GST Return Filing
In this constantly evolving world, complexities related to tax regulation have become more and more common for Indian businesses. Therefore, the introduction of Goods and Services Tax (GST) is a very critical step towards streamlining the indirect tax system.
But now after the implementation of GST within India, filing GST returns has become a big hurdle for all the businesses. the main objective of the procedure to file GST return in India is to ensure transparency, accountability and smooth functioning of the tax system.
Free Consultation by Expert
In India, it is very important for all the businesses to file GST return on time based on their turnover and it usually has to be filed monthly or quarterly. This return includes details like outer supplies (sales), internal supplies (purchases), all input tax credit claims claimed and the amount of GST filed.
This article written by Blacktie Legal Services India LLP provides you a comprehensive guide on GST return filing which gives you detailed information about all the GST return forms, documents, procedure and more.
Understanding GST Return Filing
GST return filing is the process of submitting details of the sales, purchases, and taxes paid by a registered business to the government. It is a mandatory requirement for all businesses that are registered under the GST system.
A GST return contains various details such as a summary of sales and purchases details, tax credits claimed, tax liability, and so on. The frequency of GST return filing varies depending on the size and type of business. Filing GST returns accurately and timely is crucial for avoiding penalties and maintaining compliance with tax regulations.
Under which Act GST return is filed in India ?
The registration for GST in India is formed under the Central Goods and Services Tax Act (CGST), 2017. The CGST Act is one of the three key laws that form the GST regime in India, the other two being the State Goods and Services Tax Act (SGST) the Integrated Goods and Services Tax Act (IGST).
The CGST Act was introduced to unify the taxation system by incorporating various indirect taxes such as excise duty, value-added tax (VAT), and service tax into one comprehensive tax – GST.
What is the criteria for filing GST return ?
The criteria for filing GST return depends on 2 factors, first is the turnover of your business and second is your registration type. Here’s the breakdown:
Turnover Threshold: Taxpayers whose aggregate turnover in the previous financial years crosses Rs. 40 lakhs in case of supply of goods and Rs. 20 lakhs in case of supply of services are legally bound to register under GST. This in turn means that they have to file GST returns.
Registration Type: Please remember that even if your turnover does not meet the above limits, you may need to register for GST if:
- Extend sales (across the States).
- Supply certain specified goods or services on the simulate of GST.
- Are an e-commerce operator who supplies through an electronic marketplace.
Frequency of Filing
The frequency of GST return filing depends on your business’s turnover if it qualifies for mandatory registration:
Turnover above Rs. 5 crore: They have to File returns on monthly basis. This comprises GSTR-1 related to sale, GSTR-3B which is a consolidated return, and an annual return, GSTR-9.
Turnover up to Rs. 5 crore: These businesses can enroll this QRMP scheme on the basis of which they can opt for the quarterly returns instead of the monthly returns. Nevertheless, they are required to file a yearly return (GSTR-9).
How many returns are there under GST ?
The GST return filing in India is currently linked with thirteen forms. However, let it be stressed that not all business entities are required to submit all these returns. The specific returns which he has to file depend various factors which includes the type of GST registration and the nature of the business activities carried out by him.
Here’s the breakdown of GST Return Forms
GSTR-1: This return highlights information regarding the outward supplies also known as the sales by the taxpayer. It is submitted on a monthly basis by the organizations that have a turnover of ₹ 1 or more in a year. 5 crore and quarterly for the entities with the turnover up to ₹ 1.5 Crore.
GSTR-2: GSTR-2 is a return format which would display the details of inward supplies, acquired by the taxpayer. It is created automatically on the basis of information culled from the GSTR-1 returns filed by the supplier. This return the GSTR-3B, the taxpayer can either agree with, disagree with or make changes to the details shown in the GSTR-2.
GSTR-3: it is a consolidated monthly return that includes details of the outward supplies which are sales made by then business, inward supplies obtained by the business, amount of tax payable by the business and amount of input tax credit availed by the business. It is the last return to be filed after GSTR-1 and GSTR-2 and incorporates all the activities done under GST.
GSTR-3B: A return that is to be furnished on a monthly basis as a summary return, giving details of supplies made, received, paid and payable along with the tax paid and payable.
GSTR-4: Fiscal year this return is filed by the taxpayers under composition scheme where such registrants can pay taxes at a specific percentage of their turnover.
GSTR-5: lodged by the Non-resident taxable persons, it includes details of all outward supplies, inward supplies, and any other liability.
