What are GST Returns - Types & Steps to File GST Returns Online

Introduction

In the pre-GST era, business owners had to navigate a maze of Excise, VAT, and Service Tax returns, each with its own deadlines and portals. The promise of the Goods and Services Tax (GST) was "One Nation, One Tax." While it has certainly unified the tax structure, the compliance aspect remains a rigorous monthly ritual.

For a registered business in India, filing a "GST Return" is not just about paying tax. It is a detailed declaration of your business activities—how much you sold, who you sold to, how much you bought, and the input credit you are claiming. It is the mechanism through which the government validates your tax liability.

In 2025, the system will have become highly automated. If you miss a return, your customers cannot claim credit, your e-way bill facility gets blocked, and you face daily penalties. Whether you are a regular taxpayer, a composition dealer, or an e-commerce seller, knowing which form to file and when is critical. In this guide, we will break down the alphabet soup of GST forms and show you the exact steps to file them online.

Table of Contents

1. What is a GST Return?
2. Who Needs to File GST Returns?
3. Major Types of GST Returns (Regular Taxpayers)
4. Returns for Composition and Special Taxpayers
5. Annual Returns (GSTR-9 and 9C)
6. Due Dates Calendar for 2025
7. Late Fees and Interest Penalties
8. Step-by-Step Guide to File GST Returns Online
9. Common Errors to Avoid
10. FAQs

What is a GST Return?

A GST Return is a document containing details of income that a taxpayer is required to file with the tax administrative authorities. This is used by tax authorities to calculate tax liability.

Under GST, a registered dealer has to file GST returns that include:

• Purchases
• Sales
• Output GST (On sales)
• Input Tax Credit (GST paid on purchases)

To file a GST return, you need GST-compliant sales and purchase invoices.

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Who Needs to File GST Returns?

In the GST regime, filing is mandatory. Even if you have made Zero Sales and Zero Purchases in a month, you still have to log in and file a "Nil Return."

If you have a valid GSTIN, you must file returns. The only way to stop filing is to cancel your GST registration.

Major Types of GST Returns (Regular Taxpayers)

For a standard business (Regular Scheme), there are two main returns to worry about every month (or quarter).

1. GSTR-1 (The Sales Return)

• Purpose: To report details of all outward supplies (Sales) of goods and services.1
• Frequency: Monthly (if turnover > ₹5 Cr) or Quarterly (if opted for QRMP scheme).2
• Impact: The data you enter here flows to your customer's GSTR-2B. If you mess this up, your customer loses credit.3

2. 4GSTR-3B (The Payment Return)

• Purpose: A self-declaration summary return where you calculate the final tax payable. You take the Output Tax from GSTR-1, subtract the Input Tax Credit from GSTR-2B, and pay the balance in cash.
• Frequency: Monthly or Quarterly.
• Crucial: This is the return where the actual tax payment happens.

Returns for Composition and Special Taxpayers

Not everyone files GSTR-1 and 3B. Specific business models have specific forms.

1. GSTR-4 (Composition Scheme)

• Who: Small businesses with turnover up to ₹1.5 Cr opting for the Composition Scheme.
• Frequency: Annually (Statement CMP-08 is filed quarterly for payment).

2. GSTR-5 (Non-Resident Taxable Person)

• Who: Foreign businesses making supplies in India without a fixed establishment.
• Frequency: Monthly.

3. GSTR-6 (Input Service Distributor)

• Who: Head offices that receive invoices for services and distribute credit to branches.
• Frequency: Monthly.

4. GSTR-7 (TDS Deductor)

• Who: Government departments and notified entities deducting TDS.
• Frequency: Monthly.

5. GSTR-8 (E-Commerce Operator)

• Who: Platforms like Amazon/Flipkart are collecting TCS.
• Frequency: Monthly.

Annual Returns (GSTR-9 and 9C)

Once the financial year ends, you need to consolidate everything.

• GSTR-9: The Annual Return. It is a compilation of all 12 monthly GSTR-1 and GSTR-3B returns filed during the year. Mandatory for turnover > ₹2 Crore.
• GSTR-9C: The Reconciliation Statement. It is a certified reconciliation between the books of accounts and the GST returns. Mandatory for turnover > ₹5 Crore.

Due Dates Calendar for 2025

Missing a date means instant late fees. Keep this schedule in mind.

• GSTR-1 (Monthly): 11th of the next month.
• GSTR-1 (Quarterly): 13th of the month following the quarter.
• GSTR-3B (Monthly): 20th of the next month.
• GSTR-3B (Quarterly): 22nd or 24th of the month following the quarter (depending on state).
• GSTR-9/9C: 31st December of the next financial year.

Late Fees and Interest Penalties

The GST portal is unforgiving.

• Late Fee:

  1. Nil Return: ₹20 per day (₹10 CGST + ₹10 SGST).
  2. Taxable Return: ₹50 per day (₹25 CGST + ₹25 SGST).
  3. Max Cap: Varies based on turnover, but can go up to ₹10,000 per return.

• Interest: 18% per annum on the outstanding tax amount if payment is delayed.

Step-by-Step Guide to File GST Returns Online

You can file returns directly on the portal or use GSP software. Here is the manual portal process.

Step 1: Login

Go to gst.gov.in and enter your Username and Password.

Step 2: Dashboard

Navigate to Services > Returns > Returns Dashboard.

Step 3: Select Period

Select the Financial Year and the Month you want to file for. Click "Search."

Step 4: File GSTR-1 First

Always file GSTR-1 before GSTR-3B.

• Click on the GSTR-1 tile.
• Upload B2B invoices and enter B2C summaries.
• Click "Generate Summary."
• Once processed, click "Submit" and then "File Return" using EVC (OTP) or DSC.

Step 5: File GSTR-3B

• Once GSTR-1 is filed, the liability auto-populates in GSTR-3B.
• Go to the GSTR-3B tile.
• The system will show the Input Tax Credit (ITC) available from GSTR-2B.
• Offset Liability: The portal will use your credit balance to pay off the liability. If cash is required, generate a Challan and pay via Net Banking.
• Click "File Return."

Common Errors to Avoid

1. Wrong GSTIN: Entering the wrong customer GSTIN in GSTR-1 transfers the credit to a stranger.
2. Mismatched Invoice Numbers: Ensure invoice numbers in your software match the portal exactly.
3. Claiming Ineligible ITC: Don't blindly claim all the ITC shown in 2B. Filter out blocked credits (like car purchase or food expenses).
4. Reporting under Wrong Head: Entering an inter-state sale (IGST) as an intra-state sale (CGST/SGST).