GST return is a document that contains details of all the sales/revenues, purchases, expenses & tax collected on sales (output tax) and tax paid on purchases (input tax) which a taxpayer (every GSTIN) is required to file with the tax administrative authorities.
GST (Goods and Services Tax) is a comprehensive indirect tax levied on the supply of goods and services in India. GST returns filing is an essential requirement for businesses registered under GST. Here is an overview of GST returns filing in India:
GST Registration: Businesses whose turnover exceeds the prescribed threshold are required to register for GST. Upon registration, a unique GSTIN (Goods and Services Tax Identification Number) is assigned to the taxpayer.
GST Returns: GST returns are periodic statements that taxpayers need to file to report their inward and outward supplies, tax liabilities, and claim input tax credits. The frequency and type of returns to be filed depend on the taxpayer category and turnover.
Types of GST Returns: The GST return forms vary based on the nature of the taxpayer and their activities. Some common GST return forms include GSTR-1 (Outward Supplies), GSTR-3B (Summary Return), GSTR-9 (Annual Return), and GSTR-9C (Reconciliation Statement).
Filing Methods: GST returns can be filed online through the Goods and Services Tax Network (GSTN) portal. Taxpayers need to log in to the portal, enter the relevant details, reconcile invoices, and submit the return. Various offline tools and accounting software are also available to facilitate return filing.
Due Dates: Each type of GST return has specific due dates for filing. The due dates vary based on the taxpayer category, turnover, and return type. Failure to file returns within the specified timeline may attract penalties and interest.
Input Tax Credit (ITC): GST returns allow taxpayers to claim input tax credit on their purchases and expenses. The ITC can be used to offset the tax liability on outward supplies, reducing the net tax payable.
Reconciliation: GST returns need to be reconciled with the purchase and sales registers, invoices, and other financial records. This ensures accuracy and compliance with the GST law. Reconciliation helps identify any discrepancies and rectify them before filing the return.
Annual Return and Audit: Apart from regular GST returns, businesses are required to file an annual return (GSTR-9) to provide a consolidated summary of their annual activities. Certain taxpayers are also required to undergo a GST audit (GSTR-9C) conducted by a qualified chartered accountant.
Compliance and Penalties: Non-compliance with GST return filing requirements can result in penalties, interest, and legal consequences. It is essential to file accurate returns within the specified timelines and pay any outstanding tax liabilities on time.
GST Compliance Tools: Various accounting software, GST returnfiling software, and GST compliance tools are available to simplify the return filing process and ensure compliance with GST regulations.
Single tax instead of several other taxes like central excise duty, service tax, customs duty and state level value added tax. A single GST has eliminated the cascading effect of tax on tax .
All taxes are paid online and is a hassle free process which has resulted in industries becoming more accountable and tax filing laws are now better regulated and complied with by the taxpayers than before.
GST paid on purchase of furniture for office use can be used as input tax against sale of any services and it is possible only if the returns are filed on time.
User must file returns to avoid penalties, delay interest etc. Taxpayer is charged with a late fee of ₹ 50 for each day of a delay in filing of return, till the actual date of filing. To avoid such penalties, the return must be filed without any delay.
GST Network has introduced the mechanism of compliance rating. This is where all the registered persons are provided ratings based on their regularity of fulfilling the compliance and payment of taxes.
GST registered entity enjoys greater confidence of investors and financial institutions as compared to unregistered firms.
DSC of Partners or Directors, in case of LLP and Company only
GST Registration Certificate of the Entity
GST Login ID and Password of the Registered person is required
Monthly Sales figures required with Invoices raised
Monthly Purchase figures required with Bills received
Monthly Bank Statement is required to reconcile inflow and outflow
GST returns filing is the process of submitting periodic tax returns to the Goods and Services Tax (GST) authorities, providing details of sales, purchases, and tax liabilities.
All businesses registered under GST, including regular taxpayers, composition scheme taxpayers, and those registered as Input Service Distributors (ISD), need to file GST returns.
The frequency of GST returns filing depends on the type of taxpayer. Most regular taxpayers file monthly returns, while composition scheme taxpayers file quarterly returns.
Various types of GST returns are filed, including GSTR-1 (outward supplies), GSTR-3B (summary return), GSTR-4 (composition scheme return), GSTR-9 (annual return), and more.
GST returns typically require details of sales, purchases, tax collected, input tax credit (ITC) claimed, and other relevant information related to the tax period.
Yes, in certain circumstances, GST returns can be revised within a specified period. However, revisions are not allowed for all types of returns, so it's important to be cautious and accurate during the initial filing.
Late filing or non-filing of GST returns can result in penalties, interest charges, and restrictions on availing input tax credit. It is important to comply with the due dates to avoid such consequences.
Yes, several GST-compliant accounting software and online platforms are available to simplify GST returns filing. These tools help automate calculations, generate reports, and ensure compliance with GST regulations.
No, businesses can only claim input tax credit (ITC) if they have filed their GST returns. Filing returns is a prerequisite for availing and reconciling ITC.
GST returns can be filed electronically through the GST portal (www.gst.gov.in) or using GST-compliant accounting software or service providers.