of tax paid as declared in returns filed during the financial year
Serial Number 10,11,12&13: Details of the previous Financial Year’s transactions reported in the next Financial Year
Serial Number 14: Differential tax paid on account of declaration in table no. 10 & 11
Serial Number 15: Particulars of Demands and Refunds
Serial Number 16: Supplies received from Composition taxpayers, deemed supply by job worker, and goods sent on an approval basis
Serial Number 17: HSN-wise summary of Outward Supplies
Serial Number 18: HSN-wise summary of Inward Supplies
Is it mandatory to file GSTR 9?
Now, GSTR 9 is optional for business turnover upto 2 crores for the financial year 2017-18 and 2018-19
GSTR-10
What is GSTR 10?
The taxpayer whose registration got canceled or surrendered has to file a return using GSTR-10. It is also called as a final return.
Who is required to file GSTR 10?
Form GSTR-10 is to be filed by every taxpayer, excluding the following:
- Input Service Distributor
- Non-resident taxable persons
- Persons deduct tax at source (TDS) under section 51
- Composition Taxpayer paying tax under section 10
- Persons collect tax at source (TCS) under section 52
GSTR-11
GSTR-11 is a return to be filed by individuals or entities with a Unique Identity Number (UIN) to claim a refund under GST for goods and services purchased in India. The UIN is issued to foreign diplomatic missions and embassies that are not liable to pay tax in India, allowing them to claim a tax refund.
GSTR-11 includes details of inward supplies received, and the refund claimed.
GST Filing Process
Here’s a step-by-step guide to filing GST returns:
- Registration: Obtain a GST Identification Number (GSTIN) by registering under GST.
- Gather Data: Maintain detailed records of sales, purchases, taxes paid, and input credits.
- Select the Right Form: Choose the applicable GST return form based on your business type and activities.
- File Online: Log into the GST portal and input the necessary details such as invoices, ITC claims, and tax liabilities.
- Pay Taxes: Pay the net GST liability through the GST portal.
- Acknowledge Filing: Once filed, you’ll receive an acknowledgment receipt (ARN) for confirmation.
- Reconciliation: Match monthly and annual return data to avoid discrepancies.
Late Fees for Not Filing GST Returns on Time
Failure to file GST returns on time attracts late fees, which vary by return type and are calculated under CGST and SGST/UTGST.
Return Type | Late Fee per Day (CGST) | Late Fee per Day (SGST/UTGST) | Maximum Late Fee |
GSTR-1,GSTR- 3B | 25 | 25 | 5,000 (2,500 CGST +2,500 SGST/UTGST) |
Nil Return (GSTR-3B) | 10 | 10 | *500 (250 CGST +250 SGST/UTGST) |
GSTR-4 | 25 | 25 | *500 per quarter (*250 CGST + *250 SGST/UTGST) |
GSTR-5 | 200 | 200 | 5,000 (2,500 CGST +2,500 SGST/UTGST) |
GSTR-6 | *25 | *25 | 5,000 (2,500 CGST +2,500 SGST/UTGST) |
GSTR-9 (Annual Return) | *100 | *100 | 0.25% of turnover in the state/union territory |
Key Takeaways
- Nil Returns: Late fee for nil returns is ₹10 per day.
- Interest: 18% annual interest is charged on overdue tax liability.
Timely filing ensures compliance, avoids penalties, and helps businesses stay financially healthy.