GST Return Filing

Service Details

GST Return Filing Overview

GST (Goods and Services Tax) return filing is a process mandated by the Government of India for registered businesses to provide details of their sales, purchases, tax collected on sales (output tax), and tax paid on purchases (input tax). It involves the submission of various forms containing information related to business transactions to the tax authorities.

Benefits of GST Return Filing

One of the significant benefits of GST return filing is the ability to claim Input Tax Credit (ITC) on the GST paid on purchases. Businesses can offset the GST paid on inputs against the GST collected on sales, resulting in reduced tax liability and lower cost of goods or services.

Filing GST returns is a statutory requirement under the GST regime. Compliance with GST return filing obligations helps businesses avoid penalties, late fees, and legal consequences imposed by the tax authorities for non-compliance or late filing of returns.

Timely filing of GST returns ensures continuity of business operations by maintaining good standing with the tax authorities. It enables businesses to claim ITC, avoid disruptions in input credit flow, and maintain smooth supply chains and vendor relationships.

Businesses opting for the Composition Scheme under GST can enjoy simplified compliance requirements and lower tax rates. However, to avail of the benefits of the Composition Scheme, businesses need to file quarterly.

GST return filing promotes transparency in business transactions and ensures compliance with GST laws. By accurately reporting their sales, purchases, and tax liabilities, businesses contribute to a transparent and efficient tax system, which helps prevent tax evasion and promotes tax compliance

GST return filing aims to simplify tax compliance procedures and reduce the compliance burden on businesses.

Documents Required for GST Return Filing

GST return filing aims to simplify tax compliance procedures and reduce the compliance burden on businesses.

Invoices issued for all outward supplies of goods or services during the tax period need to be maintained.

Invoices received for all inward supplies of goods or services, including purchases from registered suppliers, imports, and purchases from unregistered persons.

Any credit notes issued for the reduction in value or quantity of supplies made, as well as debit notes received for the increase in value, should be maintained.

Invoices and shipping documents related to export of goods or services, including export invoices, shipping bills, and export declarations, should be maintained for reporting zero-rated supplies in GST returns.

A register containing details of eligible input tax credit (ITC) availed on purchases of goods or services, including invoices, credit notes, and debit notes, should be maintained

Receipts and payment vouchers for all business transactions, including receipts from customers, payments to suppliers, expenses, and other financial transactions, should be maintained.

Bank statements for all bank accounts maintained by the business should be retained as supporting documents for transactions reported in GST returns.

Copies of tax payment challans for GST paid on output supplies, reverse charge mechanism, and any other tax payments made to the government should be retained as proof of tax payment.

E-Way Bills generated for the movement of goods, where applicable, should be maintained as supporting documents for interstate and intrastate supplies.

Various registers and ledgers, such as sales register, purchase register, stock register, accounts receivable ledger, accounts payable ledger, and general ledger, should be maintained to track business transactions and reconcile with GST returns.

A copy of the GST registration certificate issued by the tax authorities should be retained for reference and verification purposes.

Any other relevant documents, correspondence, agreements, contracts, or records related to business transactions and GST compliance should be retained for audit, verification, and reference purposes.

Steps for GST Return Filing

Collect all relevant information and documents required for GST return filing, including sales invoices, purchase invoices, credit notes, debit notes, e-way bills, and other financial records.

Log in to the GST portal (https://www.gst.gov.in/) using your username and password. Ensure that you have an active GSTIN (Goods and Services Tax Identification Number) and valid credentials to access the portal.

Choose the appropriate GST return form based on your registration type, turnover, and filing frequency. Common GST return forms include GSTR-1 (for outward supplies), GSTR-3B (monthly summary return), GSTR-9 (annual return), and GSTR-4 (for composition dealers).

Fill out the selected GST return form with the necessary details such as outward supplies, inward supplies, tax payable, input tax credit (ITC) claimed, and other relevant information.

Validate the data entered in the GST return form to ensure accuracy and completeness. Verify that all mandatory fields are filled correctly and cross-check the information against your business records to avoid errors or discrepancies

Calculate your total tax liability for the tax period based on the transactions reported in the GST return form.

Reconcile the input tax credit (ITC) claimed on purchases with the eligible ITC available as per GST rules.

Once the GST return form is filled out accurately and verified, file the return by clicking on the ‘File Return’ button on the GST portal.

After successful submission of the GST return, a unique Acknowledgement Reference Number (ARN) is generated by the GST portal

If there is any tax liability payable after filing the return, make the payment through the GST portal using the available payment options such as online banking, credit/debit cards, or NEFT/RTGS.

After filing the GST return and making the tax payment (if applicable), verify the return using the electronic verification code (EVC) or digital signature certificate (DSC) to complete the filing process.

Upon successful verification, a GST return filing acknowledgement is generated, confirming the submission of the return to the tax authorities

Monitor the status of your filed GST returns on the GST portal using the ‘Track Return Status’ option. Ensure that the return is processed by the tax authorities and any discrepancies or notices, if received, are addressed promptly.

FAQs

Common Questions About Our Consulting Services

Who needs to file GST returns?

All individuals, businesses, and entities registered under the Goods and Services Tax (GST) regime need to file GST returns. This includes regular taxpayers, composition dealers, Input Service Distributors (ISDs), and non-resident taxpayers.

What are the different types of GST returns?

The GST regime in India has several types of GST returns catering to different categories of taxpayers and transactions. Some of the commonly filed GST returns include GSTR-1 (for outward supplies), GSTR-3B (monthly summary return), GSTR-9 (annual return), and GSTR-4 (for composition dealers).

What is the frequency of GST return filing?

The frequency of GST return filing varies based on the type of registration and turnover of the taxpayer. Regular taxpayers typically file monthly returns (GSTR-1 and GSTR-3B), while composition dealers may file quarterly returns (GSTR-4). Additionally, an annual return (GSTR-9) is filed by all registered taxpayers.

What is the penalty for late filing of GST returns?

The penalty for late filing of GST returns is Rs.50 per day (Rs.20 per day for nil return filers) for each act of non-compliance, subject to a maximum of Rs.5,000. Additionally, interest may be charged on any tax payable after the due date.

How can I track the status of my filed GST returns?

Taxpayers can track the status of their filed GST returns on the GST portal using the 'Track Return Status' option. This allows taxpayers to monitor the processing status of their returns and verify compliance with GST laws.

Business Startup

Certifications

Registrations

Tax & Compliance

Licenses

NGO Registration