India’s biggest tax reform has taken place by the introduction of GST. With the idea of ‘One Nation One Tax,’ the tax is warmly welcomed by the majority. A simplified process introduced collaborating all the information of the sellers or buyers of goods and services. The GSTN (goods and service tax network) system where all the information regarding invoices, selling, buying, location, and date is furnished is established by GST council and finance ministry. To collect the information from taxpayers and keep them in synchronous are important aspects for smooth flow of interconnected network. So GST returns are the forms every taxpayer need to comply with for easy flow of input tax credit. To make online GST return filing easy, we have divided each and every GSTR form according to the liable taxpayer category.
Find Your Category as a Taxpayer for GST Return Filing Guide
GSTR-9 has to file by all taxpayers within the end of next financial year as an annual return filing and GSTR-10 is to be filed by the closure business entity for the settlement of full and final tax dues
GSTR-3B form was also introduced for the first two months (July & August) of filing of taxes in order to fetch the consolidated data instead of detailed tax data
Who is a Regular Taxpayer?
Regular taxpayers under GST are the persons who own a business in a state/UT and involve with the supply of goods and services. There are three mandatory forms which are to be filed by the regular taxpayer i.e. GSTR-1, GSTR-2 and GSTR-3 in which GSTR-1 and GSTR-2 accounts for outward and inward supplies respectively and GSTR-3 for cumulative tax data to be file on or before 20 th of the succeeding month.
GSTR-1: This is the first return form every taxpayer is required to furnish between 1st and 10th of the succeeding month for a given tax period. The GSTR-1 form is documented with outward supplies made by the taxpayers. The GSTR-1 contains 13 heads under it and is important as it helps in credit matching and future flow of the tax credit. Read here for further details of GSTR-1 filing.
GSTR-2: The GSTR-2 form accumulates all the information of inward supplies to the buyer and recipient of goods and services furnishes this information. The GSTR-2 is filed by every taxpayer before 15th of the succeeding month for a given tax period. There are 13 heads to fill carefully under GSTR-2 because the information will reflect in the seller forms and the information should be matching with the information provided by the seller. More details about GSTR-2 form filing.
GSTR-3: It culminates the information provided in GSTR-1 and GSTR-2 as it is the form accumulating all the details of sales and purchases made in particular month. GSTR-3 has 15 heads to furnish with the information regarding inward and outward supplies. The GSTR-3 is needed to file before 20th of the succeeding month for a given tax period. By filing GSTR-3 the taxpayer gets the information about provided input tax credit and payable tax amount. The complete details of GSTR-3 form filing.
Who is a Composition Taxpayer?
To provide relief to the small and medium enterprises the government has come up with composition scheme where registered business under composition scheme needs to file one return (GSTR-4) in a quarter instead of 3 returns in a month like normal businesses. There is a criterion of registering under the scheme i.e. the turnover of registering businesses should not be more than INR 75 lakh.
GSTR-4: It is for the composition vendors (who are registered under composition scheme). The form is furnished every 3rd month of the ending quarter and before 18th of the succeeding month of a given quarter. Taxpayer files the information of sales and purchases made in a quarter and tax paid under composition scheme. It has 13 heads and most of the information is auto-populated by GSTN system from previous forms. Full guide for GSTR-4 form online filing.
Who is a Non-resident Taxpayer?
The Non-resident taxpayer under GST regime is the person/business not owning the business in India but supplying goods and services to the country for a short period of time. All these non-resident taxpayers will have to file their tax returns through the GSTR-5 form.
GSTR-5: The information in GSTR-5 is furnished by a non-resident taxpayer for the purchases and sales they made in India whether online or offline. GSTR-5 also avails the detailing about the available tax credit, tax paid and remaining stocks for the NRI. The form is needed to be furnished by the non-resident taxpayer before 20th of the succeeding month for a given tax period. Click for GSTR-5 filing guide.
Who is Input Service Distributor?
Input service distributor is an office of the supplier of goods and / or services which receives tax invoices issued by other suppliers towards receipt of input services and/or goods and issues a prescribed document for the purposes of distributing the credit of GST to its units. The input tax distributors have to select GSTR-6 for their GST filing.
GSTR-6: The GSTR-6 is filed by ISD on every 13th of the next month for a given tax period. It includes all the information regarding inward supplies made to the registered taxpayer. It also contains the information of input tax credit which is distributed among the organisations under ISD. Help guide for filing GSTR-6 form.
Who is a TDS Taxpayer?
TDS taxpayer are persons/authorities eligible to deduct TDS on payment made to registered vendors or businesses towards purchases made from them. Every TDS taxpayer has to file their taxes through GSTR-7 form.
