How to File Tax Return for Small Business with GST

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The economy in India witnessed its biggest ever tax reformation with the introduction of GST (or Goods and Services Tax), which is necessarily a destination-based tax reporting structure. Under this tax regimen, business has to report every transaction of goods and services through the last mile, with a common invoice identifiable to both sellers and recipients.

Since its introduction, the processes of calculating GST and filing tax returns with GST has been simplified to encourage small and medium businesses to streamline their operations and finances.

Are You Liable to File GST File Return?

While large businesses have resources at their disposal to manage their tax-related matters, small businesses often don’t have enough resources to maintain adequate accounting information and tax liability. Keeping this in mind, the Income Tax Department has introduced a more straightforward method known as a presumptive method, where your income is calculated as per gross receipts of your business.

Moreover, small business owners who have turnovers less than Rs. 2 crores and have opted for the presumptive income scheme depicted under Section 44AD, Section 44ADA and Section 44AE, have to file their return through the ITR-4 Form. On the other hand, business owners who have not opted for presumptive income scheme and have profits exceeding Rs 2 crores, will have to file the ITR-3 form.

Also, businesses must provide a record of their expenses, split between payments made out to GST registered and non-registered entities. The turnover/gross receipt as per GST and GSTIN must be reported while filing ITR-4. Further, details of both CGST and SGST/IGST paid on purchases, sales and expenses must be specified under profit and loss account, by business owners who are filing their returns under ITR-3, ITR-5 and ITR-6.

That said, any amount of input tax credit remaining unclaimed as of 31st of current year must be specified under 'Schedule OI' (Other Information) of the relevant ITR form. Overall, any regular business must file one return and two monthly returns. Also, composition dealers and other similar cases have to fill out separate returns. For AY 2019-20, the following tax slab rates are applicable:

Tax Rate	Surcharge	Health and Education Cess
25% for turnover up to Rs 250 crore	7% for income between Rs 1 crore and Rs 10 crore	4% of income tax plus surcharge
29% for turnover exceeding Rs 250 crore	7% for income between Rs 1 crore and Rs 10 crore (12% in case the income exceeds Rs 10 crore)


Return Form	Particulars	Interval	Due Date
GSTR-1	Details of outward supplies of taxable goods and services from July 2018 to March 2019 (if turnover exceeded Rs. 1.5 Crores in the previous year)	Monthly	10th of the next month
GSTR-2	Details of inward supplies of taxable goods and services to claim the input tax credit.	Monthly	15th of the next month
GSTR-3	Monthly return based on finalisation of both outward and inward supplies along with the paid tax amount	Monthly	20th of the next month
GSTR-9	Return	Annually	31st December of next fiscal year
GSTR-3B	Return for the months leading up to March 2019	Monthly	20th of the next month


Return Form	Particulars	Interval	Due Date
GSTR-4	Return for compounding taxable person	Quarterly	18th of the month in succeeding quarter
GSTR-9A	Return	Monthly	31st December of next fiscal year


Return Form	Particulars	Interval	Due Date
GSTR-5	Return for the Non-Resident foreign individual, eligible for taxable	Monthly	20th of the next month
GSTR-5A	Return for Non-resident individuals providing OIDAR services (services delivered over the Internet, with less or no human intervention)	Monthly	20th of the next month
GSTR-6	Return for Input Service Distributor	Monthly	13th of the next month
GSTR-7	Return for authorities deducting tax at source	Monthly	10th of the next month
GSTR-8	Details of the amount of tax collected from e-commerce service providers and supplies effected through them	Monthly	10th of the next month
GSTR-10	Final Return	Once, in the case of registration is surrendered or cancelled	Within 3 months of the date of cancellation order or that of cancellation, whichever is later
GSTR-11	Details of inward supplies to be provided by an individual claiming a refund, who has UIN and a	Monthly	28th of the month after the month for which a return is filed


Challan Name	Description
PMT-1	online tax liability register to tabulate either return or non-return related liabilities
PMT-2	Credit balance online as in GSTN
PMT-2A	Re-credit addition to the GSTN balance of a taxpayer
PMT-3	Online cash ledger
PMT-4	Challan for payment of GST
PMT-5	Payment register for unregistered taxpayers
PMT-6	Application for claiming missing credit

How to File Tax Return for Small Business with GST

Are You Liable to File GST File Return?

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What Are the Types of GST Returns?

Any Dealers Opting for Composition Scheme

Any specifically registered dealers

What is the process of Filing Tax Return with GST?

Online or e-Filing

Payment challans

Are there any Late Fees for not Filing Tax Return on Time?

Are there any benefits of filing tax returns?

Conclusion