GST Return Filing

A Comprehensive Guide on GST Return FILING

Introduction

Tax is the amount paid to the government by an individual or a corporate body based on their annual income. It is of two types, direct and indirect tax. Income tax falls under direct tax while GST (Goods and Service Tax) is a form of indirect tax in India. This has replaced many other taxes such as VAT and service tax. Goods and Service Tax is levied upon the supply of goods and services. GST was put into practice in India on July 1st, 2017. This is fully based on the Goods and Service Tax Act that was passed by the Indian Parliament on March 29th, 2017.

GST - Goods and Service tax

GST consists of three components. They are CGST, SGST, IGST, and UTGST. CGST is the tax that is collected by the Central Government of India for transactions happening within a state (intra-state). SGST is the tax collected by the State Government of India for transactions happening within the state. IGST is the tax collected by the Central Government of India for any transactions that happen between different states. UTGST is the tax for transactions happening in the Union Territories.

Every GST registered organization in India is responsible for filing a total of 26 GST Filings in one financial year. It might seem problematic and a lot of work, but we’ve got you covered. With expert guidance from FreeTaxFiler, you will be able to complete all the necessary steps with ease. So, read on to know more.

Table of Contents

• GST - Goods and Service tax
• What is a GST Return?
• Eligibility - Who is liable for filing a GST Return?
• Types of GST Returns
• Benefits of GSTR Filing
• Documents Required for GST Return Filing
• Process of GSTR Filing
• How to Download GST Return Form?
• How do we check the status of GST Returns?

Penalty for late filing of GST Returns

Did you know that all registered businesses have to file monthly, quarterly or annual GST returns? These GSTR Filings are done online on the GST portal and are based on the type of business.

GST Returns refers to a document that contains detailed information on income, purchases, sales, tax collected on sales (output tax), and tax paid on purchases. Following the GST Return Filing, the registered taxpayer (every GSTIN) has to pay the tax liability ( the money owed to the government).

Eligibility - Who is liable for filing a GST Return?

According to the regulations in GST, a person can be considered taxable if they conduct business in India having more than Rs. 5 crores as annual turnover. They can be an individual,(Hindu Undivided Family) HUF, company, firm, proprietorship, government, or society. Registered business dealers who engage in the following activities are liable to file a GST Return.

• Purchase
• Sales
• Output goods and services tax (on sales)
• Input tax credit with GST paid on the purchase

While understanding GST returns it is also important to know the 7 types of taxpayers.

1. TDS Deductors

2. Non-resident taxpayers

3. Composition taxable persons

4. Input Service Distributors

5. Casual taxable persons

6. E-commerce operators, and

7. Regular taxpayers

Taxpayers with an annual turnover of up o Rs 5 crores have an option to file GST Returns under the QRMP scheme. The total number of GSTR filings under the QRMP scheme is 9 each year, which includes 4 GSTR-1 and GSTR-3B returns each and includes an annual return as well. The QRMP filers are entitled to pay tax every month although they file GST Returns every quarter.

Types of GST Returns

GSTR - 1:

It is about the details of all the outward supplies of the goods and services that are taxable. It is to be filed by the supplier before the 10th of each consecutive month.

GSTR - 2A:

It is a static view-only GST return for the inward supplies of goods and services that are taxable. It is to be filed by the buyer before the 15th of each consecutive month. The inward supplies the recipient could ve viewed as purchases made from other GST registered suppliers.

GSTR - 2B:

Like GSTR-2A, this is also a static view-only GST return. This acts as Input Tax Credit (ITC) statement for taxpayers. GSTR-2B helps in minimizing the time taken to file returns, eases reconciliation, simplifies compliance, and reduces errors.

GSTR - 3B:

This will be filled automatically with regard to the payment of tax from both GSTR1 and GSTR 2 and will be ready before the 20th of every consecutive month. It is a summary return of outward supplies and input tax credit claimed, including the payment of tax by the taxpayer.

GSTR - 4:

It is an annual return required to be filled by composition-taxable persons. This will hold the details of all the supplies, the tax payable, and the tax paid where the due date for filing is the 30th of the month succeeding a financial year.

GSTR - 5:

GSTR-5 is meant for non-resident foreign taxpayers who carry out transactions in India. It contains the details of outward supplies, inward supplies received, credit-debit notes, tax paid, and tax liability It is to be filed by the 20th of the consecutive month. (changed to 13th by Budget 2022; yet to be notified)

GSTR - 5A:

This includes all the outward taxable supplies and tax payable by Online Information and Database Access (OIDAR). It should be filed by the 20th of every month.

GSTR - 6:

This is filed by the input service distributor (ISD) by the 13th of the next month which has all the details of documents related to the input tax credit distributed and received by the ISD.

GSTR - 7:

This form has all the details of tax deductions and it is to be filed by those who are required to deduct TDS under GST by the 10th of each consecutive month.

GSTR - 8:

This return is to be filed by e-commerce operators registered under GST with details of supplies affected along with the tax collected. It is filed by the 10th of each consecutive month.

GSTR - 9:

This is filed yearly by the registered taxable person before the 31st of December of the consecutive financial year. It contains details of the inward supplies received, outward supplies made, a summary of supplies received under the HSN code, and information on tax payable and paid.

GSTR - 9C:

This is a self-certified reconciliation statement. It is filled by taxpayers registered under GST with an annual turnover of more than Rs.2 crores in a financial year. Usually, it has to be filled by December 31st of the year following the financial year.

