GST Return Filing : Types, Steps & Deadlines of GSTR 1 and GSTR 3B

Goods and Services Tax (GST) is a landmark reform in the Indian taxation system, aimed at unifying indirect taxes. One of the critical aspects of GST compliance is the filing of GST returns. Over the past four years, GST return filing has evolved significantly.

Although the current filing process differs from the format envisaged in the Central Goods and Services Tax (CGST) Act, the system has stabilized into a manageable framework. Presently, taxpayers primarily deal with two basic returns: GSTR-1 and GSTR-3B. Additionally, there is an annual return, though small taxpayers are exempted from filing it.

 Basic GST Returns: GSTR-1 and GSTR-3B   

 1. GSTR-1: Statement of Outward Supplies   

GSTR-1 is a detailed report of all outward supplies made during a specific period. It requires comprehensive data on turnover, including invoice details like:

• Invoice number

• GST Identification Number (GSTIN)

• Place of supply

• Taxable value

• Applicable tax rates

For large interstate supplies to unregistered persons, transactions must be reported separately. Smaller transactions with unregistered persons can be consolidated, but they should be categorized state-wise and rate-wise within each state.

 2. GSTR-3B: Consolidated Summary Return   

GSTR-3B is a simplified return that consolidates information related to:

• Total turnover (taxable, exempted, zero-rated)

• Input Tax Credit (ITC)

• Tax liability

• Tax payment

This return also serves as a medium to pay the final tax liability through a challan.

 Filing GSTR-1: Step-by-Step Guide   

1. Prepare Data: Extract financial data to include invoice details, supply classifications, and turnover data.

2. Enter Data: Log into the GST portal and input the data. For extensive data, utilities or third-party software can simplify the process.

3. Verify and Submit: Review the entries and download a PDF summary before submission.

4. Authenticate and File: Use OTP or a digital signature to authenticate the submission.

 Common Mistakes in Filing GSTR-1   

• Missing Invoices: Errors in reporting invoices can prevent buyers from claiming ITC.

• Incorrect Export Reporting: Export data must match corresponding shipping bills and GSTR-3B.

• Omitted Advances: Advances received for services are taxable and must be reported.

• Exempted Turnover Errors: Failure to report exempt turnover can affect threshold calculations.

 Filing GSTR-3B: Step-by-Step Guide   

1. Extract Data: Compile turnover details and ITC data from financial records.

2. Enter Data: Log into the GST portal and fill in the required fields.

3. Verify and Submit: Use OTP or digital signature for authentication and finalize the filing.

 Common Mistakes in Filing GSTR-3B   

• Misreported Turnover: Incorrect classification of export turnover can block refunds.

• Incomplete Data: Omitting required details may lead to penalties.

 Filing Frequencies and Deadlines   

Late Fees and Penalties   

Failure to file GST returns on time attracts late fees and penalties:

Late filing can also lead to additional consequences such as blocked ITC, cancellation of GST registration, and inability to generate e-way bills.

 Importance of Accurate and Timely Filing   

Filing accurate GST returns on time ensures compliance and avoids legal and financial penalties. Errors in GSTR-1 or GSTR-3B can disrupt ITC claims for buyers, lead to mismatches in turnover data, and trigger scrutiny by tax authorities. Therefore, taxpayers should prioritize data accuracy and adhere to deadlines.

 Conclusion   

The GST return filing system has simplified tax compliance while ensuring transparency in transactions. By understanding the filing processes for GSTR-1 and GSTR-3B, taxpayers can meet their obligations effectively. Regular updates and attention to detail will help maintain compliance and prevent unnecessary penalties. Timely filing is not just a legal mandate but also a critical component of smooth busine

Suggested Read :

GST returns with multiple GSTINs

GST Returns Filing For Multiple States

GST Payment for Business

Due Dates of different GST returns

GST Returns for E-commerce