GST is a Goods and Service Tax that is imposed on the exchange of goods and services between organizations. It’s an Indirect tax. It is imposed on value addition of the commodity at each stage. It is levied by the manufacturer on the consumer. GST varies from item to item. Every item has different GST rates that are set by the government.
GST return is a form that contains all the sales, purchases, tax collected on sales and the taxes that are paid on purchases. A tax collected on sales is also known as output tax and the tax collected on purchases are known as input tax. It takes into account every transaction that any individual has ever made.
Should you file a GST Return?
If your turnover is more than 20 lakhs a year, you are liable to follow the new GST registration. Specific details are required to register under the GST and get your GST number (GSTIN).
For some special category states like Arunachal Pradesh, Manipur, Assam, Meghalaya, Mizoram, Manipur, Sikkim, Tripura, Himachal Pradesh, Jammu and Kashmir, and Himalaya the minimum annual turnover is 10 Lakhs.
Types of GST Returns
GSTR1
Tax return for external supplies to be filed by all the normal taxpayers that are registered under the GST filed every month. This contains the details of the sales done within the state or other states as well as the purchases made during the tax period.
GSTR2
This is the monthly tax return for internal supplies received. It contains the information of the taxpayer, tax return period and final statement of purchase, information related to the tax period, which is listed differently for goods and services.
GSTR2A
This is a read only document with a complete list of the invoices from the various sellers during the month.
GSTR3
It is done every month on all the details on the outward supplies of goods. This return is auto-generated if you have filed GSTR1 and GSTR2.
GSTR3B
It is a self-declaration that is to be done every month for all the outward supplies made.
GSTR4
It is to be filed by the taxpayers who have opted for the Composition Scheme under GST, but it has been replaced by the CMP-08 now. It is paid every quarter.
GSTR-5
It is filed by NRI taxpayers, who are registered under GST and carry out business transactions in India. The return contains details of all outward supplies made, inward supplies received, credit/debit notes, tax liability and taxes paid. It is done every month.
GSTR-6
It is a monthly return filed by an “Input Service Distributor” (ISD).
GSTR-7
It is done every month and is filed by people required to deduct TDS (Tax deducted at source) under GST. GSTR 7 contains details of the TDS deducted.
GSTR-8
E-commerce operators registered under the GST file every month who are required to collect tax at source (TCS). All the supplies made through E-commerce are recorded.
GSTR-9
The taxpayers registered under GST file it. It contains details of all outward supplies made, inward supplies received. Composition Scheme, Casual Taxable Persons, Input Service Distributors, Non-resident Taxable Persons and Persons paying TDS under section 51 of the CGST Act are unaccountable to pay the taxes.
GSTR-9A
Taxpayers who have registered under the Composition Scheme file it on an annual basis. It is a combination of all the quarterly returns filed during that financial year.
GSTR-9C
Taxpayers registered under the GST whose turnover exceeds Rs 2 crore in a financial year file it on an annual basis. Taxpayers have to get their accounts done through a CA (Chartered Accountant). GSTR-9C is filed for every GSTIN, and therefore, one PAN can have multiple GSTR-9C forms being filed.
GSTR-10
A taxable person whose registration has been surrendered or canceled. Another term for this return is the final return and has to be filed within 3 months from the date of cancellation.
GSTR-11
This is for taxpayers who have been issued a Unique Identity Number (UIN) to get a rebate under GST for the goods and services purchased in India. GSTR-11 contains all the details of inward supplies that are received and the refunds claimed.