GST Filing

As per the GST law, every entity registered under the GST Act has to furnish the details of sales, purchases and the tax paid by filing for GST returns with the administrative authorities. As a registered business under GST, one of your first priorities shall be file your GST returns timely. Hence, knowing the base of it can help you make the process smoother and simpler. While filing a GST return, it mandatory for you to provide all the particulars related to your business activities i.e Sales ,Purchases , tax liability declarations, tax payments and also any other related information as per instructions provided by the government.

The GST returns are filed electronically on the centralized GST portal. A facility has also been provided for the manual process of GST return filing tasks. This facility helps the business taxpayer in India to prepare the return offline and then upload it on GSTN through the facilitation center. So before filing your returns on the GST portal there are few other aspects that you need to definitely know before filing returns.

The GST return mainly includes purchases, output GST on the sales, input tax credits as per GST paid while making the purchases, and also includes the total sales. In order to file the GST return, the purchase invoices and GST compliant sales are needed.

GST Returns:

Any person who applies for GST registration will also have to file GST returns timely within the due dates specified. To understand, GST return is basically a type of document that is required to be filed on the portal that requires all data relating to particular period.

Who are eligible to file GST Returns?

Every business Entity registered under the Act has to mandatorily file two monthly returns along with one annual return and GST reconciliation. However, type of Return form to be filed depends on the nature of the business.

GST Registration:

Registration under any taxation system is necessary for identification of tax payers ensuring tax compliance in the economy. Under Indirect tax regime, without registration, as person can neither collect tax from his customers nor claim any credit of tax paid by him. Under GST, Registrations need to be taken State-wise , there are no centralized registrations under GST . Any business entity having its branches in multiple states will have to take separate state wise registrations for the branches in different states.

However, it is to be noted that Registration under GST is not tax specific which means that there is single registration for all taxes i.e. CGS,SGST/UTGST,IGST & Cesses. There are various threshold limits provided under the GST Law upto which no registration is mandate as per the Law. However, businesses can also opt for voluntary registration if they want to , irrespective of turnover threshold.

As per the GST Law, Every supplier shall be liable to be registered under this Act in the State or Union Territory, other than special category states, from where he makes taxable supply of goods or services or both, if his aggregate turnover in the financial year exceeds Rs 20 lakhs. However, it must be noted if any person who is engaged in exclusive supply of goods then such limit of 20 lakhs shall be replaced with limit of Rs 40 lakhs.

However, where such person makes taxable supplies of goods or services or both from any of the special category states, he shall be liable to be registered if his aggregate turnover in a financial year exceeds Rs 10 lakhs .

Apart from this, the Central Government has also provided list of persons who are not required to register under GST irrespective of turnover that includes as per section 23 :
1) Person exclusively making supply of non taxable goods or services or both.
2) Person exclusively making supply of wholly exempted goods or services or both.
3) Agriculturist to the extent of supply of produce out of cultivation of land.

Simplying it for you as an entity then it is to be noted that any business has to file monthly 2 returns that sums up to 24 returns and one Annual Return. However, in case of small businesses who have opted under Composition scheme (Where turnover is less than 1.5 crores) then in such a case an entity shall be required to file GST returns on Quarterly basis. Such Returns are filed electronically.

Understanding GST Returns in Detail:

GSTR -1: The GSTR-1 is a monthly return form filed by business Entities to report the details of the outward supplies of all services and goods. Every GST-registered entity should file GSTR-1 by 10th of every next month for the previous months except Input service distributor and Composition taxpayer. In case of No business activity , Nil returns are to be filed.

GSTR-2A: It is the return of details of all the inward supplies of goods/services, that is, purchases made by registered suppliers. The data is fetched from the GSTR-1 filed by the supplier. It is a read-only return and cannot be edited.
GSTR-3B: It is a summarized monthly return of all the details of inward and outward supplies, input tax credits and the details of all the GST liabilities. It is a self-declaration form that is to be filed by all taxpayers for every tax period.
The due date for filing GSTR-3B return form is 20th of every next month for the previous months.
GSTR-4: It is filed by the entities who have registered themselves under Composition scheme. The due date for filing this form is the 30th of the month for the previous quarter.

GSTR-5: This form is filed by all non-resident taxpayers registered in India and carry out business operations in India. In the GSTR-5 return, businesses are required to furnish the details of all the inward and outward supplies and the tax liabilities. This form is to be submitted on a monthly basis and has to be filed by every month on the 20th.

GSTR-5A: Form GSTR-5A has to be furnished by service providers of Online Information and Database Access or Retrieval (OIDAR). It is filed to declare the services provided to unregistered entities or individuals from a place outside India to a person in India. It is a monthly return filed by the 20th of every month.

GSTR-6: The Input Service provider generates and files GSTR-6 only after all details furnished in GSTR 6A are accepted and verified. This is done on the 13th of every next month for the previous month.

GSTR-6A: form is a system generated draft Statement of Inward Supplies for a Recipient Taxpayer. It is a read-only form that cannot be edited.

GSTR-7: It is filed by the entities who are required to deduct tax at the time of making payment to the suppliers for purchase . GSTR-7 form requires to fill in details of Tax deducted at source (TDS) under GST, the tax liability, and TDS refund. GSTR7 is required to be filed by the 10th of every next month for the previous month.
GSTR 7A: Better known as the TDS certificate which is generated as soon as the GSTR filing in done by the tax deductor in Form GSTR-7. The assessee uses it for keeping records.

GSTR-8: The form GSTR-8 is required to be filed by every e-commerce businesses who collect tax at source (TCS) to collect payment of the supplies made through the e-commerce platform.It is filed on the 10th of every next month for the previous months
GSTR-9: The form is filed annually by entities to furnish the details of all purchases, sales, input tax credit or refund claimed or demand created etc. GSTR-9 is filed by all normal taxpayers except composition dealers . The due date for furnishing annual return is 31st December of next financial year for previous financial year.
GSTR-9A: It is filed by entities who have opted for composition scheme any time during the financial year. The details furnished in GSTR-9A are inward and outward supplies, taxes paid, Demand raised, refund, input tax credit availed or reversed during the year.

FAILURE TO FILE GST RETURNS:

Delay in filing gst return attracts penalty of Rs 50 per day of default subject to maximum limit of Rs 5000/- and in case of non – filing of nil returns Rs 20 per day of default subject to maximum Rs 5000/-