Documents Required for GST Return Filing in India

The implementation of the Goods and Services Tax (GST) has simplified the tax system in India which consequently made it mandatory for firms to keep precise records and follow the compliance rules. One of the main pillars of GST compliance is the filing of GST returns which are both timely and accurate. In order to do so, businesses need to collect and properly arrange particular papers. This article is a detailed guide about the documents needed for filing GST returns in India, highlighting the various return forms and the corresponding documentation needed for each one.

General Documents for GST Return Filing

Before delving into the specifics of each return form, it's crucial to understand the general documents every GST-registered taxpayer should maintain:

• GSTIN (Goods and Services Tax Identification Number): This unique identification number is assigned to every GST-registered entity and is essential for all filings.
• Invoices: Detailed records of all sales and purchases, categorized into B2B (Business to Business) and B2C (Business to Consumer), are fundamental.
• Debit and Credit Notes: Documents reflecting any adjustments to the original invoices.
• Payment Vouchers: Proof of payments made during the tax period.
• Bank Account Details: Information about the business's bank accounts, including IFSC codes, is necessary for reconciliation and refunds.
• HSN (Harmonized System of Nomenclature) Code Summary: A summary of goods sold categorized by their HSN codes.
• E-way Bills: Required for the movement of goods exceeding specified values.

Documents Required for GSTR-1 Filing

GSTR-1 is a monthly or quarterly return that details outward supplies (sales). The documents required include:

• B2B Invoices: List of all invoices issued to registered persons, including:
• Customer's GSTIN
• Invoice Number and Date
• Place of Supply
• Taxable Value
• GST Rate and Amount (IGST, CGST, SGST)
• Reverse Charge Indicator (if applicable)
• B2C Invoices: Details of invoices issued to unregistered persons exceeding ₹2.5 lakhs, including:
• Invoice Number and Date
• Total Invoice Value
• Place of Supply
• GST Rate and Amount
• Export Sales: Information on export transactions, including:
• Shipping Bill Number and Date
• Port Code
• Taxable Value and GST Details
• Debit and Credit Notes: Details of any adjustments made post-invoice issuance.
• HSN Summary: Categorization of goods sold based on HSN codes. For exampleGST rate and HSN code 9987 for repair & maintenance as per HSN.

Documents Required for GSTR-3B Filing

GSTR-3B is a monthly self-declaration return summarizing outward and inward supplies. The necessary documents include:

• Sales Invoices: Total sales made during the month, categorized by GST rates.
• Purchase Invoices: Details of purchases made, including input tax credit (ITC) claims.
• Debit and Credit Notes: Adjustments affecting the tax liability.
• Advance Receipts: Details of any advances received during the period.
• Tax Payment Challans: Proof of any tax payments made during the month.
• HSN Summary: Summary of goods sold categorized by HSN codes.

Documents Required for GSTR-4 Filing (Composition Scheme)

GSTR-4 is an annual return for taxpayers under the composition scheme. The required documents include:

• Bill of Supply: Instead of regular invoices, composition dealers issue bills of supply.
• Sales and Purchase Summaries: Details of all sales and purchases made during the year.
• Tax Payment Challans: Proof of quarterly tax payments made under the scheme.

Documents Required for GSTR-9 Filing (Annual Return)

GSTR-9 is an annual return that provides a comprehensive summary of all transactions. The documents required are:

• GSTR-1 and GSTR-3B Returns: Copies of all monthly/quarterly returns filed during the year.
• Sales and Purchase Summaries: Detailed records of all transactions during the year.
• Tax Payment Challans: Proof of all tax payments made during the year.
• Reconciliation Statements: Documents reconciling the financial statements with GST returns.
• Audited Financial Statements: Balance sheet and profit & loss account for the financial year.

Documents Required for GSTR-9C Filing (Reconciliation Statement)

GSTR-9C is a reconciliation statement that needs to be filed by taxpayers whose turnover exceeds ₹5 crores. The necessary documents include:

• GSTR-9: Annual return filed for the financial year.
• Audited Financial Statements: Balance sheet and profit & loss account.
• Reconciliation Statements: Documents reconciling the financial statements with GST returns.
• Tax Payment Challans: Proof of tax payments made during the year.

