Gst returns: types, due dates, penalities

Gst return filing:

Understanding the intricacies of GST returns is essential for businesses to ensure compliance and avoid penalties. GST, or Goods and Services Tax, is an all-encompassing tax applied to the provision of goods and services. Submitting GST returns correctly and on time is essential to prevent complications with tax authorities. In this blog, we will explore the different types of GST returns, outline GST return fillings due dates for 2024, and discuss the potential GST filing penalties and GST late fees. By understanding these aspects, you can effectively manage your GST obligations and maintain compliance.

Types of GST Returns

Different types of GST returns cater to various business needs and tax obligations. Here’s a breakdown of the primary types of GST returns:

1. GSTR-1

GSTR-1 is a monthly or quarterly return that businesses must file, detailing their outward supplies of goods and services. This return includes:

Sales Invoices: Details of all sales transactions.
Export Supplies: Information on goods or services exported out of India.
Zero-Rated Supplies: Transactions that are subject to a 0% GST rate.

Filing GSTR-1 is crucial for generating an accurate GST Credit Ledger for buyers and ensuring that your sales are recorded correctly.

2. GSTR-2A

GSTR-2A is an auto-generated return that reflects all inward supplies (purchases) made by a business. It’s generated based on the GSTR-1 filings of your suppliers. This return helps in reconciling your purchase data and ensuring that you claim the correct input tax credit.

3. GSTR-3B

GSTR-3B is a summary return that must be filed monthly or quarterly. It includes:

Total Sales: Summary of sales including taxable and exempt supplies.
Input Tax Credit (ITC): Details of credit claimed on purchases.
Output Tax Liability: Total GST payable.

Unlike GSTR-1, GSTR-3B does not provide item-wise details but gives an overall summary of your GST liabilities and credits.

4. GSTR-9

GSTR-9 is an annual return that provides a comprehensive summary of all your GST transactions for the financial year. It consolidates the information from GSTR-1 and GSTR-3B to present a detailed account of your GST liabilities and input credits.

5. GSTR-9C

GSTR-9C is a reconciliation statement that must be filed by taxpayers with an annual turnover exceeding ₹2 crore. It reconciles the figures reported in GSTR-9 with the audited financial statements, providing a comprehensive overview of your tax compliance.

6. GSTR-4

GSTR-4 is meant for businesses opting for the Composition Scheme under GST. It includes details of outward supplies and the tax paid, and is filed quarterly or annually, depending on the scheme opted.

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GST Return Due Dates 2024

Filing GST returns on time is crucial to avoid penalties and ensure smooth business operations. Here’s a guide to GST return due dates for 2024:

1. GSTR-1 Due Dates

Monthly Filers: The 11th day of the following month. For example, for transactions in January 2024, the due date is February 11, 2024.
Quarterly Filers: The 13th day of the month following the quarter. For the quarter ending December 2023, the due date is January 13, 2024.

2. GSTR-3B Due Dates

Monthly Filers: The 20th day of the following month. For instance, for December 2023, the due date is January 20, 2024.
Quarterly Filers: The 22nd day of the month following the quarter. For the quarter ending December 2023, the due date is January 22, 2024.

3. GSTR-9 Due Date

Annual Return: The due date for GSTR-9 is generally September 30th of the subsequent financial year. For FY 2023-24, the due date would be September 30, 2024.

4. GSTR-4 Due Date

Quarterly Filers: The 18th day of the month following the quarter. For Q4 of FY 2023-24, the due date is April 18, 2024.

5. GSTR-9C Due Date

Annual Reconciliation Statement: The due date is generally September 30th of the subsequent financial year, similar to GSTR-9.

GST Filing Penalties

Failing to file GST returns on time or providing inaccurate information can result in GST filing penalties. Here’s what you need to know:

1. Late Fees

If you miss the due date for filing any GST return, a late fee is levied. The fee structure is:

GSTR-1 and GSTR-3B: ₹50 per day of delay (₹25 each for CGST and SGST) and ₹20 per day for late fees (₹10 each for CGST and SGST) if there is no tax liability.
GSTR-9: Late fees are applicable if filed after the due date, calculated on a similar basis.

2. Interest on Late Payment

Interest is charged on the late payment of GST. The interest rate is 18% per annum, calculated on the amount of GST that was due but not paid.

3. Penalties for Incorrect Information

Providing incorrect information in your GST returns can lead to penalties and scrutiny. These penalties are often substantial and can include:

Penalties for Non-Compliance: Fines ranging from ₹10,000 to ₹1,00,000, depending on the nature and severity of the non-compliance.
Seizure and Attachment: In extreme cases, authorities may seize assets or attach bank accounts.

GST Late Fee and Penalties: Best Practices to Avoid Them

1. Timely Filing

Ensure that all GST returns are filed on or before the due dates. Set up reminders and maintain a calendar for important deadlines.

2. Accurate Data Entry

Double-check all information before submission. Accurate data entry reduces the risk of errors and associated penalties.

3. Regular Reconciliation

Reconcile your GST records with financial statements regularly to ensure accuracy and identify discrepancies early.

4. Consult Professionals

Engage with tax professionals or accountants to ensure compliance and get help with complex GST issues. They can provide valuable advice and avoid costly mistakes.

5. Stay Informed

Keep up-to-date with changes in GST laws and filing requirements. Regularly review updates from tax authorities and participate in relevant training or webinars.

Conclusion

Managing GST returns involves understanding various types of GST returns, adhering to GST return filling due dates for 2024, and being aware of potential GST filing penalties and GST late fees. By staying informed and implementing best practices, you can ensure timely and accurate filing, minimize the risk of penalties, and maintain compliance with GST regulations. This proactive approach will help keep your business in good standing and avoid unnecessary complications.

By following this guide, you can navigate the complexities of GST returns with greater confidence and efficiency.

FAQ on GST Return Filing

Can I file GST without CA?

a Chartered Accountant (CA) is not required to submit a monthly Goods and Services Tax (GST) return in India.

Is it compulsory to file GST returns?

All gst registered businesses have to file monthly or quarterly GST returns and an annual GST return based on the type of business. These GSTR filings are done online on the GST portal.

What is the monthly date of GST return filing?

Due date for filing GSTR-1 for monthly filers is 11th of the next month and for quarterly filers is 13th of next month of quarter. Due date is not different for different states like it is in GSTR-3B.

How much turnover for GST?

What is the minimum GST turnover limit? Companies with a yearly turnover of more than Rs. 40 Lakhs (for goods) and Rs. 20 lakhs (for services) are required to register for GST and pay taxes on their taxable goods and services.

What is the late fee for filing GST return?

The penalty for late filing of GST returns is typically a late fee of Rs. 50 per day for taxable returns and Rs. 20 per day for nil returns. Additionally, interest may be charged on the unpaid tax due at a rate generally around 18% per annum, calculated from the due date of the payment until the actual payment date.