Monthly Return :

The return for any normal tax payer under GST consists of three parts, viz statement of outward supplies, statement of inward supplies and the return. The basic information in the GST ecosystem emanates from the statement of outward supplies i.e.
GSTR-1. GSTR-1 captures the transaction level details of the outward supplies of a tax payer. GSTR-1 of all suppliers forms the basis for the statement of details of the inward supplies of all suppliers as somebody’s outward supply’s is somebody else’s inward supply. Therefore, the statement of inward supplies i.e. GSTR-2 is auto drafted from the GSTR-1 of all the suppliers. Once the outward and inward supplies of every tax payer is frozen, the tax liability is calculated and paid in the return i.e. GSTR-3. Therefore, GSTR-1 to 3 collectively form the return under GST. It is only for operational conveniences that they have been split into three parts with staggered date of filing. Unless all GSTR-1 are filed, auto generation of GSTR-2 is not possible and only after all GSTR-1 and GSTR-2 have been finalized can GSTR-3 be auto generated. This logical sequence defines the workflow for filing of returns in GST.

In addition, there are separate formats for certain specific category of taxpayers viz. Input Service Distributors, non-resident taxpayers (foreigners) and Tax Deductors keeping in view certain specific characteristics of their transactions. The components of each of these return is being discussed hereunder: