Reading list: Monthly vs Quarterly GST Returns: Which One Is Better?
The implementation of the Goods and Services Tax (GST) in India has changed the landscape of taxation for businesses, especially for small and medium enterprises (SMEs). While GST has simplified the tax system by unifying multiple indirect taxes, it has also introduced a more structured and time-bound return filing process.

For small businesses, understanding GST return filing is crucial not only for compliance but also for maintaining cash flow, claiming input tax credit, and avoiding penalties. This article explains everything a small business owner needs to know about GST return filing in simple terms.

✅ What is a GST Return?

A GST return is a document that a registered taxpayer (business) must file with the GST department. It contains details of sales, purchases, taxes collected on sales (output tax), and taxes paid on purchases (input tax).

By filing returns, businesses report their tax liabilities and claim Input Tax Credit (ITC), which is the credit for the tax already paid on purchases.

📌 Who Needs to File GST Returns?

Any business that is registered under GST must file returns — even if there were no transactions in a given period. The frequency and type of return depend on:

Type of registration (Regular, Composition, etc.)

Turnover

Nature of business (goods, services, e-commerce, etc.)

Small businesses are usually classified under:

Regular taxpayers

Composition scheme taxpayers

Each has different return filing requirements.

📁 Types of GST Returns Relevant for Small Businesses
1. GSTR-1

What it is: Details of outward supplies (sales)

Who files it: Regular taxpayers

Frequency: Monthly or Quarterly (under QRMP scheme)

Due date:

Monthly: 11th of the following month

Quarterly (QRMP): 13th of the month following the quarter

2. GSTR-3B

What it is: Summary return of total sales, purchases, and tax payment

Who files it: Regular taxpayers

Frequency: Monthly or Quarterly

Due date:

Monthly: 20th of the following month

Quarterly (QRMP): 22nd or 24th of the month after the quarter (depends on the state)

3. GSTR-4

What it is: Annual return for composition scheme taxpayers

Due date: 30th April of the next financial year

4. GSTR-9 (Annual Return)

What it is: Annual summary return for regular taxpayers

Who needs to file: Businesses with turnover above ₹2 crore (mandatory); voluntary for others

Due date: 31st December of the following financial year

5. CMP-08

For composition dealers: A quarterly payment form to declare self-assessed tax.

🧾 Why Is GST Return Filing Important for Small Businesses?
✅ 1. Compliance

Filing returns is a legal obligation. Non-compliance can result in penalties, late fees, and even cancellation of GST registration.

✅ 2. Claim Input Tax Credit (ITC)

You can only claim credit for GST paid on purchases if you file your returns on time and your suppliers have done the same.

✅ 3. Business Credibility

Timely return filing improves your credibility with customers, suppliers, and financial institutions.

✅ 4. Avoid Interest and Penalties

Delays attract interest (18% p.a.) and late fees of ₹50 per day (₹20 for NIL returns).

💡 Simplified Filing for Small Businesses – QRMP Scheme

The Quarterly Return Filing and Monthly Payment (QRMP) scheme is designed for businesses with turnover up to ₹5 crore.

Benefits:

File GSTR-1 and GSTR-3B quarterly

Pay taxes monthly using a simple challan (PMT-06)

Reduced compliance burden

You can opt in or out of the QRMP scheme at the beginning of any quarter.

📃 Documents Needed for Filing GST Returns

To file your GST return, keep these documents ready:

Sales invoices

Purchase invoices

GSTIN of suppliers/customers

Bank statements

Payment challans

Previous return acknowledgments (if needed)

Using accounting software or GST filing tools can help automate data collection and reduce errors.

⚠️ Common Mistakes to Avoid

Missing Due Dates – Leads to late fees and blocks your ability to file future returns.

Mismatch in GSTR-1 and GSTR-3B – Can result in notices from the GST department.

Incorrect GSTIN or invoice details – Causes rejection of ITC by buyers.

Failing to reconcile with GSTR-2A/2B – Impacts ITC eligibility.

Filing NIL returns when there were transactions – May invite scrutiny.

💻 How to File GST Returns Online (Step-by-Step)

Login to the GST Portal – https://www.gst.gov.in

Select Return Dashboard

Choose Financial Year and Period

Upload Sales (GSTR-1) and Summary (GSTR-3B)

Preview and validate data

Make tax payment (if any)

Submit and file with DSC or EVC

Download acknowledgment

Alternatively, small businesses can use GST Suvidha Providers (GSPs) or accounting tools like Zoho Books, Tally, ClearTax, or QuickBooks.

📅 GST Return Filing Calendar 2025 (Key Dates)
Return Type	Frequency	Due Date
GSTR-1 (Monthly)	Monthly	11th of the next month
GSTR-3B (Monthly)	Monthly	20th of the next month
GSTR-1 (Quarterly)	QRMP	13th of month after quarter
GSTR-3B (Quarterly)	QRMP	22nd/24th of month after quarter
CMP-08	Quarterly	18th of month after quarter
GSTR-4	Annual (Composition)	30th April
GSTR-9	Annual	31st December
📝 Conclusion

For small businesses in India, filing GST returns is not just about compliance — it’s about survival and growth. Whether you're a trader, service provider, freelancer, or e-commerce seller, understanding the right return forms, due dates, and filing methods is crucial.

While the GST system may seem complex at first, once you understand the routine, it becomes manageable — especially with the help of modern tools or professionals. Make it a habit to track your invoices, reconcile data, and file returns on time to avoid penalties and keep your business in good standing.