Types Of GST Returns: GSTR-1, GSTR-3B, GSTR-4 & More Explained

Key Takeaways

• In India, GST was introduced on July 1, 2017, replacing various indirect taxes, including VAT, excise duty, and others.
   
• Businesses registered under the GST provision must file GST returns according to the due dates specified for GST returns. 
   
• There are various GST returns like GSTR-1, GSTR-2, GSTR-3B, GSTR-4, and many more. You must understand these, as each GSTR has a specific purpose.

A GST return is a record of sales, purchases, tax collected, and tax paid by a registered business during a specific period, helping the authorities verify tax liability and ensuring that businesses get proper credit for taxes already paid.

Let’s say Nia Sharma is the owner of a growing ₹4.8 crore yearly online fashion company. She regularly files several GST filings in order to remain in compliance. 

She manages forms like GSTR-1 for outgoing supplies, GSTR-3B for tax payments, and GSTR-4 as a former composition scheme filing in a single fiscal year. In this blog, we will learn more about GST returns and their due dates.

Types Of GST Returns

The GST law prescribes different returns for different categories of taxpayers; each return has a specific purpose and filing frequency. Some are monthly, while others are quarterly or annual.

GSTR-1

GSTR-1 provides a thorough record of all outgoing supplies, or sales of goods and services, that took place during the tax period. All regular GST-registered taxpayers are required to file GSTR-1, irrespective of their turnover, even if they have no sales during the period (nil return).

However, certain categories are exempt from filing GSTR-1:

• Composition Scheme Taxpayers: These taxpayers file GSTR-4 instead.
   
• Non-Resident Taxable Persons: They file GSTR-5.
   
• Input Service Distributors (ISDs): They file GSTR-6.
   
• E-commerce Operators Collecting TCS: They file GSTR-8.
   
• Tax Deducted at Source (TDS) Deductors: They file GSTR-7.
   
• Online Information Database Access or Retrieval (OIDAR) Service Providers: They file GSTR-5A.

This ensures the correct flow of input tax credit across the supply chain and also makes sure transparency depends on this return.

GSTR-2

GSTR-2 is the purchase return that records inward supplies of goods and services, including those under reverse charge. It applies to almost all registered taxpayers except:

• Non-residential taxable person
• Input distributor
• E-Commerce operator

Taxpayers need to file GSTR-2 monthly; however, if your business’s turnover is below ₹1.5 crore, then you need to pay tax quarterly. Even if there were no purchases, you need to file this GSTR, or you have to pay a penalty of ₹100 per day (up to ₹5,000).

GSTR-3B

GSTR 3B is an important GSTR, containing information related to both inward and outward supplies. The following table gives a quick snapshot of its nature, due dates, and penalties for late filing:
 

This table clearly highlights the essential compliance rules of GSTR-3B; keeping track of these points ensures timely filing and avoids unnecessary penalties.

GSTR-4

GSTR-4 is an annual GST return that must be filed by taxpayers registered under the Composition Scheme. Unlike regular taxpayers who file monthly returns, composition dealers are required to file this return once a year. The following table highlights the key details of GSTR 4:
 

This table shows that composition dealers are required to file GSTR-4 annually, reporting:

• Outward Supplies: Details of sales made during the year.
   
• Tax Paid: Summary of taxes paid on supplies.
   
• Tax Payable: Calculation of net tax payable.
   
• Late Fees: Applicable if the return is filed after the due date.

If you make sure that all these points are covered, then you can stay compliant and avoid unnecessary penalties.

Bonus Tip: If you are a composite dealer, then you do not need to furnish details of inward supplies (purchases) in GSTR-4. This simplifies the filing process and reduces compliance burdens.

GSTR-5

GSTR-5 is filed by those who are non-resident foreign taxpayers but are involved in taxable activities in India. The following table highlights the filing requirements:
 

This table clearly highlights the essential compliance rules of GSTR-5; keeping track of these points ensures timely filing and avoids unnecessary penalties.

GSTR-6

Only registered Input Service Distributors are required to file GSTR-6. It is mandatory to file this return every month, and where no ITC is distributable, a nil return shall still be considered valid. GSTR-6 comprises several sections that need to be filled out:
 

This structured format makes GSTR-6 easy to follow for Input Service Distributors. If you carefully report each section, then your business can ensure proper ITC flow and avoid compliance issues.

Due Dates For Various Types Of GST Returns

If your business files GSTR timely, then it can avoid penalties. The following table highlights the due dates for various types of GST returns:
 

This table makes it easier to track filing dates at a glance. If you follow the above-mentioned timelines, then you can manage GST compliance without last-minute stress.

Conclusion

You might have understood by now that GST returns ensure that businesses calculate taxes correctly, claim eligible input credit, and stay compliant.

From GSTR-1 for sales to GSTR-3B for tax payment, GSTR-4 for composition taxpayers, and GSTR-6 for ITC, every return serves a distinct purpose.

If you own a business, then you must know which GST return you need to file and what the due date is, so that your business can operate smoothly and avoid unnecessary penalties. 

FAQs

1. What are the 4 types of GST?

CGST, SGST, IGST, and UTGST are the four GST types, charged based on intra-state or inter-state supply.

2. How many types of GST returns are there?

There are around 13 types of GST returns, though only a few apply to regular taxpayers.

3. What are the 5 GST slabs?

The GST slabs are 0%, 5%, 12%, 18%, and 28%, covering different categories of goods and services.

4. What is GSTR-7?

GSTR-7 is a monthly return filed by taxpayers required to deduct TDS under GST.

5. What is GSTR-8?

GSTR-8 return is used by e-commerce operators to show tax collected at source.

6. Which products have 12% GST?

Products like fruit juices, umbrellas, and packaged food items generally fall under the 12% GST rate.

7. Which products have no GST?

Items like fresh milk, fresh vegetables, and unbranded cereals are exempt from GST.

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