4 Kinds of Basic Returns That are Mandatory to File Under GST

GST has been the sizzling topic at the moment which has left the masses wondering about the newly launched indirect tax regime of the country. Right from the rates which will be levied to the process of GST return, there have been numerous speculations pertaining to the ways GST would unfold. Though it has been few months since the implementation of the new tax regime of the country, the people as well as the government has faced some serious teething troubles.

It wouldn’t be wrong to say that the advent of the new tax regime of the country has simplified the load of taxation of a majority of businesses and individuals. As it is known to subsume the various indirect taxes into one, it will relief the businesses from the troubles of filing separate returns for each and every tax including excise, VAT and sales tax. Any and every individual whose running a business needs to adhere to the guidelines mentioned in the new law. As returns are one of the most vital aspects of any kind of taxation, the new indirect tax regime is no different. This article is specifically directed towards the major kinds of GST return which every taxpayer would be expected to file.

Before moving any further, it is vital to gain a considerate understanding of what exactly GST return is. In the general context, a tax return includes the details of the income of the taxpayers. GST return would include the particulars about the purchases, sales and input tax credit. Another aspect of GST returns which requires an equal level of consideration is pertaining to where it can be filed. It is important to understand here that all returns in GST need to filed online. GSTN, the technological backbone of GST, has provided a common portal over which the returns have to be filed.

Now, coming to the major kinds of returns which are integral in GST, the four major ones are highlighted below:

  • GSTR-1:
    Made on a monthly basis, this accurate GST return will be containing all the details pertaining to the particulars of sales. Be it in the context of goods or services, filing of GSTR-1 will require the adequate detailing of the following points.
  • GSTIN: This is the unique identification number of the taxpayer
  • HSN: Termed as ‘Harmonised System of Nomenclature’ this code is the universal recognition for goods and is used for identifying them
  • SAC: The abbreviation of ‘Services Accounting Code’, this code is used for services specifically
  • POS: Called as the ‘Place of Supply of Goods or Services’, this detail is mandatory to mention while filing GST Return 1.

Mostly auto-populated, these details are vital to enter in the sale bills.

  • GSTR-2:
    This GST return also needs to be filed on a monthly basis, but unlike GSTR-1, GSTR-2 deals with the details of purchases which have been made. It can also be claimed as input tax credit which enables the taxpayers to adjust the taxes on inputs against the charges which are being paid on the outputs. As all the information is auto-populated, this automatically pulls the data from the supplier’s GSTR-1 once the return is filed from his end. Later on, if the taxpayer feels that there still exists some information which still stands missing from the end of the supplier, then it can be entered manually.
  • GSTR-3:
    Considered as a monthly summary, the data in here is pulled directly from both the aforementioned GST returns. The portal itself calculates the tax liability automatically after taking the input tax credit from GSTR-2 in consideration. It majorly encapsulates the details of purchases, sales and the entire tax amount.
  • GSTR-9:
    Details of GSTR-9 are automatically drawn from GSTR-1, GSTR-2 and GSTR-3. It includes the details of purchases, sales, P&L account and audit.

GST return is a vital element of the entire taxation system and aforementioned ones are mandatory to file.

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