As the Covid-19 pandemic brings the world to a halt, businesses are trying their best to cope up with the economic impacts of the virus. Taking everything into consideration, the government recently announced that the GST return filing will be extended for March, April and May to provide relief to businesses.
In a press meeting, Finance Minister Nirmala Sitharam mentioned that 30th June will be the new extension for GST return filing. However, some regions will be given dates like 27, 29 or 30.
She also said that the interest, late fee or penalty will be waived off for firms with a turnover of less than Rs 5 crore. Bigger companies, however, will have to pay only the interest at a reduced rate of 9 per cent. Late fee or penalty will not be charged, if return filing is done by 30th June 2020. Opting for a composition scheme can be done until the last week of June.
The extension of GST return filing dates and the deferral of e-invoicing and new returns announced earlier will be quite helpful for businesses and enable them to revive their businesses as soon as the situation resumes normalcy in the future.
Besides, the finance ministry has also decided that the due date for any compliance under the GST laws, such as filing of an appeal, issue of notice, furnishing of statements or reports, which would otherwise have expired between 20th March to 29th June will be extended to 30th June.
Appreciating the relief measures that the government is taking to look after the interests of small businesses by waiving off late fees and penalties, industry leaders also feel that the government can consider exempting GST from essential commodities temporarily so that they can be available at reasonable prices at this time.
Due dates for GST Return Filing in 2020
The government makes sure to announce the due dates of GST return filing periodically so that taxation and respective clearance are maintained. Besides, this also helps to alert the taxpayers about the dates of GST return filing so that they don’t miss the dates and pay penalty or late fees. It is also important to note that GSTR 1 and GSTR 3B have to be filed every month, so there is a greater need to pay attention to regular notification and updates to prevent interest and penalty.
List of extended dates GST return filings
- For GSTR 6, GSTR 7, GSTR 8 and GSTR 1 (where turnover exceeds Rs 1.5 Crore), the filing period for March to May is extended till 30th June.
- For GSTR 1, where the turnover is up to Rs 1.5 Crore, the quarterly filing period is extended till 30th June.
- For GSTR 3B filing, the due date is 24th June if the annual turnover is more than Rs 5 Crore in previous FY – February to April 2020.
The due date is 29th June if the annual turnover exceeds Rs 1.5 Crore but not more than Rs 5 Crore in the previous FY- February to March 2020.
However, if the annual turnover doesn’t exceed Rs 1.5 Crore in the previous FY – February 2020, the due date is 30th June.
- For GSTR 5 and GSTR 5A with monthly filing period from February 2020 to May 2020, the due date is 30th June.
Note that the revised due dates and announcements have been implemented according to the official CBEC GST notification while following the latest GST orders or circulars by the Govt CBIC department.
Who should file GST returns?
Business owners and dealers who are registered under the GST system are liable to file their GST returns depending on their business and transactions. The types of GST returns are mentioned below.
- GSTR 1 – This consists of the details of the tax return made for outward supplies during the tax period, which can include inter state stock transfers, interstate and intrastate B2B and B2C sales, etc.
- GSTR 2 – This carries the details of the inward supplies received, including information about the taxpayer, period of return and final invoice-level purchase.
- GSTR 3 – This includes basic information about the taxpayer, details about the return period, turnover, tax liability under CGST, SGST, IGST, interests, penalties, etc.
- GSTR 3B – The government introduced this as relaxation for businesses for a smooth transition to GST. It consists of a summary return of inward and outward supplies.
- GSTR 9 – The GSTR 9 is the annual consolidated tax return that holds the details of the income and expenditure of the taxpayer.6.
- GSTR 9C – The GSTR 9C is an audit form that taxpayers need to file to get their annual reports audited provided that they have a turnover of more than Rs 2 Crores in a financial year.
Businesses that have opted for the Composition Scheme
- GSTR 4 – This carries the details of the total value of supply made during the period of return, the tax paid at the compounding rate not exceeding one per cent of the aggregate turnover, and imported and purchased inward supplies from normal taxpayers.
- GSTR 9A – The GSTR 9A is the annual composition return form that every taxpayer enrolled in the composition scheme is liable to file.
Note: GST annual return filing is divided into three types – GSTR 9, GSTR 9A and GSTR 9C, and it is mandatory for every business with GST registration to file the returns irrespective of their activity, sales or profits.
