GST return filing is the periodic reporting of your sales, purchases, tax collected and input tax credit (ITC) to the GST portal, followed by payment of the net tax. Every registered taxpayer, including those with no business activity in a month, must file the returns that apply to their category. This page explains GSTR-1, GSTR-3B, IFF, the QRMP scheme, GSTR-9 and GSTR-9C, how late fee and interest work, and what the Invoice Management System (IMS) and the September 2025 rate rationalisation mean for your filing routine.
What is GST return filing?
Under GST, tax is self-assessed. You tell the department what you supplied and what credit you claim, and the portal accepts the figures through returns. The two returns that matter most for regular taxpayers are GSTR-1, a statement of outward supplies, and GSTR-3B, a summary return in which you declare liability, set off ITC and pay the balance in cash.
GSTR-1 feeds your customers' GSTR-2B, the auto-drafted statement of credit available to them. GSTR-3B is where money actually moves. That linkage is why a late or wrong GSTR-1 hurts your buyers, and why a careless GSTR-3B can trigger a notice on mismatch between your declared credit and what GSTR-2B shows.
Which returns you file depends on your registration type and turnover. Regular taxpayers file GSTR-1 and GSTR-3B (monthly, or quarterly under QRMP), composition taxpayers pay quarterly through CMP-08 and file an annual GSTR-4, and TDS deductors, e-commerce operators, non-resident taxable persons and input service distributors have their own returns. Registration itself is a separate step covered under GST registration.
The GST Council's September 2025 rationalisation, effective from 22 September 2025, reduced the main rate structure to two slabs of 5% and 18%, with a special 40% rate for a short list of sin and luxury goods. For return filers the practical effect is more rate lines to map correctly in invoices and HSN summaries, and stock and credit transitions around the changeover date that must be reflected in the returns for that period.
Who must file GST returns?
Anyone holding a GST registration must file returns, whether or not they made sales in the period. A registration with zero activity still needs a nil return. The main categories are:
- Regular taxpayers filing monthly GSTR-1 and GSTR-3B
- Small taxpayers who opted for the Quarterly Return Filing and Monthly Payment (QRMP) scheme
- Composition scheme taxpayers (CMP-08 quarterly, GSTR-4 annually)
- Persons deducting TDS under GST (GSTR-7) and e-commerce operators collecting TCS (GSTR-8)
- Non-resident taxable persons and OIDAR service providers with their own return forms
- Taxpayers above the annual return threshold who must file GSTR-9, and above the audit limit GSTR-9C
- Sellers on marketplaces who hold a voluntary or threshold-based registration, even for low volumes
Benefits of GST Return Filing
Uninterrupted input tax credit
ITC flows to your customers only after you file GSTR-1, and to you only through GSTR-2B and your own GSTR-3B. Regular filing keeps the credit chain intact for you and your buyers.
Avoids late fee and interest
Late fee runs daily under section 47 and interest runs at 18% a year on cash tax paid late. Filing within the due date removes both costs entirely.
Keeps your e-way bill and registration active
Non-filing of returns for the prescribed period blocks e-way bill generation and can lead to cancellation of the registration, which stops you from invoicing with GST.
Smoother loans, tenders and vendor onboarding
Banks, large buyers and government tenders ask for GST returns as proof of turnover. A clean filing history is accepted easily.
Fewer notices
Most notices arise from mismatch between GSTR-1, GSTR-3B and GSTR-2B. Reconciled filing reduces the chance of scrutiny and the need for replies.
Which route applies to you: monthly, QRMP or composition?
Choosing the wrong route is a common source of late fee. Check these points before the start of the quarter or year.
