Written by : Rajiv Singh

A Chartered Accountant in UK with 15+ years of experience in FinTech Consulting, Accounting & International Taxation. I enjoy being a Social, Foodie and Father of two young children, reachable at linktr.ee/RajivSingh.

GST Return Filing Process in India

Rajiv Singh
Rajiv Singh, CA, FAIA

Sep 30, 2021 01:55

The Goods and Services Tax is India's most significant tax reform since independence. The new tax implementation seeks to replace maximum national and state taxes, bringing the country closer to a shared market, streamlining the tax system, and improving compliance. GST is an indirect tax payable on the supply of goods and services that replaces all previous indirect taxes such as state VAT, central sales tax, purchase tax, and so on. So, whether you are a dealer, a manufacturer, or a service provider, you must register with GST to file returns. If you are unsure how to file GST returns or how many GST returns you must file, we can help.

Let us take a look at what is a GST return, the major types of GST returns filed in India, and ultimately the process for GST return filing.

GST Return

This return is a form of document that contains information of every income/sales or expense/purchase that a taxpayer (every GSTIN) is expected to file with the GST administration authorities. Tax authorities use this to compute net taxable income.

Elements to include to for major GST return filing requirements -

  • Sales
  • Purchases
  • GST output ( on sales )
  • Input tax credit (GST paid on purchases)

Team Gotaxfile possess commendable expertise in the domain of Indirect tax compliances such as GST Return Filing. This article will walk you through GST Return Filing under the applicable GST regulations of the GST Act, 2017.

GST return filing

Depending on the industry, registered firms must file returns monthly, quarterly, and yearly as per the required regulations. It is accomplished through the use of the Indian government's GST portal. They must give information on the sales and acquisitions of products and services, as well as the tax collected and paid.

Implementing a comprehensive indirect tax system in India, such as GST, provides increased assurance that taxpayer compliances like registration and return submission are clear and simple. Usually, the return filing requirements fall monthly. Small taxpayers who have chosen a composition plan must file quarterly returns. You need to follow the system of online return filing in all cases.

Who is required to file GST returns?

Every business or individual must file their GST return per the GST requirements. One must complete the GST return filing within a certain time frame. Individuals who do not file will be penalized. Entities with GST registration but no activity must also file a GST Nil return to comply with GST regulations. Special situations, such as composition dealers, must file separate returns, with a maximum of five GSTR filings per year.

Types of GST returns.

GSTR-1 - The registered taxable supplier must provide information about outbound supplies of taxable goods and services that are impacted.

GSTR-2 - The registered taxable receiver must provide details of the inbound supply of taxable goods and services to collect the input tax credit.

GSTR-3B - The registered taxable person must file a monthly return based on the finalization of Summarized information of external and inward supply, as well as the payment of tax.

GSTR-4 (CMP 08) - The composition provider must complete a quarterly return to deposit the payment.

GSTR-5 - It is a return for non-resident foreign taxpayers who are liable for GST payment.

GSTR-5A - The return is applicable for taxpayers providing OIDAR services.

GSTR-6 - This return is applicable for input service distributors.

GSTR-7 - Return for authorities deducting taxes at source as per GST Act, 2017.

GSTR-8 - The e-commerce operator or tax collector must provide information about the supply made and the amount of tax collected.

GSTR-9 - It is the annual return for any regular GST-registered taxpayer.

GSTR-9A - Composition merchants are required to file an annual return.

GSTR-9C - Return for GST registered entities with turnover more than Rs. 2 crores (Regular Taxpayers) in a Fiscal Year.

GSTR-10 - The return is for those GST taxpayers whose registration has been revoked or surrendered.

GSTR-11 - The individual with the UIN who is requesting the refund must provide information on inward supply with this return.

What is the procedure for GST return filing?

The GST is ultimately leviable on the final consumers. However, the commercial entities or suppliers that provide the products and services are responsible for submitting the GST to the appropriate authorities. GST return filing refers to the procedure of remitting taxes to the government.

The GST process makes GST return filing simple and time-saving. Filing tax returns has been automated under the new GST regime. GST returns may be submitted online utilizing the Goods and Service Tax Network (GSTN) software or applications, which will auto-populate the information on each GSTR form.

The process for submitting an online GST return filing is as follows:

  1. Navigate to the official GST online portal (www.gst.gov.in).
  2. If you are not previously registered, you shall first have to get GSTIN. It is a 15-digit GST identification number based on your state code and PAN number. If you stand as a registered entity, you may proceed by providing your identity number immediately.
  3. Upload invoices to the GST site or software. Each invoice will be assigned a reference number.
  4. After submitting invoices, you have to file the outward return, inward return, and cumulative monthly return online. Avoid mistakes in case, if any, you have the chance to fix them and resubmit the returns.
  5. File the outbound supply reports in GSTR-1 form via the information part of the GST Common Portal (GSTN) on or before 10th day of the following month,
  6. Once done with that, the recipient must check, authenticate, and change the information of external supplies and file credit or debit note details.
  7. In the GSTR-2 form, the recipient must include details about the inbound supply of taxable goods and services.
  8. The supplier has the option of accepting or rejecting the recipient's amendments to the specifics of inbound supply in GSTR-1A.

Penalty for late submission of GST Returns

The delayed GST return filing process results in a penalty for your business. According to the GST Law, the late charge for both the Central Goods and Services Tax (CGST) along with the State Goods and Services Tax (SGST) is Rs.100 per day (SGST). As a result, the total fine each day would be Rs.200. However, this rate is subject to change, which you shall get notified via alerts. The period gets determined from the day after the filing deadline until the actual payment is completed.

A maximum fine of Rs. 5,000 gets levied. If the return submission gets delayed in any way, no late fee for Integrated GST or IGST is levied. In addition to the delay fees, the GST taxpayer will be required to pay interest at a rate of 18 % yearly. This interest must get computed by the taxpayer based on the amount of tax payable.

Address your GST Return Filing concerns with Gotaxfile!

Individuals and corporations in India can benefit from GoTaxfile's taxation and financial solutions. We provide superior GST Return Filing services and have a skilled in-house team. The professional aided GST filing options and pricing at GoTaxfile are reasonable and customized for all types of enterprises. Service that is second to none at a fair price choose the finest GST Service for you or your business. If you want a service, please get in touch with our Support team to receive a personalized quotation.

Rajiv Singh
Rajiv Singh, CA, FAIA

Sep 30, 2021 01:55

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