Table of Contents
Introduction
Goods and Services Tax (GST) is a cornerstone of tax compliance for businesses operating within India’s GST regime. It involves submitting various returns to the Goods and Services Tax Network (GSTN), enabling businesses to report GST transactions, assess tax liabilities, and claim input tax credits. This guide aims to elucidate the significance of GST filing, explain the types of GST returns, and provide essential insights to assist businesses in fulfilling their GST compliance obligations effectively.
Understanding GST Filing:
GST filing involves the submission of GST returns via the GSTN portal, allowing businesses to report their sales, purchases, output tax liabilities, input tax credits, and other relevant details to the tax authorities. This critical process ensures regulatory compliance and facilitates the smooth functioning of the GST system.
Types of GST Returns:
Businesses are required to file various types of GST returns based on factors such as registration type, turnover, and specific requirements. Key GST returns include:
- GSTR-1: Monthly or quarterly return for reporting outward supplies or sales.
- GSTR-3B: Monthly summary return providing an overview of tax liabilities, input tax credits, and tax payment details.
- GSTR-9: Annual return consolidating all outward and inward supplies made during the financial year.
- GSTR-4: Quarterly return for composition taxpayers summarizing details of outward supplies and tax payable.
- GSTR-9C: Reconciliation statement and audit report for taxpayers with an annual turnover exceeding ₹2 crores.
Process of GST Filing:
- Login to the GST Portal
- Visit www.gst.gov.in
- Enter GSTIN, username, and password
- Complete CAPTCHA and click ‘Login’
- Select the Relevant GST Return
- Navigate to ‘Returns Dashboard’
- Choose the financial year and return period
- Select the appropriate return form (GSTR-1, GSTR-3B, etc.)
- Enter Sales and Purchase Data
- In GSTR-1, report outward supplies (sales)
- In GSTR-3B, enter total sales, input tax credit (ITC), and tax payable
- For composition taxpayers, file GSTR-4 with a consolidated turnover
- Validate and Preview Return
- Check for discrepancies in tax calculation
- Ensure all invoices are reported correctly
- Click ‘Preview’ to verify the details
- Pay GST Dues (If Applicable)
- Generate a challan for tax payment
- Use net banking, UPI, NEFT, or debit/credit card
- Offset liabilities using ITC (if available)
- Submit and File Return
- Click ‘Submit’ to freeze the details
- Use Digital Signature (DSC) or EVC (OTP-based verification) to file the return
- Download the acknowledgment receipt for records
Late Fees and Penalties for GST Non-Compliance
- Late Fees: ₹50 per day (₹25 CGST + ₹25 SGST) for normal taxpayers, ₹20 per day for NIL return filers
- Interest: 18% per annum on late tax payments
- Suspension of GST Registration for prolonged non-filing
Benefits of Timely GST Filing
- Avoid penalties and interest on late payments
- Claim ITC without delays to reduce tax liability
- Ensure compliance with tax authorities
- Maintain a good business reputation for financial dealings
- Seamless reconciliation of accounts with GST records
Conclusion
Regular and accurate GST return filing is essential for businesses to stay compliant and benefit from input tax credit. Using automated accounting tools and staying updated on deadlines can simplify the filing process. Whether a small business or a large enterprise, ensuring timely GST filing helps in smooth financial operations and tax efficiency.
Disclaimer: The views expressed here are of the author and do not reflect those of Dhanvantree. Mutual funds are subject to market risks, please read the scheme documents carefully before investing.