GST RETURNS FILINGS

The key components of a GST return filing include:

• Purchases: A detailed record of goods and services acquired by the taxpayer.
• Sales: A log of all sales transactions conducted by the taxpayer.
• Output GST (on Sales): The GST charged on the taxpayer’s sales.
• Input Tax Credit (GST Paid on Purchases): The GST paid on purchases, which can be offset against the GST owed on sales.

Anyone registered under the GST regime is required to file GST returns. This applies to businesses whose annual aggregate turnover exceeds the prescribed threshold limit, as defined by the tax authorities. The threshold varies based on taxpayer categories, such as:

• Standard taxpayers
• Taxpayers under the Composition Scheme

The GST system includes 13 different types of returns, each serving different purposes based on the taxpayer’s nature and registration. Not every taxpayer needs to file every return. The specific returns to be filed depend on the type of taxpayer and their registration details.

• GSTR-1: Provides details of outward supplies (sales).
• GSTR-3B: A summarized return covering sales, purchases, and tax payments.
• GSTR-4: Filed by Composition Scheme taxpayers, summarizing turnover and taxes.
• GSTR-5: For non-resident foreign taxpayers making taxable transactions in India.
• GSTR-5A: For Online Information and Database Access or Retrieval (OIDAR) service providers.
• GSTR-6: Filed by Input Service Distributors to report the distribution of input tax credits.
• GSTR-7: For taxpayers who need to deduct TDS (Tax Deducted at Source) under GST.
• GSTR-8: Filed by e-commerce operators to report transactions and tax collected at source.
• GSTR-9: The annual return summarizing all GST filings for the fiscal year.
• GSTR-10: The final return filed upon cancellation or surrender of GST registration.
• GSTR-11: For Unique Identification Number (UIN) holders to claim refunds on purchases.
• CMP-08: A quarterly return for Composition Scheme taxpayers detailing tax liabilities.
• ITC-04: Filed by manufacturers to report goods sent to job workers.

Additionally, there are two returns related to input tax credits (ITC):

• GSTR-2A: A dynamic, read-only return that auto-populates from suppliers' GSTR-1 filings.
• GSTR-2B: A static, read-only return that gives a snapshot of the ITC based on GSTR-1 filings from the previous month.

Understanding the various GST returns is essential for businesses to ensure compliance and optimize tax management:

• GSTR-1 (Return for Outward Supplies): GSTR-1 is mandatory for businesses to report their outward supplies (sales) of goods and services, including sales invoices and adjustments.
  Deadlines:
  • Monthly: Due on the 11th of the following month for businesses with a turnover over Rs. 5 crore or those not part of the QRMP scheme.
  • Quarterly: Due on the 13th of the month following the quarter for businesses under the QRMP scheme.
• GSTR-2A (Dynamic Read-Only Return): An automatically generated return providing details of all incoming supplies (purchases) reported by suppliers through GSTR-1. It helps taxpayers track their eligible input tax credits (ITC).
• GSTR-2B (Static Read-Only Return): A fixed, read-only return offering a snapshot of the ITC available for a given period, based on the GSTR-1 filings from suppliers. It helps businesses validate and claim eligible credits.
• GSTR-3B (Consolidated Return): A summary return filed monthly to report both sales and purchases, including tax liabilities. Taxpayers must reconcile sales and ITC data with GSTR-1 and GSTR-2B before filing.
  Deadlines:
  • Monthly: Due by the 20th of the following month for businesses with turnover exceeding Rs. 5 crore.
  • Quarterly: Due by the 22nd or 24th of the following month for businesses in the QRMP scheme.
• GSTR-4 (Return for Composition Scheme Taxpayers): Filed annually by businesses under the Composition Scheme, which simplifies tax payments for small businesses. Taxpayers under this scheme also submit a quarterly statement (Form CMP-08) and file the annual return by April 30th.
• GSTR-9 (Annual Return): An annual return providing a comprehensive summary of all outward and inward supplies, taxes due, and taxes paid over the year.
  Deadline: Due by December 31st of the following financial year.
• GSTR-10 (Final Return): Filed when a taxpayer’s GST registration is canceled or surrendered. It ensures settlement of pending tax liabilities and allows businesses to claim final input tax credits.
  Deadline: Due within three months of the cancellation of GST registration.