What is GST? An indirect tax levied on the consumption of goods and services is the Goods and Services Tax, or GST. Every value addition is subject to this multi-stage, destination-oriented tax, which takes the place of several indirect taxes such as sales taxes, VAT, and excise duty. It is among the most important taxes levied in India, with the goal of facilitating economic transactions and streamlining transparency.
Providing government with information on sales, purchases, taxes collected from buyers, and taxes paid to government is known as filing of GST return. Timely and correct GST return submission help maintaining smooth operations of entity.
Legal-N-Tax is your one-stop shop for GST return filing in India. Filing of GST Returns depending on their business category and turnover, all registered taxpayers are required to file GST returns on a regular basis.
For instance, if a business has an overall revenue of more than Rs. 5 crore or has not chosen to participate in the QRMP scheme, GSTR-1 must be filed by the eleventh day of each month. The types of taxpayers and the types of transactions are used to categorize the returns. Only 11 of the 22 GST returns that are required by the GST Rules are currently live, while the remaining 4 are suspended and the remaining 8 are view-only.
CURRENT GST RETURNS
Various forms of GST returns
- GSTR-1:All your monthly sales of goods and services, as well as the tax applied to those sales, are shown on this return. Both intra-state and inter-state sales are possible. Companies must also fill out GSTR1 with information on any exempt sales they made to registered individuals.
- GSTR-2A & 2B: Automatically generated returns that show incoming supply. When suppliers upload their invoices, the dynamic return GSTR-2A is updated continuously. It is utilized by the government for buyer-seller reconciliation and shows the ITC available to customer. Every month, the static return GSTR 2B is modified. Stated differently, the information contained within does not alter in response to modifications made by its suppliers in further months.
- GSTR-3B: A self-declared summary GST return filed every month. It computes the business’s tax due, compiles a list of all its inbound supply(purchases) and outgoing supply(sales), and enables you to pay taxes immediately.
- GSTR-4: With a fixed tax rate based on turnover, this yearly return makes filing easier and makes compliance easier for companies using the composition system. Businesses filed this return on a quarterly basis prior to FY 2018–19, but CMP-08 took its place.
- GSTR-5 & 5A: It records every detail of taxable supplies made by non-resident taxable persons (NRTPs), guaranteeing that they correctly declare their sales and adhere to Indian GST regulations. The 13th of the next month is the deadline for reporting GSTR-5 and 5A.
- Input Service Distributors (GSTR-6): A taxpayer who receives invoices for services utilized by its branches is known as an Input Service Distributor (ISD). Afterwards, ISD allots ITC to branches according to branch’s turnover.
- GSTR-7: Return for companies that must deduct TDS in accordance with GST regulations.
- GSTR-8: E-commerce firms registered under Section 9(5) are required to file this monthly return.
- GSTR-9 & 9C: Reconciliation statements and annual returns that need GST audits. All your monthly and quarterly filings for the fiscal year are combined into these annual returns. It must be submitted by December 31st of the subsequent fiscal year.
- GSTR-10 & 11: Final return for holders of Unique Identification Numbers (UIN) for canceled & suspended GST registrations.
When your GST registration is canceled or turned in, this last return is submitted. It ensures that your company is officially de-registered from the GST system and that all outstanding tax dues are taken care of.There may be severe penalties and fines for missing the return deadlines or submitting the wrong returns. These fines and penalties can be avoided by taking consultancy from GST compliance expert.
STEPS TO FILE GST RETURN
There are several steps required in completing a GST return; penalties may result from missing any of the deadlines. Given below is the detailed guide.
Step 1: Go to the GST Portal and enter your password and GST Identification Number (GSTIN).
Step 2: Depending on the type of business and the amount of tax owed, select the appropriate return form.
Step 3: Enter data on taxes paid and collected as well as inward and outward supplies.
Step 4: Submit the return using a digital signature or Electronic Verification Code (EVC) when the information has been verified.
Step 5: Use NEFT/RTGS, credit/debit cards, or online banking to settle any outstanding taxes (if due).
Step 6: After the submission was successful, download the acknowledgment.
With help of a GST Compliance Consultant, businesses can expedite this process and ensure timely filings of returns avoiding penalties.
MISTAKES TO BE AVOIDED WHILE FILING A GST RETURN
When submitting GST returns, avoid these typical errors and omissions.
1. An incorrect GSTIN may result in processing delays and rejection.
2. Mismatch between sales and purchases: To prevent inaccuracies or mismatches, it Is beneficial to cross-check sales and purchases. That could result in an overestimation or underestimation of the available ITC or GST liability.
3. Inaccurate tax estimation: Penalties and fines may result from an incorrect computation.
4. Inability to Reconcile Data: Errors can be avoided by routinely comparing GST returns with books of accounts.
FITTING PENALTIES
Noncompliance with the GST legislation may result in penalties as given below.
- Penalty for late filing: In case of late filing of GSTR-1 & GSTR-3B late fees of Rs 25 is levied (For CGST act, same amount is charged under SGST/UTGST). In case of late filing of Nil return this amount is Rs 10.
2. Penalty for Tax Evasion: From 10% up to 100% of total tax liability.
3. False returns: False returns are linked to higher fines and perhaps legal action. Department can send notice u/s 74.
4. Inaccurate Tax Credit Claims: Credit plus interest is reversed.
5. Interest: Interest is levied at rate of 18% from due date of return till the date on which tax is paid.
Companies can ensure smooth compliance and save themselves from these hefty penalties with help of professional Consultant for GST Return Filing in Delhi. At Legal-N-Tax, we offer professional services for GST Return Filing in Delhi.
CONCLUSION
For Indian enterprises, filing a GST return is a crucial component of tax compliance.Proper filing ensures transparency, prevents penalties, and helps businesses maintain good standing with tax authorities. Whether you are in Delhi or anywhere in India, seeking professional guidance from a Consultant for GST Return Filing in India can help you navigate the complexities of GST regulations.
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