CGST Section 39 — Furnishing of returns

CGST Act  ·  Furnishing of returns

CGST 12 Amendments 112 views

Quick Answer

Section 39 of the CGST Act, 2017 governs Furnishing of returns. It provides the core statutory basis, outlining the essential legal principles, rights, and liabilities under Indian indirect tax law. Section 39 GST: Furnishing of returns — eligibility, conditions, case laws and compliance impact under Indian tax law.

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Plain-English Explanation

Plain English Summary

Section 39 of the CGST Act, 2017, outlines the rules for filing GST returns, specifying who needs to file, how often, and what information needs to be included. It ensures that registered businesses regularly report their sales, purchases, input tax credit, and tax payments to the government.

This section applies to almost all businesses registered under GST, but there are a few key exceptions. The following entities are not required to file returns under Section 39(1), the main provision for regular taxpayers: Input Service Distributors (ISDs), non-resident taxable persons, persons paying tax under the composition scheme (Section 10), and persons required to deduct tax at source (TDS) under Section 51, and e-commerce operators collecting TCS under Section 52. Each of these excluded entities has separate return filing requirements outlined elsewhere in the Act.

Here's a breakdown of the key conditions and exceptions within Section 39:

  • Regular Taxpayers (Monthly Returns): Most registered businesses, unless specifically excluded, must file a return every month. This return includes details of all inward (purchases) and outward (sales) supplies, the input tax credit (ITC) claimed, the amount of tax payable, and the tax actually paid. The return has to be filed electronically, in the prescribed form, and within the prescribed time.

  • Composition Scheme (Annual Returns): Businesses opting for the composition scheme under Section 10 have a simplified tax payment process. Instead of monthly returns, they now file one annual return summarizing their turnover, inward supplies, tax payable, and tax paid.

  • TDS Deductors (Monthly Returns): Entities required to deduct TDS under Section 51 must file monthly returns detailing the deductions made. Importantly, these entities must file a return even if no deductions were made during a particular month.

  • Input Service Distributors (Monthly Returns): ISDs must file a monthly return summarizing the input tax credit distributed by them.

  • Non-Resident Taxable Persons (Monthly Returns): Non-resident taxable persons must file a monthly return, or a return within seven days after the last day of their registration period, whichever is earlier.

  • Time Limit for Filing: The government prescribes the exact deadlines for filing each type of return. Taxpayers should adhere to these deadlines to avoid penalties and interest. For regular taxpayers, the time limit for furnishing return has been amended to within such time, and subject to such conditions and restrictions, as may be prescribed.

  • Extension of Time Limit: The Commissioner has the power to extend the deadlines for filing returns for specific classes of registered persons, but must record the reasons in writing.

  • Tax Payment: Crucially, taxpayers must pay the tax due as per their return on or before the last date for filing the return.

Practical Examples:

  • Scenario 1: Regular Business. A manufacturing company registered under GST has monthly sales of ₹50 lakhs and eligible input tax credit of ₹2 lakhs. They must file a monthly return (GSTR-3B) by the prescribed due date, reporting these figures and paying the net tax liability (after adjusting ITC) on or before the due date.

  • Scenario 2: Composition Scheme. A small restaurant opting for the composition scheme has an annual turnover of ₹75 lakhs. They file a single annual return (GSTR-4), reporting their total turnover and paying tax at the applicable composition rate.

  • Scenario 3: TDS Deductor. A government department making payments to contractors exceeding a certain threshold is required to deduct TDS. They must file a monthly return (GSTR-7) detailing the TDS deductions made during the month, even if no deductions were made.

Important Amendments:

The text highlights some significant amendments to Section 39:

  • Amendment 1: Replaced the original sub-sections (1) and (2) with new provisions, effective November 10, 2020. The amendment changes the frequency of return filing for composition scheme taxpayers from quarterly to annually.
  • Amendment 2: Substituted the word "twenty" with "thirteen" in sub-section (5), effective October 1, 2022. This change reduces the time allowed for non-resident taxable persons to file returns from twenty days to thirteen days after the end of the calendar month.
  • Amendment 3: Replaced the original sub-section (7) with a new provision, effective November 10, 2020, emphasizing that the tax due must be paid on or before the last date for filing the return.

Understanding Section 39 is crucial for GST compliance. Businesses must correctly identify their return filing obligations and adhere to the prescribed timelines to avoid penalties and maintain a good compliance record.

