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A Complete Guide on GST Return Filing Procedure in India - BizAdvisors

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A Complete Guide on GST Return Filing Procedure in India

A Complete Guide on GST Return Filing Procedure in India

The term “GST” stands for “Goods and Services Tax,” an indirect tax that will be imposed beginning on July 1st, 2017, on all Indian enterprises that have registered. Thus, you must file your GST Returns online if your company is registered under the GST Act. Depending on how your firm is classified by the Indian government, filing may be a monthly, quarterly, or annual process. Let’s learn more about what a GST Return is and GST Return Filing procedure in India. 

The Idea Behind a GST Return 

The following reports must be submitted monthly, quarterly, or annually by each registered business owner in India- 

  • Output Sales Purchase GST 
  • Determined based on the entire value of sales. 
  • Credit for input taxes is computed based on the entire cost of the purchase. 

A GST Return is an official certificate that lists the information about a firm described above. The tax authorities in India will use this certificate as the foundation for determining the tax liabilities of a business. 

Who Needs to Submit GST Returns? 

GST returns must be filed by every company with Indian tax registration. However, the quantity of returns a company must submit is based on its total yearly revenue. 

  • A business must typically file two monthly returns as well as an annual return if its total yearly revenue exceeds INR 5 crore. There are 26 returns in total per year. 
  • Businesses filing quarterly GSTR-1 forms under the QRMP program are limited to 9 returns annually. 

QRMP System 

The Quarterly Return Filing and Monthly Payment of Taxes (QRMP) plan, introduced by the Central Board of Indirect Taxes and Customs, is designed to help small taxpayers have revenue of less than INR 5 crores. In accordance with this plan, taxpayers can submit the GSTR-3B form quarterly and pay taxes on a monthly basis. 

A GST composition system applies to all taxpayers with annual revenue of under Rs. 1.5 crore, reducing the number of times they must file their GST Returns to just five per year. 

GST Return Filing Procedure 

Only the government’s GST portal can be used to submit the various GST Returns. Online GST Return information must be provided in the required format and before the return’s due date. The GST Return Filing must be done precisely in this case since once the values are filed, they cannot be modified. Because of this, you must seek the assistance of a GST specialist to submit your GST Returns online. The fundamental procedures for submitting GST Returns are as follows- 

  1. Collect all the required documents and invoices which are necessary to file GST Return. All these documents and invoices needs to be maintained electronically or digitally, because ultimately all of these documents and invoices needs to be uploaded online on the GST portal[1].  
  2. Visit the government GST Portal 
  3. On the basic of your state code and PAN number, a 15 digit number will be issued to you. Each invoice that you will upload, you will get a reference number against each such invoice.  
  4. Upload all the documents as well as invoices on the website.  
  5. After above all, now you have to file the outward returns by using the information section at the GST Portal, then verify the details carefully and file details of credit and debit notes. 
  6. After filing the outward return, now you need to file inward returns and cumulative monthly return, all this needs to be done very carefully.  

Late GST Return Filing Penalty 

The Central Board of Indirect Taxes and Customs (CBIC) has released the Standard Operating Procedure (SOP), which states that failure to file a GST Return might even result in the attachment of bank accounts and the cancellation of the defaulter’s GST Registration

It’s imperative to submit GST Returns online on time to avoid late costs, which are assessed to taxpayers for any kind of delay. According to the GST Act, a taxpayer who files their Central Goods and Services Tax (CGST) and State Goods and Services Tax (SGST) Returns late will be subject to a fine of INR 100 per day. This results in a total fine of INR 200 for each additional day of delay. The late filing penalty’s upper limit, however, has been fixed at INR 5000. 

In addition, if the taxpayer delays filing the GST Returns online, interest at the rate of 18% per year would also be due. From the day after the return filing deadline to the day the taxpayer pays the payment, interest is calculated. 

Conclusion  – GST Return Filing Procedure

Managing the various GST types and understanding the objective of each GST Return is crucial to comprehending a taxpayer’s obligation to file returns, which can be a confusing process. A taxpayer can simply manage their GST filing by seeking advice from seasoned GST professionals. You can reach GST professionals at Bizadvisor.io as well.

Read our article:Types of GST Return and Due Dates: A Complete Overview

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