How to File GST Return: A Comprehensive Step-by-Step Tutorial

Introduction

Goods and Services Tax (GST) is a comprehensive indirect tax levied on the manufacture, sale, and consumption of goods and services across India. Filing GST returns is a mandatory compliance requirement for every registered taxpayer under the GST regime. It involves submitting details of outward and inward supplies, tax collected, and tax paid to the government within specified deadlines.

Accurate and timely filing of GST returns is crucial for maintaining legal compliance, avoiding penalties, and ensuring smooth business operations. This tutorial provides a detailed, step-by-step guide on how to file GST returns efficiently, along with best practices, useful tools, real-world examples, and answers to frequently asked questions.

Step-by-Step Guide

Step 1: Understand Different Types of GST Returns

Before filing, it is important to know the types of GST returns applicable:

• GSTR-1: Details of outward supplies made to registered and unregistered persons.
• GSTR-2: Details of inward supplies (currently suspended but important for reference).
• GSTR-3B: Monthly summary return of inward and outward supplies along with tax liability.
• GSTR-4: Quarterly return for Composition Scheme taxpayers.
• GSTR-9: Annual return summarizing all transactions of the year.

Step 2: Gather Required Documents and Data

Ensure you have the following before filing:

• Invoice details for sales and purchases.
• Debit and credit notes.
• Details of advances received or paid.
• GST registration number and credentials for GST portal login.

Step 3: Log into the GST Portal

Visit the official GST portal at https://www.gst.gov.in. Use your valid credentials (username and password) to log in. Navigate to the 'Returns Dashboard' section, select the financial year and return filing period (month or quarter) applicable.

Step 4: Prepare GSTR-1 (Outward Supplies)

Under GSTR-1, enter details of all outward supplies made during the return period. This includes:

• Invoices issued to registered and unregistered customers.
• Debit and credit notes issued.
• Exports and deemed exports.

The portal allows you to upload data via Excel or JSON files or enter data manually. After entering details, validate and save the data.

Step 5: Verify Auto-Populated Data in GSTR-2A/2B

Though filing GSTR-2 is suspended, taxpayers should verify inward supplies data auto-populated in GSTR-2A or GSTR-2B for reconciliation purposes. This helps in claiming accurate Input Tax Credit (ITC).

Step 6: File GSTR-3B (Summary Return)

GSTR-3B is a monthly self-declaration return summarizing outward supplies, inward supplies liable for reverse charge, ITC claimed, and tax payable. To file:

• Navigate to the Returns Dashboard and select GSTR-3B for the relevant month.
• Enter details of outward supplies and inward supplies liable to reverse charge.
• Enter ITC eligible and ineligible amounts.
• Calculate and enter tax liability under CGST, SGST, IGST, and cess.
• Submit the return and make payment of tax dues, if any.

Step 7: Pay GST Dues

After filing GSTR-3B, ensure to pay any tax liability before the due date. The payment can be made directly through the GST portal using various modes such as net banking, credit/debit card, or NEFT/RTGS. Timely payment avoids interest and penalties.

Step 8: File Annual Return GSTR-9

At the end of the financial year, every registered taxpayer must file GSTR-9. This consolidates all monthly or quarterly returns filed during the year. It includes:

• Summary of outward and inward supplies.
• Details of ITC claimed and reversed.
• Tax paid and refund claimed.

Filing GSTR-9 ensures complete compliance and helps reconcile tax payments with returns filed.

Step 9: Submit Returns and Generate Acknowledgment

After entering all required information and making payments, submit the return. The GST portal will generate an acknowledgement receipt (ARN - Application Reference Number) as proof of successful filing. Save this document for future reference.

Best Practices

Maintain Accurate Records

Maintain detailed and organized records of all sales, purchases, invoices, and payments. This facilitates easy compilation of data and reduces errors during filing.

Reconcile Data Periodically

Regularly reconcile your purchase and sales data with GST portal data (GSTR-2A/2B) to ensure accuracy in ITC claims and avoid discrepancies.

