GST Returns and GST Filing

What is a GST Return?

A GST return is a document that contains details related to the income of registered taxpayers that has to be filed by said taxpayer to the tax administrative authorities. The authorities calculate tax liability based on these reports.

In GST there are couple of GST Return forms that a registered dealer has to file:

Sales return (GSTR 1)
Purchases return (GSTR 2)
Output GST (on sales - GSTR 3)
Input tax credit (GST paid on purchases)

Who has to file the GST Returns?

All GST registered dealers have to file three monthly returns and one annual return. The GST system has been built so that you only have to manually enter or upload details of one monthly return, the GSTR-1 (your sales return). The other two returns, GSTR 2 (purchases return) and GSTR 3 (output GST on sales) get auto-populated with data from the GSTR-1 you and your vendors filed.

Some dealers who have registered under the composition scheme, have to file separate returns at different times, more on this later in the article.

What type of GST Returns does a business have to file?

For registered dealers that pay GST these are the required forms:

GSTR 1	Details of outward supplies of taxable goods and/or services (sales details) effected.	Monthly	10th of Next month 10th of Oct for July For August & September 2017 dates will be announced by government
GSTR 2	Details of inward supplies of taxable goods and/or services (purchases details) effected claiming input tax credit.	Monthly	15th of Next month 31st Oct for July For August & September 2017 dates will be announced by government
GSTR 3	Return populated based on finalization of details of outward and inward supplies along with the payment of the tax amount.	Monthly	12th of Next month 10th of Nov for July *For August & September 2017 dates will be announced by government
GSTR 9	Annual Return	Annually	31st December of next financial year

GSTR-3B

Return on monthly provisions that needs to be filed by 20th of next month.

Has to be filed from July 2017 to March 2018.

As per the last meeting of the GST Council the following decision were taken:

GSTR-1

Quarterly Returns Filing (For taxpayers with Annual Turnover upto Rs. 1.5 Crore, who opt for quarterly returns)

Quarter:	Due date:
July - September	10th of January 2018
October - December	15th Feb 2018
January - March	30th April 2018

For Taxpayers with Annual turnover of more than Rs 1.5 cr and Taxpayers with Annual turnover of upto Rs 1.5 cr who opt for monthly return filing:

Period	Due Dates
July - Nov	10th January 2018
Dec	10th Feb 2018
Jan	10th March 2018
Feb	10th April 2018
March	10th May 2018

For dealers who fall under the composition scheme the following returns need to be filed:

GSTR-4	Return for compounding taxable person	Quarterly	18th of the month succeeding the quarter *For July & September 2017 due date is 15th November 2017.
GSTR-9A	Annual Return	Monthly	15th of Next month 31st of December of next financial year

GST Explained

What is GST bill?

GST, short for Goods and Services tax, is a new tax that will be imposed on the sale and purchase of goods and services in India. GST is meant to replace all taxes in India with a single unified tax applied to value addition instead of the total value of the product at each stage in the supply chain.

This method provides credit for the input tax paid on the purchase of goods and services, which can be offset with the tax to be paid on the supply of goods and services. As a result, this reduces the overall manufacturing cost, with the end customer paying less.

Which goods and services are exempted from GST?

With certain current taxes remaining, the following goods and services will be fully or partially exempted from the GST

What are the GST benefits for your business?

Free movement of goods: Business owners will be able to sell more in other states without having to worry about interstate transaction costs. With GST, the entry tax will be eliminated, which will save time and money spent.

What taxes does GST replace?

Currently, there are many indirect taxes that both the state and central governments are collecting on every purchase and sale.

How will GST work in practice?

The GST will follow a similar model with the one before it

What is the proposed GST rate?

GST will have a 4-tier tax structure

Why is GST being introduced in India?

One of the main reasons for GST being introduced in India is the tax burden that falls both on companies and consumers. With the current tax system, there are multiple taxes added at each stage of the supply chain, without taking credit for taxes paid at previous stages. As a result, the end cost of the product does not clearly show the actual cost of the product and how much tax was applied. This cascading structure is too complex and inefficient.

How will Inter-state transactions work in GST?

For inter-state transactions, the Centre will levy Integrated GST (IGST), which is equal to the average of the CGST and SGST rates. After applying IGST, CGST and SGST credits received from purchases, the seller will then pay the remaining IGST on the added value.

What is the exemption limit in the GST?

Businesses with turnover revenue of 20 lakhs and above will have to register and file for GST returns, with a threshold of 10 lakhs for businesses in the north east and hill states.

How will imports be handled in GST?

A combination of CGST and SGST will be applied to the import of goods and services that come to India. Tax benefits and credits will be given to the state where the imported goods and services are consumed.