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Returns under GST

Returns under GST

1. Who are required to file Returns under GST?

GST law has been framed on the principle of self-assessment of tax by the taxpayer. Returns constitute the formal process of determining the tax liability and communicating with the Tax department.

In order that self-assessment process operates with adequate checks and balances, the GST law requires sequential filing of the returns.
Every registered taxable person is required to file returns. However the number of returns to be furnished varies depending on the nature of business carried on by the taxable person.

Non-filing of returns beyond specified number of consecutive tax periods would attract penal consequence by way of cancellation of registration.
Discipline in filing returns can fetch positive compliance rating for the taxable person.
Return filing is mandatory even if there is lull in business activity during the relevant period.

2. What are the Returns to be filed and what are the due dates?
  • A) Returns applicable to all taxable persons who are carrying on business excluding suppliers who have opted for composition levy are as follows-
    Return Form Last Date For Filing
    GSTR-1 (Return of Outward Supplies) 10th of the following month
    GSTR-2 (Return of Inward supplies) 15th of the following month
    GSTR-3 (Monthly Return) 20th of the following month
    GSTR-8 (Annual Return)31st December of the financial year 31st December of the financial year

    Note: A casual taxable person, non-registered taxable person, Input service distributor, tax deductor are not required to file annual returns.

    B) Returns applicable for a supplier opting for composition levy are-

    Return Form Last Date For Filing
    GSTR-4 (Quarterly Return) 18th of the month following the end of the quarter
    GSTR-8 (Annual Return) 31st December of the financial year

    C) Other returns to be filed by specified taxable persons are-

    Specified Taxable Person Return Form Last date for filing
    Non Resident GSTR-5 (Return by non- resident tax payers) 5 days from the last day of registration
    Input Service Distributor GSTR-6 13th of the following month
    Who has deducted tax GSTR-7 10th of the following month
3. What are the other salient aspects of GST Returns?
  • All the returns are electronic returns. GSTR-1 cannot be filed between 11th and 15th of the subsequent month
  • Transactions are divided into Business to Business (B2B) and Business to Consumer (B2C). Former covers a business entity selling a product to another business entity while a transaction involving supply to ultimate consumer falls within the latter category
  • B2B transactions are to be uploaded invoice wise. In other words, details of every taxable supply to another business are uploaded
  • Invoice wise details for B2C transactions are required to be uploaded only for specified type of transactions exceeding certain limits
  • Uniform identification of goods using HSN codes and services using Accounting code for services
  • Late filing of returns other than annual return attracts fee of Rs 100 per day of default subject to 0.25% of turnover, while late filing of other returns attract fee of Rs 100 per day of default subject to Rs 5000/-.
    Late filing of annual returns would result in fee of Rs 100 per day subject to 0.25% of turnover in the State or Union Territory concerned.
4. How is the flow of filing returns?

5. What are the consequences of unmatched supplies?
  • Where the recipient has claimed an inward supply and that is unmatched by the outward supply of supplier, then the said supply is added as Output tax liability of the recipient
  • However, output liability of the recipient abates as and when the supplier accepts the supply and the same is added to the output liability of the Supplier along with interest

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