What Are the Documents and Information Required to File GST Returns?

Documents and Information Required to File GST Returns. The Goods and Services Tax (GST) has streamlined India’s indirect tax system since its implementation in 2017. Under the GST regime, businesses registered for GST are required to file periodic returns detailing their transactions. Timely and accurate filing of GST returns is crucial to maintain compliance and avoid penalties.
Must Read-How to File Nil GST Returns When You Have No Transactions
To file GST returns smoothly, it’s essential to have all the necessary documents and information ready. In this comprehensive guide, we’ll walk you through the key documents and details you need to gather before filing your GST returns.
Being prepared with this information will not only make the return filing process more efficient but also help you avoid common mistakes that could lead to notices or penalties from tax authorities.
Types of GST Returns.
Before diving into the documents required, let’s briefly overview the main types of GST returns:
- GSTR-1: Details of outward supplies of goods or services
- GSTR-2A: Auto-populated details of inward supplies based on supplier filings
- GSTR-2B: Auto-drafted input tax credit (ITC) statement based on GSTR-1 and GSTR-5 filings
- GSTR-3B: Monthly summary return for regular taxpayers
- GSTR-4: Quarterly return for composition dealers
- GSTR-5: Return for non-resident foreign taxpayers
- GSTR-6: Return for input service distributors (ISD)
- GSTR-7: Return for tax deducted at source (TDS)
- GSTR-8: Return for e-commerce operators required to collect tax at source (TCS)
- GSTR-9: Annual return for regular taxpayers
- GSTR-9C: Reconciliation statement and certification of specified taxpayers
- GSTR-10: Final return when GST registration is canceled or surrendered
The specific returns you need to file will depend on your business type, turnover, and GST registration category. Most businesses will at minimum need to file GSTR-1 and GSTR-3B regularly.
Documents Required for Filing GST Returns.
1. GST Registration Certificate.
Your GST Registration Certificate is the first document you’ll need. It contains your 15-digit Goods and Services Tax Identification Number (GSTIN), which is required for all your GST filings and related transactions. Ensure you have your GSTIN handy, as you’ll need to mention it on invoices and while filing returns.
2. Invoices for Outward Supplies (Sales).
To file your GSTR-1, you’ll need detailed invoices for all your outward supplies, i.e., sales of goods or services. Under the GST law, an invoice must contain the following key details:
- Invoice number and date
- Customer’s name, address, and GSTIN (if registered)
- Description of goods or services
- HSN code (for goods) or SAC code (for services)
- Quantity and unit of measurement
- Taxable value and discounts
- GST rate and amount (CGST, SGST/UTGST, or IGST)
- Place of supply and signature
Ensure your invoices are GST-compliant and contain all the necessary information. You’ll need to report invoice-level details for B2B supplies and consolidated details for B2C supplies in your GSTR-1.
3. Purchase Invoices for Inward Supplies.
To claim input tax credit (ITC) on your purchases, you’ll need GST-compliant purchase invoices from your suppliers. These invoices should contain the same details as mentioned above for sales invoices. You’ll need to reconcile your purchase invoices with the auto-populated GSTR-2A to ensure you’re claiming the correct ITC in your GSTR-3B.
4. Debit and Credit Notes.
If you’ve issued any debit notes (for increasing the taxable value) or credit notes (for reducing the taxable value) during the tax period, you’ll need to report them in your GSTR-1. Keep the original debit/credit notes handy, as they should contain details like:
- Debit/credit note number and date
- Original invoice number and date
- Reason for issuing the note
- Taxable value and GST amount adjustment
5. Shipping Bills and Export Invoices.
If you’ve made any zero-rated supplies, i.e., exports or supplies to SEZs, you’ll need the related shipping bills and export invoices. The shipping bill number and date are required for reporting export transactions in your GSTR-1. Ensure your export invoices contain the necessary details like the customer’s name, address, and country code.
6. E-way Bills.
For goods transported within India, you may need to generate e-way bills if the consignment value exceeds ₹50,000. While e-way bills are not directly required for GST return filing, they serve as crucial supporting documents for the movement of goods. Keep the e-way bill number, date, and other relevant details handy, as they may be required during audits or inspections.
7. Reverse Charge Mechanism (RCM) Invoices.
If you’ve received any supplies on which you’re liable to pay GST under the reverse charge mechanism (RCM), you’ll need to self-invoice and report these transactions in your GSTR-3B. Keep detailed records of such RCM invoices, including the supplier’s name, GSTIN (if available), description of goods or services, taxable value, and GST amount.
8. Input Service Distributor (ISD) Invoices.
If your business has an Input Service Distributor (ISD) registration, you’ll need to issue ISD invoices for distributing input tax credit to your other GST-registered locations. Keep copies of these ISD invoices, as you’ll need to report them in your GSTR-6 return.
9. TDS and TCS Certificates.
If you’re required to deduct or collect tax at source (TDS/TCS) under GST, you’ll need to issue TDS or TCS certificates to the deductee or collectee, respectively. Keep copies of these certificates, as you’ll need to report the details in your GSTR-7 (for TDS) or GSTR-8 (for TCS) returns.
10. Advance Payment Receipts.
If you’ve received any advance payments from customers, you’ll need to issue a receipt voucher and report the details in your GSTR-1. Keep track of these advance receipts, as you’ll need to adjust them against the corresponding invoices when the goods or services are actually supplied.
11. Bank Statements.
Your bank statements serve as crucial supporting documents for your GST returns. They help in reconciling your financial transactions with your GST filings and can be used to verify the payment of tax liabilities. Keep your bank statements handy, especially for the periods corresponding to your GST returns.