* Section39.Furnishing of returns.-
(1) Every registered person, other than an Input Service Distributor or a non-resident taxable person or a person paying tax under the provisions ofsection 10orsection 51orsection 52shall, for every calendar month or part thereof, furnish, a return, electronically, of inward and outward supplies of goods or services or both, input tax credit availed, tax payable, tax paid and such other particulars, in such form and manner,1within such time, and subject to such conditions and restrictions12,as may be prescribed: Providedthat the Government may, on the recommendations of the Council, notify certain class of registered persons who shall furnish a return for every quarter or part thereof, subject to such conditions and restrictionsas may be specifiedtherein.1
(2)A registered person paying tax under the provisions ofsection 10, shall, for each financial year or part thereof, furnish a return, electronically, of turnover in the State or Union territory, inward supplies of goods or services or both, tax payable, tax paid and such other particulars in such form and manner, and within such time,as may be prescribed.]within such time, and subject to such conditions and restrictions12,as may be prescribed: Providedthat the Government may, on the recommendations of the Council, notify certain class of registered persons who shall furnish a return for every quarter or part thereof, subject to such conditions and restrictionsas may be specifiedtherein.
(2)A registered person paying tax under the provisions ofsection 10, shall, for each financial year or part thereof, furnish a return, electronically, of turnover in the State or Union territory, inward supplies of goods or services or both, tax payable, tax paid and such other particulars in such form and manner, and within such time,as may be prescribed.]
(3)Every registered person required to deduct tax at source under section 51 shall electronically furnish a return for every calendar month of the deductions made during the month in such form and manner and within such time as may be prescribed: Providedthat the said registered person shall furnish a return for every calendar month whether or not any deductions have been made during the said month.11
(4)Every taxable person registered as an Input Service Distributor shall, for every calendar month or part thereof, furnish, in such form and manneras may be prescribed, a return, electronically, within thirteen days after the end of such month.
(5)Every registered non-resident taxable person shall, for every calendar month or part thereof, furnish, in such form and manneras may be prescribed, a return, electronically, withinthirteen2 days after the end of a calendar month or within seven days after the last day of the period of registration specified under sub-section (1) ofsection 27, whichever is earlier.
(6)The Commissioner may, for reasons to be recorded in writing, by notification, extend the time limit for furnishing the returns under this section for such class of registered persons as may be specified therein: Providedthat any extension of time limit notified by the Commissioner of State tax or Union territory tax shall be deemed to be notified by the Commissioner.
(7) Every registered person who is required to furnish a return under sub-section (1), other than the person referred to in the proviso thereto, or sub-section (3) or sub-section (5), shall pay to the Government the tax due as per such return not later than the last date on which he is required to furnish such return:3
Provided that every registered person furnishing return under the proviso to sub-section4
(1)shall pay to the Government, in such form and manner, and within such time, as may be prescribed,––
(a)an amount equal to the tax due taking into account inward and outward supplies of goods or services or both, input tax credit availed, tax payable and such other particulars during a month; or
(b)in lieu of the amount referred to in clause (a), an amount determined in such manner and subject to such conditions and restrictions as may be prescribed] Providedfurther that every registered person furnishing return under sub-section (2) shall pay to the Government, the tax due taking into account turnover in the State or Union territory, inward supplies of goods or services or both, tax payable, and such other particulars during a quarter, in such form and manner, and within such time,as may be prescribed.]Provided that every registered person furnishing return under the proviso to sub-section4
(1)shall pay to the Government, in such form and manner, and within such time, as may be prescribed,––
(a)an amount equal to the tax due taking into account inward and outward supplies of goods or services or both, input tax credit availed, tax payable and such other particulars during a month; or
(b)in lieu of the amount referred to in clause (a), an amount determined in such manner and subject to such conditions and restrictions as may be prescribed] Providedfurther that every registered person furnishing return under sub-section (2) shall pay to the Government, the tax due taking into account turnover in the State or Union territory, inward supplies of goods or services or both, tax payable, and such other particulars during a quarter, in such form and manner, and within such time,as may be prescribed.]
(8)Every registered person who is required to furnish a return under sub-section (1) or sub-section (2) shall furnish a return for every tax period whether or not any supplies of goods or services or both have been made during such tax period.
(9)Where5 any registered person after furnishing a return under sub-section (1) or sub-section (2) or sub-section (3) or subsection (4) or sub-section (5) discovers any omission or incorrect particulars therein, other than as a result of scrutiny, audit, inspection or enforcement activity by the tax authorities, he shall rectify such omission or incorrect particulars in the return to be furnished for the month or quarter during which such omission or incorrect particularsin such form and manner as may be prescribed6, subject to payment of interest under this Act: Providedthat no such rectification of any omission or incorrect particulars shallbe allowed after thethirtieth day of November7 followingthe end of the financial yearto which such details pertain8, or the actual date of furnishing of relevant annual return, whichever is earlier.
(10)A registered person shall not be allowed to furnish a return for a tax period if the return for any of the previous tax periodsor the details of outward supplies under sub-section (1) of section 37 for the said tax period has not been furnished by  him: Providedthat the Government may, on the recommendations of the Council, by notification, subject to such conditions and restrictions as may be specified therein, allow a registered person or a class of registered persons to furnish the return, even if he has not furnished the returns for one or more previous tax periods or has not furnished the details of outward supplies under sub-section (1) of section 37 for the said tax period9
(11) A registered person shall not be allowed to furnish a return for a tax period after the expiry of a period of three years from the due date of furnishing the said return: Providedthat the Government may, on the recommendations of the Council, by notification, subject to such conditions and restrictions as may be specified therein, allow a registered person or a class of registered persons to furnish the return for a tax period, even after the expiry of the said period of three years from the due date of furnishing the said return.10 ​*Enforced w.e.f. 22nd June, 2017. "(1) Every registered person, other than an Input Service Distributor or a non-resident taxable person or a person paying tax under the provisions of section 10 or section 51 or section 52 shall, for every calendar month or part thereof, furnish, [in such form, manner and within such time as may be prescribed], a return, electronically, of inward and outward supplies of goods or services or both, input tax credit availed, tax payable, tax paid and such other particulars, in such form and manner, and within such time, as may be prescribed, [****] [Provided that the Government may, on the recommendations of the Council, notify certain classes of registered persons who shall furnish return for every quarter or part thereof, subject to such conditions and safeguards as may be specified therein.]
(2)A registered person paying tax under the provisions of section 10 shall, for each quarter or part thereof, furnish, in such form and manner as may be prescribed, a return, electronically, of turnover in the State or Union territory, inward supplies of goods or services or both, tax payable and tax paid within eighteen days after the end of such quarter." "(7) Every registered person, who is required to furnish a return under sub-section (1) or sub-section (2) or sub-section (3) or sub-section
(5), shall pay to the Government the tax due as per such return not later than the last date on which he is required to furnish such return. [Provided that the Government may, on the recommendations of the Council, notify certain classes of registered persons who shall pay to the Government the tax due or part thereof as per the return on or before the last date on which he is required to furnish such return, subject to such conditions and safeguards as may be specified therein.]''

