Goods and Services Tax was introduced in India to eliminate the cascading effect of taxes. GST has been effective from the 1st of July 2017.
GST has now subsumed most indirect taxes like VAT, Excise, Service tax etc. This has simplified the taxation structure and has brought uniformity between all the states in terms of taxation structure.
In this detailed article, we explain the major returns under GST and give a brief overview of each GST return.
What does GST Return filing mean?
GST return forms are the documents to be furnished on the GST portal monthly, quarterly or annually.
Taxpayers are required to furnish all the sales & purchase related details, GST Input Tax Credit details, and all the other taxes paid on the sales and purchases of goods & services.
These details must be furnished via a common government portal, ‘GST Network Portal’.
Who is eligible to register under the GST structure?
Following individuals/entities are eligible to be registered under the GST tax structure:
- Taxpayers registered under previous tax systems like VAT, Excise, etc.
- Vendors supplying products through E-commerce aggregators
- Input Service Distributors
GST Registration eligibility depends on the annual aggregate turnover of the person, and this varies as per the categories of the state (Normal Category state or Special Category states).
Following is the turnover limit to be eligible for GST registration:
|State category||For sale of||Aggregate turnover required for GST Registration||GST Registration required?|
|Normal category state||Goods only||40 lakhs above||Mandatory|
|Special category state||Goods only||20 lakhs above||Mandatory|
|Normal category state||Services only||20 lakhs above||Mandatory|
|Special category state||Services only||10 lakhs above||Mandatory|
|Normal category state||Both Goods & Services||20 lakhs above||Mandatory|
|Special category state||Both Goods & Services||10 lakhs above||Mandatory|
Which are normal category states and which are special category states?
|Special category States/ Union territories||
|Normal category States/UT||Kerala, Chhattisgarh, Jharkhand, Delhi, Bihar, Maharashtra, Andhra Pradesh, Gujarat, Haryana, Goa, Punjab, Uttar Pradesh, Himachal Pradesh, Karnataka, Madhya Pradesh, Odisha, Rajasthan, Tamil Nadu, West Bengal, Lakshadweep, Dadra and Nagar Haveli and Daman and Diu, Andaman and Nicobar Islands and Chandigarh|
Eligibility to file a GST Return
All the registered businesses under the GST structure have to file a GST return.
However, all businesses must file different sets of GST returns as per the category of business.
If a GST registered person is involved in the following activities, then they are required to file a GST return applicable to them:
- Outward sales supplies
- Inward purchases of goods or services
- Entities collecting GST amount on outward sales of goods or services
- Businesses claiming ITC on their purchases
There are different categories of taxpayers according to the GST laws.
According to the GST laws, a ‘taxable person can be from any of the categories listed below:
- Regular taxpayers
- Taxpayers registered for the Composition Scheme under GST.
- Casual taxpayers
- Tax Deduction at Source (TDS)
- Tax Collected at Source (TCS)
- QRMP taxpayers
- Non-resident taxpayer
Let us have a quick overview of each category of taxpayers in the table below:
|Sr. No.||Category of taxpayer||Description||Major Return required to file|
|1||Regular taxpayer||Owns a business in a State or a Union Territory where GST rules are effective||GSTR-1, GSTR-3B|
|2||Composition scheme dealers||A taxpayer opting for the GST Composition Scheme. Pays tax based on turnover or at a nominal rate||Quarterly return via CMP-08|
|3||Casual taxpayers||He does not have a registered business place in a state or UT where he occasionally does business.||GSTR-1, GSTR-3B (monthly)|
|4||Tax Deduction at Source (TDS)||A department of state or central government can deduct tax at the source||GSTR-7|
|5||Tax Collected at Source (TCS)||E-commerce aggregators are responsible for Tax Collection at Source||GSTR-8|
|6||QRMP taxpayers||Taxpayers opting for the ‘Quarterly Returns Monthly Payment’ scheme.
Tax payments are made monthly, but the return is filed once a quarter.
|GSTR-1 & GSTR-3B (quarterly)|
|7||Input Service Distributors||A Place of business responsible for receiving the tax invoices from their suppliers all at once||GSTR-6|
GST Filing Online
We have shared a simple 4-step method for GSTR filing on the GST portal in this segment.
Step 1: Visit GST portal, www. gst.gov.in
Step 2: Get a 15 digit GSTIN based on your PAN Card and state where you are located
Step 3: Upload relevant invoices on the GST portal.