File Returns Timely

Adhere strictly to GST return filing deadlines to avoid late fees, penalties, and interest charges. Set reminders for monthly or quarterly returns.

Double Check Data Entries

Before submitting returns, thoroughly verify all data entries. Even minor errors can lead to compliance issues or audits.

Use Digital Tools

Leverage accounting software and GST filing tools for automated data imports, error detection, and timely filing.

Stay Updated with GST Law Changes

GST regulations and filing requirements evolve over time. Regularly check government notifications and amendments to remain compliant.

Tools and Resources

Official GST Portal

The primary platform for registration, return filing, tax payments, and accessing GST-related information: https://www.gst.gov.in

Accounting and ERP Software

Popular tools like Tally ERP 9, Zoho Books, QuickBooks, and Busy automate GST calculations and generate filing-ready reports.

GST Return Filing Software

Third-party software such as ClearTax, GSTZen, and Taxmann provide easy interfaces for GST return preparation and filing, along with compliance tracking.

Government Notifications and FAQs

Regularly consult official GST notifications, circulars, and FAQs published by the Central Board of Indirect Taxes and Customs (CBIC) for latest updates.

Online Tutorials and Webinars

Many websites and professional bodies offer step-by-step video tutorials and webinars on GST filing for deeper understanding.

Real Examples

Example 1: Filing GSTR-1 for Outward Supplies

ABC Traders, a registered supplier, made sales worth ₹5,00,000 in March 2024. They issued 50 invoices to registered customers and 20 invoices to unregistered customers. Using the GST portal, ABC Traders uploaded invoice details in JSON format, validated the data, and submitted GSTR-1 before the due date.

Example 2: Monthly GSTR-3B Filing by a Manufacturer

XYZ Manufacturing reported the following for April 2024:

• Outward taxable supplies: ₹10,00,000
• Inward supplies liable to reverse charge: ₹1,00,000
• Input Tax Credit claimed: ₹75,000
• Tax payable: ₹1,25,000

They logged into the GST portal, entered summarized tax details in GSTR-3B, paid the due taxes online, and submitted the return successfully.

Example 3: Annual Return Filing

LMN Services, a GST-registered consulting firm, compiled all monthly returns filed in FY 2023-24. They filled GSTR-9 by aggregating outward supplies, inward supplies, ITC claimed, and tax paid. After reviewing, they filed the annual return on the GST portal, ensuring full compliance.

FAQs

What is the due date for filing GST returns?

The due date varies based on the type of return and taxpayer category. Generally, GSTR-1 and GSTR-3B for a month must be filed by the 11th and 20th of the following month, respectively. Annual returns are due by 31st December of the following financial year.

Can I file GST returns manually?

GST returns must be filed online through the official GST portal or authorized GST return filing software. Manual or physical filing is not accepted.

What happens if I miss the GST return filing deadline?

Late filing attracts penalties and interest on outstanding tax dues. Repeated delays may trigger audits and legal consequences.

How can I correct errors in a filed GST return?

Errors in GSTR-1 can be rectified in subsequent returns. For summary returns like GSTR-3B, adjustments can be made in future returns. Annual returns may allow limited corrections through specific procedures.

Is it mandatory to file GSTR-2 and GSTR-3?

Currently, GSTR-2 and GSTR-3 filing is suspended. Taxpayers focus on GSTR-1 and GSTR-3B for monthly compliance.

How to claim Input Tax Credit (ITC)?

ITC can be claimed on inward supplies that are used for business purposes and are reflected in GSTR-2A/2B. Ensure matching of inward supplies data and timely filing of returns to avail ITC.

Conclusion

Filing GST returns is a critical compliance requirement for businesses registered under GST. Understanding the different types of returns, following a systematic filing process, and adhering to deadlines ensures smooth operations and avoids penalties. Leveraging technology, maintaining accurate records, and staying updated on regulatory changes further enhance compliance efficiency.

This comprehensive tutorial equips you with the knowledge and practical steps to file GST returns confidently. By implementing best practices and utilizing available tools, businesses can streamline GST compliance and focus on growth.