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gst monthly annual return turnover limit

GST Monthly Annual Return Limit (2023 List)

In this competitive market, government-imposed tax compliance and formalities are crucial for business owners. One example of such compliance is the filing of a GST Return.

GST monthly annual return limit is the maximum amount of turnover that a business can have in a month and still be eligible to file a monthly GST return. 

Any business that generates more than the threshold limit in a month will have to file a GST return. A business owner and taxpayer must include income from business transactions in their GST returns.

What Is the Minimum Income for GST? 

The GST Council increased the threshold limit for GST registration on April 1, 2019. The following are the threshold limits for various types of GST registrations:

CategoryGoods (in lakhs)Services  (in lakhs)
  Regular Taxpayer4020
Arunachal Pradesh, Meghalaya, Puducherry, Sikkim, Telangana, Uttarakhand2020
Mizoram, Tripura, Manipur, and Nagaland1010
Jammu and Kashmir, Assam, Himachal Pradesh, and all other States4020

Registration limits under the Composition Scheme are:

  • Trader, Manufacturer – Rs. 1.5 Crore
  • Restaurant Service – Rs. 1.5 Crore
  •  Trader, Manufacturer – Rs. 1.5 Crore
  • Other Service Providers, subject to the preceding financial year turnover limit, Rs. 50 lakhs – Rs. 1.5 Crore

What Is the Monthly GST Return? 

The monthly GST return is a document that contains information about your sales, purchases, outward supplies, and inward supplies. After filing GST returns, one must pay the resulting tax liability to the government.

Who Is Eligible for Monthly Returns in GST? 

All taxpayers must file a monthly GST return. A monthly GST return must be filed by persons having an annual turnover of more than Rs. 5 crores.

However, the taxpayers listed below are exempt from filing a GST return.

  • Small Taxpayers (turnover of less than Rs. 5 crores)
  • Composition dealers
  •  Input Service Distributors
  •   Non-resident registered persons 
  •  Persons deducting tax at source

Who Is Eligible for GSTR 1? 

All regular and casualyl registered taxpayers making outward supplies of goods, services, or both file GSTR-1.

Every registered taxable person must file Form GSTR-1 during a tax period, electronically on the GST Portal. This return includes details of invoices, debit notes, credit notes, and revised invoices issued for outward supplies.

Who Is Not Eligible for GSTR 1?

Taxpayers listed below are not eligible to file GSTR 1

GSTR 1 Non-Eligibility
  • Input Service Distributor
  • Composition taxpayer
  • Non-resident foreign taxpayers 
  • Persons liable to deduct tax at source (TDS) under section 51
  •  Persons liable to collect tax at source (TCS) under section 52
  • Provider of an online information database and access retrieval service

What Is GSTR 1 Monthly Turnover Limit? 

The due date for GSTR-1 is based on the taxpayer’s annual turnover.

Businesses with an annual turnover of 1.5 crores or more must file their GSTR-1 on a monthly basis, on or before the 11th day of the succeeding month.

Who Is Exempted from GST Returns?

If you have GST registration but your total turnover is below the threshold of Rs. 40 lakhs, then you are exempt from filing GST returns.

Also, if you are from the northeastern states or hill regions and your turnover is less than Rs. 20 lakhs, you are exempt from filing GST returns.

Which Are GST Monthly Returns? 

FormPurposeDue Date
GSTR 1Return for Outward Supplies10 days from the end of the month
GSTR 2Return for Inward Suppliesbetween 11th and 15th day of the succeeding month
GSTR 3BSummary of Inward and Outward Supplies20th of the month succeeding the tax period for which GST is filed
GSTR 5Return For Non-Resident Taxable Personsearlier of:
within 20 days after the end of the calendar month or within, OR7 days after the last date of validity of the registration
GSTR 6Return For Input Service Distributorsthirteenth day of the month succeeding the month for which tax is to be paid.
GSTR 7Return For Taxpayers Deducting TDSwithin 10 days after the end of the month in which the deduction was made
GSTR 8Return For E-Commerce Operators Collecting TCS10th day of the month succeeding the month for which TCS is to be collected
GST Monthly Returns

What Is the Penalty for GSTR-1?

The penalty for not paying GSTR 1 is a late fee. A taxpayer has to pay a late fee of Rs. 200, i.e., Rs.100 for CGST and Rs.100 for SGST, per day ( maximum of Rs. 5,000 ) until the date of filing the return. 

