Understanding the Different Types of GST Returns

Posted In | Finance | Accounting Software | India Accounting Tax

The Goods and Services Tax (GST) is a comprehensive, multi-stage, destination-based tax that is levied on every value addition. It was introduced in India on 1st July 2017 and since then, it has replaced many indirect tax laws that previously existed in the country. One of the most critical aspects of GST is the filing of GST returns. This article will help you understand the different types of GST returns and their relevance.
 

What is a GST Return?

A GST return is a document that contains details of income which a taxpayer is required to file with the tax administrative authorities. This data is used to calculate tax liability. Under GST, a registered dealer has to file GST returns that include:

• Purchases
• Sales
• Output GST (On sales)
• Input tax credit (GST paid on purchases)
   

Types of GST Returns
 

GSTR-1

GSTR-1 is a monthly or quarterly return that should be filed by every registered dealer. It contains details of all the outward supplies i.e., sales. The due date for filing GSTR-1 is the 10th of the subsequent month for those with monthly turnover of more than Rs. 1.5 crores and the last day of the subsequent month for those with turnover less than Rs. 1.5 crores.
 

GSTR-2A

GSTR-2A is an automatically generated return from the information provided in GSTR-1, GSTR-5, and GSTR-6 by your supplier. It is only a purchase-related tax return that is automatically filled for all the registered taxable persons.
 

GSTR-3B

GSTR-3B is a simplified summary return and the purpose of the return is for taxpayers to declare their summary GST liabilities for the tax period and the discharge of these liabilities. The due date for filing this return is the 20th of the subsequent month.
 

GSTR-4

GSTR-4 is a return that needs to be filed by taxpayers who have opted for the GST Composition Scheme. It is required to be filed on a quarterly basis by the 18th of the month following the quarter.
 

GSTR-5

GSTR-5 is to be filed by non-resident taxable persons who conduct businesses in India. The due date for filing GSTR-5 is the 20th of the subsequent month.
 

Understanding the various GST returns, their applicability, and their due dates is crucial for businesses to remain GST compliant and avoid penalties. With the right knowledge, the process of filing GST returns can become a simple and hassle-free process.