Filing GST (Goods and Services Tax) returns is a mandatory process for every registered business in India. It not only ensures legal compliance but also helps businesses manage cash flow efficiently and avoid penalties.

However, many businesses make mistakes while filing their GST returns due to a lack of clarity about the process. Understanding the basics can make the filing process simple and error-free.

In this blog, we’ll explain the different types of GST returns and provide a step-by-step guide to filing GSTR-1 and GSTR-3B accurately, helping you stay compliant and confident with your GST filing.

What is a GST Return?

A GST return is a document submitted by businesses registered under the Goods and Services Tax regime. It records sales, purchases, sales tax collected (output tax) and purchases tax paid (input tax credit). Filing GST return online is compulsory and assists the government for all registered businesses.

GST returns help the government track tax liabilities while allowing businesses to claim input tax credits (ITC). Returns must be filed regularly on the GST portal, ensuring compliance and smooth tax management.

Different Types of GST Returns

Different types of GST returns in India are applicable to different categories of taxpayers. Here are the important types of GST returns you must know:

• GSTR-1: GSTR-1 is a monthly or quarterly return that reports all outward supplies or sales of a business. It is essential to ensure transparency and enable buyers to check and claim the accurate input tax credit.
• GSTR-3B: GSTR-3B is a monthly summary statement that reports total sales, purchases, input tax credit taken and tax payable. GSTR-3B is normally used by companies in combination with GSTR-1 to stay compliant with the law.
• GSTR-4: GSTR-4 is a quarterly return for small-scale businesses that are under the Composition Scheme.
• GSTR-5: Non-resident taxable persons who supply goods or services in India file GSTR-5 on a monthly basis. It records their sales, purchases and GST payments.
• GSTR-6: GSTR-6 is a monthly return that the Input Service Distributors submit to highlight the credit received and distributed among their units. It also guarantees the adequate allocation and use of input tax credits in organisations.
• GSTR-7: GSTR-7 is submitted monthly by businesses that deduct TDS (Tax Deducted at Source) under GST. It gives information on TDS deducted, paid and refunded.
• GSTR-8: It is filed by e-commerce operators who are obligated to Collect Tax at Source (TCS) on behalf of vendors selling via their platforms.
• GSTR-9: It is an annual return that aggregates the details for the financial year as a whole, both purchases and sales. It’s a reconciliation return for businesses and is to be filed for ordinary taxpayers (with some exception classes).

For regular businesses, the two most important returns are GSTR-1 (for outward supplies) and GSTR-3B (for tax summary and payment).

GST Filing Process in India: How to File GST Returns Online

Here is a detailed step-by-step guide on how to complete the GSTR filing process in India:

1. Log in to the GST Portal: Visit the online GST portal and click on the Login. Next, enter your username and password to log in.
2. Go to “Return Dashboard”: After logging in, click on “Services” > “Returns” > “Returns Dashboard.”
3. Select the Return Period: Select the return period from monthly, quarterly or annual.
4. Select the Return Form: For sales, select GSTR-1. For summary and tax payment, select GSTR-3B. Next, click on “Prepare Online.”
5. Enter Sales Details in GSTR-1: Enter invoice-wise details of sales (B2B, B2C, exports, etc.). Save the form, verify the details, and submit.
6. Fill GSTR-3B: Fill outward supplies, input tax credit, liability, and exempted sales. Save the form and submit.
7. Add Invoices: Add invoices/data manually or via JSON files that have been exported out of your accounting system.
8. Payment of Tax: After you’ve put in all the values in both the GSTR forms, check your credit and cash balance, and then adjust the final amount with the ITC against liability. Pay any tax payable through net banking, NEFT or RTGS using challan PMT-06.
9. File with DSC or EVC: Tick the declaration box, select the authorised signatory, and file the return using a Digital Signature Certificate (DSC) or Electronic Verification Code (EVC).

Once submitted, keep the acknowledgement slip for future reference.

GST Return Due Dates

Here are the GST return due dates you must know to ensure timely compliance and avoid penalties:

GST Return Type	Due Date
GSTR-1	Monthly: 20th of next month. Quarterly: 22nd or 24th of the subsequent month, depending on the state.
GSTR-3B	Monthly: 20th of next month. Quarterly: 22nd or 24th of the subsequent month, depending on the state.

Penalties for Late GST Return Filing

In case of non-compliance with the deadline, you will be charged with the following:

• Late Fee: ₹50 per day (₹25 CGST + ₹25 SGST). For NIL returns, ₹20 per day (₹10 CGST + ₹10 SGST).
• Interest: 18% per annum on the pending amount.

These amounts add up quickly enough, so it is always advisable to file your returns within the given time frame.

Tips for Easy GST Return Filing

Here are some tips that will help you avoid any mistakes or delays during the GST return filing process:

• Keep well-organised and updated records of all sales, purchases and tax invoices to prevent last-minute hassles.
• Periodically reconcile purchase invoices to have proper input tax credit claims.
• Check the Input Tax Credit (ITC) with your GSTR-2B. It will prevent income tax notices for mismatched credits.
• If there is no business activity during a tax period, you must file a NIL return, as it can lead to penalties and a detrimental impact on your compliance rating.
• File GST returns before the deadline to avoid delays due to technical failures.

The GST filing process can be tiring and complex at first. However, once you understand the steps and the forms that you need to fill out, it becomes a much easier process. Besides compliance, GST returns also help you get a business loan, as lenders (Banks and NBFCs) use them to evaluate the business’s financial health. Click here to apply for a business loan.

Frequently Asked Questions (FAQs)

1. What is the difference between GSTR-1 and GSTR-3B?

GSTR-1 is for reporting sales invoices, while GSTR-3B is a summary of sales, purchases, ITC, and tax payment.

2. Can I file GST returns without sales?

Yes, you must file a NIL return if there are no sales or transactions for the period.

3. What happens if I miss the GSTR filing deadline?

You will be charged both a late fee (₹50 per day) and interest (18% per annum on the pending amount) on the unpaid tax.

4. Can GST returns be revised after filing?

No, returns cannot be revised after you file them. However, you can make the corrections in future returns.

5. Do I need to file both GSTR-1 and GSTR-3B?

Yes, both need to be filed separately, as they serve different purposes. GSTR-1 provides all outward supplies (sales) invoice-wise, whereas GSTR-3B is a simplified monthly or quarterly summary return that states total sales, purchases, input tax credit claimed and tax payable.

6. What documents are required for filing GST returns?

Here is a list of documents that you require to file GST returns:

• Invoices for sales and purchases
• GSTIN
• Challan details
• Debit and credit notes
• E-way bills
• Bank account details

7. Is it possible to file GST returns offline?

No, you cannot file a GST return entirely online, as the submission and payment must be completed online through the GST portal.

8. Do GST returns help in obtaining a business loan?

Yes, prompt and correct GST returns will show that your business is financially sound and compliant with taxation, which will enhance your likelihood of securing a loan.

9. What if my ITC does not match the supplier details?

You should contact the supplier to correct the mismatch, as input tax credit (ITC) can be claimed only when it appears in GSTR-2B.

10. What is the QRMP scheme of GST filing?

Quarterly Return-Monthly Payment (QRMP) enables qualified businesses to submit GSTR-1 and GSTR-3B quarterly and pay taxes on a monthly basis.