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Frequently Asked Questions

What is the due date for filing GSTR-3B under Section 39 of the CGST Act?

The due date for filing GSTR-3B is generally the 20th day of the month following the relevant tax period. However, this date may vary depending on the taxpayer's turnover and applicable notifications. Consult the latest notifications from CBIC for specific due dates based on your turnover.

What happens if I fail to file my GSTR-3B within the due date prescribed under Section 39?

Failure to file GSTR-3B by the due date attracts late fees and interest. Late fee is ₹50 per day (₹25 per day for CGST and ₹25 per day for SGST/UTGST) subject to a maximum of ₹10,000. Interest is levied at 18% per annum on the outstanding tax amount from the due date until the date of payment. Furthermore, non-filing can lead to restrictions on generating e-way bills and availing input tax credit.

Can I revise my GSTR-3B return filed under Section 39?

No, GSTR-3B once filed cannot be revised. Any errors or omissions should be rectified in the subsequent GSTR-3B return or annual return (GSTR-9). It's crucial to ensure accuracy while filing GSTR-3B to avoid complications.

Is it mandatory to file GSTR-3B even if I have no business activity during a particular tax period?

Yes, even if you have no sales or purchases, you are required to file a 'Nil' GSTR-3B return. Failure to do so will attract late fees. The option to file a nil return is available on the GST portal.

What information needs to be furnished in GSTR-3B as per Section 39?

GSTR-3B requires you to declare summary details of outward supplies, inward supplies liable to reverse charge, eligible input tax credit (ITC), and payment of tax. It's a self-declared summary return used to report tax liabilities and claim ITC.

How is the late fee for delayed GSTR-3B filing calculated for composition taxpayers under Section 39?

The late fee for composition taxpayers filing GSTR-4 is different. It is ₹200 per day (₹100 for CGST and ₹100 for SGST/UTGST), subject to a maximum of ₹5000 per return. Please refer to the relevant CGST rules and notifications for specific details applicable to composition scheme taxpayers.

What are the consequences of consistently defaulting on GSTR-3B filing under Section 39?

Consistent defaults in GSTR-3B filing can lead to suspension or cancellation of your GST registration. The department may also initiate recovery proceedings to recover outstanding taxes, interest, and penalties. Furthermore, it can negatively impact your credit rating and business reputation.

