Returns under GST

Every self-assessment system requires a tax payer to file certain information with the tax authorities declaring his compliance. Such self-assessed declarations are generally called tax returns. Under GST, every regular tax payer will have to file a minimum of 3 returns a month and 37 returns a year. Relaxed return filing provisions of a quarterly return is available for a composition dealer.

List of Returns

Following are returns required to be a filed by a tax payer under GST. The list does not include list of returns which are auto created by the GST portal. A regular registrant under GST will be required to file GSTR1, GSTR2 and GSTR3 every month and annual return in GSTR9. A dealer opting for composition scheme has to file return under GSTR4 on a quarterly basis.

Return

For

To be filed by

GSTR 1

Outward supplies (sale, stock transfer, export)

10 of next month

GSTR 2

Inward supplies (purchases, import)

15th of next month

GSTR 3

Monthly return

20th of next month

GSTR 4

Composition scheme return

18th of next quarter

GSTR 5

Non-residents taxpayers

20th of next month

GSTR 6

ISD

13th  of next month

GSTR 7

Tax deducted at source

10th of next month

GSTR 8

E- commerse operator

10th of next month

GSTR 9

Annual return

31st December of next FY

GSTR 10

Final return

Later of 3 month from:- date of cancellation Or date  of  cancellation order

GSTR 11

UIN holder

28th of next month

 

Why return filing is very important under GST?

The GST system has been designed in such a way that the recipient of goods or services will not be able to avail input tax credit of GST charged by supplier, unless the supplier files his GSTR return properly and pays his tax. So if any person defaults in filing of his return or payment of his GST liability, his customers will lose the input tax credit. So basically, such a person will become an unpopular vendor for his customers.

How will the three monthly returns work?

The following diagram explains the process flow for the monthly GST returns.

 

 

 

 

 

 

 

 

Every person will be required to file his GSTR 1 by the 10th of the next month detailing his outward supplies (including sales). The details are required to be given customer and rate wise in case of B2B transactions and rate wise consolidated figures in case of B2C transactions.

The GST portal will use the details submitted in GSTR1 to auto create GSTR2A which is the dump of your purchases and expenses received from registered persons. The details now need to be cross checked with the purchase and expense register maintained by us. Further, all reverse charge and input tax credit calculations need to be given in GSTR2 to be filed by 15th of the next month. In case of any discrepancies observed in GSTR 2A, the purchaser can make suitable amendments and file his GSTR2.

In cases where the purchaser has made any amendments in data received in GSTR2A, the details of amendments will be sent to the seller in GSTR1A. The seller can either accept those changes or reject those changes. If he accepts those changes, his GSTR1 will be updated. After all these processes has been completed, final GSTR3 return has to be filed by 20th of the next month. Most of the data in GSTR3 will be updated automatically. 

Where do we file our returns?

The GST returns have to filed on the GST common portal www.gst.gov.in. Returns can be filed using excel utilities provided by GST portal or through software provided by GST Suvidha Providers (GSP) or Application Service Provider (ASP)