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GST Return Filing

As per Good and Service Tax Act, entity/person having GST registration has to file GST Return in the prescribed form which includes details related to Purchases, Sales, Output GST (on Sales), Input Tax Credit (on Purchases).Filing of GST Return is mandatory irrespective of business activity or sales or profitability during the return filing period. For large scale businesses estimating turnover more than 1.5 Crore, three monthly GST returns and one annual return has to be filed. This amounts to 37 returns in a year.

GST RETURN FILING

 

Basics

 

As per Good and Service Tax Act, entity/person having GST registration has to file GST Return in the prescribed form which includes details related to Purchases, Sales, Output GST (on Sales), Input Tax Credit (on Purchases).

Filing of GST Return is mandatory irrespective of business activity or sales or profitability during the return filing period. For large scale businesses estimating turnover more than 1.5 Crore, three monthly GST returns and one annual return has to be filed. This amounts to 37 returns in a year. For Small businesses estimating turnover less than 1.5 Crore in financial year, Quarterly single GST Return filing can be done. This amounts to 5 returns in a year. Periodicity of GST Return depends on the basis of Turnover of the business and the Option Opted by the Assessee as specified by the GST Department from Time to Time.

There are different forms and due dates to submit GST Returns as specified by GST Department.

 

Consequences of Late filing of GST Return

 

It is advisable to file Good and Service Tax Return on or before due date and to pay GST on or before due date applicable otherwise interest, late fee applicable as follows :

Interest

 

Interest @ 18% per annum for GST paid after due date.

Interest @ 24% per annum for Excess Input Tax Credit Claimed or Excess Reduction of Output GST.

Interest has to be calculated from the next day on which GST was due.

 

Interest has to be paid at the time of Filing of GSTR-3B or GSTR-4 as the Case may be.

 

Late Fee

 

Late Fees for GSTR-1, GSTR-3B, GSTR-4, GSTR-5, GSTR-5A, GSTR-6  has been reduced to:

Rs.50 per day of delay for Normal Return.

Rs.20 per day of delay for Nil Return.

Maximum Late Fees limit is Rs.5,000 for each respective GST Return.

It is preferable to pay the applicable Late Fee at the time of Filing of GSTR-3B or GSTR-4 as the case may be.

 

Advantages

 

1. Can claim Input Tax Credit of GST paid on Purchases made for the business.

2. GST Returns are mandatory to Claim Refund due from GST Department. Otherwise you will have to forgo the Refund.

3. To avoid late fee and Interest for Non Compliance of GST.

4. Results in Good Market Standing as a Compliant entity.

Documents


Passport Photo

Passport photo of all parties.


PAN Card

PAN card of all parties.


Aadhar Card

Aadhar card of all parties.


Utility Bill

Utility bill of Electricity or Telephone.


Address Proof

Valid Address Proof of all the parties.


Licence

Valid Driving Licence of all the parties.


Terms and Conditions

Terms and Conditions between the parties.


Other Documents

Other documents will be intimated through e-mail.

FAQ

A return is a document containing details of income filed by a taxpayer with the tax administrative authorities. These details are used by tax authorities to calculate tax liability. Under GST, a registered dealer has to file GST returns.

Taxpayers registered under the GST whose turnover exceeds 2 crores rupees in a financial year file it on an annual basis. Taxpayer can get help by professionals to file returns.

GST registered businesses typically have to file three returns per month (GSTR-1, GSTR-2 and GSTR-3) in every state where they operate and get income from goods and services. An annual GST return is also required. This means a business will have to complete 37 returns per annum in each state where they are trading.

Every registered person paying GST is required to furnish an electronic return everymonth. A “Tax Return” is a document that provides details of the income of a registered taxpayer which is then filed to government to ascertain tax.

GST returns can be filed online using the software or apps provided by Goods and Service Tax Network (GSTN) which will auto-populate the details on each GSTR forms.

If a taxpayer has obtained multiple GST registrations, under the same PAN, whether in the same state or different states, he/she is required to file annual return for each registration separately, where the GSTIN was registered as a normal taxpayer for some time during the financial year or for the whole of the .

Filing GST return is mandatory, even if there is no transaction, you must file a Nil return. You cannot file a return if you do not file previous month/quarter's return. Hence, late filing of GST return will have a cascading effect leading to heavy fines and penalty.

As per Section 125 of GST Act, 2017, a penalty of up to 25,000 rupees applies to any offense of the GST law that lacks a specifically prescribed penalty. The GST tax regime contains a substantial increase in the maximum penalty levied, as compared to existing laws.