What is GST Return Filing?

GST return filing is the process of reporting business transactions, including sales, purchases, tax collected, and tax paid to the government under the Goods and Services Tax (GST) system. It ensures transparency and compliance with GST laws.

Who Should File GST Returns?

All registered businesses under GST must file returns, including:

• Regular taxpayers

• Composition scheme taxpayers

• E-commerce operators

• Input service distributors (ISD)

• Non-resident taxable persons

Types of GST in India

Goods and Services Tax (GST) is classified into different types based on the nature of transactions and jurisdiction. The four main types of GST are CGST, SGST, IGST, and UTGST.

• Central Goods and Services Tax (CGST)

  • Levied by: Central Government

  • Applicable on: Intra-state transactions (within the same state)

  • Collected by: Central Government

  • Rate: Usually equal to SGST (varies by product/service category)

• State Goods and Services Tax (SGST)

  • Levied by: State Government

  • Applicable on: Intra-state transactions (within the same state)

  • Collected by: Respective State Government

  • Rate: Usually equal to CGST

• Integrated Goods and Services Tax (IGST)

  • Levied by: Central Government

  • Applicable on: Inter-state transactions (between two states or union territories) & Imports

  • Collected by: Central Government, later shared with the destination state

  • Rate: Equal to CGST + SGST combined

How GST is Applied in Different Transactions

Transaction Type

Applicable GST

Sale within the same state

Sale between two different states

Import of goods/services

Export of goods/services

CGST + SGST

IGST

IGST

Zero-rated (No GST)

GST Return Types:

1. GSTR-1: Details of Outward Supplies (Sales)

• Filed by regular taxpayers to report sales transactions.

• Can be filed monthly (if turnover > ₹5 crore) or quarterly under the QRMP scheme.

• Due Date: 11th of next month (Monthly) / 13th of next quarter (Quarterly)

2. GSTR-2A & GSTR-2B: Auto-Generated Purchase Statements

• GSTR-2A: Shows purchases made (auto-filled based on GSTR-1 of suppliers).

• GSTR-2B: Provides ITC details available for a given period

• Helps businesses claim ITC correctly.

3. GSTR-3B: Summary Return

• Includes total sales, tax paid, ITC claimed, and final GST liability.

• Filed monthly by regular taxpayers.

• Due Date: 20th of next month

4. GSTR-4: Quarterly Return for Composition Scheme

• For businesses under the Composition Scheme (turnover up to ₹1.5 crore).

• Contains details of supplies, tax liability, and payments made.

• Due Date: 18th of the month after the quarter

5. GSTR-5: Return for Non-Resident Taxpayers

• Filed by non-resident taxable persons doing business in India.

• Reports sales, purchases, and tax paid.

• Due Date: 20th of next month

6. GSTR-6: Return for Input Service Distributors (ISD)

• Filed by businesses distributing ITC among branches.

• Provides details of ITC received and distributed.

• Due Date: 13th of next month

7. GSTR-7: Return for TDS under GST

• Filed by entities deducting Tax Deducted at Source (TDS) under GST.

• Reports TDS details and payments.

• Due Date: 10th of next month

8. GSTR-8: Return for E-commerce Operators

• Filed by e-commerce platforms deducting Tax Collected at Source (TCS).

• Reports supplies made through the platform and tax collected.

• Due Date: 10th of next month

9. GSTR-9: Annual GST Return

• A consolidated summary of all monthly/quarterly returns filed during the year.

• Required for taxpayers with turnover > ₹2 crore.

• Due Date: 31st December of the next financial year

10. GSTR-9C: Reconciliation Statement & Audit Report

• Filed by businesses with turnover > ₹5 crore.

• Requires a CA/CMA audit to reconcile tax details.

• Due Date: 31st December of the next financial year

11. GSTR-10: Final Return after GST Cancellation

• Filed when GST registration is canceled or surrendered.

• Due Date: Within 3 months of cancellation

12. GSTR-11: Return for UIN Holders

• Filed by foreign embassies, consulates, and other UIN holders.

