Chapter 3: GST Returns & Compliance

Mastering Return Filing and Compliance Management

📅 Duration: Days 11–15 📚 Level: Advanced ⏱️ Estimated Time: 30-35 hours

Learning Objectives

✓ Master GSTR-1 filing with table-wise understanding
✓ Understand GSTR-3B summary return and tax payment process
✓ Learn late fees, interest calculations, and penalty provisions
✓ Comprehend return reconciliation and amendment procedures
✓ Master e-way bill requirements and LUT procedures
✓ Understand notice types, responses, and audit preparation

3.1 GSTR-1: Outward Supplies Return

Understanding GSTR-1

GSTR-1 is a monthly/quarterly return that contains details of all outward supplies (sales) made during the tax period. It must be filed by the 11th of the following month (for monthly filers) or 13th of the month following quarter (for quarterly filers).

Key Tables in GSTR-1:

Table 3: B2B invoices (to registered persons)
Table 4: B2C invoices (to unregistered persons)
Table 5: Credit/Debit notes
Table 6: Exempt, nil-rated, and non-GST supplies
Table 7: HSN-wise summary
Table 8: Documents issued (invoices, credit notes, etc.)

Filing Frequency

Turnover	Filing Frequency	Due Date
Above ₹5 crores	Monthly	11th of next month
Up to ₹5 crores	Quarterly (with IFF option)	13th of month following quarter

3.2 GSTR-3B: Summary Return

Understanding GSTR-3B

GSTR-3B is a monthly self-declaration return that summarizes tax liability, ITC claimed, and tax payment. It must be filed by the 20th of the following month by all regular taxpayers.

Key Sections in GSTR-3B:

Outward Supplies: Total taxable value and tax (CGST, SGST, IGST, Cess)
Inward Supplies (RCM): Tax payable under reverse charge
Input Tax Credit: ITC available, ineligible, and reversed
Tax Payment: Net tax payable after ITC set-off
Interest and Late Fees: Any interest or late fee payable

GSTR-3B Calculation Example

Scenario for October 2024:

Outward Supplies (Output Tax): ₹1,00,000

Input Tax Credit Available: ₹60,000

RCM Liability: ₹5,000

Calculation:

Output Tax: ₹1,00,000

Less: ITC: (₹60,000)

Add: RCM: ₹5,000

Net Tax Payable: ₹45,000

3.3 Late Fees & Interest

Late Fee Structure

Return Type	Late Fee per Day	Maximum Late Fee
GSTR-1	₹200 (₹100 CGST + ₹100 SGST)	₹5,000
GSTR-3B	₹200 (₹100 CGST + ₹100 SGST)	₹5,000
Nil Return	₹50 (₹25 CGST + ₹25 SGST)	₹500

Interest Calculation

Interest @ 18% per annum is charged on:

Delayed payment of tax (from due date to actual payment date)
ITC wrongly availed or utilized
Tax collected but not paid to government

Formula: Interest = (Tax Amount × 18% × No. of Days) / 365

3.4 E-way Bill Requirements

When E-way Bill is Required

E-way bill is mandatory when:

Value of goods exceeds ₹50,000 (for inter-state movement)
Value of goods exceeds ₹50,000 (for intra-state movement in some states)
Goods are being transported, even if invoice value is less (in some cases)

E-way Bill Validity

Distance	Validity Period
Less than 100 km	1 day
100-300 km	3 days
More than 300 km	1 day per 100 km or part thereof

Key Takeaways

✓ GSTR-1 must be filed accurately as it auto-populates GSTR-2B for recipients
✓ GSTR-3B reconciliation with GSTR-1 is critical to avoid mismatches
✓ Late fees and interest can accumulate quickly; timely filing is essential
✓ E-way bill compliance is mandatory for goods movement above threshold
✓ Proper documentation and record-keeping are essential for audit defense

← Previous Chapter Next Chapter →