In the case of goods, the turnover of your business surpasses ₹40 lakhs or, for services, it is ₹20 lakhs (with lower limits for special category states), then GST registration is obligatory.
All the persons and businesses who are above this threshold are required to register with Indian Tax Department to be compliant and lawfully operate. But before going for the GST registration, it is very important to understand the whole procedure, the necessary documents, and how to bypass the frequent errors that might cause the delay in approval.
What Is GST Return Filing?
GST filing is a necessary thing to do for a business owner to maintain taxpayer's income output tax (sales), and input tax (purchase). Tax collection happens by the administrative authorities for the welfare of the country. The government has taken this into practice to be aware of the informative data on the economy.
Who Needs to File For GST Return In India?
Every individual/business entity who has completed its Online GST registration is eligible to put forward the tax. Taxpayers are required to file various returns depending upon the type of registrations they have done. The GST return filing process is mandatory for taxpayers who have a valid GST registration.
What Is The Limit Of Tax-Free Income In India?
The limit has been set at 2,50,000 per annum. If this limit is exceeded in any financial year, you’ll have to pay taxes afterwards. A penalty will be charged if you fail to pay the proposed taxes. For special states, the limit may vary.
What Is The Penalty For Not Filing GST Return?
If for any reason, you cannot file the GST return, you’ll be charged late fees along with interest. The interest rate is 18% on the amount of outstanding tax. Furthermore, different late fees are there for each kind of return.
What Are The Types Of GST Returns?
There are 13 different types of GST returns. They are as follows:
GSTR-1: This is the sales return statement. It is mandatory to give the complete details of the sale of goods and services.
GSTR-2A: This is the summary of the purchase report. It is required for the ITC claim and tax payment.
GSTR-2B: This is the ITC’s report summary. It is also required for the ITC claim and tax payment. It gets auto-generated after the 13th of every month.
GSTR-3B: This is a summary of the sales and purchase statement. It also carries an ITC claim, an ITC set-off, tax payment, and late fees.
CMP-08: It is done on a quarterly basis. In this, you’ve got to give the sales summary and also tax payment.
GSTR-5A: It is a summary of an Online Information and Database Access or Retrieval Services Provider’s outward taxable supplies and tax paid.
GSTR-6: It is the summary of the input tax credit distributed and received by the input service distributor.
GSTR-7: This form must be filed to claim TDS (tax deducted at source) under GST. It is filed for the TDS details along with the TDS return if any.
GSTR-8: It is filed to collect tax at source. It is required to give details of supplies made through e-commerce and the TCS (tax collected at source).
GSTR-9: It is filed by the taxpayers for the annual return. It requires every detail of sales, purchases, income, expenses, and taxes.
GSTR-10: It’s the final return by a taxpayer whose registration has been cancelled. It needs to be filed within 3 months of the cancellation.
GSTR-11: It can be filed for a tax refund by every individual who has a Unique Identity Number (UIN).
One thing you should know is that all these GST returns do not get filed by taxpayers. Their category depends on the basis of their business and turnover in a financial year. GSTR-1 and GSTR-3B are filed by regular taxpayers on the normal scheme.
Likewise, the Quarterly Returns Monthly Payment (QRMP) is an optional method that allows taxpayers with an annual turnover of up to five crores to file the returns quarterly. But payments are made monthly if you’ve got a cash tax liability in the current month. Under the QRMP scheme, you have to only upload your B2B bill through IFF services.
How Do I File A GST Return Online?
If you’ve to pay the output tax (sales), go for GSTR-1. If you have to claim the input tax (purchase), go for GSTR-3B.
Step 1: Log in to the government portal at www.gst.gov.in using your user id and password.
Step 2: Click on the “Return Dashboard” and select the period of GST return filing and the financial year, then tap on the search button.
Step 3: You’ll be provided all the details along with the due date for filing your GST return online.
Step 4: On the drop-down menu, click on “Prepare Online” Fill up the invoices and the other required details by clicking on “Add details.” Also add a late fee, if applicable.
Step 5: Fill in the total amount, excluding GST, under the categorized GST rate and save it. You’ll receive the invoice details then.
Step 6: Get back, scroll down, and click on “Generate GSTR-1 summary“. Then submit and proceed to further processing.
Step 7: Tap on “File Return” and fill in the authorized signatory. Furthermore, click on ” File with DSC” or “File with EVC“.
Step 8: Fill in the OTP received, make the payment by choosing any e-payment mode, and select “Verify“. You’ll receive a success message upon the filing of the return with an acknowledgement number.
Note: Every return needs to be filed on the due date or else a penalty will be charged each day.
How To Check GST Return Status?
Keep checking the status of your GST return online to stay updated and acknowledged.
Step 1: Visit the government site, www.gst.gov.in.
Step 2: Enter the necessary information to gain access to your account.
Step 3: Tap on “Service,” then on “Returns.” After that, click on the given option of “Track Returns Status.”
Step 4: Select “Status of Return” and then click on the search button.
Step 5: You’ll further receive the status of your GST return filing online.
Why Should You Choose JustStart For GST Return Filing?
The JustStart advisor will keep you updated about the due dates so that we can save you from penalties imposed by the government. Of course, why choose better when you can have the best? So, make contact with JustStart.
GST return filing online is no longer a complicated form for taxpayers. But yet, it is not simplified for those who have never done it on their own. On-time GST return filing still feels tangled for so many taxpayers.
JustStart is here to help all of you deal with it. Once you connect to us, our expert will guide you through filing a GST return in full detail. Then our legal advisor service would reach out to you to collect the required documents for filing the proposed GST Return on time.
Frequently Asked Questions (FAQs)
1. Who is required to apply for GST in India?
All persons or businesses with a turnover of more than ₹40 lakhs for goods or ₹20 lakhs for services per year are required to register for GST. The limit is reduced by 50% for special category states.
2. What is the filing of GST return?
Filing of GST return is the act of presenting the company's sales, purchases, input tax credit, and output tax to the government. It is one of the main ways of keeping the business tax reporting process transparent.
3. Who has to submit GST returns?
Any taxpayer who has gone through the GST registration process must submit GST returns periodically according to their business type and registration category.
4. What is the income limit for tax tax-free threshold in India?
In India, the tax-free limit for the basic income is ₹2,50,000 annually. After this limit, the taxpayer is subject to the applicable slab tax rates on the income exceeding ₹2,50,000.
5. What are the consequences of not filing GST return in time?
The consequence of not filing GST return is that you will incur a late fee and an 18% per annum interest on the tax that is not paid until the payment is made.
6. What are the different types of GST returns?
There are 13 types of GST returns, which are GSTR-1, GSTR-3B, GSTR-9, GSTR-10, etc. The specifics depend on your business activity and its earnings.
7. Which GST returns are most commonly filed by regular taxpayers?
Regular taxpayers mostly file GSTR-1 (sales details) and GSTR-3B (summary return with tax payment) as their main filing.
8. What does QRMP stand for in relation to GST?
The QRMP scheme allows businesses to have a turnover of up to ₹5 crore to file returns every quarter and make monthly tax payments at the same time.
9. What is the consequence of late GST filing?
A penalty of ₹50 per day (₹25 for CGST and ₹25 for SGST) is imposed for late filing, while for nil returns the daily charge is ₹20 until the submission is made.
