How to Fill GST in India: A Step-by-Step Guide for Businesses

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Goods and Services Tax (GST) has been a game-changer for the Indian taxation system. Introduced on July 1, 2017, it replaced a multitude of indirect taxes that were previously levied by the central and state governments. The GST system simplifies tax compliance and allows businesses to maintain a seamless flow of goods and services across the country.


Filing GST returns is an important process for businesses registered under GST in India. The process may seem daunting at first, but with a step-by-step guide, it becomes more manageable. In this blog, we will guide you through the entire process of how to fill GST returns in India, the forms involved, and key considerations that businesses need to keep in mind.

Understanding GST Returns

GST returns are documents that businesses file with the government, providing details of their income, sales, and purchases. These returns are filed periodically and contain information about the amount of tax a business owes and the input tax credits it can claim.

There are various types of GST returns that businesses may need to file depending on the nature of their business, turnover, and the GST scheme under which they are registered.

Common GST Returns:

  1. GSTR-1: Details of outward supplies (sales) made by the business.
  2. GSTR-2A: Auto-generated details of inward supplies (purchases) that have been filed by suppliers.
  3. GSTR-3B: Monthly summary return, containing the summary of outward and inward supplies, and the GST liability to be paid.
  4. GSTR-9: Annual return for businesses registered under GST.
  5. GSTR-10: Final return when a business is de-registered under GST.

The most commonly filed return is GSTR-3B, which businesses must submit monthly, along with GSTR-1 for detailed sales information. However, depending on your turnover and the GST registration type, you may be required to file other returns such as GSTR-4 (for composition scheme) or GSTR-9 (for annual return).

Steps to Fill GST Return in India

Filing GST returns is done through the official GST portal, which can be accessed at www.gst.gov.in. Below are the steps for filling GST returns.

Step 1: Register and Log In to the GST Portal

Before you can file GST returns, you need to ensure your business is registered under GST. If you haven’t done this yet, follow the registration process on the GST portal.

Once registered, follow these steps:

  1. Visit the GST Portal: Go to www.gst.gov.in.
  2. Log In: Enter your username (GSTIN) and password to log in.
  3. Dashboard: Upon successful login, you will be redirected to your GST dashboard, where you can see all your returns, invoices, and other details.

Step 2: Filing GSTR-1 (Outward Supply)

GSTR-1 is a return that provides details of all sales made during the month. This return needs to be filed on a monthly or quarterly basis, depending on your business's turnover.

Here’s how to fill GSTR-1:

  1. Navigate to GSTR-1: On your GST dashboard, go to the 'Returns' section and select GSTR-1.
  2. Select the Period: Choose the month or quarter for which you are filing the return.
  3. Enter Details of Outward Supplies: Fill in the details of your sales transactions. You need to mention the following information:
    • Invoice number
    • Date of supply
    • GSTIN of the recipient
    • Taxable value and applicable GST rate (CGST, SGST/UTGST, IGST)
  4. Verify and Submit: After entering all details, cross-check the entries to ensure accuracy. Once verified, click the 'Submit' button.

GSTR-1 can be filed by businesses who have received their payments, and the data can also be automatically populated from GSTR-2A (inward supply data). Businesses can also make use of e-invoicing if applicable.

Step 3: Filing GSTR-3B (Summary Return)

GSTR-3B is a summary return that summarizes the total tax liability of the business. This return needs to be filed monthly and is critical because it represents the tax payments the business needs to make to the government.

Here’s how to fill GSTR-3B:

  1. Navigate to GSTR-3B: Go to the 'Returns' section and select GSTR-3B for the relevant month.
  2. Enter Basic Details: Fill in the basic details like your GSTIN and the period for which the return is being filed.
  3. Details of Outward and Inward Supplies:
    • Under the Outward Supplies section, mention the taxable value of sales and the tax liability (CGST, SGST/UTGST, IGST) for the respective GST rates.
    • Under the Inward Supplies section, mention the purchases made and the input tax credit (ITC) you are eligible to claim.
  4. Pay GST Liability: After entering all the details, calculate the GST liability by subtracting the available ITC from the total liability. You will then be required to pay the balance amount to the government via online payment methods.
  5. Submit: After verifying all details, click on the 'Submit' button. After submission, a payment challan will be generated.

Step 4: Filing GSTR-9 (Annual Return)

GSTR-9 is an annual return that must be filed by taxpayers registered under GST. This return contains a summary of all the GSTR-1 and GSTR-3B returns filed during the year. It is a reconciliation statement.

Here’s how to fill GSTR-9:

  1. Navigate to GSTR-9: On the dashboard, go to 'Returns' and select GSTR-9.
  2. Enter Financial Year: Select the appropriate financial year and details of the returns filed.
  3. Reconciliation: The portal will automatically fetch the data from your filed GSTR-1 and GSTR-3B. You need to check and reconcile the figures for discrepancies.
  4. Finalize the Return: Once reconciled, submit the GSTR-9 return. Any difference in tax liability will be displayed, and you will need to clear that difference via payment or adjustment.

Important Things to Keep in Mind While Filing GST Returns

  1. Timely Filing: Ensure that all returns are filed on time to avoid late fees and penalties. The due dates are usually the 20th of each month for GSTR-3B and the 11th of the following month for GSTR-1. For quarterly filers, the due date is the 13th of the following month.

  2. Maintain Accurate Records: Always keep detailed records of all your sales and purchases. Accurate records are crucial for the filing process and also in case of any audits or discrepancies.

  3. GST Payment: Make sure that all GST payments are made on time through net banking or other available payment methods. Any delay in payment will lead to interest charges.

  4. Input Tax Credit (ITC): Ensure that you correctly claim the Input Tax Credit (ITC) on purchases to reduce your GST liability. Be careful with matching the details of your invoices with the GSTR-2A.

  5. Penalties for Non-Compliance: Failure to file GST returns or incorrect filing may lead to penalties, late fees, and other legal consequences.

Conclusion

Filing GST returns in India is an important obligation for businesses that are registered under the GST regime. While it may seem complicated at first, following a step-by-step process and maintaining accurate records can make the filing process easier. Whether you are a small business or a large enterprise, understanding the nuances of GST filing and meeting deadlines is crucial for maintaining compliance and avoiding penalties.

With the right tools, such as the GST portal and accounting software, businesses can streamline their tax filing process and focus on growing their operations. By staying updated with the latest rules and regulations, businesses can continue to operate smoothly in the GST framework.

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