How to File GST in India

The Goods and Services Tax (GST) is one of the most significant tax reforms in India. It simplified the indirect tax structure by bringing multiple central and state taxes under a single umbrella. If you’re a business owner or a self-employed professional, understanding how to file GST returns is essential for compliance and smooth business operations.

In this blog, we’ll walk you through the complete process of filing GST in India, including types of GST returns, who needs to file, the due dates, and a detailed guide on how to file your GST return online.

What is GST?

GST stands for Goods and Services Tax. It is a value-added tax levied on the supply of goods and services. GST replaced a variety of indirect taxes previously levied by the central and state governments, such as excise duty, VAT, and service tax. GST is collected at every stage of the supply chain and is refunded to all parties in the chain except the final consumer.

Why Filing GST is Important

Filing GST returns is not only a legal obligation but also a key part of financial management. Filing your returns on time ensures:

• Compliance with tax laws
• Claiming Input Tax Credit (ITC)
• Avoiding penalties and interest
• Maintaining credibility with suppliers and buyers
• Smooth operation of business accounts

Who Needs to File GST Returns?

You must file GST returns if you fall into any of the following categories:

• Registered businesses with annual turnover above the threshold limit (₹40 lakh for goods, ₹20 lakh for services; lower in some states)
• Composition scheme dealers
• E-commerce sellers
• Input service distributors (ISDs)
• Casual taxable persons
• Non-resident taxable persons
• TDS/TCS deductors under GST law

Even if you have zero sales in a particular month filing NIL returns is mandatory.

Types of GST Returns

There are multiple types of returns under the GST system. Here are the most common ones:

1. GSTR-1

• Purpose: Report outward supplies (sales)
• Filed by: Regular taxpayers
• Frequency: Monthly or Quarterly
• Due date: 11th of next month (monthly) / as per QRMP scheme

2. GSTR-3B

• Purpose: Summary of sales, purchases, and tax payment
• Filed by: Regular taxpayers
• Frequency: Monthly
• Due date: 20th of next month

3. GSTR-4

• Purpose: For composition scheme taxpayers
• Frequency: Quarterly
• Due date: 30th of the month after the end of each quarter

4. GSTR-9

• Purpose: Annual return for regular taxpayers
• Due date: 31st December of next financial year

5. GSTR-9C

• Purpose: Reconciliation statement (if turnover exceeds ₹5 crore)
• Due date: 31st December of next financial year

Prerequisites for Filing GST Returns

Before you start filing, make sure you have the following:

• A valid GSTIN (GST Identification Number)
• Login credentials for the GST portal
• Sales and purchase invoices for the period
• Access to internet and a computer or mobile device
• Digital Signature Certificate (DSC) or OTP for verification

How to File GST Returns Online (Step-by-Step)

Let’s go through the process of filing GSTR-3B, which is the most commonly filed return.

Step 1: Visit the GST Portal

• Open your browser and go tohttps://www.gst.gov.in

Step 2: Log in to Your Account

• Click the Login button
• Enter your GSTIN, Username, and Password
• Fill in the captcha and click Login

Step 3: Go to the Return Dashboard

• Click on ‘Returns Dashboard’ under the ‘Services’ tab
• Select the relevant Financial Year and Return Period
• Click Search

Step 4: Select GSTR-3B

• Under the return list, click Prepare Online next to GSTR-3B

Step 5: Fill in the Return Details

You’ll be asked to fill out the following sections:

1. Outward Supplies

• Enter details of taxable supplies made during the month
• Fill IGST, CGST, SGST, and cess values

1. Inward Supplies (Eligible for ITC)

• Enter purchase details where you’ve paid GST and are eligible to claim Input Tax Credit

1. Exempt and Nil-Rated Supplies

• Mention exempt, nil-rated, and non-GST supplies

1. Payment of Tax

• The system will auto-calculate your tax liability
• You can pay using cash ledger or by utilizing ITC from your credit ledger

Step 6: Save and Submit

• Click Save GSTR-3B to review your inputs
• Click Submit when you’re satisfied

Step 7: Make Payment and File Return

• Click Payment of Tax to proceed
• Use either cash or ITC for payment
• Click File GSTR-3B with DSC or EVC
• Confirm and submit

After successful submission, you will receive an Acknowledgment Reference Number (ARN) as proof of filing.

Penalties for Late Filing

If you miss the return filing deadline, you will be liable for the following penalties:

• Late Fee: ₹50 per day (₹25 CGST + ₹25 SGST)
• NIL Return Late Fee: ₹20 per day (₹10 CGST + ₹10 SGST)
• Interest: 18% per annum on outstanding tax

These penalties apply until the date you actually file your returns.

Tips for Hassle-Free GST Filing

Here are a few tips to make your GST filing process smoother:

• Maintain a digital record of all invoices
• Reconcile your books with GSTR-2B for accurate ITC claims
• File your returns well before the deadline to avoid last-minute issues
• Use GST-compliant billing software to automate calculations
• Stay updated with changes or notifications from the GST Council

Conclusion

Filing GST returns is an essential part of running a business in India. Although the process might appear technical at first, it becomes straightforward once you understand the basics. With everything available online, you can file your returns from the comfort of your home or office.

By filing returns timely and accurately, you ensure your business stays compliant and enjoys uninterrupted input tax credit benefits. Whether you do it yourself or hire a professional, make sure your GST returns are filed every month without fail.