Overview of GST Return filing
As a business owner, you must be well aware of the importance of GST return filing. It is a crucial part of the Goods & Service Tax (GST) regime that requires all registered businesses to file their GST returns periodically. Filing these returns is not only mandatory but also helps companies to maintain accurate financial records & avoid any penalties or legal issues. At our firm, we offer professional & expert services for GST return filing to ensure that your business remains compliant with the GST law.
What is GST Return?
Filing a GST return is like checking in with the tax authorities to give them a summary of what your business has been up to. When you’re registered under the Goods and Services Tax (GST) in India, it’s a bit like having a library card—you need to report what you 'borrow' and 'lend' financially. This report, or GST Return, includes all the key details of your business's transactions: your income, your expenditures, and the GST you've collected and paid. Think of it as your business's financial diary that you share with the tax office to help them see how much tax you owe or are owed back.
Benefits of GST Return Filing
- Compliance: Filing GST guarantees compliance with the law & helps avoid legal complications.
- Input Tax Credit: GST return filing enables businesses to claim input tax credit for goods & services received & reduces the overall tax burden.
- Transparency: It promotes transparency & accountability, as businesses are required to declare all transactions & their corresponding tax amounts.
- Improved Cash Flow: GST filing assists businesses in managing their cash flow more efficiently by providing timely refunds & reducing the likelihood of penalties.
- Increased Efficiency: It streamlines the tax process & simplifies the overall tax structure.
- Improved Reputation: On-time returns demonstrate a commitment to ethics & good corporate governance.
Types of GST Return Filing
|
Name |
Description |
GST Return Due Date |
|
GSTR-1 |
Monthly/Quarterly return for outward supplies. |
11th of the following month/quarter. |
|
GSTR-2A |
An auto-populated form showing details of inward supplies. |
No specific due date. |
|
GSTR-3B |
Monthly return for a summary of outward & inward supplies along with tax payment. |
20th of the following month. |
|
GSTR-4 |
Quarterly return for composition dealers. |
18th of the month succeeding the quarter. |
|
GSTR-5 |
Monthly return for non-resident foreign taxpayers. |
13th of each month. |
|
GSTR-7 |
Monthly Return for Tax Deducted at Source (TDS). |
10th of each month. |
|
GSTR-8 |
Monthly return for Tax Collected at Source (TCS). |
10th of each month. |
|
GSTR-9 |
Annual return for regular taxpayers. |
31st December of the following Financial Year. |
|
GSTR-9C |
Annual return for taxpayers with turnover above 2 crore. |
31st December of the following Financial Year. |
|
GSTR-10 |
Final return for taxpayers whose registration has been cancelled. |
3 months from the date of cancellation or order, whichever is earlier. |
|
GSTR-11 |
Monthly statement for persons claiming a refund of taxes paid on inward supplies. |
28th of the following month. |
Eligibility for GST Return filing
The GST system in India mandates that businesses with an annual turnover of over ₹20 lakhs are required to register under GST & file returns periodically. However, not all taxpayers are eligible for GST filing. The eligibility for GST return filing is:
- Regular taxpayers who have an annual aggregate revenue of more than ₹5 crores must file their GST returns monthly through GSTR-1, GSTR-3B & an annual return.
- Taxpayers who did not choose the Quarterly Return Monthly Payment (QRMP) plan need to file two monthly returns & one yearly return under the GST system.
- QRMP filers have to submit nine GSTR files annually, including four GSTR-1 & three GSTR-3B forms, as well as an annual return. It is important to note that even if QRMP filers file their returns quarterly, they still have to pay tax monthly.
- Composition dealers must file five GSTR files annually, including four statement-cum-challans in CMP-08 & one annual return GSTR-4.
Process Of GST Returns Filing
The process of GST return filing, mentioned below
Registering: Sign up for GST on the GST Portal by providing your business details.
Document Keeping: Keep records of all your business transactions, like bills, receipts, and invoices.
Filing Returns: Use the GST Portal to submit your GST returns electronically. Depending on your business type, you'll fill out different forms like GSTR-1, GSTR-3B, and GSTR-9 for annual returns.
Entering Data: Go to the GST Portal and choose the right form for your return. Then, carefully fill in details about your sales and purchases. This includes things like the buyer's GSTIN, invoice number, the value of taxable items, and the amount of GST charged. Accuracy is key!
