How to file GST (Goods and Service Tax) Return?

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Process of GST return includes electronic filling of return, uploading invoice level informations and auto reflection of information related to Input Tax Credit (ITC) from returns of supplier to that of recipients, matching of Invoice Level Information and auto rversal of input tax credit in case of mismatch. This return process is designed to assist taxpayer to file return and avail ITC.

GST return system is different from CST/Vat return system where four quarterly returns and one annual return had to furnish there will be monthly return. Taxpayer has to furnish monthly return and one annual return. In GST system, there will be separate return system for a taxpayer registered under the composition scheme, non resident taxpayer, taxpayer registered as an Input Service Distributor, a person liable to deduct or collect the tax (TDS/TCS) and a person granted Unique Identification number.

GST return filing is online. For filing return following methods can be used:

  • GSTN portal (www.gst.gov.in)
  • Offline utilities provided by GSTN.
  • GST Suvidha Providers (GSPs)

Some software service providers could provide inbuilt solution in the existing ERP system.


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Have a quick look at GST returns:

Taxpayers are not required to files all type of returns but only require to file return based upon the activity they undertake.

  • GSTR-1: In GSTR-1, monthly statement of outward supplies of goods or Services has to filled before or on 10th of next month. For example, a statement of all the outward supplies occur during the month of July 2017 needs to be filed by 10th August, 2017. This return signifies the tax liability of the supplier for the supplies effected during the previous month. File via GSTN/Easy upload tools provided by GSTN/GSPs could be uploaded with detail of supplies in previous month. Periodical uploading is allowed. GSTR-1 will be frozen after 10th of next month.
  • GSTR-2: In GSTR-2, monthly statement of inward supplies of goods or Services has to filled before or on 15th of next month. For example, a statement of all the inward supplies received during the month of July 2017 needs to be filed by 15th August, 2017. This return signifies accrual of ITC (Input Tax Credit) from the inputs received during the previous month. It is auto-populated from the GSTR-1s filed by the corresponding suppliers of the Taxpayer except for a few fields like imports, and purchases from unregistered suppliers. Changes allowed between 10th and 15th. (Additional option occurs between 15th and 17th. Tax Payer can add additional invoices. Supplier has the option to accept/reject additional invoices. Supplier’s GSTR-1 gets amended to that effect)
  • GSTR-3: In GSTR-3, monthly return for a normal taxpayer of goods or Services has to filled before or on 20th of next month. It consolidates the following details 1) Outward Supplies (Auto-Populated from GSTR-1), 2) Inward Supplies (Auto-Populated from GSTR-2) 3) ITC availed 4) Tax Payable 5) Tax Paid (Using both Cash and ITC). It Auto-populate from GSTR-1 and GSTR-2 
  • GSTR-4: In GSTR-4, Taxpayers who opted for composition levy files quarterly returns which has to file before or on 18th of the month succeeding the quarter.
  • GSTR-5: In GSTR-5, monthly return for a non resident taxpayers of goods or Services has to filled before or on 20th of the month suceeding the tax period & within 7 days after expiry after expiry of registration.
  • GSTR-6: In GSTR-6, monthly return for an Input Service Distributor (ISD) has to filled before or on 13th of the next month.
  • GSTR-7: In GSTR-7, monthly return for authorities deducting tax at sources has to filled before or on 10th of the next month.
  • GSTR-8: In GSTR-8, monthly statement for E-commerce operator depicting supplies effecting through it, has to filled before or on 10th of the next month.
  • GSTR-9: In GSTR-9, Annual return has to be filed for registered taxpayers other than ISD, TDS/TCS taxpayers, casual taxable person and non resident taxpayer before or on 31st december of next financial year. In this return, the taxpayer needs to furnish details of expenditure and details of income for the entire Financial Year.
  • GSTR-10: Final return for taxpayers whose registration has been surrendered or canceled within three months of the date of cancellation or date of order of cancellation whichever is later.
A general taxpayer will file first three returns. GSTR-1, GSTR-2, GSTR-3. Tax will be calculated at the basis of GSTR3 (Tax to be paid) = GSTR1 (Outward Tax Received) – GSTR2 (Inward Tax Paid). There is online system so GSTR-2 will be auto populated from suppliers GSTR1s whereas GSTR-3 will be auto populated from tax payer’s GSTR-1 and GSTR-2. Payment should be made on or before 20th of every month. In case of delay or failure to file the return at due date will attract a late fees of Rs. 100/- per day to maximum of Rs. 5000/-.

The mechanism of filing revised return for any correction of error/omissions is not possible under GST. The rectification of errors/omissions is allowed in the subsequent returns but no rectification is allowed after furnishing the return for the month of September following the end of the financial year to which such detail pertains or furnishing of the relevant annual return whichever is earlier.

After filing of return GSTN will start process of matching ITC. Details entered by recipients of goods in GSTR-2 will matched by detailed entered by supplier of goods in GSTR-1. In case details match, ITC claimed by recipient consider as accepted otherwise failure to file valid return by the supplier may lead to denial of ITC.

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