Step 4: Upload inward /outward returns other aggregated returns and then check for errors in the returns. Then submit these returns on the GST portal.
Major GST return types under GST
Following is the list of the major GST returns under GST. Most of these returns are common for most businesses, and hence, it is crucial to understand the importance of all these returns for a smoother GST return filing experience.
- GSTR-1 return captures all the outward sales data.
- The taxpayer has to furnish all the outward sales details in his monthly or quarterly GSTR-1 return.
- GSTR-1 is filed on a monthly or quarterly basis based on the annual aggregate turnover of the business.
What are GSTR-1 filing due dates?
Following are the GSTR-1 filing due dates based on the aggregated turnover of the taxpayer:
a. For taxpayers with a turnover of more than 1.5 Crore
- These taxpayers have to file their GSTR-1 MONTHLY.
- GSTR-1 filing due date for these taxpayers is the 11th of every succeeding month
b. For taxpayers with turnover up to 1.5 Crore
- These taxpayers have to file their GSTR-1 QUARTERLY.
- GSTR-1 filing due date for these taxpayers is the 13th of every succeeding month.
GSTR-2A return under GST
- GSTR 2A is a tax return related to purchases of goods and services in a given month.
- This return auto-generates from the GSTR 1 of the seller by the GST portal.
- Any information filed in GSTR1 by the seller is captured in GSTR 2A of the purchaser.
- GSTR 2A is an automatically generated return from the seller’s GSTR 1 for each business by the portal of GST.
GSTR-2B return under GST
- GSTR-2B return is a static statement generated every month.
- GSTR-2B is an auto-drafted statement generated for all the regular GST taxpayers.
- GSTR-2B gets generated after the 12th of every month.
- GSTR-2B gets generated based on the GSTR-1, GSTR-5 or GSTR-6 filed by the taxpayer.
How is GSTR-2B generated?
GSTR-2B contains all the eligible ITC of the month, and it is based on the details of GSTR-1 filed by your Supplier.
Let us understand this with the help of an example:
There’s a taxpayer named ‘Appu Retailers Ltd.’.
He has two suppliers:
- Gaurav Traders
- Abhinav Suppliers
Consider the following scenario:
1.The transaction with Gaurav Traders-
Recipient ‘Appu Retails’ makes a purchase of goods worth Rs.1,00,000 from this Supplier.
The transaction details between them are as follows-
Cost of goods= Rs. 1,00,000
GST paid to Supplier = 28% = Rs. 28,000
Total amount Paid = Rs. 1,28,000
This Supplier files his GSTR-1 for this transaction correctly and before the due date.
2.Transaction with ‘Abhinav Suppliers’
Recipient ‘Appu Retails’ makes a purchase of goods worth Rs.2,00,000 from this Supplier.
The transaction details between them are as follows-
Cost of goods= Rs. 2,00,000
GST paid to Supplier = 18% = Rs. 36,000
Total amount Paid = Rs. 2,36,000
This Supplier DOES NOT file his GSTR-1 for this transaction.
Now let us look at the Recipient’s side (Appu Retails)-
Considering there are only these two transactions in the month of January 2022:
Total GST paid to suppliers = Rs. 28,000 (to Supplier 1) + Rs. 36,000 (Supplier 2)
= Rs. 64, 000 paid in GST
As per Recipient’s ‘Books of Accounts’ – Eligible ITC for month = Rs. 64, 000
But as per GSTR-2B of the Recipient, eligible ITC = Rs. 28,000
The primary reasons behind missing ITC of Rs. 36,000 (from supplier 2) could be:
- Supplier 2 has not filed his GSTR-1 for this transaction
- Supplier 2 filed his GSTR-1 AFTER the due date.
These two are the possible reasons for missing ITC in the monthly GSTR-2B summary.
This example elaborates the correlation between GSTR-1 & GSTR-2B and how delayed filing of GSTR-1 by your Supplier affects you as a recipient.
GSTR-3B return under GST
- GSTR-3B is a detailed summary of all the inward & outward supplies.
- Every GST registered taxpayer is mandated to file this GSTR-3B return and other returns like GSTR-1 and GSTR-2A/2B.
- The frequency of GSTR-3B filing can be monthly or quarterly, depending upon the category of the taxpayer.
- Taxpayers need not upload any invoices of their inward and outward supplies in the GSTR-3B filing as they are already furnished in the GSTR-1 & other GST returns.
- It is essential to file a separate GSTR-3B return for every GSTIN.
