GST Returns and Payment: GSTR Forms (Overview), Due Dates, Challan, Interest and Late Fee (Basics) Questions

Question 1

What is a GST return?

Accepted Answer

A **GST return** is a statement filed to report supplies, **tax liability**, **ITC**, and tax payment details for a period (concept/overview).

Question 2

GSTR-1 is used to report outward supplies. (True/False)

Accepted Answer

True. **GSTR-1** contains outward supply (sales) details (overview).

Question 3

GSTR-3B is a summary return. (True/False)

Accepted Answer

True. **GSTR-3B** is a **summary** return used for reporting and tax payment (concept/overview).

Question 4

What is a challan (PMT-06) used for in GST?

Accepted Answer

A **challan (PMT-06)** is used to deposit money into the **electronic cash ledger** for paying tax/interest/late fee (concept).

Question 5

Interest is generally charged for late payment of tax. (True/False)

Accepted Answer

True. **Interest** is generally for **delay in tax payment** (concept).

Question 6

Late fee is commonly charged for delayed return filing. (True/False)

Accepted Answer

True. **Late fee** is commonly for **late filing** of returns (concept/overview).

Question 7

List any three GST returns/forms and write one line purpose of each (use a table).

Accepted Answer

Any three (overview):

| Form/Return | Purpose |
|---|---|
| **GSTR-1** | outward supply (sales) invoice details |
| **GSTR-3B** | summary return + tax payment (concept) |
| GSTR-9 | annual return (overview) |
| CMP-08 | composition payment statement (overview) |

Write any three with one-line purpose.

Question 8

Differentiate GSTR-1 and GSTR-3B (any three points) using a table.

Accepted Answer

Difference (basics):

| Basis | **GSTR-1** | **GSTR-3B** |
|---|---|---|
| Nature | detailed outward supplies | **summary** return (concept) |
| Content | invoice-level sales details | liability/ITC/payment summary |
| Use | supports ITC trail for recipients | used to pay tax and report summary |

Any three differences are sufficient.

Question 9

Explain electronic cash ledger and electronic credit ledger (any three points) using a table.

Accepted Answer

Ledgers (concept):

| Ledger | What it contains | Used for |
|---|---|---|
| **Cash ledger** | cash deposited via challan | pay tax/interest/late fee (concept) |
| **Credit ledger** | eligible **ITC** | set-off against output GST |

Key idea: pay using ITC first (as per rules) and remaining through cash ledger (overview).

Question 10

What happens if returns are filed late? Explain (any three points) with a small table.

Accepted Answer

Late compliance can lead to extra cost and restrictions (concept/overview).

| Delay type | Likely consequence |
|---|---|
| Late **filing** of return | **late fee** (concept) |
| Late **payment** of tax | **interest** (concept) |
| Repeated non-compliance | penalties/restrictions as per law (overview) |

Write any three clear points.

Question 11

Compute net tax payable and explain payment route: Output GST 25,000; eligible ITC 15,000 (show a table).

Accepted Answer

Working (concept):

| Particulars | Amount |
|---|---:|
| Output GST | 25,000 |
| Less: eligible **ITC** | (15,000) |
| **Net payable (cash)** | **10,000** |

Pay 10,000 by depositing via **challan** into cash ledger and paying through return (concept/overview).

Question 12

Explain the basic steps to file GST returns and pay tax (any three points) with a small flowchart.

Accepted Answer

Basic steps (concept/overview):

- compile invoice data for outward supplies and compute **output GST**
- compute eligible **ITC** and arrive at net payable
- file returns (e.g., outward details + summary/payment) within due dates
- pay balance using **cash ledger** via challan (concept)

Flowchart:

```text
Invoices -> Output tax & ITC -> File returns -> Set-off ITC -> Pay via cash ledger
```

Write any three clear steps in exam points.

Question 13

Explain GST returns and payment process (exam-style) including GSTR-1, GSTR-3B, challan and ledgers (use headings and a flowchart).

Accepted Answer

### Returns (overview)
GST returns report supplies, tax liability and ITC for a tax period (concept/overview).

### Key returns
- **GSTR-1**: outward supply details.
- **GSTR-3B**: **summary** return used for payment and reporting of liability/ITC (concept).

### Payment mechanism
Payment uses two ledgers:
- **Credit ledger**: eligible **ITC** set-off.
- **Cash ledger**: cash deposited via **challan (PMT-06)** (concept).

### Flowchart

```text
Invoices/records -> Compute output tax & ITC
      -> File GSTR-1 (outward details)
      -> File GSTR-3B (summary + payment)
      -> Set-off ITC (credit ledger)
      -> Pay balance via cash ledger (challan)
```

Conclusion: Filing within due dates avoids **interest** and **late fee** (concept).

Question 14

Write an exam-style note on interest and late fee under GST for delayed compliance (meaning + when applicable + table).

Accepted Answer

### Meaning
- **Interest**: charged for **late payment** of tax.
- **Late fee**: charged for **late filing** of returns (concept/overview).

### When applicable (table)

| Situation | What applies (concept) |
|---|---|
| Tax paid after due date | **interest** |
| Return filed after due date | **late fee** |
| Both delayed | interest + late fee (as applicable) |

### Key exam points
- Due dates vary by category/notifications; write “as prescribed”.
- Regular timely filing avoids extra cost and compliance issues (concept).

Conclusion: Interest/late fee encourage timely GST payment and return filing.

Question 15

Explain the importance of GST returns for ITC and compliance (exam-style) with a table and flow.

Accepted Answer

### Importance
GST returns are important because they create a record of supplies and enable tax payment and **ITC** flow (concept/overview).

### Table (exam-friendly)

| Area | Why returns matter (concept) |
|---|---|
| **ITC chain** | invoice reporting supports ITC availability/traceability |
| **Tax payment** | liability is discharged through return filing (GSTR-3B) |
| Compliance & audit | data helps assessment/audit and reduces disputes |
| Avoid extra cost | timely filing avoids **late fee** and **interest** |

### Flow (concept)

```text
Invoices -> Returns filed -> ITC traceability + Tax payment -> Compliance
```

Conclusion: Regular return filing is central to GST’s self-assessment and credit mechanism (concept).

Form/Return	Purpose
GSTR-1	outward supply (sales) invoice details
GSTR-3B	summary return + tax payment (concept)
GSTR-9	annual return (overview)
CMP-08	composition payment statement (overview)

GST Returns and Payment: GSTR Forms (Overview), Due Dates, Challan, Interest and Late Fee (Basics)

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