GSTR-5A: It is return form that is used by the non-resident taxable person to furnish details of their outward supplies, as well as details of tax paid. It is a basic return form for the Foreign Diplomatic missions Embassies etc and for all notifiable persons.
GSTR-6: Formed by Input Service Distributors (ISD), this return sketches information over input tax credit received and passed on.
GSTR-7: Furnished by the persons, who are supposed to deduct TDS as per the GST regime, it offers information of TDS made and TDS claimed along with liability.
GSTR-8: It is filed by the e-commerce operators that includes the particulars of the supplies made through its platform along with the TCS collected.
GSTR-9: Lodge by every assesses other than an associating establishment, specifying the details of all returns filed for the financial year in the manner of monthly or quarterly returns.
GSTR-9A: A final quarterly return filing for the Composition Scheme taxpayers along with an annual return.
GSTR-9C: is an annual reconciliation form for all the taxpayers for the annual turnover of ₹2 crore or more. It involves matching GSTR-9 (annual return) with the Balance Sheet and Profit & Loss Account and getting it certified by a Chartered Accountant.
GSTR-10: Prepared by taxpayers who have canceled or surrendered their GST registration, this return is also called Final Return.
GSTR-11: This form is filed by individuals with Unique Identification Number (UIN) to claim rights on the holders.
Required Documents of GST Return Filing
We have mentioned below most of the documents required for tax return filing:
- – GSTIN (Goods and Services Tax Identification Number)
- – Invoices for all sales and purchases
- – Bill of Entries (for imports)
- – Delivery Challans (for goods transportation)
- – Credit Notes and Debit Notes
- – Purchase Registers and Sales Registers
- – Ledger accounts for inputs, outputs, and capital goods
- – GST payment challans (if tax is paid)
- – TDS (Tax Deducted at Source) certificates (if applicable)
- – E-way bills (if applicable)
NOTE: One thing must be kept in mind that all the necessary documents required to file GST return depend on your business registration.
Procedure for Filing GST Return
The process of filing GST return is quite lengthy and time consuming, hence its steps are mentioned below in a great manner:
Step 1-Registration: First of all, make sure that your business is registered with GST and you have a valid GSTIN (Goods and Services Tax Identification Number).
Step 2-Gather Required Information: Collect all the essential information and documents related to your business such as debit and credit notes, details of items.
Step 3-Login to GST Portal: Go to India GST portal and log in with the help of your credentials.
Step 4-Select the Return: Fill the GST return form as per your business turnover and registration.
Step 5-Enter Details: Fill all the details asked in the form carefully.
Step 6-Upload Documents: File all the documents required as per the form such as invoices and relevant records.
Step 7-Review and Verify: Carefully review all the details you have filled out and verify them for accuracy.
Step 8-Submit and File: Submit the return and file it electronically. You may need to use a digital signature certificate (DSC) to authenticate your filing.
Step 9-Payment of Tax: If you have any kind of tax liability, you can also make payment through some of the available ways.
Step 10-Confirmation: Once the GST return is filed correctly and all verification are done, you will receive an acknowledgment in the form of ARN (Acknowledgment Reference Number).
If you need expert guidance on GST return filing then feel free to contact Blacktie Legal Services India LLP. Our team of legal lawyers is at the forefront to help you sort out all the complexities related to GST to ensure that your business remains within the rules.
What we can offer ?
Blacktie Legal Services India LLP can offer a variety of services to help with GST return filing. Here are some of the common ones:
- Preparation and Filing of GST Returns: This is the core service. The blacktie will collect your sales and purchase invoices, calculate the tax liability, and electronically file the required GST returns (like GSTR-1, GSTR-3B, etc.) on the government portal.
- Reconciliation of Accounts: We can help reconcile your accounts with the GST return data to ensure accuracy and avoid discrepancies.
- Tax Computation and Payment: Blacktie will calculate the GST amount payable based on your returns and assist you in making timely payments to the government.
- GST Compliance Advice: The Blacktie Legal Services India LLP can provide guidance on various GST rules and regulations, including applicability, exemptions, and claiming input tax credit. They can also help you stay updated on any changes in GST laws.
- Record Keeping and Data Management: Blacktie might offer assistance with organizing and maintaining your sales and purchase records for GST purposes.
- Dealing with Notices and Inquiries: In case you receive any notices or inquiries from the GST department, the company can help you understand them and respond appropriately.