Goods and Services Tax (GST) is a unified indirect tax regime implemented in India on July 1, 2017. It replaced multiple indirect taxes, such as excise duty, service tax, and value-added tax (VAT). GST transformed the Indian tax system by streamlining tax compliance and facilitating a unified market. In this article, we will provide a comprehensive guide on GST returns filing in India, covering the basics, filing procedures, due dates, and key aspects to keep in mind.

GST Returns

GST returns are regular statements that taxpayers are required to file with the tax authorities to report their business activities, including sales, purchases, and tax liabilities. The returns provide the government with necessary information for tax assessment and calculation of the tax payable or refundable. It is crucial for businesses to comply with the GST return filing requirements to avoid penalties and maintain good tax compliance.

Types of GST Returns

Under the GST regime, different types of GST returns are applicable based on the nature of the business and the turnover. Some of the commonly filed GST returns include:

1. GSTR-1: It is a monthly or quarterly return that captures the details of outward supplies (sales) made by registered taxpayers.

1. GSTR-2A and GSTR-2B: These are auto-generated returns that provide details of inward supplies (purchases) based on information reported by the suppliers. These returns assist taxpayers in reconciling their purchases and claiming accurate input tax credits (ITC).

1. GSTR-3B: It is a monthly return filed by regular taxpayers to summarize the tax liabilities and claim ITC. GSTR-3B provides a summary of outward and inward supplies, tax calculations, and payment of taxes.

1. GSTR-4: This is a quarterly return filed by taxpayers registered under the Composition Scheme. It includes details of sales, purchases, and tax liabilities for the quarter.

1. GSTR-5: This return is filed by non-resident foreign taxpayers conducting business in India. It captures details of outward supplies, imports, and tax payments.

1. GSTR-6: It is a monthly return filed by Input Service Distributors (ISDs) to declare the details of input tax credit distributed to the recipients.

1. GSTR-7: This return is filed by taxpayers who are required to deduct Tax Deducted at Source (TDS). It includes details of TDS deducted, paid, and the TDS certificate issued.

1. GSTR-8: This return is filed by e-commerce operators to provide details of supplies made through their platforms and collect tax at source (TCS).

1. GSTR-9 and GSTR-9C: These are annual returns that provide a consolidated summary of all transactions undertaken during the financial year, along with audited financial statements (if applicable). GSTR-9C is filed by taxpayers whose annual turnover exceeds a specified limit.
   

GST Return Filing Procedure

The GST return filing process in India involves the following steps:

1. Obtain a GST registration: Before filing GST returns, businesses must register under GST by applying for a Goods and Services Tax Identification Number (GSTIN).

1. Maintain accurate records: Businesses should maintain proper books of accounts, invoices, and other supporting documents to ensure accurate reporting while filing GST returns.

1. Collect necessary details: Ensure you have all the required information for the specific GST return being filed, such as sales and purchase invoices, tax amounts, and input tax credit details.

1. Access the GST portal: Visit the official GST portal (www.gst.gov.in) and log in using your registered credentials.

1. Choose the appropriate return form: Select the relevant GST return form based on the type of return being filed (GSTR-1, GSTR-3B, etc.).

1. Fill in the details: Enter the requisite information, including sales, purchases, tax amounts, and other relevant fields as per the guidelines provided.

1. Validate and submit: Once you have entered all the details, validate the return to ensure accuracy. Correct any errors or discrepancies before submitting the return.

1. Payment of taxes: After submitting the return, if there is any tax liability, make the payment online through the GST portal. Ensure compliance with the specified due dates.

1. File Nil returns, if applicable: Even if there are no transactions during a particular period, businesses are required to file nil returns to maintain compliance.
   

 

GST returns filing is an essential part of the Goods and Services Tax regime in India. By understanding the various types of returns, following the correct filing procedures, and staying updated with the latest regulations, businesses can ensure timely and accurate compliance. Maintaining proper records, reconciling transactions, and seeking professional help when necessary will contribute to a hassle-free GST return filing experience, enabling businesses to focus on their core operations while fulfilling their tax obligations.

 

 

Created & Posted by Pooja

Income Tax Expert at TAXAJ

 

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