GST Returns Filing — GSTR-1, GSTR-3B

GSTR-1 is the outward supply statement — invoice-level details of all B2B and B2C sales, credit and debit notes, exports, and advances received. It is the source document for your buyers to claim ITC in their GSTR-2B. GSTR-3B is the consolidated monthly return showing total output tax liability, ITC claimed, and net tax paid via challan. The two must reconcile — under-reporting in GSTR-1 reduces your buyers ITC and triggers mismatches. Due dates for monthly filers: GSTR-1 by the 11th of the following month; GSTR-3B by the 20th (varies by state turnover category). Any difference between GSTR-1 declared liability and GSTR-3B paid tax attracts interest under Section 50 at 18% per annum.

GSTR-2B is a static auto-generated ITC availability statement, released on the 14th of each month. It reflects ITC based on suppliers who have filed their GSTR-1, GSTR-5, or GSTR-6 up to the cut-off date of the previous month. Under Rule 36(4), ITC can be claimed only to the extent available in GSTR-2B — claiming excess ITC not appearing in GSTR-2B triggers a Rule 88C mismatch notice and interest under Section 50. Practical implication: follow up with suppliers who have not filed their GSTR-1 before your GSTR-3B filing date, or risk permanently losing ITC if the supplier defaults and the invoice falls outside the Section 16(4) time limit of 30th November of the following financial year.

Late fee under Section 47: 50 per day (25 CGST plus 25 SGST) for returns with tax liability; 20 per day (10 plus 10) for nil-liability returns. Maximum late fee for GSTR-3B with tax liability: 10,000 (5,000 per Act). For GSTR-1: same structure, same cap. Continuous non-filing for 6 consecutive months for monthly filers, or 2 consecutive quarters for QRMP filers, gives the GST officer authority to cancel the registration suo motu under Section 29(2)(c). Interest on late tax payment accrues at 18% per annum under Section 50, computed on the net tax liability after setting off available ITC.

GSTR-9 (Annual Return) is mandatory for all registered persons with aggregate annual turnover above 2 crore — due by December 31 following the financial year end. GSTR-9 for FY 2025-26 is due December 31, 2026. It reconciles all GSTR-1 and GSTR-3B filed during the year with the audited accounts. GSTR-9C (Reconciliation Statement) is mandatory for taxpayers with aggregate annual turnover above 5 crore — it reconciles GSTR-9 data with the audited financial statements. As of FY 2020-21, GSTR-9C is self-certified for taxpayers between 5 crore and 10 crore. For turnover above 10 crore, GSTR-9C must be certified by a CA or CMA.

The Quarterly Return Monthly Payment (QRMP) scheme under Rule 61A allows taxpayers with aggregate annual turnover up to 5 crore to file GSTR-1 and GSTR-3B quarterly — by the 13th after quarter-end and 22nd or 24th after quarter-end respectively. Tax is paid monthly via a fixed sum method (35% of net cash paid in the last complete quarter for months 1 and 2) or by self-assessment of the actual liability. The Invoice Furnishing Facility (IFF) is available for months 1 and 2 of the quarter so that B2B invoice details flow to buyers via GSTR-2B without waiting for the quarterly GSTR-1. The QRMP option is exercised on the GST portal — once opted for a quarter, it applies for the full quarter.