Understand the Types of GST in Just 3 Minutes

Amidst the global economic crisis, India is set out to pursue rather ambitious growth objectives with a myriad of strategic initiatives. The ‘Goods and Service Tax’ (GST) is one of such far-reaching initiatives that essentially aims at eliminating the cascading effect of taxes that in turn stimulates economic growth. Being effective from 1^st July 2017, this initiative boasts of achieving “one country one tax” system. The comprehensive tax model is set out to make tax filing and management easy, hassle-free and productive for the Indian citizens by proposing a comprehensive tax model while replacing indirect taxes such as central excise tax, service tax, VAT and entertainment tax.

Before we delve deeper, let’s understand the types of GST and the nuances of GST return.

What is GST Return?

GST return is a typical document used by the tax administrative authorities to calculate the tax liability of a taxpayer. The taxpayer must file this return document that states his/her income details. With GST being effective since July 2017, registered dealers have to file GST returns that include purchases, sales, output GST (applicable on sales) as well as input tax credit (GST paid on purchases).

Types of GST Returns

Here is a list of GST types

GSTR-1:

This GST return document contains details of outward supplies of taxable goods and/or services. The due date for filing the GSTR-1 return is the 10^th day of the following month.

Businesses with an annual turnover up to INR 1.5 Crore can opt for quarterly filing, the due dates for return being 31st January for Oct-Dec quarter and 30th April for the Jan-March quarter. However, businesses with an annual turnover above INR 1.5 Crore, can opt for filing monthly GST returns.

GSTR-2:

This GST return document indicates the purchase information such as details of inward supplies of goods/services that are taxable. Currently, filing this GSTR-2 return is put on hold.

GSTR-3:

This GST return form can be used by a normal taxpayer for providing details of tax payable. The same can also be used for paying tax on the GST Portal.

Also Read: What is the Easiest Way to Register for GST?

GSTR 3B:

GST return form specially issued for taxpayers filing for GST returns late in the months of July and August. Returns must be filed using GSTR 3B within the 20th day of the succeeding month.

GSTR-4:

GST quarterly return form that is to be furnished by taxpayers opting for the composition scheme. Dealers that fall under the composition scheme are required to submit only one return using the GSTR 4. The due date for filing of quarterly returns is the 18th of the month after the end of the quarter.

Due date for filing GSTR-4 for the quarter October 2018 to December 2018 is 18th Jan 2019 while the due date for the quarter Jan 2019 to Mar 2019 is 18th Apr 2019.

GSTR-5:

This is the GST return applicable for the registered non-resident taxpayers to be used for filing monthly GST returns. The due date is the 20th day of the succeeding month.

GSTR 9:

GSTR 9 returns form must be filed annually by all taxpayers registered under the GST act. It essentially should have all information relating to sales and purchase of supplies undertaken in a financial year as a consolidation of all information provided under all other monthly/ quarterly returns including GSTR-1, GSTR- 2A and GSTR-3B.

GSTR-9A:

This is the GST annual return form that must be filed by businesses falling under the composition scheme. This ideally should include all the information the dealers have already provided in GSTR 4. This form needs to be filed on or before 31st August of every financial year.

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