Goods and Services Tax (GST) in India mandates businesses to file regular returns to ensure compliance with tax regulations. The type and frequency of GST returns depend on the nature of the business and the type of supplies made. Here’s an overview of GST returns applicable to different types of businesses.
GSTR-4 is a return specifically designed for taxpayers who have opted for the Composition Scheme under the Goods and Services Tax (GST) regime in India. This return simplifies the compliance process for small businesses and helps them report their turnover and tax liabilities in a more streamlined manner.
Key Features of GSTR-4
Who Should File GSTR-4:
Taxpayers registered under the Composition Scheme, which is available for small businesses with a turnover of up to ₹1.5 crore (₹75 lakh for special category states).
Contents of GSTR-4:
Summary of outward supplies made during the quarter.
Details of tax payable under the Composition Scheme.
Input tax credit availed, if applicable.
Summary of purchases, including both taxable and non-taxable supplies.
Frequency of Filing:
GSTR-4 must be filed quarterly.
Due Date:
The due date for filing GSTR-4 is the 18th of the month following the end of the quarter. For example:
For the quarter ending June 30, GSTR-4 is due by July 18.
Filing Process:
Login: Taxpayers must log in to the GST portal.
Select GSTR-4: Choose the GSTR-4 form for the relevant quarter.
Fill Details: Input details of outward supplies and any other required information.
Review and Submit: After reviewing, submit the return electronically.
Payment of Tax:
Taxpayers are required to pay the tax due before filing GSTR-4. The payment should be made using the appropriate challan on the GST portal.
Amendments and Corrections:
Once filed, GSTR-4 cannot be revised. Taxpayers must ensure accuracy before submission.
Importance of GSTR-4
Simplified Compliance: GSTR-4 provides a simpler way for small businesses to report their income and tax liabilities without the need for extensive documentation.
Tax Benefits: Being part of the Composition Scheme allows businesses to pay tax at a lower rate compared to regular taxpayers, benefiting those with a lower turnover.
Avoiding Penalties: Timely filing of GSTR-4 helps avoid late fees and penalties that can arise from non-compliance.
Maintaining Good Standing: Regular filing ensures that businesses maintain a good relationship with tax authorities and avoid any legal issues.
GSTR-5 is a specific return for non-resident taxable persons (NRTPs) who supply goods and/or services in India. This return allows non-residents to report their sales and comply with the Goods and Services Tax (GST) regulations in India.
Key Features of GSTR-5
Who Should File GSTR-5:
Non-resident taxable persons who are registered under GST in India.
Non-residents who provide goods or services in India, including e-commerce operators.
Contents of GSTR-5:
Details of outward supplies (sales) made during the month.
Input tax credit availed on purchases, if applicable.
Summary of taxable and exempt supplies.
Details of tax payable on the sales made.
Frequency of Filing:
GSTR-5 is required to be filed monthly.
Due Date:
The due date for filing GSTR-5 is the 20th of the following month. For example, for supplies made in March, GSTR-5 is due by April 20.
Filing Process:
Login: Non-residents must log in to the GST portal using their credentials.
Select GSTR-5: Choose the GSTR-5 form for the relevant month.
Fill Details: Input details regarding outward supplies, tax liabilities, and input tax credit.
Review and Submit: After reviewing the information, submit the return electronically.
Payment of Tax:
Non-residents must pay the applicable GST before filing GSTR-5. This is done through the GST portal using a challan.
Amendments and Corrections:
Once filed, GSTR-5 cannot be revised. It’s important to ensure that all details are accurate before submission.
Importance of GSTR-5
Compliance for Non-Residents: GSTR-5 enables non-resident businesses to comply with Indian tax laws, ensuring they meet their obligations when conducting business in India.
Avoiding Penalties: Timely filing of GSTR-5 helps non-residents avoid late fees and penalties associated with non-compliance.
Tax Transparency: Filing GSTR-5 contributes to maintaining transparency in the taxation system, allowing the government to monitor foreign business activities.
