GST Returns: Applicability, Due Date and Penalties

Goods and Services Tax (GST) is a comprehensive indirect tax levied on the supply of goods and services in India. GST returns are periodic filings that registered businesses are required to submit the tax authorities, providing details of their inward and outward supplies, input tax credit (ITC) availed, and tax liability. GST Returns is a compulsory compliance for each business registered as per GST regime. It is a document, which is having the information of taxpayer’s income and further will be utilized by tax authorities to calculate the tax liabilities. In this article, we further discuss about the GST Returns Due Date & Penalties, along with its applicability.

Brief about GST Return

GST Return is a periodic statement that registered taxpayers require to file with the tax authorities to report their business functions and disclose the information of their inward and outward supplies, involving sales, purchases and taxes collected and paid. GST returns are filed online through the GST portal, which is maintained by the Goods and Services Tax Network (GSTN) in India.

GST returns are an essential part of the GST compliance framework and play a crucial role in determining the taxpayer’s tax liability, ITC claims, and overall compliance with GST laws. They provide a comprehensive picture of a taxpayer’s business transactions and enable tax authorities to verify the accuracy of the reported information, assess the tax liability, and prevent tax evasion.

It’s important for registered taxpayers to understand their GST return filing obligations, maintain accurate records of their business transactions, and file their GST returns on time to comply with the GST laws and avoid penalties or legal repercussions.

Who can File GST Return?

As per the GST laws in India, any business or individual who is registered under GST is required to file GST returns. GST return filing is mandatory for registered taxpayers who engage in the supply of goods or services in India and have a turnover that exceeds the specified threshold limits. The following entities are required to file GST returns:

• Regular Taxpayers: Businesses and individuals registered under GST as regular taxpayers, whose annual turnover exceeds the threshold limit of Rs. 40 lakhs (Rs. 10 lakhs for businesses in special category states) are required to file GST returns.
• Composition Scheme Taxpayers: Taxpayers registered under the Composition Scheme, which is a simplified scheme for small taxpayers, are required to file quarterly GST returns. The Composition Scheme is applicable to businesses with an annual turnover of up to Rs. 1.5 crores.
• Input Service Distributors (ISD): Registered ISDs, who receive invoices for input services and distribute the ITC to their branches or units, are required to file GST returns to report the details of the input services received and distributed.
• Non-Resident Taxpayers: Non-resident taxpayers who are registered under GST and supply goods or services in India are required to file GST returns.

Different types of GST Returns and their Due Dates of Filing Returns

In India, there are various types of GST returns that taxpayers may be required to file based on their business type, turnover, and registration status. The following are some of the commonly filed GST returns with their due dates for filing:

Penalties for Late Filing of GST Return

Late filing of GST returns can result in penalties and interest charges. The penalties for late filing of GST returns are as follows:

• Late Fee: A late fee is applicable for each day of delay in filing GST returns, subject to a maximum cap. The late fee amount varies based on the type of GST return and the number of days of delay. As per the current regulations, the late fee for GSTR-1 and GSTR-3B is Rs. 50 per day (Rs. 25 each for CGST and SGST) for each day of delay, subject to a maximum of Rs. 5,000 per return. For GSTR-4 (Composition Scheme), the late fee is Rs. 50 per day (Rs. 25 each for CGST and SGST) for each day of delay, subject to a maximum of Rs. 2,000 per return.
• Interest on Late Payment of Tax: If the taxpayer fails to pay the tax liability on time as per the GST return, interest is levied on the outstanding tax amount. The interest rate is currently set at 18% per annum, calculated on a daily basis from the due date of filing the GST return until the date of actual payment.

Takeaway

GST Returns are an essential compliance requirement for taxpayers under the GST system in India. The applicability of GST Returns depends on the type of taxpayer, nature of business, and other factors. It is important for taxpayers to understand their GST Return filing obligations, including the due dates for filing different types of GST Returns, to avoid penalties and interest charges for late filing. That we have already discussed above in this article, for further information on the same topic. Then you are free to contact with the professionals of Legal Window, and they love to solve their all queries.