GST Return Filing Process For Normal Taxpayer

A person registered as a normal taxpayer is required to furnish three returns on monthly basis and one annual return. This sums up to thirty-seven (37) returns in a financial year. That’s too much of compliance requirement, isn’t it? Well, even though it is, but nothing much can be done and it needs to be compulsorily filed before the due date. We will be discussing the GST return filing process. Some consider it complex, while other believe that anyone can file GST return for their business. Let’s find out for yourself about the complexity involved in GST return filing process, if any.

Returns To Be Filed On Monthly Basis

A person registered as a normal taxpayer is required to file following returns with corresponding timelines:

Return Form Description Return Filing Timelines
GSTR-1 Details of outward supplies of taxable goods and/or services effected By 10th of the next month
GSTR-2 Details of inward supplies of taxable goods and/or services effected claiming input tax credit. By 15th of the next month
GSTR-3 Monthly return on the basis of finalization of details of outward supplies and inward supplies along with the payment of the amount of tax. By 20th of the next month
GSTR-9 Annual Return By 31st December of next financial year

While it may seem that three returns need to be filed, however, a taxpayer has to essentially file GSTR-1. GSTR-2 and GSTR-3 will auto-populate from counterparty GST return. To put it simply, when your supplier files his/her GSTR-1, he mentions your GSTIN in it, and such transactions become an entry in your GSTR-2. You may accept, reject or modify such transactions. Once GSTR-2 is filed after modifications if any, its data flows into GSTR-3 along with data fined in GSTR-1. Thus, all information auto-populates in GSTR-3 from GSTR-1 and GSTR-2.

Finally, a taxpayer can review all the information reflecting in GSTR-3 and offset the GST liability through electronic cash ledger or electronic credit ledger, as the case may be. It is important to note that GSTR-3 cannot be filed without meeting off the GST liability. It’s one of the pre-requisite to the filing of GSTR-3.

GST Return Filing Process

Pheww, that’s too much of effort!! Isn’t it? Well for some it may be, for some it may not. As a business owner, you need to carry out a cost/benefit analysis for your business and see if you can comply it by yourself or you need to avail services of an expert. Time spent on return filing will have the opportunity cost of time which you can devote to your core business activity.

Still, have doubts? Write your GST queries directly to us at [email protected]

Read more about GST Returns

Follow our YouTube Channel for latest video on GST Compliance.