Paying Tax: If you owe any tax after using your input tax credit,and validation,pay it online through the GST Portal. You can use internet banking, credit/debit cards, or NEFT/RTGS for this.
Filing and Submitting: Once you've checked and paid, submit your return on the GST Portal. Before hitting submit, make sure to review all the details carefully to avoid any mistakes.
Documents Required for GST Return filing
- Invoices: List of B2B & B2C services provided, including the type of invoice, invoice number, customer's GSTIN, place of supply, taxable value, & GST rate applied.
- Amount of Tax Applicable: Detailed information about the amount of Central Goods & Services Tax (CGST), State Goods & Services Tax (SGST), Integrated Goods & Services Tax (IGST), & GST Cess applicable.
- HSN-wise Summary: The Harmonized System of Nomenclature (HSN) code-wise summary details, such as the quantity, value, & tax amount on each HSN code in a return,.
- Consolidated Sales: Consolidated intra-state & inter-state sales must be included in the GST filing.
- Debit & Credit Notes: A summary of the requisite documents, i.e., debit & credit notes issued during a given period.
- GST Certificate: A physical copy of the GST certificate or GSTIN duly signed by an authorized representative must be incorporated in the GST return.
GST Return Filing Fees
The government charges no direct filing fees for GST returns in India. You can access and file all GST returns electronically on the GST portal without incurring any filing charges. However, certain factors might incur incidental expenses related to GST return filing:
1. Late Filing Fees: If you fail to file your GST return within the stipulated deadline, you will be liable to pay a late filing fee. This fee is levied per day of delay and varies depending on the type of return:
- GSTR-1 (Outward Supplies): Rs. 20 per day
- GSTR-3B (Summary Return): Rs. 50 per day, capped at Rs. 5,000 for taxpayers with turnover above Rs. 1.5 crore and Rs. 10,000 for those with turnover above Rs. 5 crore
- GSTR-4 (Annual Composition Return): Rs. 50 per day, capped at Rs. 500
- Other returns: It varies according to the specific return filed.
2. Professional Fees: These service providers may charge fees for their services, which can vary depending on the complexity of your business and the level of assistance required.
GST Return Filing Date
Regular Taxpayers:
- GSTR-1 (Outward Supplies): Due by the 10th of the following month.
- GSTR-3B (Summary Return):
Monthly: Due by the 20th of the following month for businesses with turnover above Rs. 5 crore.
Quarterly: Due by the 20th of the following month for businesses with a turnover up to Rs. 5 crore.
GSTR-9 (Annual Detailed Return): Due by the 31st of December of the next financial year.
Additional returns: Specific due dates for other returns like GSTR-2A/2B (Purchase details), GSTR-4 (Annual composition), GSTR-7 (TDS), etc.
Composition Taxpayers:
CMP-08 (Composition Return): Due by the 20th of the month following the quarter.
GSTR-4 (Annual Composition Return): Due by the 31st of December of the next financial year.
GSTR-9C (Reconciliation Statement): GST monthly return due date by the 31st of March of the following financial year.
Procedure to File GST Return Online?
All set with the basics cleared on what a GST return is, then get all the details on the GST filing process that can be easily accomplished with these 6 essential steps:
Step 1: Register or login to the GST portal
Step 2: Apply for a unique 15-digit GST Identification Number (GSTIN), as issued based on your state code & PAN details.
Step 3: Upload all the relevant invoices on the GST portal, where an invoice reference number will be allotted against each invoice.
Step 4: Verify all the data that you have inputted, including inward & outward returns, along with monthly/quarterly GST filing returns.
Step 5: Before filing your GST returns, make sure the details of your ITC, turnover, & tax payable correspond to the tax period you aspire to file.
Step 6: Generate an electronic credit ledger, reconcile all liability transactions, & promptly submit your GST returns on or before the due date, making timely payments when filing taxes with an agent.
With these simple & expertly designed steps, taxpayers can successfully & effortlessly complete the GST return filing process, contributing to a sustainable economy.
How Can Taxlegit Help You
At TaxLegit, we understand the complexities of GST return filing & provide expert guidance to guarantee compliance with the latest regulations. We offer a one-stop solution for your GST filing needs & make the process hassle-free & seamless. Our experienced team of professionals ensures that your returns are filed accurately & on time to avoid any penalties or legal implications.
