GST Returns: What is GST Returns? Types of GST Returns & How To File GST Returns?

Understanding goods and services Tax (GST) returns is a fundamental aspect for both businesses and individuals. Whether you are a taxpayer or a business entity, having firm knowledge of GST returns is essential for maintaining compliance in the realm of taxation. This article will take you through the core concepts of GST returns, including their types and how to file them. 

What is a GST Return?

A GST return is like a financial report that summarizes all the income and expenses of a taxpayer registered under GST (Goods and Services Tax). It's a mandatory document that you must provide to the tax authorities. The main purpose of this document is to help the tax authorities accurately calculate how much tax you owe.

The main goal is to help the tax authorities calculate the correct amount of GST (tax) owed. It includes information on purchases, sales, and the GST charged and paid. This ensures everyone pays the right amount of tax under the GST system.

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In the GST system, a registered business needs to file GST returns, which mainly cover:

1. Purchases: A detailed list of all the things the taxpayer bought.

2. Sales: A comprehensive record of all the sales the taxpayer made.

3. Output GST (Tax on Sales): Details of the GST charged on the taxpayer's sales.

4. Input Tax Credit (GST Paid on Purchases): Information about the GST paid while buying things, which can be used to reduce the GST owed on sales.

Types of Returns Fall Under GST

Under the Goods and Services Tax (GST) system in India, there are a total of 13 different types of returns. These returns help taxpayers report various aspects of their financial transactions and responsibilities within the GST framework. 

However, it is with noting that not all of these returns apply to all taxpayers. The specific returns a taxpayer must file depend on their type of business and the nature of their GST registration.

Following are the 13 types of returns including their purpose and details. 

1. GSTR-1:

   - Purpose: Used for reporting outward supplies or sales made by the taxpayer.

   - Details: It captures information about the sales transactions, including invoices issued to customers.

2. GSTR-3B:

   - Purpose: A summary return that provides an overview of both outward and inward supplies, along with tax payments.

   - Details: This is a simplified return where taxpayers summarize their tax liability for a specific tax period.

3. GSTR-4:

   - Purpose: Specifically designed for taxpayers operating under the Composition Scheme.

   - Details: It summarizes the taxpayer's turnover and tax liability for the composition scheme period.

4. GSTR-5:

   - Purpose: Filed by non-resident foreign taxpayers engaged in taxable activities in India.

   - Details: This return captures the details of supplies and taxes for foreign entities conducting business in India.

5. GSTR-5A:

   - Purpose: Filed by online information and database access or retrieval (OIDAR) service providers.

   - Details: It includes information about the OIDAR services provided and their associated taxes.

6. GSTR-6:

   - Purpose: Used by Input Service Distributors (ISD) to report the distribution of input tax credits among their various units.

   - Details: It ensures proper allocation of credit among different business units.

7. GSTR-7:

   - Purpose: For taxpayers required to deduct Tax Deducted at Source (TDS) under GST.

   - Details: This return records TDS information on supplies and the tax amount deducted.

8. GSTR-8:

   - Purpose: Filed by e-commerce operators to report supplies made through their online platform.

   - Details: It covers transactions facilitated by the e-commerce platform, including the taxes involved.

9. GSTR-9:

   - Purpose: An annual return that offers a consolidated summary of monthly/quarterly returns filed during the financial year.

   - Details: It provides a comprehensive overview of the taxpayer's activities throughout the year.

10. GSTR-10:

    - Purpose: Filed when a taxpayer's GST registration is canceled or surrendered.

    - Details: This is the final return to close out the taxpayer's registration formally.

11. GSTR-11:

    - Purpose: Filed by persons with a Unique Identity Number (UIN) to claim a refund of taxes paid on their purchases.

    - Details: It allows for the refund of GST paid by foreign diplomatic missions and international organizations.

12. CMP-08:

    - Purpose: A quarterly return for taxpayers under the Composition Scheme, where they report their tax liability.

    - Details: It summarizes the composition of taxpayer's sales and tax calculations for the quarter.

13. ITC-04:

    - Purpose: Filed by manufacturers to report details of goods sent to a job worker and received back.

    - Details: This return is used to record the movement of goods for job work and their return.

Additionally, there are statements of input tax credit available to taxpayers:

14. GSTR-2A (dynamic):

    - Purpose: Provides a dynamic view of inward supplies based on what suppliers report.

    - Details: It allows taxpayers to verify the details of their purchases as reported by their suppliers.

15. GSTR-2B (static):

    - Purpose: Offers a static view of inward supplies based on supplier returns.

    - Details: It provides a stable overview of the taxpayer's purchases based on their suppliers' returns.

These various GST return parts cater to different types of taxpayers and their specific tax obligations under the Goods and Services Tax system in India.

Who Needs to Submit GST Returns?

Every entity or person registered under GST is required to submit GST returns. Registering for GST is compulsory for businesses that surpass the specified threshold turnover. This limit may differ depending on the taxpayer category, whether they are regular taxpayers or composition scheme dealers.

How to Submit GST Returns Using GSTN?

The Goods and Service Tax Network (GSTN) plays a vital role in storing information about all GST-registered buyers and sellers, and maintaining records for future reference. 

Businesses are required to file three monthly returns every quarter and one annual return at the end of the financial year, totaling 37 returns. To simplify the tax filing process, GSTN has introduced a user-friendly Excel-based template.

This Excel workbook can be easily downloaded from the GST Common Portal. Taxpayers can utilize this template to consistently compile invoice data. Before the deadline, they should upload details of both incoming and outgoing supplies to the GST portal. 

There is also an option for offline data preparation, which means the taxpayer does not need an internet connection until they are ready to upload the prepared file to the GST portal.

How to Download Your GST Returns?

You can easily obtain your GST Returns from the official GST Portal by following these steps:

1. Log in to the GST portal at https://www.gst.gov.in/ using your login details.

2. Go to the 'Services' tab located in the top menu.

3. Select 'Returns Dashboard' under the 'Returns' section.

4. On the next page, pick the financial year and the return filing period from the drop-down menus.

5. Click on the 'Search' button and choose the GSTR that you wish to download.

6. Under the selected GSTR, click on 'Prepare Offline.'

7. Proceed to the 'Download' section and click on 'Generate File.'

8. Typically, it takes around 20 minutes to generate the file.

9. Once the file is ready, a download link will be provided. Click on 'Click Here' to download the ZIP file containing your GST Returns.

Due Dates For Different Types of GST Forms

Penalty for Late Filing of GST Returns Explained

If you do not submit your GST returns on time, you may have to face a penalty known as a late fee. This late fee is Rs. 100 per day for both the Central Goods and Services Tax (CGST) and State Goods and Services Tax (SGST) under the GST Law, making it a total of Rs. 200 daily. 

Keep in mind that the specific rate may change, and any updates will be officially communicated. The maximum late fee that can be imposed is Rs. 5,000. It's important to note that Integrated GST (IGST) does not have late fees for delayed filings. 

In addition to the late fee, you'll also be required to pay interest at a rate of 18% per year. To calculate this interest, you should consider the outstanding tax amount, and the interest accrues from the day after the due date until you make the actual payment.

Also Read: Why Your Verified Income Tax Return Has Not Been Processed Yet: These Can Be Common Causes

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