Other types of businesses
- GSTR 5 – This contains detailed information regarding the taxpayer, period of return as well as every invoice detail of the sold and purchased goods and services for the registered period.
- GSTR 6 – The GSTR 6 is a monthly return form that carries the details of the taxpayer, period of return, ITC received by an ISD as well as other documents issued for the distribution of ITC.
- GSTR 7 – This consists of monthly returns for TDS transactions, including the taxpayer’s information, the period of return, supplier’s GSTIN, invoices of tax deducted under SGST, CGST and IGST, and other interests and penalties.
- GSTR 8 – The GSTR 8 return form is the monthly return form for e-commerce operators consisting of taxpayer information, return period, details of supplies made through the e-commerce portal, customer information, tax collected at source, payable and paid tax.
- GSTR 9B – E-commerce operators have to file the annual GSTR 9B form if they collect tax at the source.
- GSTR 10 – This is the final GST return that has to be filed to cancel GST registration or when the business activities are being permanently terminated.
- GSTR 11 – The GSTR 11 is the variable tax return that needs to be filed by the persons who have been issued a UIN or Unique Identity Number.
- GSTR 1A – This form is used to update or rectify any details made earlier to the GSTR 1 document.
- GSTR 2A – The GST portal automatically generates the GSTR 2A tax return according to the details of the purchases and inward supplies mentioned within the GSTR 1 of their suppliers.
- GSTR 4A – This is a purchase-related tax return for composition dealers. The GSTIN portal automatically generates the GSTR 4A according to the details mentioned in the GSTR 1, 5 and 7 of their suppliers.
GSTR 3A – The GSTR 3A is not a tax return. It is a notice generated by the tax authority issued to taxpayers who fail to file their GST returns for a particular tax period on time.
Penalty for late filing of returns
In case the taxpayer failed to file the returns on time, a penalty or late fine is levied on them. The GST Law has set the late fee to Rs 100 each day after the due date for CGST and SGST. Hence, the taxpayer will have to pay Rs 200 per day as the total fine. Any changes in this rate will be announced through notifications.
Rs 5,000 is the maximum amount that can be collected as fine. But in case of integrated GST or IGST, there is no late fee if the return filing is delayed. In addition to the late fee, taxpayers will also have to pay interest at 18 per cent p.a. The interest rate is usually calculated based on the amount of tax that is to be paid and the time period is calculated from the deadline to the actual date of making the payment.
Back to Basics: What is GST return?
A GST return is a comprehensive document containing the details of all the GST invoices, payments and receipts for a particular period. By law, taxpayers are liable to declare every transaction that is associated with their business revenue, which then decides the amount of tax they have to pay. To file GST online, business owners can log on to the official portal provided by GSTN.
The details that a registered business owner needs to file GST returns for a particular period are the total sales, total purchases, output GST or GST paid by customers, ITC or Input Tax Credit (GST paid by the business for purchases).
After it is filed, you can check the status of your GST return filing online. You have to check for the necessary requirements and comply with them accordingly. Additionally, you have to be aware of which form applies to you before you proceed further with initiating the GST return filing procedure. Under the GST regime, there are eleven types of returns, and different purposes and due date to each form. Say, for example, if you are applicable for GSTR-1 filing, you will have to fill out the details of outward supplies of taxable goods and your due date will be the 10th of every month. Once you understand this information and know your GST number, you can easily choose the appropriate GST form and file GST online on time.
GST is probably the biggest tax reform that has ever been introduced in India. Although it had a negative impact on many businesses due to their unfamiliarity with the new tax reporting structure, businesses are now adapting to it and developing strategies to make the most out of it.
As every transaction will be reported through a common invoice for both the seller and the recipient of goods and services, it is now easier to record everything in one place and collate data for the taxpayer. Moreover, the processes have been simplified and many taxes have been removed.
The Goods and Service Tax Network or GSTN deployed by the Finance Ministry will hold the information of sellers and buyers and help to manage the huge influx of data.
It is anticipated that GST will boost the economy of our nation and increase our GDP over the long run. To look at its immediate impacts, it has made taxation easier and broadened the taxpayer base. The online taxation system will certainly ensure better accountability and tax compliance and lower the chances of tax fraud.Experience a stress-free GST filing experience with Giddh cloud accounting software. Reach out to us for a free trial today.