Answer By law4u team
Under Indian GST law, the returns that are mandatory to file depend on the type of taxpayer and registration category. The requirements are prescribed under the Central Goods and Services Tax Act, 2017 and related rules. For a regular taxpayer, the main mandatory returns are GSTR 1 and GSTR 3B. GSTR 1 contains details of outward supplies or sales made during the tax period. GSTR 3B is a summary return that includes tax liability, input tax credit, and tax payment details. These are generally filed monthly, although small taxpayers may have quarterly filing options under certain schemes. If a person has opted for the composition scheme, the returns are different. Composition taxpayers usually file CMP 08 for payment of tax on a quarterly basis and GSTR 4 as an annual return. There are also other returns that may become mandatory depending on the situation. GSTR 9 is the annual return for regular taxpayers subject to prescribed turnover limits. GSTR 9C is a reconciliation statement that may be required in certain cases based on turnover thresholds and audit requirements. Businesses required to deduct or collect tax at source have separate returns such as GSTR 7 or GSTR 8. Even if there is no business activity during a period, a nil return may still need to be filed to remain compliant and avoid penalties. Failure to file mandatory GST returns can result in late fees, interest, and legal consequences including cancellation of registration.
