As per the GST law, every individual/Company registered under the GST Act has to furnish the details of sales, purchases, and the tax paid by filing GST returns with the administrative authorities.
As a business person/ firm, one of your first priorities will be to do is GST return filing. Hence, knowing the ropes can help you make the process smoother and simpler. While filing a GST return, you are supposed to provide all the particulars related to your business activities, like the tax liability declarations, tax payments, and also any other related information as per instructions provided by the government.
Any person who applies for GST registration will also have to make a GST return filing. The GST return is basically a document that is needed as per the Indian tax authorities of law, to be filed. It will be used by the authorities of tax for the purpose of calculating the tax liability.
Business owners and dealers who are registered under GST must file two monthly GST returns and one annual GST return. The nature of the business also dictates the GST that is to be filed. GST returns are of various types and late filing of GST returns will result in a penalty of Rs.100 per day till the day the GST returns are filed. Once the filing is done, any tax liability must be promptly paid to the government.
GST Input Tax Credit Reconciliation
GST or Goods and Services Tax is an indirect tax that depends on the value-added at each stage of the supply chain of a particular service or goods until it reaches the customer or consumer.
With GST, tax is imposed at various stages, and to nullify the cascading effect, it is designed in a way that is meant to refund all parties that are involved in the various stages with the exception of the final consumer. This element that is employed to offset the tax liability is called an input tax credit.
In case the taxpayer fails to complete GST Return filing, file the returns within the time limits, then he/she will be asked to pay a penalty which is also known as the late fee. The late fee will be Rs.20 per day if it is NIL return or only purchases and Rs 50 will be levied if we fail to furnish the sales. Thus, it will come around Rs.25 under the CGST and again Rs.25 under the SGST. The total amount to be paid will be Rs.50 per day. The maximum penalty can be Rs.5000.The IGST does not levy any late fees.
Benefits of a GST Return Filling
The introduction of GST into the Indian tax system has done away with several other taxes like central excise duty, service tax, customs duty and state level value added tax. Thus a single GST has eliminated the cascading effect of tax on tax .
Before GST was introduced, VAT or value added tax was applicable for any business that had an annual turnover of 20 lakhs. Services that saw a turnover of less than 10 lakhs did not have to pay service taxes.
Earlier startups with an annual turnover of 5 lakh had to pay VAT which would be very difficult for a business during the initial stages. But as GST has replaced VAT, businesses can set off the service tax on their sales.
Startups are making a strong presence online offering their services and products through their websites. Under VAT, there were many types of VAT laws, and the supply of goods through online, that is, E-commerce was never a well-defined one. For instance, if you need to deliver goods to various states, then you will have to file the VAT declaration first. After that, you will need to provide registration details about the trucks which deliver the goods. In many instances, goods end up being seized by the authorities due to lack of proper documents. GST has now removed all such confusing processes.
The pre-GST period witnessed a disorganized tax filing system. Presently, all taxes are paid online and major hassles that were a part of tax filing have been eliminated in the process of introducing GST. This has resulted in industries becoming more accountable and tax filing laws are better regulated than before.
Online GST Return Filing Procedures – A detailed filing process
All registered taxpayers can follow the filing format and upload their annual return invoice on the GST portal. To do that, you will have to maintain electronically all the records of the invoice. We help you with filing process in the GST portal by setting up simplified versions of excel templates. It will aid you in maintaining the records with ease.
We collect all the information and documents needed to start preparing for your GST returns first. Vakilsearch will maintain the invoice records of registered taxpayers and by month end, you can easily file the GST returns using our exclusive team of experts. Once you do the online filing process in GST portal, from then on, our expert affiliate will remind you about the filing date so that you won’t forget the date and end up paying tax penalties.
- The first step before filing your GST will be to review the GST filing before submission. We, at StartupDart, give you an opportunity to do the same.
- The second step is your approval.
- After your approval, we will be filing your online returns
- Our GST experts will file the GSTR returns using a challan. The ARN number generated will be shared with you.
- Once the process is completed successfully, we will mail you an acknowledgement about the same to the registered email id provided by you.
Type of GST Return Forms
Details of all outward supplies of taxable goods and services to be filed by registered taxable supplier. The due date to file this form is 10th of the next month.
Details of all inward supplies of taxable goods and services to be filed by registered taxable recipient of the goods and services. The due date of filing this form is 15th of next month.
- This form will be filled automatically on the basis of outward supplies and inward supplies with the payment of tax furnished in GSTR-1 and 2. The form will be prepared by 20th of the next month.
- This form contain the details of outward supplies, tax payable and payment of tax. The due date of filing this form is 18th of the month succeeding quarter.
- This form contain the details of outward supplies, imports, input tax, tax paid and reaming stock. The form has to be filed by non-resident taxable person by 20th of the next month.
- This form contains the details of return for input service distributorand it is filed by input service distributor by 13th of the next month.
- This form contains the details of the tax deduction. Due date to file this form is 10th of the next month.
- This form contain the details of all supplies made through e-commerce operator and the amount of tax collected. The GSTR-8 form will be filed by e-commerce operator or tax collector by 10th of every month.
- Annual return filed by registered taxable person by 31st December of next financial year.
- Final return filed by taxable person whose registration has been surrendered or cancelled within three months of the date of cancellation or surrender whichever is later.
- Details of inward supplies to be furnished by a person who have Unique Identification Number (UIN) by 28th of the month following the month for which statement is filed.
- Details of taxable supply of the goods and services in the month of July and Aug 2017.Do note that you do not have to provide invoice level information in this form. Only total values for each field have to be provided.