Why is GST return important? Is it necessary to file GST returns every Month?
What GST return is?
GST return is a document that contains all the details of sales, purchases, tax collected on sales, and tax paid on purchases. Once you file GST returns, you will need to pay the resulting tax liability i.e money that you owe the government.
The details of sales and purchases of the goods and services plus the tax paid and collected have to be furnished by all registered individuals, traders, organizations, and companies. Such details are submitted by filing a GST Return and on this, the tax authorities calculate tax liability. The registered GST user will have to file the return, including purchases, sales, output GST, and input credit of GST. A registered user has to submit 4 forms to file their GST return: return for purchases, return for sale/supplies, monthly return, and annual return. Quarterly returns are to be submitted by those who have opted for the composition scheme.
Importance of GST Return filing
All the Registered Dealers are required to file GST returns irrespective of the type of business or turnover or profitability during the return filing period. Under the GST Regime, even a dormant business that has obtained GST registration must file the GST return. Each GST Return Form has been designed to ensure complete disclosure of every transaction made between buyers and sellers.
Under GST law, every business whether it be small or large has to file returns. These returns are filed to pay taxes as well as to provide data to the government relating to the transactions made by the business during the period under consideration.
Who is required to file GST returns?
In the GST regime, any regular business has to file two monthly returns and one annual return. This amounts to 26 returns in a year. The number of GST filings varies for quarterly GSTR-1 filers. The number of GST filings online for them is 17 in a year. There are separate GST returns required to be filed in special cases, for instance, for composition dealers who have to carry out GST filings 5 times a year.
Types of GST Returns?
There are quite a few types of GST filing that have their specific forms. Below is the list of all the returns to be filed as prescribed under the GST Law and their due dates.
|Return Form||Description||Frequency||Due Date|
|GSTR 1||Statement of Outward Supplies made||Monthly
(If opted under the QRMP scheme)
|11th of the next month.
13th of the month succeeding the quarter.
|GSTR 2 (Suspended)||Statement of Inward supplies made||Monthly||—|
|GSTR – 2A||Read-only documents for the recipient, to verify the details uploaded by the seller in GSTR-1.||Monthly||15th of the next month|
|GSTR 3 (Suspended)||Auto populated document based on the details filled in GSTR-1, GSTR-2, and tax liability of any preceding period.||—|
|GSTR – 3B||Inward and Outward supply summary||Monthly
|20th of the next month from January 2021 onwards
22nd or 24th of the month next to the quarter
|GSTR 4||Quarterly return for composition traders.||Annually||30th of the month succeeding a financial year.|
|GSTR 5||Monthly return for Non-Resident taxable people.||Annually||20th of next month.|
|GSTR 6||Monthly return for Input Tax Distributor
|Annually||13th of next month.|
|GSTR 7||Monthly Return for Tax Deductor.||Annually||10th of next month.|
|GSTR 8||Monthly return for E-Commerce Operators.||Annually||10th of next month.|
|GSTR 9||Annual GST return||Annually||31st December of next financial year.|
|GSTR 9A (Suspended)||Annual Return for Composition Scheme taxpayer||Annually until FY 2017-18 and FY 2018-19||—|
|GSTR 9B||To be filed by an E-Commerce operator
|Annually||31st December following the financial year-end.|
|GSTR 9C||Reconciliation Statement||Annually||31st December following the financial year-end.|
|GSTR 10||Final GST Return||Once, when GST registration is canceled or surrendered.||Within 3 months of the date of cancellation or date of cancellation order, whichever is later.|
|GSTR 11||GST Return for UID holders||Monthly||28th of the next month in which the inward supplies are received.|
|CMP 08||Statement-cum-challan to make a tax payment by a taxpayer registered under the composition scheme under section 10 of the CGST Act||Quarterly||18th of the month succeeding the quarter.|
You will be liable to pay interest and a late fee if GST Returns are not filed within the due date.
The rate of interest prescribed is 18% per annum. It has to be calculated by the taxpayer on the amount of outstanding tax to be paid. The time period will be from the next day of filing to the date of payment.
The original late fees used to be Rs.100 per day under each CGST Act and SGST Act and Rs.200 per day under IGST Act. Also, the original late fee for Nil return filers used to be Rs.25 per day under each CGST Act and SGST Act and Rs.50 per day under IGST Act. However, CBIC has notified reduced late fees to provide relief for businesses having difficulties in GST return filing. There is no late fee on IGST but the maximum limit of late fee is Rs. 5,000.
Form GSTR 9 Annual return, the total Late fees to be paid Rs 200/day (Rs 100 SGST + Rs 100/day CGST). The law has fixed a maximum late fee of an amount calculated at 0.25% of the Turnover for the financial year.
Ignoring the timely GST returns filing may lead to unnecessary fines. Hence, being an honest citizen of our country and to get our records clean, we must get it filed within the given time period.