Documents Required for GSTR-5 Filing (Non-Resident Taxpayers)

GSTR-5 is a return for non-resident foreign taxpayers. The required documents include:

• Sales and Purchase Invoices: Details of all transactions during the period.
• Tax Payment Challans: Proof of any tax payments made.
• Import/Export Details: Information on goods imported or exported during the period.

Documents Required for GSTR-6 Filing (Input Service Distributors)

GSTR-6 is a return for input service distributors. The necessary documents are:

• Invoices Received: Details of all invoices received for input services.
• ITC Distribution Details: Information on how input tax credit is distributed among branches or units.

Documents Required for GSTR-7 Filing (Tax Deducted at Source - TDS)

GSTR-7 is a return for taxpayers deducting TDS under GST. The required documents include:

• TDS Certificates: Proof of TDS deductions made during the period.
• Payment Vouchers: Details of payments made with TDS deductions.

Documents Required for GSTR-8 Filing (Tax Collected at Source - TCS)

GSTR-8 is a return for e-commerce operators collecting TCS under GST. The necessary documents are:

• TCS Collected Details: Information on tax collected at source during the period.
• Transaction Records: Details of transactions where TCS was collected.

Conclusion

Efficient and timely GST return filing is crucial for businesses to maintain compliance with Indian tax laws. By ensuring that all the necessary documents required for GST Return Filing in India are organized and readily available, businesses can streamline the filing process and avoid potential penalties. Regularly updating and maintaining these records will not only facilitate smooth GST compliance but also contribute to the overall financial health of the business.

FAQs

Q1: What is the penalty for late GST return filing?

Under the Goods and Services Tax (GST) regime in India, the penalty for late filing of returns such as GSTR-3B is ₹50 per day (₹25 under CGST and ₹25 under SGST). This penalty is capped at a maximum of ₹5,000 per return. For nil returns, the late fee is reduced to ₹20 per day, with a maximum cap of ₹500. It's important to note that the late fee is calculated from the day after the due date until the return is filed, regardless of whether any tax is payable. Therefore, timely filing is crucial to avoid unnecessary penalties.

Q2: Is interest charged on late GST payments?

Yes, interest is charged at 18% per annum on the outstanding GST tax liability from the due date until the actual payment is made. This interest is applicable even if the return is filed on time but the payment is delayed. The interest is calculated on the unpaid tax amount for the period it remains unpaid, emphasizing the importance of timely payment to avoid additional financial burdens.

Q3: Can I claim input tax credit if I file returns late?

No, claiming Input Tax Credit (ITC) is contingent upon timely filing of returns. According to Section 16(4) of the Central Goods and Services Tax (CGST) Act, ITC can only be claimed if the return for the month of September following the end of the financial year is filed, or the annual return is filed, whichever is earlier. Therefore, delayed filing of returns can result in the loss of eligibility to claim ITC, affecting the overall tax liability and cash flow of the business.

Q4: How can businesses avoid late filing penalties?

To avoid penalties associated with late GST return filing, businesses should adopt proactive measures. Maintaining accurate and up-to-date records of all transactions ensures that returns can be filed promptly. Utilizing GST-compliant accounting software can automate calculations and reminders, reducing the risk of human error. Setting internal deadlines ahead of the official due dates can provide a buffer period to address any unforeseen issues. Additionally, consulting with tax professionals can provide guidance and ensure compliance with all GST regulations, thereby minimizing the risk of penalties.

Q5: Is GST registration required before filing returns?

Yes, obtaining GST Registration Online is a prerequisite for filing GST returns. Businesses must complete the GST registration process online to obtain a Goods and Services Tax Identification Number (GSTIN). This registration is mandatory for filing returns, making tax payments, and claiming Input Tax Credit (ITC). Without a valid GSTIN, a business cannot legally engage in activities under the GST regime, including the filing of returns.