GST Retuen Filing Compliances In India

At the heart of GST compliance lies the filing of returns, which serves as a mechanism for taxpayers to report their transactions, claim input tax credits (ITC), and settle tax liabilities. Accurate and timely return filing ensures transparency, facilitates seamless credit flow across the supply chain, and helps the government monitor economic activities.

For businesses, it is not just a regulatory obligation but a critical process that impacts cash flow, vendor relationships, and overall operational efficiency. This article delves into the legal framework governing GST returns, outlining key requirements and the consequences of non-compliance.

Legal Requirements for GST Return Filing

The GST regime categorizes returns based on taxpayer type, turnover, and nature of operations. Filings are electronic and must be done via the official GST portal. Key returns include:

1. GSTR-1 (Outward Supplies): This details sales and supplies made. Taxpayers with an annual turnover up to Rs. 1.5 crore file quarterly, due by the last day of the month following the quarter. Those above Rs. 1.5 crore file monthly, due by the 11th of the next month.
2. GSTR-3B (Summary Return): A self-assessed summary of outward supplies, ITC claims, and tax payments. All regular taxpayers file this monthly, due by the 20th of the succeeding month. For those under the Quarterly Returns with Monthly Payment (QRMP) scheme (turnover up to Rs. 5 crore), it can be quarterly, with monthly payments.
3. GSTR-9 (Annual Return): An annual consolidation of supplies, ITC, and taxes for the financial year. Mandatory for regular taxpayers, due by December 31 of the following financial year. For turnover exceeding Rs. 5 crore, it is accompanied by GSTR-9C, a reconciliation statement certified by a chartered accountant.

Specialized Returns

1. GST CMP-08 and GSTR-4: For composition scheme taxpayers (simplified tax at fixed rates for small businesses), CMP-08 is quarterly (due 18th of the month after the quarter), and GSTR-4 is annual (due April 30 following the financial year).
2. GSTR-5: Non-resident taxable persons file monthly, due by the 20th of the next month.
3. GSTR-6: Input Service Distributors (ISDs) file monthly, due by the 13th of the next month.
4. GSTR-7 and GSTR-8: For tax deductors at source (TDS) and e-commerce operators collecting tax at source (TCS), respectively, both monthly and due by the 10th of the next month.
5. GSTR-10: Final return upon registration cancellation, due within three months.
6. GSTR-11: For entities with Unique Identity Numbers (UINs, like foreign diplomatic missions), monthly and due by the 28th.

Penal Provisions for Non-Compliance

Non-adherence to GST return filing attracts stringent penalties under Sections 122 to 125 of the CGST Act, aimed at deterring evasion and encouraging timely compliance. These include late fees, interest on unpaid taxes, and heavier fines for deliberate violations.

• Late Fees: Charged for delayed filings, varying by return type. For GSTR-1 and GSTR-3B, it is Rs. 50 per day (Rs. 25 each under CGST and SGST), capped at Rs. 5,000 per return. Nil returns incur Rs. 20 per day (Rs. 10 each). For GSTR-9 and GSTR-9C, the fee is Rs. 200 per day (Rs. 100 each), limited to 0.05% of turnover in the relevant state. Other returns like GSTR-6, GSTR-7, and GSTR-8 carry Rs. 200 per day, with caps up to Rs. 5,000.

• Interest on Delayed Payments: Unpaid or short-paid taxes attract 18% per annum interest from the due date until payment. This is calculated on the gross liability, without offsetting available ITC.