Businesses need to be registered under the GST when they cross a certain annual threshold. GST registration is a compulsory requirement for businesses, and these registered entities have to file monthly, quarterly, or annual returns based on their eligibility. Filing GST returns is a legal compliance requirement, and for that, accurate invoicing, proper registration, and maintenance of records are important. When businesses are GST compliant, they can get the benefits of Input Tax Credit, lower tax rates, uninterrupted business operations, and improved cash flow. This post offers key insights on GST returns and compliance requirements for businesses.
Key Insights on GST Returns
What are GST Returns?
GST returns are kind of forms which registered businesses have to file and submit to the tax authorities. It contains details about income, sales, expenses, purchases that a business make in a financial year. For example, GSTR 9 is an annual return which registered businesses have to submit by the 31st of December each financial year.
Some of the returns are to be filed on monthly basis to report the sales/purchases and financial activities of business. For example, GSTR 1 is a monthly or quarterly return which registered businesses have to file. Another one is GSTR 3B that is a monthly summary return all registered businesses have to file except those opted for composition scheme.
Types of GST Returns
Under the GST, there are 13 returns such as the following
- GSTR 1
- GSTR 3B
- GSTR 4
- GSTR 5
- GSTR 5A
- GSTR 6
- GSTR 7
- GSTR 8
- GSTR 9
- GSTR 10
- GSTR 11
- CMP 08
- ITC 4
Due Dates for Filing GST Returns
GSTR 1: it is monthly return and businesses have to file it by the 13th of month succeeding the quarter.
GSTR 3B: normal taxpayers have to file it by the 20th of each month while QRMP registered businesses have to file it quarterly on the 22nd or 24th of the month succeeding the quarter.
CMP 08: it is a statement cum challan and to be filed quarterly on the 18th of the month succeeding the quarter for registered taxpayers under composition scheme.
GSTR 4: it is to be filed annually by the 30th of June succeeding a financial year (from FY 2024-25). Earlier, up to FY 2023-24, it was to be filed by the 30th of month succeeding a financial year.
GSTR 5: non resident taxable person to file GSTR 5 monthly by the 20th of the next month.
GSTR 5A: filed by non resident OIDAR service providers by the 20th of next month, monthly.
GSTR 6: input service distributor are to file GSTR 6 by the 13th of the next month, monthly.
GSTR 7: registered businesses deducting TDS have to file GSTR 7 monthly by the 10th of the next month.
GSTR 8: e-commerce operators have to file it by the 10th of the next month, monthly.
GSTR 9: it is an annual return for normal taxpayers and filed annually by the 31st of December of the next financial year.
GSTR 9C: It is self certified reconciliation statement and filed annually by the 31st of December of the next FY.
GSTR 10: taxpayers whose GST registration is cancelled within three months from the date of registration cancellation.
Key Insights on GST Compliance Requirements
Regular File Your GST Returns is a legal requirement, and registered businesses have to meet these criteria. A single business does not need file all the returns and each specific business dealing in goods and services has to file accordingly.
Another compliance requirement is registration under the GST. When the aggregate annual turnover exceeds Rs 20 lakhs in services and Rs 40 lakhs in the supply of goods, a business has to be registered under the GST.
Issuing e-ways and generating e-invoices are also important, as they allow businesses to freely move goods from one place to another without any barriers to transportation. For free movement of goods and smooth logistics, businesses must have to issue e-waybills and e-invoices.
Maintenance of records is one such compliance requirement; if not done properly, business has to face legal issues. Therefore, they must make sure that all the records on sales, purchases, inventory, and transactions are recorded to the point with updated returns.
Get Started with TaxDunia
To know how to meet the compliance smoothly and file the returns on time, reach out to TaxDunia. Our team of professionals will handle the taxes for you while you can focus on the growth of the business. The first step to meet the compliance is to get registered under the GST and then follow other rules as well.
