What are the different types of GST returns?

Types of GST Returns in India

Under the Goods and Services Tax (GST) regime, various types of returns need to be filed by registered taxpayers based on their business activities. These returns are necessary for tax compliance and reporting. The returns must be filed through the GSTN (Goods and Services Tax Network) portal, and the frequency of filing depends on the type of taxpayer.

Different Types of GST Returns

1. GSTR-1:
   • Who files it: All regular taxpayers (including taxpayers registered for GST as businesses or individuals).
   • Frequency: Monthly (for regular taxpayers). For small taxpayers under the Composition Scheme, GSTR-4 is filed instead.
   • Purpose: GSTR-1 is used to report outward supplies of goods and services. It details the sales made by a taxpayer and is filed monthly (for regular taxpayers).
   • Key Information: Includes details of invoices, credit notes, debit notes, and other sales-related data. This return is critical for the GST compliance process, as it directly impacts the buyer’s ability to claim input tax credit (ITC).
2. GSTR-2A:
   • Who files it: This is an auto-populated return available to all taxpayers.
   • Frequency: Monthly.
   • Purpose: GSTR-2A shows details of inward supplies and serves as a record of the purchases made by a taxpayer. It auto-populates based on the suppliers’ GSTR-1 and contains details about the GST paid on purchases.
   • Key Information: Includes information on goods/services purchased, the tax paid, and input tax credits that can be claimed by the taxpayer.
3. GSTR-3B:
   • Who files it: All regular taxpayers (excluding those under the Composition Scheme).
   • Frequency: Monthly
   • Purpose: This is a summary return used to file details about outward and inward supplies, including details of tax liability and tax paid for a given period. It is filed to pay GST based on the sales and purchases made during the month.
   • Key Information: Summarized information about the total sales, tax payable, input tax credit, and GST liability. This form also allows businesses to offset taxes payable with ITC.
4. GSTR-4:
   • Who files it: Businesses registered under the Composition Scheme (small taxpayers with annual turnover up to ₹1.5 crore).
   • Frequency: Quarterly (though annual filing is required at the end of the year).
   • Purpose: GSTR-4 is a simplified return for Composition Scheme taxpayers. It is used to report sales, purchases, and tax payable under the Composition Scheme.
   • Key Information: Contains details of the turnover, taxes paid, and other summary information related to purchases and sales.
5. GSTR-5:
   • Who files it: Non-resident foreign taxpayers.
   • Frequency: Monthly
   • Purpose: This return is specifically designed for non-resident foreign taxable persons. It helps report sales, purchases, and tax paid by non-residents.
   • Key Information: Contains details of sales, purchases, and tax liability of non-resident businesses that are required to pay GST in India.
6. GSTR-6:
   • Who files it: Input Service Distributors (ISDs).
   • Frequency: Monthly
   • Purpose: ISDs are businesses that distribute GST credits to other units or branches. GSTR-6 is used to report the distribution of credit to different branches or units.
   • Key Information: Includes details of input tax credit received, credit distributed to other units, and the amount of credit available for distribution.
7. GSTR-7:
   • Who files it: Tax deductors at source (TDS).
   • Frequency: Monthly
   • Purpose: This return is for taxpayers who are required to deduct tax at source under GST (such as government authorities, etc.). It reports the TDS deducted during the month.
   • Key Information: Includes the amount of tax deducted at source and deposited with the government, along with the related invoice details.
8. GSTR-8:
   • Who files it: E-commerce operators.
   • Frequency: Monthly
   • Purpose: GSTR-8 is filed by e-commerce operators to report the tax collected at source (TCS) from sales made through their platforms.
   • Key Information: Details of the sales made through the platform, along with the tax collected.
9. GSTR-9:
   • Who files it: All regular taxpayers (except composition taxpayers, non-resident foreign taxpayers, and ISDs).
   • Frequency: Annual
   • Purpose: This is an annual return that provides a consolidated view of all monthly returns (GSTR-1, GSTR-3B, etc.) for the financial year. It reconciles the outward and inward supplies reported and reconciles any discrepancies.
   • Key Information: Includes all financial information related to the taxpayer’s sales, purchases, and tax liability for the year. It also helps in reconciling the GST paid and claimed during the year.
10. GSTR-10:

• Who files it: Taxpayers who have canceled their GST registration.
• Frequency: Once, when the registration is canceled.
• Purpose: GSTR-10 is a final return filed by taxpayers whose GST registration has been cancelled.
• Key Information: It provides details regarding the closing stock of goods at the time of cancellation and ensures that the taxpayer settles all tax liabilities before the cancellation.

11. GSTR-11:

• Who files it: Persons who have UIN (Unique Identification Number) (such as diplomats, embassies, etc.).
• Frequency: Monthly
• Purpose: This return is filed by UIN holders to claim refunds on the GST paid on purchases. UIN holders are eligible for a refund of the input tax paid on their purchases.
• Key Information: Contains details of inward supplies on which refund claims are made.

Constitutional Provisions & Acts Related to GST Returns

The Constitution of India and the CGST Act, 2017 outline the legal framework for GST compliance, including the filing of returns.

Constitutional Provisions (101st Amendment)

• Article 246A: Grants the Parliament and State Legislatures the authority to enact laws governing GST, including provisions related to returns and tax collection.
• Article 279A: Establishes the GST Council, which makes recommendations on the types of returns, filing procedures, and compliance requirements under GST.

Key Provisions of the Central Goods and Services Tax Act, 2017 (CGST Act)

• Section 39 – Returns:
  This section provides the legal basis for the filing of GST returns. It defines the types of returns required to be filed by taxpayers and prescribes the procedures and timelines for filing.
• Section 44 – Annual Return:
  It mandates the filing of an annual return (GSTR-9) by taxpayers who are required to file regular returns. This return consolidates the information provided in monthly returns and helps in annual tax reconciliation.
• Section 47 – Late Fee:
  This section specifies that if a taxpayer fails to file returns within the stipulated time frame, they will be liable for a late fee. The late fee can be up to ₹200 per day (₹100 for CGST and ₹100 for SGST), subject to a maximum of 0.25% of the turnover in the state or union territory.
• Section 50 – Interest on Late Payment of Tax:
  This section provides for the levy of interest at 18% per annum on tax paid late or on the shortfall of taxes due to non-payment.

Landmark Cases Related to GST Returns

While cases specifically related to GST returns are less frequent, there have been landmark judgments that have addressed issues concerning compliance, late filing, and penalties related to GST returns.

1. M/s. Suzlon Energy Ltd. v. Union of India (2019)

Outcome: The Supreme Court ruled that failure to file returns within the prescribed time limits could result in penalties, but taxpayers could apply for waiver or reduction of penalties if they can demonstrate valid reasons for delays.

Case Summary: The case dealt with the issue of penalty for late filing of GST returns and non-payment of taxes. The company argued that it should not be penalized for the delay due to technical difficulties faced while filing returns.