- Monthly route: mandatory for taxpayers with aggregate annual turnover above ₹5 crore, optional for smaller taxpayers
- QRMP route: available to taxpayers with turnover up to ₹5 crore who opt in on the portal; GSTR-1 and GSTR-3B are filed quarterly, with tax paid monthly through the PMT-06 challan
- IFF (Invoice Furnishing Facility): QRMP taxpayers may upload B2B invoices in the first two months of a quarter so that buyers get credit earlier
- Composition scheme: for eligible small suppliers who pay tax at a flat percentage of turnover and cannot claim ITC; quarterly CMP-08 and annual GSTR-4
- GSTR-9 annual return: mandatory for regular taxpayers above the turnover threshold notified for the year, optional for smaller ones
- GSTR-9C reconciliation statement: required above the higher turnover limit notified for the year, now self-certified rather than certified by a chartered accountant
Documents required
Sales (for GSTR-1)
- Tax invoices, credit notes and debit notes issued during the period
- Export invoices, shipping bills and LUT or bond details if you export
- E-invoice IRN data if you are covered by e-invoicing
- HSN-wise summary of outward supplies with quantity and value
- Advances received and adjusted, with place of supply
Purchases and credit (for GSTR-3B)
- Purchase invoices, import bills of entry and ISD or RCM documents
- GSTR-2B for the period, after IMS actions where applicable
- Reverse charge self-invoices and payment vouchers
- ITC reversal workings, for example for exempt supplies or Rule 37 non-payment to suppliers
Payment and annual filing
- Electronic cash and credit ledger balances
- Bank details for challan payment (PMT-06 for QRMP)
- Audited or unaudited financial statements and the trial balance, for GSTR-9 and 9C
- Previous year's closing ITC and the books-to-GST reconciliation
Step-by-step GST return filing process
The sequence below is for a regular monthly taxpayer. QRMP filers follow the same steps quarterly, with monthly payment added.
Finalise sales data
Close the month's invoices, credit notes and amendments in your books. Make sure invoice numbers, GSTINs of buyers, place of supply and rates are correct, especially for goods whose rate changed after 22 September 2025.
File GSTR-1
Upload or key in the data and file with DSC or EVC. Remember that GSTR-1 for the next period can be blocked if GSTR-3B of earlier periods is pending, so do not let the two fall out of step.
Review the Invoice Management System (IMS)
Log in to the IMS dashboard and accept, reject or keep pending the invoices your suppliers have uploaded. Invoices with no action are treated as accepted when GSTR-2B is generated, so a quick review prevents claiming credit on an invoice that does not belong to you.
Check GSTR-2B and reconcile
Compare GSTR-2B with your purchase register. Chase suppliers who have not filed, and park the credit of missing invoices until they appear. Recompute GSTR-2B if you took IMS actions after its generation date.
Prepare GSTR-3B
Confirm outward liability from GSTR-1, enter eligible ITC, reversals and reverse charge. The portal may pre-fill figures, but you are still responsible for the declaration.
Pay tax and offset liability
Create a challan if cash payment is needed, ensure it reaches the cash ledger, and then offset in the prescribed order. Interest shows up automatically for delay on the cash portion.
File GSTR-3B with DSC or EVC
Submit before the due date. A GSTR-3B that is only saved but not filed is treated as not filed. Keep the ARN and acknowledgement.
Annual return and reconciliation
After year-end, reconcile books with the GST returns, file GSTR-9 if applicable, and GSTR-9C if you are above the notified limit. Fix omissions through the permitted tables rather than leaving differences unexplained.
Costs: no filing fee, but late fee and interest are real
The portal charges nothing for filing. The cost of delay under section 47 is a daily late fee, usually equal on the CGST and SGST sides, with different rates for nil and non-nil returns. The caps for GSTR-1 and GSTR-3B are tiered by annual turnover through CBIC notifications.
| Item | Amount | Note |
|---|---|---|
| GSTR-1 / GSTR-3B (non-nil) late fee | ₹50 per day | Split ₹25 CGST and ₹25 SGST; capped by turnover bracket under notifications 19/2021 and 20/2021 |
| GSTR-1 / GSTR-3B (nil) late fee | ₹20 per day | Split ₹10 and ₹10; capped at ₹500 |
| Interest on late cash tax | 18% per annum | Section 50(1); computed on tax paid in cash, not on liability settled through ITC |
| Interest on wrongly availed and used ITC | 24% per annum | Section 50(3); applies to excess ITC claims or under-reported liability |
| GSTR-9 late fee | ₹50, ₹100 or ₹200 per day by turnover | Capped as a small percentage of State turnover under notification 07/2023 |
Professional charges are quoted separately after reviewing your case. Government fees are paid directly to the authority. Confirm the current turnover caps against the latest CBIC notification, as they have been revised before.
GST return due dates
Due dates are fixed by the CGST Rules and extended from time to time by notification, so always check the portal's returns calendar. The usual pattern is below. Quarterly dates for QRMP GSTR-3B differ by State group, so verify yours.
| Stage | Typical time |
|---|---|
| GSTR-1 (monthly) | 11th of the next month |
| IFF for QRMP taxpayers (months 1 and 2) | 13th of the next month |
| GSTR-1 (QRMP, quarterly) | 13th of the month after the quarter |
| GSTR-3B (monthly) | 20th of the next month |
| GSTR-3B (QRMP, quarterly) | 22nd or 24th of the month after the quarter, by State group |
| PMT-06 monthly payment (QRMP) | 25th of the next month |
| GSTR-9 and 9C (annual) | 31 December following the financial year, unless extended |
Recurrence and time limits
GST returns recur for every tax period until the registration is cancelled, and you must file a final return after cancellation. Note two time limits. Credit for an invoice must generally be claimed by 30 November following the end of the financial year, or the date of filing the annual return, whichever is earlier, under section 16(4). Separately, the portal bars filing of a return after three years from its due date, after amendments introduced by the Finance Act 2023. A return that misses that window cannot be filed at all, so old pending periods should be cleared early.