Input Tax Credit: Non-residents can claim input tax credit on their purchases if they are supplying taxable goods or services, helping manage overall tax liability.
GSTR-6 is the return specifically designed for Input Service Distributors (ISDs) under the Goods and Services Tax (GST) framework in India. ISDs are businesses that receive input tax credit on services received and distribute this credit to their branches or units.
Key Features of GSTR-6
Who Should File GSTR-6:
Input Service Distributors (ISDs) registered under GST. ISDs can be businesses that provide services and receive input services from various vendors.
Contents of GSTR-6:
Details of input tax credit distributed to other units or branches.
Summary of input services received.
Details of input tax credit claimed on services received.
Information on any adjustments or reversals of credit.
Frequency of Filing:
GSTR-6 is required to be filed monthly.
Due Date:
The due date for filing GSTR-6 is the 13th of the following month. For example, for the month ending March 31, GSTR-6 is due by April 13.
Filing Process:
Login: ISDs must log in to the GST portal using their credentials.
Select GSTR-6: Choose the GSTR-6 form for the relevant month.
Fill Details: Input details regarding input tax credit received and distributed.
Review and Submit: After reviewing the information, submit the return electronically.
Payment of Tax:
There is no payment of tax involved in GSTR-6 as it is primarily a reporting return for input tax credits.
Amendments and Corrections:
Once filed, GSTR-6 cannot be revised. It’s essential to ensure that all details are accurate before submission.
Importance of GSTR-6
Credit Distribution: GSTR-6 allows ISDs to properly distribute the input tax credit among their branches or units, ensuring compliance with GST regulations.
Avoiding Penalties: Timely filing helps ISDs avoid late fees and penalties associated with non-compliance.
Transparency: Filing GSTR-6 contributes to maintaining transparency in the credit distribution process, which is crucial for tax administration.
Ensuring Proper Input Tax Credit: Accurate reporting helps ISDs and their units claim the correct amount of input tax credit, thus managing their overall tax liability effectively.
GSTR-7 is the return required to be filed by taxpayers who are required to deduct tax at source (TDS) under the Goods and Services Tax (GST) regime in India. This return is essential for ensuring compliance with tax deduction regulations and for proper reporting of TDS.
Key Features of GSTR-7
Who Should File GSTR-7:
Taxpayers who are mandated to deduct TDS while making payments to suppliers for goods or services. This includes government bodies, public sector undertakings, and certain other specified entities.
Contents of GSTR-7:
Details of the TDS deducted on payments made.
Information regarding the outward supplies for which TDS was deducted.
Summary of tax deposited with the government.
Frequency of Filing:
GSTR-7 is required to be filed monthly.
Due Date:
The due date for filing GSTR-7 is the 10th of the following month. For example, for the month of March, GSTR-7 is due by April 10.
Filing Process:
Login: Taxpayers must log in to the GST portal using their credentials.
Select GSTR-7: Choose the GSTR-7 form for the relevant month.
Fill Details: Input details related to TDS deducted, outward supplies, and tax deposited.
Review and Submit: After verifying the information, submit the return electronically.
Payment of Tax:
While GSTR-7 involves reporting TDS, the actual TDS amount should have already been deposited with the government before filing this return.
Amendments and Corrections:
Once GSTR-7 is filed, it cannot be revised. It is crucial to ensure all information is accurate before submission.
Importance of GSTR-7
Tax Compliance: GSTR-7 helps ensure that TDS deducted by entities is reported accurately, contributing to overall compliance with GST regulations.
Avoiding Penalties: Timely filing of GSTR-7 helps avoid late fees and penalties associated with non-compliance.
Tracking TDS Collections: This return enables the government to monitor TDS collections, which is vital for fiscal management.
Transparency: Filing GSTR-7 contributes to maintaining transparency in the tax deduction process, reinforcing the integrity of the tax system.
