Step 1: Register for GST
- Before filing GST returns, ensure your business is registered under GST and has a valid GSTIN (GST Identification Number).
- Registration is mandatory if your annual turnover exceeds the threshold limit (₹40 lakh for goods, ₹20 lakh for services, and ₹10 lakh for special category states).
Step 2: Collect and Organize Invoices
- Maintain proper records of all outward supplies (sales) and inward supplies (purchases).
- Ensure all invoices are GST-compliant and include:
- GSTIN of the supplier and recipient.
- Invoice number and date.
- HSN/SAC code.
- Taxable value and GST rate.
- Amount of CGST, SGST, or IGST.
Step 3: File GSTR-1 (Outward Supplies)
- GSTR-1 contains details of all outward supplies (sales) made during the tax period.
- Filing frequency:
- Monthly: For regular taxpayers.
- Quarterly: For small taxpayers under the QRMP (Quarterly Return Monthly Payment) scheme.
- Due date: 11th of the following month (for monthly filers) or 13th of the month following the quarter (for quarterly filers).
- File GSTR-1 on the GST portal: https://www.gst.gov.in.
Step 4: File GSTR-3B (Summary Return)
- GSTR-3B is a summary return that includes:
- Outward supplies (sales).
- Input tax credit (ITC) claimed.
- Tax liability and payment details.
- Due dates:
- 20th of the following month for most taxpayers.
- 22nd or 24th of the following month for special category states.
- Pay the tax liability (CGST, SGST, IGST) before filing GSTR-3B.
Step 5: Reconcile GSTR-1 and GSTR-3B
- Ensure that the details in GSTR-1 and GSTR-3B match to avoid discrepancies.
- Any mismatch may lead to notices from the GST department.
Step 6: File GSTR-2A/2B (Inward Supplies)
- GSTR-2A is an auto-populated return that reflects details of inward supplies (purchases) based on your suppliers’ GSTR-1 filings.
- GSTR-2B is a static return providing input tax credit (ITC) details for a specific tax period.
- Use these returns to verify and reconcile your purchase details.
Step 7: File GSTR-9 (Annual Return)
- GSTR-9 is an annual return that consolidates all monthly/quarterly returns filed during the financial year.
- Due date: 31st December of the following financial year.
- Small taxpayers with a turnover of up to ₹2 crore are exempt from filing GSTR-9 for FY 2022-23 and earlier.
Step 8: File GSTR-9C (Reconciliation Statement)
- GSTR-9C is a reconciliation statement between the audited financial statements and the annual return (GSTR-9).
- It is mandatory for businesses with an annual turnover exceeding ₹5 crore.
- Due date: 31st December of the following financial year.
Step 9: Pay GST Dues
- Pay the GST liability (CGST, SGST, IGST) before filing returns.
- Payment can be made through:
- Challan (GST PMT-06) on the GST portal.
- Online banking, NEFT/RTGS, or over-the-counter at authorized banks.
Step 10: File Nil Returns (If Applicable)
- If no business activity is conducted during a tax period, file a Nil return to stay compliant.
Step 11: Use GST Software or Professionals
- Use GST-compliant accounting software (e.g., Tally, ClearTax, Zoho Books) to simplify the filing process.
- Alternatively, hire a GST practitioner or CA to handle filings.
Important Due Dates for GST Filing
| Return | Frequency | Due Date |
|---|---|---|
| GSTR-1 | Monthly | 11th of the following month |
| GSTR-1 | Quarterly | 13th of the month following the quarter |
| GSTR-3B | Monthly | 20th of the following month |
| GSTR-9 (Annual) | Annual | 31st December of the following FY |
| GSTR-9C (Audit) | Annual | 31st December of the following FY |
Penalties for Late Filing
- Late filing of GST returns attracts a penalty of:
- ₹50 per day for CGST and ₹50 per day for SGST (total ₹100 per day).
- Maximum penalty: ₹5,000 per return.
- Late fee for Nil returns: ₹20 per day (₹10 CGST + ₹10 SGST).
Conclusion
GST filing is a systematic process that requires accurate record-keeping and timely compliance. By following the steps above and using the GST portal effectively, businesses can ensure smooth and hassle-free GST compliance. For further assistance, consult a GST practitioner or visit the official GST portal: https://www.gst.gov.in.