Which GST Return to file for Small Business?

If you are a small business owner in India, you are likely familiar with the Goods and Services Tax (GST) and the importance of filing regular GST returns. However, with the various types of GST returns available, it can be confusing to determine which one is appropriate for your business. In this blog, we will discuss which GST return to file for small businesses.

For small businesses with a turnover of up to Rs. 5 crores, the GST return that needs to be filed is the quarterly return, known as GSTR-1 and GSTR-3B. The GSTR-1 return is due on the 11th of the month following the end of the quarter and must contain details of all outward supplies made during the quarter. On the other hand, the GSTR-3B return is due on the 20th of the month following the end of the quarter and must contain details of all inward and outward supplies made during the quarter.

It is important to note that if your business has opted for the composition scheme, you will need to file GSTR-4 instead of GSTR-1 and GSTR-3B. The composition scheme is available for businesses with an annual turnover of up to Rs. 1.5 crores, and it allows for simplified compliance requirements.

If your small business has a turnover of more than Rs. 5 crores, you will need to file monthly returns, which include GSTR-1, GSTR-2B, and GSTR-3B. The GSTR-1 return is due on the 11th of the month following the end of the month and must contain details of all outward supplies made during the month. The GSTR-2B return is an auto-drafted return that is available for download on the 12th of the month following the end of the month and must contain details of all inward supplies made during the month. Finally, the GSTR-3B return is due on the 20th of the month following the end of the month and must contain details of all inward and outward supplies made during the month.

In conclusion, small businesses with a turnover of up to Rs. 5 crores need to file quarterly returns, while those with a turnover of more than Rs. 5 crores need to file monthly returns. By understanding which GST returns to file for your small business, you can ensure compliance with GST regulations and avoid penalties.