GST return filing is a crucial aspect of Goods and Services Tax (GST) compliance for registered businesses in India. It involves the regular submission of details regarding sales, purchases, and tax payments to the tax authorities.
Proper GST Return Filing is essential to maintain compliance, claim input tax credit credits, and avoid penalties. Businesses should stay updated with the GST return filing due dates and adhere to the prescribed procedures to ensure smooth GST compliance.
Here is an overview of the GST Return Filing process:
Types of GST Returns
|GSTR-1||Details of outward supplies of taxable goods and/or services affected||Monthly|
|GSTR-3B||Simple Return in which summary of outward supplies along with Input Tax Credit is declared and payment of tax is affected by the taxpayer||Monthly|
|GSTR-6||Return for an Input Service Distributor||Monthly|
|GSTR-7||Return for authorities deducting tax at source.||Monthly|
|GSTR-8||Details of supplies affected through e-commerce operator and the amount of tax collected||Monthly|
|GSTR-9||Annual Return for a Normal Taxpayer||Annually|
|ITC 04||The principal manufacturer will be allowed to take credit for tax paid on the purchase of goods sent on job work.||Quarterly|
Also Read: Belated ITR Filing: For Whom & How
Steps To File GST Return
Step 1 – Prepare And Reconcile The Necessary Data
Businesses need to maintain accurate records of all sales, and purchases, and input tax credits to ensure proper reconciliation before filing returns.
Step 2 – Access the GST portal
Log in to the GST portal using the credentials provided during GST registration.
Step 3 – Select the applicable return
Choose the relevant return (GSTR-1, GSTR-3B, etc.) and the applicable tax period for filing.
Step 4 – Enter the details
Provide the required information, such as outward supplies, inward supplies, and tax liabilities.
Step 5 – Validate and Submit
Verify the information entered and submit the return on the GST portal.
Step 6 – Payment Of Tax Liability
If there is any tax liability after adjusting the input tax credit, pay the tax amount using the available modes of payment on the GST portal.
Step 7 – File Nil returns
Even if there are no transactions during a particular period, businesses must file nil returns to remain compliant.
Late Fees and Penalties
Late filing or non-filing of GST Returns may attract penalties, late fees, and interest charges. It is crucial to file returns within the specified due dates to avoid any penalties.
GST Return Reconciliation and Amendments
After filing returns, businesses must reconcile their data with suppliers and rectify any discrepancies. Amendments to returns can be made in subsequent return filing periods.
Assistance from Professionals
Given the complexities involved in GST return filing, businesses should seek assistance from GST professionals or tax consultants to ensure accurate and timely filing and compliance with GST regulations.
In this blog, we learned about the types of GST returns and how to file them. We also discussed the consequences of filing late and making changes to returns. All businesses should register for GST to access financial and legal benefits. It’s recommended to consult our GST experts for any registration process questions.