What is a GST Return?

A GST return is a document or form that a registered taxpayer must file with the Goods and Services Tax Department. It contains details of income, sales, purchases, input tax credit (ITC), and tax liability. The government uses this information to assess tax liabilities and ensure tax compliance.

Who Should File GST Returns

Every registered person under GST is required to file returns periodically. These include:

• Regular taxpayers
• Composition scheme taxpayers
• Input Service Distributors (ISDs)
• Non-resident taxable persons
• E-commerce operators
• TDS/TCS deductors

Even if there are no transactions in a period, a Nil return must be filed.

Types of GST Returns and Their Due Dates

How Many GST Returns Need to Be Filed?

The number of GST returns depends on the taxpayer category:

• Regular taxpayers file monthly returns (GSTR-1 and GSTR-3B) and annual returns (GSTR-9).
  ➡️ A total of 25 returns in a year (if filing monthly).
• Composition taxpayers file quarterly statements (CMP-08) and annual returns (GSTR-4).
  ➡️ A total of 5 returns in a year.

Procedure for Filing GST Returns

• Collect Sales and Purchase Data
  Gather all invoices related to sales and purchases for the tax period.

• Login to the GST Portal
  Access your account at www.gst.gov.in

• Prepare Return Forms
  Fill in the relevant GST return form (e.g., GSTR-1 for outward supplies).

• Reconciliation
  Match your data with suppliers' filings to ensure accuracy.

• Submit and Pay Tax Liability
  Pay any tax dues before filing returns. Submit the return after verification.

Importance of Timely GST Return Filing

• Legal Compliance: Mandatory under GST law.
• Claim Input Tax Credit (ITC): ITC is available only if returns are filed accurately and on time.
• Avoid Penalties and Interest: Late filing leads to fines and interest payments.
• Business Reputation: GST compliance helps build trust with vendors and customers.

Penalties for Late or Non-Filing of GST Returns

• Late Fees:
  ₹50 per day of delay (₹25 CGST + ₹25 SGST).
  For Nil returns: ₹20 per day (₹10 CGST + ₹10 SGST).
• Interest:
  18% per annum on the outstanding tax amount.
• Blocked ITC:
  Failure to file returns can block your Input Tax Credit claims.
• Cancellation of Registration:
  Repeated non-compliance may lead to GST registration cancellation.

Annual Return (GSTR-9 and GSTR-9C)

• GSTR-9 is mandatory for all taxpayers except composition dealers and small taxpayers below the turnover threshold.
• GSTR-9C is a reconciliation statement filed by taxpayers with annual turnover exceeding ₹5 crore, certified by a Chartered Accountant.

Key Points to Remember

• Maintain proper documentation for all transactions.
• Reconcile purchase data with GSTR-2A/2B before claiming ITC.
• Pay tax dues on time to avoid interest and penalties.
• File Nil returns even if there are no transactions during the period.

FAQs on GST Return Filing