What to do after you file
- Save the ARN, filed PDF and challan receipts for each period for the retention period under the Act
- Reconcile the electronic credit ledger monthly and check that ITC claimed equals GSTR-2B eligible credit plus permitted exceptions
- Reverse ITC that attracts reversal, such as unpaid supplier invoices beyond 180 days
- Use the amendment tables in later returns to correct earlier errors within the permitted time
- File e-invoice and e-way bill data consistently so that portal-generated statements match your return
- Respond to portal notices such as ASMT-10 and mismatch notices within the time given
- Keep contact details and authorised signatory updated on the portal so you do not miss reminders
Monthly filing vs QRMP vs composition
| Point | Monthly regular | QRMP | Composition |
|---|---|---|---|
| Who can use | Any regular taxpayer; mandatory above ₹5 crore turnover | Taxpayers up to ₹5 crore who opt in | Eligible small suppliers who opt in |
| Returns | GSTR-1 and GSTR-3B every month | Quarterly GSTR-1 and 3B; optional IFF | CMP-08 quarterly, GSTR-4 annually |
| Tax payment | With the monthly 3B | Monthly through PMT-06 | Quarterly with CMP-08 |
| ITC | Available | Available; GSTR-2B generated quarterly | Not available |
| Suited when | Large volumes or frequent B2B credit needs | Lower volume and a wish to cut filing frequency | Small suppliers with few B2B customers |
Common mistakes in GST return filing
Claiming ITC without checking GSTR-2B
Taking credit on the basis of the purchase register alone is the most common source of notices. Credit should be matched to GSTR-2B and supplier filing status.
Ignoring IMS
Leaving every invoice untouched means all of them are deemed accepted. Genuinely wrong invoices, for example from wrong GSTIN or goods never received, should be rejected, and doubtful ones kept pending until resolved.
Filing a nil GSTR-3B without checking GSTR-1
A nil 3B while GSTR-1 shows sales is a mismatch that the system flags and the officer notices. Both returns must tell the same story.
Saving but not filing
A saved or submitted return is not a filed return. Filing requires the final step with DSC or EVC and shows an ARN.
Wrong rate or HSN after the 2025 rate changes
Using the old rate for goods or services whose rate changed from 22 September 2025 creates under or over payment and later disputes. Update item masters and test invoices after every rate notification.
Paying tax but not creating the right challan under QRMP
QRMP taxpayers who miss the monthly PMT-06 or choose the wrong method incur interest even though the quarterly return is filed on time.
Letting returns lapse for years
Because of the three-year bar, a return that stays pending too long can no longer be filed, which may block further compliance and refunds.
Penalties for non-compliance
Beyond the daily late fee and interest set out above, persistent non-filing can lead to cancellation of registration, blocking of e-way bills and assessment on the officer's judgement by the officer under section 62 for monthly returns not filed. Wrong or excess credit and short payment can lead to demand notices with penalty under sections 73 and 74 of the CGST Act, and for fraud or wilful misstatement the penalty and interest are higher. Late fee for a given return keeps accruing until the return is furnished, so an old pending return is an expanding liability.
| Default | Consequence | Provision |
|---|---|---|
| Late filing of GSTR-1 or GSTR-3B | Daily late fee, subject to caps, plus interest on tax paid late | Sections 47 and 50, CGST Act |
| Failure to file returns for the prescribed continuous period | Registration may be cancelled; assessment on the officer's judgement | Sections 29 and 62, CGST Act |
| ITC wrongly availed and utilised | Interest at 24% and demand with penalty | Sections 50(3), 73 and 74, CGST Act |
Practitioner tips
- Set an internal cut-off earlier than the portal date. For example, finish IMS review and 2B reconciliation by the 15th, so the 20th is only for payment and filing. Last-day filing is when portal congestion causes late fee.
- Do not claim all of GSTR-2B blindly. Keep a separate list of invoices for which you have not received goods or services, or where the supplier's GSTIN is wrong, and reject or hold them in IMS.
