Table of Contents
Introduction
The Goods and Services Tax (GST) system in 2025 has moved toward a “near-real-time” compliance model. Filing is no longer just a periodic obligation; it is a synchronized digital process where the sales reported by a supplier directly populate the tax credit (ITC) dashboard of the buyer. This guide elucidates the current GST filing framework, highlighting the types of returns and the mandatory sequential filing rules that businesses must follow to remain compliant.
Understanding GST Filing:
GST filing is the digital submission of sales and purchase data to the GSTN portal. In 2025, the system is strictly “sequential,” meaning a taxpayer cannot file a summary return (GSTR-3B) without first filing the sales return (GSTR-1). This ensures that tax liabilities are locked in and that the Input Tax Credit (ITC) ecosystem remains transparent and fraud-resistant.
Types of GST Returns:
GST compliance requires filing different return forms, each serving a specific purpose and following a defined frequency. Below is a combined text-and-bullet format for clarity:
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GSTR-1
- Frequency: Monthly / Quarterly
- Purpose: Reports outward supplies (sales).
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Due date:
- 11th of the following month (Monthly)
- 13th of the following month (QRMP)
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GSTR-2B
- Frequency: Auto-generated
- Purpose: A static ITC statement generated on the 14th of every month, showing the exact tax credit that can be claimed in GSTR-3B.
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GSTR-3B
- Frequency: Monthly / Quarterly
- Purpose: Summary return for paying taxes, where output tax liability is offset against ITC available in GSTR-2B.
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GSTR-4
- Frequency: Annual
- Purpose: For Composition taxpayers; summarises outward supplies and tax paid for the entire financial year.
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GSTR-9
- Frequency: Annual
- Purpose: Annual return for regular taxpayers; mandatory for those with annual turnover exceeding ₹2 crore.
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GSTR-9C
- Frequency: Annual
- Purpose: A self-certified reconciliation statement required for taxpayers with turnover exceeding ₹5 crore.
Process of GST Filing:
- Login and MFA
Visit www.gst.gov.in.
Update: Login now requires Multi-Factor Authentication (MFA) via an OTP sent to the registered mobile/email.
- Prepare GSTR-1 (The Sales Return)
Upload B2B invoices in real-time or at the end of the month.
Sequential Rule: You must file GSTR-1 before you can proceed to GSTR-3B.
Use the IFF (Invoice Furnishing Facility) if you are under the QRMP scheme to pass credit to your buyers monthly.
- Reconcile with GSTR-2B
Before filing GSTR-3B, check your GSTR-2B.
Compliance Rule: You can only claim ITC that appears in your GSTR-2B. Any excess claim will trigger an automated System-Generated Notice (DRC-01C).
- Pay Dues and Offset Liability
The portal auto-calculates the tax payable after deducting available ITC.
Generate a challan and pay via UPI, Net Banking, or Credit Card.
New Rule: Taxpayers can now use the Electronic Cash Ledger to pay taxes for any GSTIN registered under the same PAN.
- Final Filing with EVC/DSC
Verify the return using Aadhaar-based OTP (EVC) or a Digital Signature (DSC).
Rule 88C: If there is a major difference between your GSTR-1 and GSTR-3B, the system will block your next GSTR-1 until the difference is explained or paid.
Late Fees and Penalties for GST Non-Compliance
Nil Return Filers: ₹20 per day (₹10 CGST + ₹10 SGST).
Regular Filers: ₹50 per day (capped at a maximum based on turnover).
Interest: 18% per annum on the net tax liability paid after the due date.
GSTR-1 Blocking: If you fail to file GSTR-3B for the previous month, the portal will automatically block you from filing GSTR-1 for the current month.
Benefits of Timely GST Filing
Buyer Trust: Your buyers can only claim ITC if you file your GSTR-1 on time. Timely filing ensures a healthy business relationship.
Compliance Rating: Higher compliance scores improve your eligibility for government tenders and bank loans.
Risk Mitigation: Automated notices (like DRC-01B/C) are avoided, reducing the chances of a tax audit or scrutiny.
Conclusion
GST filing in 2025 is an interconnected process where data accuracy is paramount. With the introduction of Automated ITC Matching and Sequential Filing, businesses must adopt a “file-as-you-go” approach. Leveraging automated accounting software that syncs directly with the GSTN portal can significantly reduce errors and ensure that your business remains a “compliant” entity in India’s transparent tax regime.
Disclaimer: The views expressed here are of the author and do not reflect those of Dhanvantree. Mutual funds are subject to market risks, please read the scheme documents carefully before investing.