GST Return Filing in India: Which Return, When and Penalties

1. Introduction

Once you are registered under GST, returns must be filed even for months with no sales — a nil return is still a return. This guide explains, in simple language, which return applies to your business, when it is due, and what non-filing actually costs.

2. Who should read this?

• Businesses and professionals newly registered under GST.
• Composition-scheme taxpayers unsure which return applies to them.
• Anyone with pending returns, accumulated late fees, or blocked input tax credit.

3. What the law says

• Return filing obligations arise under the Central Goods and Services Tax Act, 2017 and the CGST Rules, and are complied with through the GST portal.
• A regular taxpayer files GSTR-1 (details of outward supplies) and GSTR-3B (summary return with tax payment). Monthly filers commonly file GSTR-1 by the 11th and GSTR-3B by the 20th of the following month, while smaller taxpayers under the QRMP scheme file quarterly with monthly tax payment.
• An annual return in GSTR-9 is filed by regular taxpayers above the prescribed turnover threshold, with a reconciliation statement in GSTR-9C where applicable.
• Composition-scheme taxpayers pay tax quarterly through Form CMP-08 and file an annual return in GSTR-4 instead of the regular monthly returns.
• Late filing attracts a late fee per day of delay (a lower amount for nil returns), subject to prescribed caps, plus interest on any unpaid tax — commonly at 18% per annum.
• Input tax credit depends on your supplier actually reporting the invoice, and the law imposes an outer time limit for claiming credit for a financial year, so reconciliation matters as much as filing.
• Continued non-filing can lead to blocking of the e-way bill facility and, ultimately, suspension or cancellation of registration.

4. Step-by-step process

1. Step 1Confirm your filing category

   Establish whether you are a regular monthly filer, a QRMP quarterly filer, or a composition taxpayer — this determines every due date.

2. Step 2Reconcile sales and purchases

   Match your books against GSTR-2B each period so input tax credit claims are supported by supplier filings.

3. Step 3File GSTR-1 with outward supply details

   Report invoice-wise outward supplies by the applicable due date.

4. Step 4File GSTR-3B and pay the tax

   File the summary return and discharge the net tax liability through cash or credit ledger by the due date.

5. Step 5File the annual return

   File GSTR-9 (and GSTR-9C reconciliation where applicable) after the financial year ends, within the prescribed deadline.

5. Documents required

• Sales invoices, credit and debit notes for the period.
• Purchase invoices and GSTR-2B auto-drafted statement for credit reconciliation.
• Bank statements and records of advances received.
• Details of exports, exempt supplies, and reverse-charge transactions.
• GST login credentials and digital signature or EVC facility.

6. Fees and government charges

• There is no government fee to file a GST return on the portal.
• Costs arise from late fees and interest on delay, and from accountant or consultant charges.

Fees vary by state and change over time; treat these as general pointers, not exact figures.

7. Expected timeline

Regular monthly filers face recurring deadlines around the 11th (GSTR-1) and 20th (GSTR-3B) of each following month, with QRMP filers on a quarterly cycle. The annual return follows the close of the financial year. Exact dates are subject to government notifications and extensions.

8. Common mistakes to avoid

• Not filing a nil return in a month with no business, which still attracts a late fee.
• Claiming input tax credit without checking GSTR-2B, then having it disallowed.
• Missing the outer time limit for claiming credit for a financial year.
• Filing GSTR-3B without first filing GSTR-1, creating mismatches.
• Ignoring notices for non-filing until registration is suspended or cancelled.

9. Frequently asked questions

10. When you should consult a lawyer

• You have received a GST notice, assessment order, or demand.
• Your registration has been suspended or cancelled for non-filing.
• Large input tax credit claims have been disallowed.
• You need to regularise several years of pending returns.

11. How LawMitran can help