GSTR - 10:

It is filed by the taxable person whose GST is canceled or surrendered within three months from the date of cancellation.

GSTR - 11:

It has details of the inward supplies and is filed by the person who has the UIN (Unique Identification Number). It should be filed by the 28th of the month following the month for which the statement is filed.

Note: The GST Return filings as per the CGST Act are subject to changes by CBIC orders or notifications.

Benefits of GSTR Filing

Although new, GST has a lot of things that would practically benefit us. It makes us stronger and helps us be a better competitor as acquiring GST means legalizing the firm. GST registration holders gets an input tax credit while they purchase any goods. Having a GST certificate ensures that the company can sell at any place in India and there is no need to be worried about boundaries. GST registration is also compulsory to undertake any government project. Online businesses have started to rule and selling online needs GST registration. It is also considered and taken as an important proof in banks where a current account can be easily opened with the GST Certificate. It is also important for trust basis and to get contracts from any big MNCs as GST is taken as legalized proof.

Documents Required for GST Return Filing

GST Return has to be filed both monthly and annually. It shows the total sales and the purchase of a month, also the total output GST tax and total input GST credit tax. Listed below are the documents required for GST Return Filing.

• List of invoices (B2B & B2C services)
• Invoice number
• Type of invoice
• Customer GSTIN
• Rate of GST
• HSN summary details
• Intra-state and Inter-state sales (consolidated)

Process of GSTR Filing

There are three types of filing namely, GSTR 3B, GSTR 1, and GSTR 2. GSTR 3B shows the purchase and the sales with the tax payment. It has to be filed on the 20th of every month (i.e. data of the previous month). GSTR 1 also mentions the sales but here it mentions the sales along with the B2B (business to business). This is filed on a quarterly basis and the due date would be on the 31st of the fourth month for every three months. GSTR 2 is where the input tax credentials would be mentioned.

Register Now

How to Download GST Return Form?

• Login to the GST Portal (www.gst.gov.in)
• Navigate to   Services → Returns → Returns Dashboard.
• Choose the appropriate financial year and return the filing period from the dropdown.
• Click on the search button and select the GSTR you wish to download.
• Navigate to Download and click on Generate File.
• Generating the files typically takes around 20 minutes.
• Click on the download link to download the zip file containing your GST returns.

How do we check the status of GST Returns?

The official GST portal allows us to check the status of GST Returns online.

• Open the GST portal (www.gst.gov.in).
• Enter the required details on the login page.
• Choose and navigate through   Services → Returns → Track Returns Status.
• Select   Status of Return from the dropdown
• Click the search button
• The status may be shown as  TO BE FILED/SUBMITTED BUT NOT FILED/FILED-INVALID/FILED-VALID.

Penalty for late filing of GST Returns

If you fail to file GST returns within the stipulated time, you will have to pay interest and a late fee. The interest is 18% per annum calculated on the amount of outstanding tax. It includes the time period from the next day of filing to the date of payment.

Under CGST and SGST, a fine of Rs. 200 (Rs.100 under CGST and Rs. 100 under SGST) will be charged per day.

Conclusion

GST Return Filing may seem to be a tedious and time-consuming job. But, with our experts at FreeTaxFiler filling the various GST Returns Forms is no more a hassle and can be significantly simplified.

Frequently Asked Questions:

1. What is an e-way bill?

It is an electronic bill that needs to be carried when goods are in movement and the value of those goods exceeds Rs.50000.

2. Can everyone collect GST from customers while selling goods?

No, only the people who have acquired proper GST Registration for their company/firm are allowed to collect this amount from their customers.

3. Will the GST Registration have to be renewed?

No, once registered, the registration lasts for a lifetime and it can be canceled. The GSTR 10 will also have to be filed by the person which is the final return after the surrender or cancellation of the GST.

4. What is the penalty if the GST Returns are filed with any delay?

According to the Goods and Service Act, there will be a fine of Rs.100 on CGST and Rs.100 on SGST which is a total sum of Rs200 per day until the returns are filed.

5. Is there a date to file the GST Return?

Yes, there are specified due dates before which the specified types of GST Returns have to be filed. Few have to be filed each month, quarterly, or for every financial year. Late filing will have a considerable amount as a fine.

6. Is GST the first of such taxes imposed?

No, GST first came into play in 2017 but even before that there were taxes such as VAT and services taxes instead of Goods and Service Tax.

7. Is GST followed all over India?

Yes, it is and hence it achieves the objective of one nation following one tax all around. So, it also is easier to keep track of all finances and the tax payments without tax evasion.

What is the GST rate applicable for a car?

The GST rate applicable on a car is 28%. The rate of GST that is being applied for each product is not the same and would change according to the materials used and the product.

GST Filing

What is GST Return?

GST return is an official document that furnishes all the purchases, sales, tax paid on purchases, and tax collected on sales-related details. The GST returns is required to be filed, following which the taxpayer has to pay off the tax liability.

Who should file GST Returns?

GST returns has to be filed by all the business entities who are registered under the GST system. The filing process has to be identified on the basis of the nature of the business.

The registered dealer who part of the following activities needs to file a GST return:

1. Sales

2. Purchase

3. Output Goods and services tax (on Sales)

4. Input Tax Credit with GST paid on the purchase.

Types of GST Returns under New GST Law

The list of all types of GST returns in India along with frequency and the due date for filing returns.