12. Reconciliation Statements.
To ensure accuracy in your GST filings, it’s essential to reconcile your outward and inward supplies with your financial statements. Prepare reconciliation statements that match your turnover, taxable value, and GST amounts with your books of accounts. These statements will be helpful when filing your annual return (GSTR-9) and reconciliation statement (GSTR-9C).
Additional Information Required for GST Returns.
Apart from the documents mentioned above, you’ll also need certain key information to file your GST returns accurately:
- HSN and SAC Codes: HSN (Harmonized System of Nomenclature) codes are used for classifying goods, while SAC (Services Accounting Code) codes are used for services. You’ll need to mention these codes in your invoices and GST returns. The level of HSN/SAC code detail required depends on your annual turnover.
- GST Rates: Ensure you have the correct GST rates for the goods or services you supply. GST rates can be 0%, 5%, 12%, 18%, or 28%, depending on the nature of the product or service. Applying the wrong GST rate could lead to incorrect tax liability and compliance issues.
- Place of Supply: The place of supply determines whether CGST+SGST/UTGST or IGST is applicable on a transaction. For goods, the place of supply is typically the location where the goods are delivered. For services, the place of supply depends on factors like the location of the recipient, the location where the service is performed, etc. Determine the correct place of supply for each transaction to apply the appropriate GST.
- Aggregate Turnover: Your aggregate turnover, which includes the value of all outward supplies (taxable, exempt, exports, and inter-state supplies) of all your GST registrations, determines various compliance requirements like the frequency of filing returns, eligibility for composition scheme, threshold for e-invoicing, etc. Keep track of your aggregate turnover for each financial year.
- Input Tax Credit (ITC) Details: To claim ITC, you need to ensure that your suppliers have filed their GSTR-1 and that the details match with your purchase invoices. Regularly reconcile your ITC claims with the auto-populated GSTR-2A to avoid discrepancies and potential ITC reversals.
- Reverse Charge Mechanism (RCM) Details: Keep track of supplies on which you’re liable to pay GST under RCM, such as goods transport agency services, legal services, director’s services, etc. You’ll need to self-invoice and pay the applicable GST on these supplies.
- Exemption and Nil-Rated Details: If you supply any goods or services that are exempt from GST or attract a nil rate, you’ll need to report their value separately in your returns. Keep detailed records of such exempt or nil-rated supplies.
- Provisional ITC Claims: If you’re claiming any provisional ITC, i.e., ITC on invoices not yet reflected in your GSTR-2A, keep track of such claims and reverse them if the corresponding invoices are not uploaded by the supplier within the specified time.
- Pending Liabilities: Keep track of any pending GST liabilities from previous tax periods and ensure they are paid before filing your current return. Delayed payment of GST attracts interest at 18% per annum.
- Refund Claims: If you’re eligible for any GST refunds, such as on account of zero-rated supplies or inverted duty structure, keep the necessary supporting documents like invoices, shipping bills, and refund application forms ready.
Best Practices for Maintaining GST Records.
To ensure smooth GST return filing and compliance, follow these best practices for maintaining your GST records:
- Keep Records Organized: Maintain separate folders or files for each type of document, such as sales invoices, purchase invoices, debit/credit notes, export invoices, etc. This will make it easier to retrieve the required documents when filing returns or during audits.
- Use a Reliable Accounting System: Invest in a robust accounting software that is GST-compliant and can generate the necessary reports and reconciliation statements. This will save time and reduce the chances of manual errors.
- Regularly Reconcile Accounts: Reconcile your GST filings with your books of accounts regularly, preferably every month. This will help identify and rectify any discrepancies early on and avoid last-minute rush during return filing.
- Keep Backups: Maintain secure backups of all your GST records, preferably in both physical and digital formats. This will ensure you don’t lose critical data due to unforeseen circumstances like system failures or natural disasters.
- Train Your Staff: Ensure your accounting and finance staff are well-trained in GST compliance requirements. They should be aware of the latest updates and amendments to the GST law and be able to maintain accurate records.
- Seek Professional Help: If you’re unsure about any aspect of GST compliance or record-keeping, don’t hesitate to seek the assistance of a qualified tax professional or chartered accountant. They can guide you on the best practices and help you avoid potential pitfalls.
Consequences of Non-Compliance.
Failing to maintain proper GST records or filing inaccurate returns can attract severe consequences under the GST law:
- Interest: Delayed payment of GST attracts interest at 18% per annum on the outstanding tax amount. This interest is calculated from the due date of payment until the actual date of payment.
- Late Fees: Late filing of GST returns attracts a late fee of ₹100 per day (₹50 each under CGST and SGST) for each day of delay, subject to a maximum of ₹5,000. For nil returns, the late fee is ₹20 per day (₹10 each under CGST and SGST).
- Penalties: Providing incorrect information in GST returns or not maintaining proper records can attract penalties ranging from 10% to 100% of the tax amount involved, subject to a minimum of ₹10,000.
- Cancellation of GST Registration: Persistent non-compliance, such as not filing returns for six consecutive months or not paying GST for more than three months, can lead to the cancellation of your GST registration.
- Prosecution: In severe cases of GST evasion or fraud, the taxpayer can be subjected to prosecution and imprisonment under the GST law.
To avoid these consequences, it’s crucial to maintain accurate GST records, file returns on time, and promptly pay any outstanding tax liabilities.
Summary.
Filing GST returns accurately and on time is a key responsibility of every GST-registered business. By keeping the necessary documents and information handy and following the best practices for record-keeping, you can ensure smooth compliance and avoid potential penalties.
Remember, the GST law is still evolving, and there may be updates and amendments from time to time. Stay informed about the latest changes and seek professional help if needed. With proper planning and organization, filing your GST returns can become a hassle-free process, allowing you to focus on growing your business.
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