What is Monthly Return under GST?

Overview : Like annual returns, monthly returns are also crucial for the taxation system including GST. The eligible taxpayers must adhere to the monthly tax returns as they will help the taxation authorities monitor and keep records of the taxpayers with the GST laws. Failing to file monthly returns may also lead to penalties or fines in the form of monetary penalties or, sometimes, legal prosecutions. This post discusses the key monthly GST returns in an elucidating manner.

Adhering to the monthly GST returns is as crucial as the annual GST return filing. The taxpayers can't miss monthly GST returns as they may have to face penalties or legal prosecutions in case of failure to file such returns. This blog post emphasizes on the Monthly GST Returns by discussing their key aspects.

Monthly Return under GST

According to the GST Law, all registered taxpayers are required to file GST returns monthly/quarterly to provide information on their sales, purchases, tax liability, and other financial transactions. In the GST monthly return, the taxpayers must carefully provide all the details of their sales and purchases. The details include the total taxable value, GST rate, and tax amount paid.

The monthly returns are further classified into three different parts and can be filed using different forms; GSTR-1, GSTR-2 and GSTR-3.

• GSTR-1 : It is the monthly GST return form that helps report the outward supplies.
• GSTR-2 : This is the monthly GST return form used to report inward supplies.
• GSTR-3 : This monthly form helps provide a summary return of both GSTR01 and GSTR-2.

Apart from these aforementioned monthly GST returns, GSTR-3B is also an important GST return which must also be filed each month by the taxpayers.

GSTR-3B: All You Need to Know

GSTR-3B is a monthly return that must be filed by all the registered taxpayers. It consists of the details of the previous month's sales and purchases, also the taxes paid on them with some other details. It is a relatively simpler form than GSTR-1 that contains details of the taxpayer's sales and purchases, taxes paid and collected, and also the liabilities to be paid or refunded. It also includes the details of the input tax credit (ITC), which is claimed by the taxpayers, and any other paid taxes or duties.

The information in GSTR-3B needs to be filled based on the details given in the previous GST returns filed by the taxpayers. This return must also include the details of the sales and purchases made in the previous month and also the taxes paid or collected on them. The taxpayers are also required to provide details of the input tax credit claimed and the paid taxes and duties.

Due Date for filing GSTR-3B

The due date for filing form GSTR-3B is the 20th of each following month. This monthly return can be filed online or offline. Upon filing the return, the taxpayer must pay any outstanding tax liabilities within the specified due date.

Conclusion

In conclusion, GSTR-3B is a crucial monthly return registered taxpayers must file on or before the respective due date. This monthly return helps track the sales and purchases made in the previous month, along with tracking the taxes paid and collected. This return filing plays a key role as it helps file the other GST returns in an accurate and updated manner. Go through the above information to learn about the importance of Setindiabiz filing and Form GSTR-3B in detail.

Author Bio

Editorial Team | in

Setindiabiz Editorial Team is a multidisciplinary collective of Chartered Accountants, Company Secretaries, and Advocates offering authoritative insights on India’s regulatory and business landscape. With decades of experience in compliance, taxation, and advisory, they empower entrepreneurs and enterprises to make informed decisions.