GSTR-8 is the return that must be filed by e-commerce operators who are required to collect tax at source (TCS) under the Goods and Services Tax (GST) regime in India. This return plays a crucial role in reporting the TCS collected on sales made through e-commerce platforms.
Key Features of GSTR-8
Who Should File GSTR-8:
E-commerce operators registered under GST who collect TCS on behalf of suppliers selling goods and/or services through their platforms.
Contents of GSTR-8:
Details of supplies made through the e-commerce platform.
Amount of TCS collected during the reporting period.
Details of the suppliers for whom TCS was collected.
Summary of total sales made and corresponding TCS payable.
Frequency of Filing:
GSTR-8 is required to be filed monthly.
Due Date:
The due date for filing GSTR-8 is the 10th of the following month. For example, for supplies made in March, GSTR-8 is due by April 10.
Filing Process:
Login: E-commerce operators must log in to the GST portal using their credentials.
Select GSTR-8: Choose the GSTR-8 form for the relevant month.
Fill Details: Input information regarding TCS collected, sales made, and any other required details.
Review and Submit: After verifying the information, submit the return electronically.
Payment of Tax:
The TCS collected must be paid to the government before filing GSTR-8.
Amendments and Corrections:
Once filed, GSTR-8 cannot be revised. It’s important to ensure all details are accurate before submission.
Importance of GSTR-8
Compliance for E-Commerce Operators: GSTR-8 ensures that e-commerce operators comply with TCS provisions under GST, maintaining their legal obligations.
Avoiding Penalties: Timely filing helps avoid late fees and penalties related to non-compliance with tax regulations.
Government Revenue: GSTR-8 plays a vital role in collecting revenue for the government, as it ensures that TCS is accurately reported and remitted.
Transparency in Transactions: Filing GSTR-8 helps maintain transparency in the sale transactions made through e-commerce platforms, which is essential for effective tax governance.
GSTR-11 is the return that must be filed by persons or entities holding a Unique Identification Number (UIN) under the Goods and Services Tax (GST) regime in India. This return is specifically for claiming a refund of the input tax credit (ITC) on inward supplies.
Key Features of GSTR-11
Who Should File GSTR-11:
Entities or individuals with a UIN, typically foreign diplomats, United Nations agencies, and other specific bodies that are exempt from paying GST but can claim refunds on eligible purchases.
Contents of GSTR-11:
Details of inward supplies received by the UIN holder.
Summary of purchases eligible for a refund.
Details of the tax paid on those purchases.
Frequency of Filing:
GSTR-11 is required to be filed monthly.
Due Date:
The due date for filing GSTR-11 is the 28th of the following month. For example, for the month ending March 31, GSTR-11 is due by April 28.
Filing Process:
Login: UIN holders must log in to the GST portal using their credentials.
Select GSTR-11: Choose the GSTR-11 form for the relevant month.
Fill Details: Input information regarding inward supplies and the corresponding tax paid.
Review and Submit: After verifying the information, submit the return electronically.
Claiming Refund:
GSTR-11 facilitates the process of claiming refunds for the eligible input tax credit on purchases made by UIN holders.
Amendments and Corrections:
Once GSTR-11 is filed, it cannot be revised. Ensuring accuracy before submission is essential.
Importance of GSTR-11
Refund Claims: GSTR-11 is crucial for UIN holders to claim refunds on GST paid for purchases, ensuring that they benefit from their entitlement under the GST law.
Compliance: Timely filing of GSTR-11 helps maintain compliance with GST regulations, avoiding penalties associated with late submissions.
Transparency: Filing GSTR-11 contributes to transparency in tax administration by allowing the government to monitor and manage refunds to exempt entities.
Simplified Process: The return simplifies the process for UIN holde
rs to report and claim their eligible ITC, streamlining their financial operations.
Understanding the GST return filing requirements specific to each type of business is crucial for compliance and efficient tax management. Businesses should keep track of deadlines, ensure accurate reporting, and consult tax professionals if needed to navigate the complexities of the GST system effectively. This proactive approach can lead to smoother operations and better financial management.