What is GST return filing?
GST is the tax collected by the government if a person engages in a taxable supply of goods or services, calculation of GST payment and remittance is done on a self-assessment basis by the dealer. So for the collection of data regarding sales, reversals, and input tax credits, certain prescribed data are required to be furnished periodically by all active dealers who had valid GST registration number application approved. The details submitted serve as an information source for the department for verification of tax calculation and other relevant details for the administration of the GST Act, and it also helps to transfer the input tax credit to other dealers registered under GST Act.
What are the different types of GST returns?
Dealers under GST can be broadly classified into three categories
- Regular taxpayers opting for monthly return filing.
- Regular taxpayers opting for the QRMPS scheme.
- Composition taxable person.
In this article, we will discuss only compliance to be taken care of in the case of dealers who had opted for monthly GST return filing.
Monthly return filing option for Regular GST taxpayer
There are 2 types of returns that are required to be filed by regular taxpayers who had opted for a monthly return filing scheme.
Invoice-level information of outward supplies made during the period shall be submitted in form GSTR-1 called a statement of outward supplies, which was also called are GSTR-1 return for practical purposes.
The due date for filing GSTR-1 is 11 of the following month’s relevant tax period, for example, for the month of April 2023, the due date is 11th May 2023.
In the summary return of details already submitted through the form, GSTR-1 is to be submitted in form GSTR-3B on or before the 20th of the following month.
How to file GSTR 1 return, and what are the details required?
Regular taxpayers who had opted for monthly return filing frequency are required to provide the following information in GSTR 1 return on or before 11 of the month following the tax period for each month, for example for the month of April 2023 GSTR-1 data should be submitted on or before 11th of May 2023.
- Invoice-wise details of supplies made to registered dealers with particulars of, GST no of the dealer, trade name, taxable value, applicable rate of tax, etc.
- Consolidated taxable value with a rate-wise breakup on details of supplies made to unregistered buyers within the state and supplies up to Rs.2,50,000 made to unregistered dealers of other states.
- Invoice-wise details of supplies and credit notes made in excess of Rs.2,50,000 to unregistered dealers of other states.
- Details of amendments made.
- Advances received during the month for which invoices are not raised, details of advances adjusted against the invoice for which receipt of advance is already furnished in previous periods.
Other important points which are relevant to GSTR-1 returns filing
- Invoice-wise details of B2B supplies can be uploaded during any time of the tax period and up to the time of filing the return.
- Invoices added can be deleted and added any number of times up to the time of filing the return.
- There is no requirement to upload a copy of the invoice for invoice-wise details, only details of invoice information shall be furnished.
- If the turnover in the preceding tax period is more than 5 crores 6 digits HSN or SAC code shall be provided and in case of turnover is up to 5 crores 4 digit HSN code or SAC code shall be provided.
- Once the GSTR-1 return is filed the same shall be transmitted to the buyer’s GSTR-2A form, this data is auto-populated in real-time.
- GSTR-1 cannot be filed if the previous month’s GSTR-3B return is not filed.
- Nil GSTR-1 return should be filed even if there are no sales for the month or even if the business is closed if the registration is active.
- In case of an application for voluntary cancellation, GSTR-1 should be filed for the month up to the effective date of cancellation of GST registration.
- In case of conversion of a normal taxpayer into a composition dealer, then GSTR-1 should be filed for the period up to which the dealer is registered as a normal taxpayer.
- Amendment of invoices furnished in GSTR-1 can be modified, the earlier of the following two dates, up to the date of filing the annual returns for the financial year, or up to the due date for filing GSTR-3B for the month of September of the succeeding financial year. For example, if invoice details submitted for the month of December 2022 are required to be amended, then the same shall be amended up to the 20th day of October 2023 or up to the date of filing the annual return for the financial year.
What are GSTR-2A and 2B forms?
GSTR-2A is a real-time auto populated date of invoices, credit notes, and amendments filed by other dealers from whom the registered dealer had purchased goods or received services. Data auto-populated in this return is used for administrative purposes for the dealer.
GSTR-2A contains only the details auto-populated from GSTR-1 returns filed by our suppliers of services and goods during any day of the month.
GSTR-2B is a statement of input tax credit that can be availed for the return period, It only contains the details of invoices filed before the due date for filing GSTR-1 or filing an IFF return. GSTR-2B data is constant, and it does not change, it is generated after the 13th of each month for the previous tax period.
Details of outward supplies which are filed by suppliers after the due date will be available next month GSTR-2B form.
How to file GSTR-3B GST return?
- GSTR-3B is a monthly return required to be filed after filing GSTR-1 for the relevant month.
- GSTR-3B return contains a summary of information already submitted in GSTR-1 and eligible input tax credit for the month.
- ITC claimed should match with ITC auto-populated in GSTR-2B for the month, in case there is any error in auto-population of correct data from GSTR-3B the same shall be verified before editing the ITC field in GSTR-3B return.
- The total of B2C, B2B transactions submitted in GSTR-1 after netting off credit notes, debit notes, amendment to invoices will be auto-populated in GSTR-3B, so care should be given to arrive at the values to be entered in GSTR-3B and to match the values arrived through our calculation and auto-populated data.
- Final tax liability after setting-off of eligible ITC for the month along with balance in the electronic credit ledger, are required to be paid in cash before filing GSTR-3B button for filing GSTR-3B will be enabled only after making balance tax.
- Failure to file monthly GSTR-3B return on time will result in a penalty of Rs.20 per day for nil return and Rs.50 per day in any other case. Penalty will be calculated from the next day after the due date and up to the date of filing the GSTR-3B for the month.
Other important points
- Failure to file GST returns for a continuous period of 6 months will result in the cancellation of the GST registration number.
- GST returns once filed cannot be revised, so after the entry of data and before submission of the return, the summary will be downloaded and checked for the correctness of the data to be filed. Any corrections after the submission of GST return filing can be made only by an amendment in succeeding GST returns.
- Interest at the rate of 18 % per annum shall be calculated in case of delay filing of GST return, for the period of delay.
- In case of payment is initiated, and the control is not redirected to the GST portal after payment of taxes if the status of the payment is initiated in challan history menu, then the transaction will be linked in a few hours.
- Payment of taxes can be made only through online payment, or NEFT/RTGS in case the amount exceeds Rs.10,000.
- Payment of penalty and tax on reverse charges can be paid only in cash, and the balance available in the electronic credit ledger cannot be used. If the balance is available in the electronic cash ledger means, the same shall be utilized to discharge the late fees or tax on reverse-charge.
- In case a person becomes liable to register for GST while carrying on the business, then there may be a situation of mismatch between the date from which the person is liable to register and the date of grant of registration certificate, attention should be given to GST provisions regarding the effective date of GST registration, GSTR returns shall be filed from the effective date of registration.