- GSTR-3B cannot be revised once submitted at the GST portal.
- It is mandatory to file NIL G
- STR-3B returns.
What is GSTR-3B due date?
Due dates differ based on the turnover of the taxpayer.
|Turnover||GSTR-3B Due Dates||For states||Frequency|
|Exceeding 5 Crore||20th of the following month||All||Monthly|
|Less than equal to 5 Crore||20th of the following month||All||Monthly|
|Less than equal to 5 Crore||22nd of the month after the quarter ends||Chhattisgarh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Telangana, Andhra Pradesh, Daman & Diu and Dadra & Nagar Haveli, Puducherry, Andaman and Nicobar Islands, Lakshadweep||Quarterly|
|Less than equal to 5 Crore||24th of the month after the quarter ends||Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand, Odisha, Jammu and Kashmir, Ladakh, Chandigarh, Delhi||Quarterly|
GSTR-4 return under GST
GSTR-4 contains all the inward and outward supplies and is mandatory for all the Composition Scheme dealers.
Taxpayers opting for the Composition Scheme under GST during migration to the GST regime must file the GSTR-4 return.
Taxpayers who opted for the Composition Scheme but later opted out in the FY are also required to file a GSTR-4 return under GST.
Frequency of GSTR-4 filing
Earlier, GSTR-4 was filed quarterly. But currently, it has been replaced by Form CMP-08 and is filed annually.
GSTR-4 filing due date
GSTR-4 filing due date is the 30th of the month succeeding the last month of the Financial Year.
GST Returns – GSTR-5, 5A, 6, 7, 8
The details of these returns are consolidated in the table below:
|GST Return||Description||GST filing due dates|
|GSTR-5||This return is to be filed by the Non-resident taxpayer.||20th of the following month|
|GSTR-5A||This return is to be filed for the ‘Online Information Data Base Access and Retrieval’ (OIDAR)||20th of the following month|
|GSTR-6||This return is to be filed by the Input Service Distributor (ISD)||13th of the following month|
|GSTR-7||A taxpayer who deducts tax at source (TDS) must file this GSTR-7 return.(Example- Government bodies, Local authorities, PSUs)||10th of the month following the month in which TDS is deducted|
|GSTR-8||A taxpayer who collects tax at source (TCS).
(Example- E-commerce aggregators)
|10th of the month following the month in which tax collected at source|
GSTR-9/9C under GST
- Every GST registered taxpayer has to file a GSTR-9 return under GST.
- GSTR-9 details capture all the details of SGST, CGST and IGST paid during the entire FY.
- The frequency of GSTR-9 filing is ‘Annual’ for regular taxpayers.
- Details to be furnished in the GSTR-9 return – GST Input Tax Credit claimed in the FY, outward taxes paid, inward supplies done, liabilities if any.
Who all are not required to file GSTR-9?
- Input Service Distributors (ISD)
- Non-resident taxpayer
- Casual taxpayer
- TDS and TCS applicable taxpayers
GSTR-9 filing due dates
- 31st December of the year following the FY.
- For example, GSTR-9 for FY 2020-21 will be filed on 31st December 2021.
Form GSTR-9C under GST
- GSTR-9C is a certified summary of returns.
- GSTR-9C has to be furnished by the taxpayers whose annual aggregate turnover exceeds Rs. 2 Crore
- AS per Section 35, sub-section (5), businesses are required to furnish an annual audited statement in the form of GSTR-9C
GSTR-9C – 2021 Update
- Prior to July 2021, GSTR-9C was required to be certified by a CA or a Cost Accountant.
- CBIC has notified some changes to Section 35 (5) and Section (44) of the CGST Act, 2017. Now, the businesses whose annual turnover is more than Rs. 5 Crore can ‘self-certify’ their GSTR-9C and submit it on the GST portal.
GST return filing is easier with an automated tool
While filing any GST return, Reconciliation is one of the essential steps for a flawless and timely GST return filing.
Hence, doing these reconciliations on an automated tool compared to manual reconciliations is faster and 100% GST compliant.
An automated platform like KYSS will help taxpayers facilitate more accessible GST return filing, smoother reconciliations and user-friendly technology.
Hence, businesses must always prefer using a GST filing tool like KYSS for their GST return filing needs.
As discussed in the last section, automation in GST return filing is the need of the hour.
Automation in GST filing can help you everywhere, reconciliations or identifying any defaulting supplier.
We shall develop more such segments to keep you informed on the GST topics.
Keep coming back.