Goods and Service Tax, also better known as GST, is one of India’s indirect tax regimes for the consumption and supply of goods and services. GST returns are a form that a taxpayer recorded under the same law must file for every GSTIN. GSTIN is a special 15-digit code assigned to each taxpayer based on the state and PAN number of the person. The number and types of GST return that must be filed or paid are solely based on the type of taxpayer registered. The scheme can be availed by filing an online applications.
What is a GST Return?
A GST return is a document that businesses must submit to report their tax liability and claim input tax credit GST. It includes details like sales, purchases, tax collected and tax paid. Businesses can e-file GST return through the official GST portal using their GST identification number (GSTIN).
Before filing, ensure you have:
- A valid GST number number (also called GSTIN number)
- Details of taxable sales and purchases
- Tax payable and input tax credit details
There are multiple types of returns, such as quarterly return filing under the GST composition scheme, where small businesses can opt for simplified tax payments. To check GST filing deadlines, visit the GST filing dates section or track your return using the track GST return feature on the portal.
Who has to file for a GST return?
As per the GST regime, businesses and proprietorships with over a total turnover of Rs. 5 crore per year and people who have opted out of the QRMP scheme have to file two monthly returns and one annual return. QRMP scheme is a scheme that allows taxpayers to file GSTR-3B every quarter to pay taxes quickly. There are statements and returns under the Composition Levy to be filed other than GST returns in exceptional cases. Those who cannot opt for the composition levy are:
- any supply of properties that are not liable to be taxed under this Act
- inter-state external supplies of goods
- materials through electronic commerce operatives who are required to collect tax under Section 52.
- a manufacturer of notified goods
- a casual dealer
- a Non-Resident Foreign Taxpayer
- a person registered as Input Service Distributor (ISD)
- a person registered as TDS Deductor/Tax Collector.
Types of GST returns
There are 22 different types of GST returns under the GST laws, of which 11 of them are active, 3 are suspended, and 8 are view-only. Not all types of returns have to be applied by a single taxpayer. It depends on which category they fall under. Below are 11 sorts of returns discussed:
GSTR-2 and GSTR-3 are currently suspended. GSTR-4 Replaced by GSTR-9A as of the year FY 2019-20 onwards. Amendments are to be issued by CBIC in this year’s budget for the next financial year. As for GSTR-3B, there are two dates, the 22nd of the next month for taxpayers of category X states and UTs and the 24th of the next month for category Y states and UTs. TDS refund and TDS liable payment can be claimed as well in GSTR 7. The previous quarter’s return must be paid, to pay the next return without fail.
How to File GST Return Online in 10 Steps?
The process of GST filing includes:
- Log in to the official GST portal for online GST registration.
- Click on ‘Services’ > ‘Return Dashboard.’
- Select the return period and click ‘Prepare Online.’
- Enter transaction details, including GST amount, invoices and e-invoice data.
- Verify and save the information.
- Check for any GST late fee applicable.
- Submit the return and check for confirmation.
- Use the ‘Payment of Tax’ option to settle liabilities.
- Use the GST calculator to ensure correct tax payment.
- Choose ‘File Form with DSC’ or ‘File Form with EVC’ to complete the submission.
Taxpayers can download GST returns after filing and verify details using the GST filing software.
Documents Required for GST Return Filing
To file returns, businesses must provide the following GST registration documents:
- GST taxpayer details (including GSTIN number)
- GST invoice details categorised into B2B and B2C
- Export invoices with port and tax amount details
- HSN summary with tax rates
- Credit and debit notes summary
- Details of any amendments made
Businesses must ensure they enter GSTIN details accurately to avoid errors while filing through the GST return application.
Penalties for Late GST Filing
- GST late fee: Rs. 100 per day (CGST + SGST = Rs. 200 per day), capped at Rs. 5,000.
- Interest charges: 18% per annum on unpaid tax.
- Revised maximum late fee for small businesses:
- No tax liability: Rs. 250
- Turnover up to Rs. 1.5 crore: Rs. 1,000
- Turnover between Rs. 1.5-5 crore: Rs. 2,500
Businesses can search tax liabilities through the GST login portal and make GST tax payments to avoid penalties.
How to Calculate GST?
To know your GST, use the formula:
GST Amount = (Original Price x GST Rate) x 100
For the final price after GST:
Final Price = Original Price + GST Amount
For example, if an item costs Rs. 1,000 and the GST rate is 18%, the GST amount is Rs. 180, making the final price Rs. 1,180.
Does GST Have to be Paid Monthly?
Regular taxpayers must pay GST tax monthly, even if they opt for quarterly returns. However, businesses under the GST composition scheme can file quarterly with simplified compliance.
For easy calculations, use the GST calculator available on the official GST portal.
Benefits of Filing GST Return
- Avoid Penalties: Timely e filing GST return prevents late fees and penalties.
- Easier Loans: Regular filing boosts credibility for securing a GST loan.
- Smooth Compliance: Timely GST payment simplifies tax obligations.
- Better Tracking: Filing e invoices and returns aids in financial monitoring.
- Claim ITC: Filing ensures businesses can claim an input tax credit under goods and services tax.
- Quick Registration: Proper filing helps get your GST number without delays.
- Legal Security: Compliance reduces risks of audits and legal issues.
Conclusion
Doing GST tax filing on time ensures compliance, avoids penalties and helps businesses claim input tax credits. Understanding who should file and the due dates simplify tax obligations and improve financial management. For businesses needing quick funds to manage GST payments or their business, Lendingkart offers hassle-free loans.
Frequently Asked Questions
What is the interest to be paid in GST returns?
Interest is Starting from 1.25% per month. It is usually calculated by the taxpayer based on the outstanding tax that is to be paid. Net tax liability is also taken into account at the time of payment.
Can I opt for Composition Levy if I have dealt in services?
Yes. From FY 2019-20, the composition levy can opt even if the services have been dealt with already.
Is return filing compulsory?
Yes, GST return filing is mandatory. Even if there is no transaction, the Nil return must be filed. Clearing the previous returns is obligatory as well. If late filing is done, then it can lead to heavy penalties according to the respective government acts.
What is the late fee to be paid if the filed returns aren’t paid?
It is prescribed as Rs. 100 under CGST and SGST separately, hence Rs. 200 per day. The maximum levy is Rs. 5000. But for GSTR-1 and GSTR-3B, the total late fee is Rs. 50 per day and nil return filing’s late fee is Rs. 20 /day.
How do I apply for a composition scheme?
The official government GST website is available for the service. Log in to the Taxpayers’ Interface Go to Services, then Registration, then Application to opt for Composition Levy. Fill out the form as per the form specification rules and submit.
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