GSTR-7: Every tax deductor should file the GSTR-7 form on 10th of the succeeding month for a given tax period. It covers all the details of TDS made under IGST, CGST, and SGST along with the supplier information and details of the source where tax deducted. Further step by step guide for filing GSTR-7 form.
Who is a TCS Taxpayer (E-commerce Operator)?
E-commerce operators are online business operator registered under Model GST law and provide the platform for vendors and customers for the supply of goods and services. For TCS taxes, they should file GSTR-8 form on Indian government GST portal.
GSTR-8: The form details are furnished by e-commerce operator for the tax collected at source information. The e-commerce operators are registered under GST regime for tax collection at source. It has filed by every e-commerce operator before 10th of the next month for a given tax period. It is required to file all the details of supplies made to registered or unregistered person through e-commerce portal along with tax paid and payable information. Understand how to file GSTR-8 form.
For Annual Return- GSTR-9
GSTR-9: This covers the information of annual tax paid under GST by the taxpayer. GSTR-9 is an accumulation of all the tax paid so it is filed before 31st December of the next financial year related to given tax period. It contains the information of GSTR-3 filed for all 12 months. For filing GSTR-9 taxpayer must be having the information of inward or outward supplies, tax paid under various heads as under CGST, IGST, and SGST, and total turnover with audit details.
For Final Return(If Registration Of Business Has Cancelled)- GSTR-10
GSTR-10: It is furnished by the registered taxpayer in a particular situation such as cancellation or surrender of GST registration. The reason for the GST cancellation can be anything like the closing of business voluntarily or by the government order. The taxpayer is needed to file the final return form within 3-months of cancellation order with the details of tax paid, payable, and input tax credit information.
Who is a UIN Holder?
UIN holders own a unique number assigned by GST Council and the UIN status is given for specialized agencies of UNO or organisation registered under UN act 1947, multilateral financial institutions, and the person who is granted the status of UIN on commissioner’s consent.
GSTR-11: The GSTR-11 is furnished by UIN holders(registered under GST regime and having Unique identification number) when they purchase products during the month. By filing GSTR-11 for inward supplies made by UIN holders, they get the refund for the taxes they paid on purchases made in India. UIN holders file the GSTR-11 before 28th of the succeeding month for a given tax period. Click for GSTR-11 form filing guide.
Real Evaluation Of GST Return Filing Process Is Still Remaining
After the filing of GSTR-3B form for July and August month, everybody is looking towards the ordeal, the GSTN system is going to face in near future. Traders are facing the issue regarding, not getting input credit for the sales they made before July month and they are doubtful about the matching of trade made in two months by sellers and buyers. Though the government has extended the GSTR-1 (details regarding outward supplies) form filing date till 10 October, the taxpayers are filing the form and facing so many hurdles now only.
Just a day after 20th September, which was the last date for GSTR-3B filing, the system again went on to be sluggish and unresponsive. Sudhir Halakhandi, the GST consultant, has said that only 2-3 returns were filed on that day because of the system slowdown. People are concerned about upcoming complexities they are going to face while filing GSTR-1 and 2. On the issue, Sudhir Halakhandi advised taxpayers not to wait till the last date and file the returns as soon as possible, if in case they want to avoid mismatch anomalies. He further suggested for preparation of sales data in advance and matching of the basic details with your buyers and sellers side-by-side.
CA Vipin Jain has said that if you didn’t get your credit or credit waiving, then laziness can be another reason after GSTN server. If you have filed the return on time but your buyer or seller didn’t yet, still you have to wait till they fill the return. One more reason for not getting credit can be filling ‘O’ instead of zero in GSTIN number, so filing the return on time and correctly both are very important.
Sudhir Singh, MD at Marg ERP, said that it is just about 2-3 months when the system will be facing errors and technical glitches, but when the system will become proficient enough it won’t take that much time to process the more of data.
Archit Gupta, MD at one of the GST technology firms, said that most of the traders are not aware of the real price of products and HSN code, which is making the mismatch between invoices. He further advised to take advantage of the last date extension and file the form as soon as possible, waiting for last day can be problematic. Though the government has compliance rating norms for traders, still the processing can take a long time.
Government Comments Over Credit Money Procedure
The government assured the taxpayers that they will get their refunds or credits on time and denied the claims which stated that GST council has more than 1,000 Crore rupees to pay to traders as refund claims or input credits. Finance ministry has clarified the statement with the fact that 66% people have chosen duty drawback scheme, that means 33% people’s refunds cannot be pending. The payoff procedure of refunds under VAT and excise duty will start just after filing GSTR-1 form.
The Last Date For TRAN-1 Announced
The last date of filing form TRAN-1 (which is filed by the taxpayers for the refund claims under previous tax regime) has been announced by the government. The last date is 30 October for filing all kind of original and amended forms. Sources said that the reason for extending the TRAN-1 can be that the government wants to avoid the credit claims right now.