GST Return Filing

What does GST return filing involve?

Every GST-registered business files returns reporting its sales, the tax it owes, and the input tax credit it's claiming. The two main returns are GSTR-1, which reports outward supplies invoice by invoice, and GSTR-3B, a summary return with which the tax is paid.

Returns are filed monthly, or quarterly for smaller businesses under the QRMP scheme, and an annual return at the end of the year. They have to be filed even for periods with no sales.

The key terms

The main returns and schemes:

GSTR-1

Details of outward supplies, filed monthly by the 11th, or quarterly under QRMP. It feeds your customers' input tax credit.

GSTR-3B

A summary return of sales, credit, and tax payable, filed with the tax payment — monthly by the 20th, or quarterly by the 22nd or 24th depending on the state.

QRMP scheme

Businesses with turnover up to ₹5 crore can file quarterly, paying tax monthly, and use the Invoice Furnishing Facility to report B2B invoices monthly.

GSTR-2B

An auto-generated statement of credit available from suppliers' filings, which your credit claim should match.

Auto-populated liability

Tax liability in GSTR-3B is increasingly auto-populated from GSTR-1, with corrections made through the GSTR-1 amendment route rather than by editing GSTR-3B.

Late fee and interest

A late fee applies for each day a return is late, and interest at 18% a year on tax paid late.

Three-year time bar

Returns generally can't be filed after three years from their due date, so old gaps become permanent.

Why it matters

GST returns are the core of GST compliance:

Late fees add up

Every day of delay adds a late fee, even for nil returns.

Interest on late tax

Tax paid late carries interest at 18% a year.

Customers lose credit

If you don't file GSTR-1, your customers can't claim credit, which damages relationships.

E-way bills blocked

Businesses that miss returns for a period can be blocked from generating e-way bills.

Suspension and cancellation

Not filing returns for a continuous period can lead to suspension or cancellation of registration.

Mismatches trigger notices

Differences between GSTR-1, GSTR-3B, and GSTR-2B are picked up automatically.

Time bar

Returns not filed within three years of the due date can't be filed at all.

Who is this for?

Composition taxpayers file different, simpler returns. We handle those too.

Monthly filing vs. QRMP

For businesses with turnover up to ₹5 crore:

What we'll need from you

Sales records

Invoices, credit and debit notes, and marketplace reports.

Purchase records

Supplier invoices, for credit matching against GSTR-2B.

E-invoice and e-way bill data

Where these apply to you.

Previous returns

For carrying forward balances and amendments.

Portal access

GST portal login, or authorisation for us to file.

Payment

Funds to pay tax through the electronic cash ledger.

Monthly fees depend on invoice volumes and the number of GSTINs.

How we file your returns

Each period follows the same cycle:

1. 1

   Collect data

   Sales and purchase data for the period are collected from your books or software.

2. 2

   Prepare GSTR-1

   Outward supplies are prepared invoice by invoice and validated.

3. 3

   Match credit

   Purchase credit is matched to GSTR-2B, and ineligible or unmatched credit excluded.

4. 4

   Compute tax

   Tax payable is computed, using credit first and cash for the balance.

5. 5

   Pay and file GSTR-3B

   Tax is paid and GSTR-3B filed by the due date.

6. 6

   Review

   Filed returns are reconciled with the books, and differences followed up.

Staying compliant

Good habits keep returns clean:

File nil returns

File returns even for periods with no sales.

Follow up suppliers

Chase suppliers whose invoices don't appear in GSTR-2B.

Correct through amendments

Fix errors in later returns or through the amendment facility, within the time allowed.

Watch the time bar

Don't leave missed returns for years — they may become impossible to file.

Annual return

Reconcile the year's returns for GSTR-9 by 31 December.

Keep records

Keep invoices and records for the statutory retention period.

Benefits and responsibilities