What Happens If the Monthly GST Return Is Not Filed?

The consequences for failing to file monthly GST returns are as follows.

Offer consumers a tax credit denial: Your customer is not entitled to claim an input tax credit for the GST levied on sales invoices.

E-waybill restrictions: The generation of an E-waybill is not possible without two consecutive submissions of GSTR 3B.

GST-1 Restriction: The filing of GSTR-1 is not possible without two consecutive GSTR3B submissions.

Penalties for non-payment of GST: Certain violations are subject to penalties under GST.

One of these offenses is failure to pay collected tax within three months of the due date. The fine is calculated on the tax amount of a minimum of Rs. 20,000.

GSTIN Suspension and Cancellation: The GST Officer has the power to cancel your GST registration if a regular taxpayer does not file your returns for six consecutive months.

The agent will send a message requesting additional information before cancelling the registration. The response defending the continuation of their GST registration is due within seven working days. 

On non-filing of the GST return for six consecutive months, the official does not have to initiate the cancellation process immediately. The GSTIN will be suspended if the authorities decide to initiate the process of cancelling his GST registration. You cannot supply taxable goods until the lifting of the suspension.

What Is Taxable Turnover in GST? 

Taxable turnover means the value of

  • all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on a reverse charge basis),
  • exempt supplies,
  • export of goods and/or services, and
  • inter-state supplies of a person with the same Permanent Account Number (PAN) across all entities in India but excludes GST and cess.

All supplies made by the taxpayer, whether on his own account or on behalf of all his principals, are included in taxable turnover.

Taxable Turnover is important in calculating 

  • Limit for compulsory registration
  • Limit for composition levy
  • Submission to the government of audited annual accounts and reconciliation

How Is Monthly GST Calculated?

For calculating GST, different GST slab rates (  5%, 12%, 18%, and 28% ) are applicable. To calculate monthly GST, use this formula.

GST = Taxable Amount x  GST Rate

If GST is included in the amount, use the formula to calculate GST excluding the amount.

GST excluding amount = GST including amount/(1+ GST rate/100)

For example, if GST includes the amount of Rs. 1000, and GST rate is 15%.

GST excluding amount = 1000/(1+15/100) = 1000/1.15 = 869.57

GST is calculated on the transaction amount, not on the MRP.

List of GST Monthly and Annual Returns

1GSTR – 1: Return for Outward Supplies
2GSTR – 2: Return for Inward Supplies
3GSTR – 2A: Read Only Document
4GSTR – 3B: Summary of Inward and Outward Supplies
5GSTR – 4: Return For Composition Dealers
6GSTR – 5: Return For Non-Resident Taxable Persons
7GSTR – 6: Return For Input Service Distributors
8GSTR – 7: Return For Taxpayers Deducting TDS
9GSTR – 8: Return For E-Commerce Operators Collecting TCS
10GSTR – 9: Annual Return For Normal Registered Taxpayer Under GST
11GSTR – 9A: Annual Return For Composition Dealers
12GSTR – 9B: Annual Return For E-Commerce Operators Collecting TCS
13GSTR – 9C: Return For Registered Persons Getting Accounts Audited From CA
14GSTR – 10: Return For Registered Person Whose GST Registration Gets Cancelled
15GSTR – 11: Return For UIN (Unique Identification Number) Holders
GST Monthly & Annual Return

FAQs: GST Monthly Annual Return Limit

Is GSTR 1 monthly or quarterly?

GSTR 1 is filed on the 11th day of every month.

Who can file GSTR 3B monthly returns?

A normal registered person must file GSTR 3B on the 20th day of the next month.

Can we file a GST return without CA?

Yes, you can file a GST return without CA. You can file it on your own.

How many GST returns are filed in a month?

GST-registered companies must file three returns per month GSTR-1, GSTR-2, and GSTR-3 in each state in which they operate.

Can I file nil GSTR-1?

Even if a taxpayer has no sales in a month or quarter, he must file a nil GSTR-1.

Wrapping Up

This comprehensive article has covered the most prominent aspects of the GST monthly return turnover limit and due date. Registered taxpayers must submit GST returns with details of outward and inward supplies to the Indian tax authorities. If the GST return is not filed by the due date, the taxpayer will be penalized with late fees and interest.

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