Difference between GST Challan and GST Return

              GST Challan                   GST Return
It is a one page form used to pay tax It contains details of tax paid (more than one page)
It is done first It is done later

Challan is deposited with Bank along with cash/cheque/net banking (either offline or online)

Return is deposited with concerned Tax Dept.

(either offline or online)

It is to be filed only if there is tax payable

(not in cas of GST Credit)

It is to be filed in case of both GST Payable and GST Credit
No need to pay this in case of Nil Return It is to be deposited in case of Nil Return also

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Difference between GST Challan and GST Return


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NORMAL  DEALER

COMPOSITION DEALER

They calculate GST Payable by deducting

OUTPUT GST

-INPUT GST

They calculate GST Payable by Paying

OUTPUT GST

At lower rate

(No Input taken)

They file Monthly Returns(GSTR3B, GSTR1, 2,3 )

+

Annual Returns

(12*2 +1=25 Returns in One Year)

They file Quarterly Return annually (GSTR4)

+

Annual Return

( 1*4 1+1 = 5 2 Returns in One Year)

and pay tax quarterly

They can make Interstate Sales as well as local Sales

They cannot make Interstate Sales. 

They can only sell within state

Higher Rate of tax is applicable

(5%,12%,18%,28%)

Rates of tax are lower

For Traders 1%

For Manufacturers  2% 1% from 1 jan 2018

For Restaurants 5%

For Other Services N/A   6% from 1 April 2019

It is applicable for large assesses having turnover > 75  1.5 CRORE

If turnover less than 1.5 crores,still Normal scheme can be chosen

It is applicable for small assesses having turnover upto 75    1.5 CRORE in Previous Year

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Returns to be filed by Normal Dealer


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GSTR 1

  • It contains details of All types of Sales
  • It is normally to be filed by 10th of next month


GSTR2

  • It contains details of Purchase(both Normal Charge and Reverse Charge)
  • It is normally to be filed by 15th of next month
  • Currently this return is not filed


GSTR 3

  • It contains details of Payable and Credit
  • It is normally to be filed by 20th of next month
  • Currently this return is not filed


GSTR3B

  • Since Gst was new and people were not aware how to file normal returns,GSTR1,2,3,governemnt has till March introduced simple returns called GSTR3B
  • It contains only total figures of sales and purchase
  • It is also normally to be filed by 20th of next month

Changes In GST (37th GST Council meeting held in Goa) 

GSTR 3B & GSTR 1 are to be filed till 31 March 2020.

After that new returns Sahaj Sugam etc . will be applicable


Annual Return

  • It is to be filed after end of year when books of accounts )Profit and loss/Balance sheet) are finalized
  • It is to be filed by 31 December of next year. 
  • For financial year 2017-18 it is to be filed by 31 December 2018     30 November 2019   3 1 December 2019

Changes In GST (37th GST Council meeting held in Goa)

Annual return GSTR 9 is to be made optional, if turnover upto 2 Crore for F.Y. 2017-18 & 2018-19.

However, if turnover more than 2 crore then both GSTR 9 and GSTR 9C is to be filed


New returns system now to be introduced from April 2020.

New returns system now to be introduced from April 2020, earlier proposed from October 2019.

 

GSTR 3B & GSTR 1 extended to be till 31 March 2020.

Currently return system GSTR 3B & GSTR 1 filing to be extended till 31 March 2020.

 

AADHAR may be mandatory for GST registration & claiming refund.

AADHAR mandatory for registration of taxpayer under GST and it may become mandatory for claiming refunds.


Whether these Return is to be filed Quarterly or Monthly?

Monthly for Large Tax payers

  • If turnover last year was more than 1.5 crore or in current year is likely to exceed 1.5 crore it is monthly


Optional(Monthly/Quarterly) for Small Tax Payers

  • If turnover last year was upto 1.5 crore or in current year is likely to be upto 1.5 crore it is monthly

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Note:-  These are only for GSTR 1,2,3

  • GSTR 3B is to be filed monthly only
  • Also GSTR 1 was monthly for all tax payers as the amendment came later

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Returns for Composition Dealer

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Returns for Composition Dealer

  • These Dealers do not get any input
  • They pay tax directly on their sales

 

Return to be filed

  • They have to file Quarterly Return annually GSTR 4
  • (No need to file normal returns GSTR1,2,3,3B)
  • Payment of tax to be done quarterly (CMP-08)

They also would have to file Quarterly Return annually and challan quaterly

  1. GST - Goods and Services Tax, India
  2. GST Return, Challan and Invoice Format

About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 10 years. He also provides Accounts Tax GST Training in Delhi and Pune.