- If you are on QRMP and your buyers need quick credit, use IFF for the first two months. It costs nothing and keeps B2B customers from chasing you.
- Post-September 2025, run a test invoice for each product family after any ERP or billing-software rate update. A rate error is cheaper to catch on one test invoice than on a month of sales.
- Work out the three-year deadline for any old pending periods now and file those first, because late fee keeps running until you file.
How Lawgical Guru helps with GST returns
Route and threshold check
We confirm whether monthly, QRMP or composition is right for your turnover, and whether GSTR-9 or GSTR-9C applies to you for the year.
Monthly or quarterly filing
We prepare and file GSTR-1, GSTR-3B, IFF and CMP-08 from the data you share, with a review of the figures before submission.
GSTR-2B and IMS reconciliation
We match your purchase register against GSTR-2B and suggest IMS actions so credit claimed is supportable.
Backlog and notice support
If returns are pending or a mismatch notice has arrived, we assess the position, compute late fee and interest, and help draft replies.
Annual return and reconciliation
We assist with GSTR-9 and 9C workings so that your annual return agrees with the books.
Linked compliances
We can coordinate TDS return filing, income tax return filing and accounting and bookkeeping so the numbers agree across filings.
GST Return Filing: frequently asked questions
What are the due dates for GSTR-1 and GSTR-3B?
For monthly filers GSTR-1 is generally due on the 11th and GSTR-3B on the 20th of the following month. QRMP filers file GSTR-1 by the 13th and GSTR-3B by the 22nd or 24th of the month after the quarter, depending on the State. The government often extends dates by notification, so check the portal calendar.
What is the late fee for GST return filing?
Under section 47, the late fee for GSTR-1 and GSTR-3B is ₹50 per day (₹25 CGST plus ₹25 SGST), and ₹20 per day for nil returns. It is capped by turnover bracket through CBIC notifications. Separately, interest at 18% a year applies on tax paid in cash after the due date.
What is the QRMP scheme in GST?
QRMP stands for Quarterly Return Filing and Monthly Payment. Taxpayers with turnover up to ₹5 crore who opt in file GSTR-1 and GSTR-3B quarterly but pay tax each month using the PMT-06 challan. They may also upload B2B invoices through IFF in the first two months so their buyers receive credit early.
What is IFF in GST?
IFF is the Invoice Furnishing Facility available to QRMP taxpayers. It lets you report B2B invoices for the first and second month of a quarter by the 13th of the following month, so that recipients see them in GSTR-2B and can claim credit without waiting for quarter-end. It is optional and has no fee.
What is the Invoice Management System (IMS)?
IMS is a portal feature where you review invoices and notes your suppliers have uploaded and choose to accept, reject or keep them pending. Accepted invoices flow into GSTR-2B as eligible credit, rejected ones do not, and invoices with no action are treated as accepted when GSTR-2B is generated.
Do I need to file GST returns if there is no business?
Yes. A registered person must file a return for every period, even with no sales or purchases. A nil return takes a few minutes and attracts a smaller late fee than a regular return if delayed. Continued non-filing can lead to cancellation of registration and blocking of e-way bills.
Who must file GSTR-9 and GSTR-9C?
GSTR-9 is the annual return of regular taxpayers. It is optional for the smallest taxpayers below the notified threshold, and mandatory above it. GSTR-9C, the reconciliation statement between audited financials and returns, applies above the higher limit and is now self-certified. Check the notified limits for the relevant year.
Can I file an old GST return after three years?
No. After amendments by the Finance Act 2023, the portal does not allow filing of returns such as GSTR-1, GSTR-3B and GSTR-9 after three years from the due date. Any return pending for a long time should therefore be filed early, because the late fee keeps accruing until it is filed.
How did the September 2025 GST rate rationalisation affect returns?
From 22 September 2025, most goods and services moved to a two-slab structure of 5% and 18%, with 40% for certain sin and luxury goods. Filers had to update item masters and HSN rates, apply the correct rate by invoice date, and review credit and stock around the transition date.
How is interest on late GST payment calculated?
Interest under section 50 is 18% a year on the tax paid late, calculated daily from the day after the due date until payment. It applies to the portion of liability paid in cash, not the portion set off against input tax credit. Excess or wrongly used credit attracts 24% under section 50(3).
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Reviewed by Satyam Gupta, Company Secretary (CS) & Advocate
8+ years of industry experience. This page was last reviewed on 16 October 2026 against the official sources below. Rules and fees change — confirm on the official portal before you apply.