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2017-04-26 00:00:00GST CenterEnglishBusinesses need to file returns thrice a month under GST which means that automation and a well-defined process will be vital to run a... GST Returns for Your Business

Filing GST Returns for Your Business

2 min read

As GST will roll out on July 1, 2017, every business will have to file monthly GST returns as part of its GST compliance. Even if there is no activity carried out in business, the business has to still file the returns.

Let us check out the various returns to be filed by businesses and their respective due dates. The return has to be e-filed and no paper returns will be acceptable in the GST regime. The table below explains various returns and their due dates which must be filed by businesses under the GST regime.

ReturnForTo be filed by 
GSTR 1Outward supplies made by taxpayer (Sales)10th of the next month
GSTR 2Inward supplies received by a taxpayer (Purchases)15th of the next month
GSTR 3Monthly return20th of the next month
GSTR 4Quarterly return for Composite Taxpayer18th of the month next to quarter
GSTR 5Return for Non-Resident Foreign TaxpayerLast day of registration
GSTR 6Return for Input Service Distributor (ISD)15th of the next month
GSTR 7Return for Tax Deducted at Source10th of the next month
GSTR 8Return for e-commerce operator10th of the next month
GSTR 9Annual ReturnBy 31st December of next financial year

Monthly GST Returns Filing

Regular taxpayers would have to file GSTR-1, GSTR-2 and GSTR-3 (monthly returns). Taxpayers with multiple registrations within a state would have to file GSTR-1, GSTR-2 and GSTR-3 for each of the GST registrations obtained separately. All the monthly returns have to be filed online through a common portal managed by the Goods and Service Tax Network (GSTN).

Annual GST Return Filing

Each business will have to file an annual return, known as GSTR 9. This will be on top of the monthly returns and is to be filed by 31st December of the next financial year.

Composite Taxpayer and GST Filing

Composite taxpayers will have to file GSTR 4, which will be filed quarterly. The composite tax will be a flat rate of tax, which a business pays based on their turnover in a specific period. They will not be able to take input credits for their purchases.

Taxpayers eligible for the composite scheme can opt against the composite scheme and file monthly returns and thereby claim input tax credits on their purchases/supplies as well. Annual return (GSTR-8) will be filed by all normal / regular taxpayers. It will be based on financial records.

A compounding taxpayer will also need to file a simple annual return. With GST, though the taxes are getting simplified which is a good for all businesses, there may be an increased burden of compliances on businesses as they have to file a total of 37 returns in year (3 x monthly returns for 12 months; and one return annually)

Related Articles: GST Compliance Rating and Why It is Important for You, Composition of Tax Levy Scheme for Small Business in GST, GST Impact on IT and Consultancy Services

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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