• Due Date: 28th of the next month

Regular Taxpayer under GST

A Regular Taxpayer under the Goods and Services Tax (GST) system in India is any business or individual registered under GST who files returns regularly and complies with tax regulations. This category allows businesses to collect GST, claim Input Tax Credit (ITC), and meet tax obligations as per government rules.

• What Is Regular TaxPayer Meaning & Benefits

• Who is a Regular Taxpayer?

A Regular Taxpayer is:

1. A business with an annual turnover above ₹40 lakh (for goods), ₹20 lakh (for services), or ₹10 lakh (for special category states).

2. Any business making inter-state sales or supplying through e-commerce platforms.

3. A taxpayer who collects GST from customers and pays it to the government

4. Eligible to claim ITC on GST paid for purchases.

GST Compliance for Regular Taxpayers

GST Returns to be Filed:

• GSTR-1 – Monthly/quarterly details of sales (outward supplies).

• GSTR-3B – Monthly summary of sales, ITC claims, and tax payments

• GSTR-9 – Annual GST return for businesses.

GST Payment & Invoicing:

• Businesses must charge GST on sales and file returns regularly.

• GST payments can be adjusted against available Input Tax Credit (ITC).

• E-Invoicing mandatory for businesses with turnover above ₹5 crore.

GST Registration & Cancellation:

• Businesses can convert from the Composition Scheme to Regular GST if turnover exceeds limits.

• GST registration can be cancelled if the business discontinues or falls below the threshold.

A Composition Taxpayer under GST is a small business that chooses a simple and easy tax system called the Composition Scheme. Instead of paying GST on every sale and keeping detailed records, they pay a small fixed percentage of their total sales as GST.

Composition Taxpayer under GST

• Less paperwork and fewer GST returns

• Lower tax rates compared to regular GST

• No need to collect GST from customers

• Cannot claim tax credit on purchases

• Cannot sell outside their state

• Cannot sell through e-commerce platforms

This scheme is ideal for small traders, shopkeepers, and restaurants who want to reduce GST compliance and focus on their business.

Benefits of the Composition Scheme ( Small Taxapayer)

Lower Tax Rate: Businesses pay GST at a fixed percentage of turnover:

• Manufacturers & Traders:

  1% of turnover (0.5% CGST + 0.5% SGST)

• Restaurants (Serving Non-Alcoholic Beverages):

  5% (2.5% CGST + 2.5% SGST)

• Service Providers (Under ₹50 Lakh Turnover):

  6% (3% CGST + 3% SGST)

1. Simple GST Returns: Only one quarterly return (GSTR-4) and annual return (GSTR-9A) need to be filed.

2. No Monthly GST Payments: Taxes are paid quarterly, reducing compliance burden.

3. Less Compliance & Paperwork: No need for detailed invoicing or input tax credit calculations.

GST Compliance for Composition Taxpayers

GST Returns to be Filed:

• GSTR-4 – Quarterly return for tax payment and summary of turnover.

• CMP-08 – Quarterly tax payment form.

• GSTR-9A – Annual GST return (optional).

Restrictions on Composition Taxpayers:

• Cannot claim Input Tax Credit (ITC).

• Cannot charge GST separately on invoices.

• Cannot make inter-state sales or supply goods through e-commerce platforms.

• Must mention “Composition Taxpayer – Not Eligible to Collect GST” on invoices.

Who Should Choose the Composition Scheme?

• Small traders, manufacturers, and restaurant owners who sell within the same state.

• Businesses with low expenses on GST inputs (as they cannot claim ITC).

• Those looking for simple compliance and lower tax rates.

Why Choose Us for GST Services?

At Clearline Professional Chartered Accountant, we offer expert GST services, including:

• GST Registration & Compliance Assistance

• Monthly & Annual GST Return Filing

• Input Tax Credit Optimization

• GST Audit & Consultation

Need GST Assistance? Contact us today!