In this article, you will find a brief study of the concept of GST returns. You will also get to know who should file GST returns and the different types of GST for a different purpose. It also explains GST registration and the 10 steps to file your GST Returns online.
GST Returns Online
Goods and Services Tax or GST Return is a type of document that contains all the income details which the taxpayer needs to file. Every individual who has registered under the GST Act is liable to furnish the details of sales and purchases of goods and services including the tax collected and paid. The GST Return is filed with the administrative of tax authorities, who use it for calculating the tax liability.
A dealer who is registered will have to file GST returns under GST including Sales, Purchases, Output GST (on sale), and Input tax credit (GST on purchase). GST compliant purchase and sales invoices are needed to file GST returns. Individuals can file GST return online on the official website/portal provided by GSTN. It is essential to choose the right form before filing the GST return.
11 types of returns are applicable under GST. Each form has a different purpose and due date. The Government of India replaces different types of taxes levied by both Central and State governments on different products and services by GST. The GST Act was passed in 2019 that simplified the tax payment process since taxpayers have to file just for one tax under GST.
Who should file GST Returns?
Every business needs to file for GST returns every two months and once annually. GST annual return amounts to 26 times in total.
Types of GST
GST Return can be filed based on the type of transaction and registration of the taxpayer. There are 11 types of GST Return forms available under the GST regime. They are as follows: GSTR1,2,3,4,5,6,7,8,9,10,11.
The due date for filing GST Returns
GSTR 1- 10th of the subsequent month
GSTR 2- 15th of the subsequent month
GSTR 3- 20th of the subsequent month
GSTR 4- 18th of the subsequent month
GSTR 5- 20th of the subsequent month
GSTR 6- 13th of the subsequent month
GSTR 7- 10th of the subsequent month
GSTR 8- 10th of the subsequent month
GSTR 9- 31st December of the next fiscal year
GSTR 10- within 3 months of the date of cancellation
GSTR 11- 28th of the month, following the month for which the statement was filed
The steps to follow GST calculation are given below:
- You need to find the HSN or SAC code. The HSN code is an international system for identifying goods, while SAC corresponds to a type of service.
- Secondly, determine the applicability of IGST or CGST and SGST. IGST is the tax levied on goods and services supplied from one state to another. While SGST and CGST are levied on goods supplied within a state.
- You will have to determine reverse charge services.
- Then determine the type of transaction.
- Lastly, look up the GST composition scheme.
Penalty for late filing
If taxpayers fail to file their GST return on time, then they will have to pay a penalty in the form of a late fee. A total amount of Rs. 200 (100 for CGST and Rs. 100 for SGST) will be levied per day. The maximum late fee charged can go up to Rs. 5000 per day. The penalty fee rate can change as per the present regulations. The time will be counted after the date of the deadline till the day complete payment is made. Taxpayers liable for Integrated Goods and Services Tax will have to pay an additional 18% interest as a late fee.
Every taxpayer should be familiar with the procedure of GST filing to help them abide by the rules and regulations of the GST Department.
GSTN-Goods and Services Network
Goods and Services Tax Network is an online portal that contains all the details of the sellers and buyers registered as per the GST regulation. GSTN helps the various businesses and taxpayers to access details about filing their returns, log invoices, and more.
One GST annual return, a total of 37 returns, and 3 quarterly returns have to be filed by companies during a financial year. These returns contain all the details about inwards and outwards supplies undertaken by an organization. The information can be uploaded whenever an internet connection is available. The process of drafting the required data can be done offline.
It is essential to do GST registration to avoid any friction with the ITR law. You can collect GST from your customers as well if you do your registration. As per law, if you fail to register then you can face heavy penalties that can exceed up to 100% of your owed tax amount. Therefore, you must register for GST and have a GSTN.
How to file GST Returns Online
Mentioned below are the steps to file GST Returns Online:
- Firstly, you need to register under GST and have the 15-digit GST identification number. The identification number will be based on your state and pin code.
- The second step is to visit the official GST returns online portal.
- Select the ‘Services’ button.
- Go to ‘Returns Dashboard’ and click on it. Then fill in the financial year and the return filing period from the drop-down menu.
- Click on the ‘Prepare online’ option after selecting the return you want to file.
- Enter the required information like the amount and late fee. (only if applicable)
- After filling in all the required details, click on ‘Save’.
- Success image will appear on your screen, after that click on ‘Submit’.
- After the status appears ‘Submitted’, click on the ‘Payment of tax’ tile. Next click on ‘Check Balance’ to view the cash and credit balance. You will have to mention the amount of credit you want to use from the credit available to clear your liabilities. Click on ‘Offset Liability’ to do the payment. When asked for confirmation, click on ‘Ok’.
- The last step is to check the box against the declaration. From the drop-down list select an authorized signatory. Click on ‘File form with DSC’ and ‘Proceed’. Then make the payment in the next step for your GST.
How to check GST Returns Status
You can check your GST returns status through the official GST portal. The three different modes are mentioned below:
- Track the status using the ‘Return Filing Period’ option.
- Track the status using the ‘ARN’ option.
- Track the status using the ‘Status’ option.
GST e-way Bill
Transporters are required to carry the GST e-way bill when moving goods from one place to another. The e-way bill has been linked to the VAHAN system. An e-way bill is generated on the portal of e-way bill. An individual who is registered under GST is not liable to transport goods in a motor vehicle whose value is above Rs. 50,000, without a GST e-way bill. It can be generated and cancelled through SMS, site-to-site integration through API, and Android app. A unique e-way bill number (EPN) is allocated when an e-way bill is generated. This is available to the transporter, recipient, and supplier. The documents needed to generate the e-way bill are as follows;
- Invoice related to the consignment of goods.
- Transporter ID or Vehicle Number. (By road)
- Transport by train, aeroplane, or ship-, date on document, Transporter ID and Transporter document number.
1. What are the types of regular returns that should be used for taxpayers who file returns quarterly?
The regular returns that are to be used are Sugam, Sahaj, or normal returns for taxpayers who have an aggregate turnover of up to Rs. 5 crores in the previous year.
2. Can amendments be made in the documents by the supplier if documents are left pending by recipients?
Amendments in the documents can only be made by suppliers whose document has been registered by the recipient, and not if they have been pending.
3. Can the taxpayer change the period of filing the returns?
Yes, the period of filing can be changed once by the taxpayer. It can only be done at the time the first return of the financial year is filed.
4. If the uploaded documents get rejected, will a supplier get intimidation?
If the uploaded documents get rejected, a supplier will receive intimidation only after the recipient files their return.
5. What is the validity of an e-way bill?
The validity of an e-way bill is calculated from the date and time of the generation of the e-way bill. They are as mentioned below:
Type of Conveyance
Other than Over dimensional cargo
Less than 100kms
For every additional 100kms
Additional 1 day
For over-dimensional cargo
Less than 20kms
For every additional 20kms
Additional 1 day