Key Conditions & Requirements

ConditionDetails
Applicability Every registered person, *other than* an Input Service Distributor, a non-resident taxable person, or a person paying tax under section 10, section 51, or section 52, is required to furnish returns.
Frequency (Monthly) The return must be furnished for every calendar month or part thereof.
Manner of Furnishing The return must be furnished electronically.
Content of Return The return must include details of inward and outward supplies of goods or services or both, input tax credit availed, tax payable, tax paid, and such other particulars as prescribed.
Form, Manner and Time The return must be furnished in such form and manner, within such time, and subject to such conditions and restrictions, as may be prescribed.
Quarterly Return (Conditional) The Government may, on the recommendations of the Council, notify certain classes of registered persons who shall furnish a return for every quarter or part thereof, subject to such conditions and restrictions as may be specified therein.
Return for Composition Scheme (Section 10) A registered person paying tax under section 10 (composition scheme) shall furnish a return for each financial year or part thereof, electronically, of turnover in the State or Union territory, inward supplies of goods or services or both, tax payable, tax paid and such other particulars in such form and manner, and within such time, as may be prescribed.

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Amendment History

Enforced w.e.f. 22nd June, 2017.
123456789+3 moreSuperscript numbers in the text mark amended passages — click them to jump here. Click "↑ view in text" to jump back.
1
2019↑ view in text

Substituted by s 97 of The Finance (No. 2) Act, 2019 (No. 23 of 2019) - Brought into force w.e.f. 10th November, 2020 vide Notification No. 81 /2020-C.T. , dated 10-11-2020. for

2
2022↑ view in text

Substituted (w.e.f. 1st October, 2022 vide Notification No. 18/2022 - CT dated 28.09.2022. ) by s. 105 of The Finance Act 2022 (No. 6 of 2022) for "twenty".

3
2019↑ view in text

Substituted by s. 97 of The Finance (No. 2) Act, 2019 (No. 23 of 2019) - Brought into force w.e.f. 10th November, 2020 vide Notification No. 81/2020-C.T ., dated 10-11-2020 for

4
2022↑ view in text

Substituted (w.e.f. ​ 1st October, 2022 vide Notification No. 18/2022 - CT dated 28.09.2022. ) by s. 105 of The Finance Act 2022 (No. 6 of 2022) for "Provided that every registered person furnishing return under the proviso to sub-section (1) shall pay to the Government, the tax due taking into account inward and outward supplies of goods or services or both, input tax credit availed, tax payable and such other particulars during a month, in such form and manner, and within such time, as may be prescribed".

5
2022↑ view in text

Substituted (w.e.f. ​ 1st October, 2022 vide Notification No. 18/2022 - CT dated 28.09.2022. ) by s. 105 of The Finance Act 2022 (No. 6 of 2022) for “Subject to the provisions of sections 37 and 38, if".

6
2018↑ view in text

Substituted by s.17 of The Central Goods and Services Tax (Amendment) Act, 2018 for "in the return to be furnished for the month or quarter during which such omission or incorrect particulars are noticed". This amendment, not yet enforced.

7
2022↑ view in text

Substituted (w.e.f. 1st October, 2022 vide Notification No. 18/2022 - CT dated 28.09.2022. ) by s. 105 of The Finance Act 2022 (No. 6 of 2022) for “the due date for furnishing of return for the month of September or second quarter”.

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2018↑ view in text

Substituted by s.17 of The Central Goods and Services Tax (Amendment) Act, 2018 for "the end of the financial year". This amendment, not yet enforced.

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2022↑ view in text

Substituted (w.e.f. 1st October, 2022 vide Notification No. 18/2022 - CT dated 28.09.2022. ) by s. 105 of The Finance Act 2022 (No. 6 of 2022) for “has not been furnished by him”.

10
2023↑ view in text

Inserted ( w.e.f. 1st October, 2023 vide Notification No. 28/2023-C.T. , dated 31st July, 2023. ) by s. 143 of The Finance Act 2023 (No. 8 of 2023).

11
2024↑ view in text

Substituted for " (3) Every registered person required to deduct tax at source under the provisions of section 51 shall furnish, in such form and manner as may be prescribed , a return, electronically, for the month in which such deductions have been made within ten days after the end of such month. " by section 124 of The Finance Act (No. 2) Act, 2024 No. 15 of 2024 dated 16.08.2024.

12
2025↑ view in text

Substituted (w.e.f. 01.10.2025) by section 128 of the Finance (No. 7) Act, 2025.

Related Topic Guides

GST Returns Filing (GSTR-1, GSTR-3B & GSTR-9) GST Returns — GSTR-1, GSTR-3B & Annual Return (Sections 37, 39 & 44)

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