Online GST Return Filing in India

GST Return Filing Overview:-

Since its start on July 1, 2017, the Goods and Services Tax (GST) has been applied on all service providers, dealers, manufacturers, and even freelancers in India. The GST system was developed to replace central and state-level taxes like as service tax, excise duty, CST, entertainment tax, luxury tax, and VAT, thereby simplifying the tax procedure.
The GST framework provides a composition plan to taxpayers with an annual revenue of less than 1.5 crore. This arrangement allows them to follow expedited GST processes while paying taxes at a set rate based on their turnover.
The GST system operates at many locations along the supply chain. This includes obtaining raw materials, manufacturing, wholesale, retailing, and ultimately selling to the end client. Notably, GST is imposed on all of these operations. For example, if a product is created in West Bengal and then consumed in Uttar Pradesh, the GST money gained is entirely assigned to Uttar Pradesh, emphasizing the consumption-based character of GST.

Advantage of GST Return Filing

• Elimination of Cascading Tax Effect: GST eliminates the cascading effect of tax, commonly known as “tax on tax.” Previously, businesses faced multiple layers of taxation, leading to increased costs. With GST, this issue is resolved, resulting in more efficient tax management.
• Higher Threshold for Registration: The GST threshold is aggregate turnover in exceeding of 40 lakhs for goods and 20 lakhs for services. It means the small firms with sales below this amount are not required to file GST.
• Composition Scheme for Small Businesses: Small businesses with an annual turnover below a certain threshold are eligible to opt for the Composition Scheme. As of my last update, this threshold was ₹1.5 crore (₹75 lakhs for special category states).

Document required for GST Return Filing

• Invoicing issued to customers with GSTINs or B2B invoicing
• Invoices issued to customers without a GSTIN or B2C invoices.
• Submit this only if the total value above ₹2.5 lakhs.
• A consolidation of interstate sales.
• HSN-specific summary of all products sold
• Any other debit, credit, or advance receipts

How many returns are there under GST?

While there are 13 forms technically under the GST regime, the actual number you'll need to file depends on several factors:

• GSTR-1: Outward supplies return, which contains details of outward supplies of goods or services.
• GSTR-3B: A monthly summary return that summarizes details of outward supplies, inward supplies, and taxes paid.
• GSTR-4:Quarterly return for composition dealers.
• GSTR-5: For non-resident taxpayers who execute taxable transactions in India.
• GSTR-5A:Online Information Database Access and Retrieval services provided to non-taxable persons, from a place outside India to a person in India.
• GSTR-6:Used by Input Service Distributors for detailing input tax credit distribution.
• GSTR-7: Who is required to deduct TDS (Tax Deducted at Source) while making payments to the supplier under GST.
• GSTR-8:e-commerce operators who are required to collect TCS (Tax Collected at Source) while making supplies through their platforms.
• GSTR-9:Taxpayers to provide a comprehensive summary of their GST transactions for the entire financial year.
• GSTR-10:Taxpayer whose GST registration has been canceled or surrendered.
• GSTR-11:Who has been issued a Unique Identification Number (UIN) to claim a refund of taxes paid on their inward supplies.
• CMP-08: CMP-08 serves as a summary return where composition taxpayers report their tax liabilities in a simplified manner.
• ITC-04:The purpose of ITC-04 is to declare the details of goods sent to job workers and received back from them during a particular quarter.

There are return-related statements for input tax credits.

• GSTR-2A: GSTR-2A is dynamic, meaning it gets updated as your suppliers file their GSTR-1 returns
• GSTR-2B GSTR-2B is static, monthly statement that reflects your eligible and ineligible ITC for a specific month

For small taxpayers participating in the Quarterly Return Monthly Payment (QRMP) system, the Invoice Furnishing Facility (IFF) allows them to declare B2B sales during the first two months of each quarter. Nevertheless, these taxpayers must remit taxes monthly using Form PMT-06.

Penalty for late filing of GST Returns

Penalties for late filing of GST (Goods and Services Tax) returns vary based on the jurisdiction and the specific circumstances. In many countries where GST is implemented, late filing of returns can result in financial penalties or interest charges.

• Late Filing Fees:There could be a fixed amount charged as a penalty for each day or month the return is late. This fee might vary depending on the duration of the delay.
• Interest Charges:In addition to late filing fees, interest may be charged on the outstanding tax amount from the due date until the date of filing.
• Suspension of Input Tax Credit: In some cases, late filing of returns can lead to the suspension of input tax credit, which can increase the financial burden on the taxpayer.
• Late Filing Fees:The law imposes a late filing fee of Rs. 100 per day for both CGST and SGST, with a maximum of Rs. 5,000.
• Annual Return Late penalties: For yearly returns such as GSTR-9 and GSTR-9C, the late fee is capped at 0.25% of your turnover in your state or UT, unless the government gives relief or alters the penalties.

How do you file GST Returns

Wealth 4 India is India's largest business service platform, offering end-to-end GST services. We've helped thousands of company owners GST Registation and GST return filing services.

Outsource GST compliance to Wealth 4 India.

Outsource your GST compliance to Wealth 4 India to ease your compliance burden and focus your efforts on developing your business. Wealth 4 India will manage your GST compliance on the GST platform, allowing you to view live company data from anywhere, at any time. GST Portal can also effortlessly sync and integrate with other online and offline apps that you frequently use.

When a firm outsources its GST return filing to Wealth4India, it is provided a dedicated GST adviser.

This personal adviser will contact you every month to collect the relevant information, prepare the GST forms, and assist you in completing them.