GST Return Filing Procedure: Everything You Need to Know

Ever since the inception of the Goods and Services Tax, taxpayers are required to fulfill a bunch of compliances which mandates them to file several returns for each Financial Year. In simple words, GST Return filing is compulsory for all those folks who have GST Registration. In order to make you better understand the procedure of Goods and Services Tax Return filing, we’ve come up with this tutorial. Let’s delve in.

What are GST Returns?

Returns are a set of forms boasting a pre-approved reporting format. This make terms of essential information easier for the taxpayers for the entire disclosure. Each form has been intended to make sure the complete disclosure of transaction made between sellers and buyers.

Who Should File GST Returns?

Under the GST administration, any regular business is required to file three monthly returns (GSTR 1, GSTR 2, and GSTR 3) along with one annual return (GSTR 9). There’s one more return dubbed GSTR 4 that is submitted on a quarterly basis by composition taxpayers.

Types of Returns under GST

  1. GSTR 3B

To make the migration process of taxpayers easier than ever, Government introduced an interim return form of GSTR 3B for the month of July and August. The form doesn’t require you to provide invoice level information. However, you must need to provide the total values for each field.

  1. GSTR 1

This form requires you to give all the details of the outward supplies of goods and services to the department. It’s worth notable that you should file the form by the 10th of every following month.

  1. GSTR 2

Through this form, you’ll get the details of the inward supplies of goods and services as sanctioned and approved by the recipient of the goods or services. This form must be filed by 15th of the following month.

  1. GSTR 3

This is the auto-populated form consisting of all the details filed under GSTR 1 and GSTR 2. This would let the department estimate the tax payable after making an allowance for Input Tax Credit availability. The form is recommended to be filed by the 20th of every following month.

  1. GSTR 4

This form includes all the details given in the auto-populated form of outward supplies. The form has to be filed by the 18th of the succeeding month after each quarter.

  1. GSTR 5

The form comprises of the details about input tax, outward supplies, tax paid, reaming month, and imports. This is a monthly submission form which must be filed by 20th of the succeeding month.

  1. GSTR 6

This form is all about the details regarding return for input service distributor. This form is recommended to be filed by input service distributor by 13th of every following month.

  1. GSTR 7

This form is to provide all the details about the tax deduction. It needs to be filed by 10th of the every following month.

  1. GSTR 8

This form includes all the details concerning supplies made by the e-commerce seller. It also incorporate details of the tax deducted at source. You have to file the form by 10th of every following month.

  1. GSTR 9

This is an annual return form that requires to be filed by every taxpayer by 31st of the following financial year.

  1. GSTR 10

This form provides all the details of final return, which requires to be filed by taxable person whose registration has been cancelled or surrendered within 3 months of the date of cancellation or surrender whichever is later.

  1. GSTR 11

This form gives you the details of inward supplies that must be provided by a person who has Unique Identification Number (UIN). This form has to be filed by 28th of the month following the month for which statement is filed.

In order to file GST Returns, there’s a need of GST complaint sales and purchase invoices. You can contact a consultant to help you in generating GST complaint invoices with ease.

What are the Major Benefits of GST?

With the aim to make India a unified common marketplace with common tax rates and procedures, the Goods and Services Tax paves the way for an integrated economy at the national level. It subsumes almost all the State as well as Central taxes into a single tax, mitigating the ill effects of cascading and enhancing competitiveness of businesses. The tax is also anticipated to bump up GDP by approximately 2%. Let’s have a look at major benefits of GST.

  1. Elimination of Multiple Taxes

The biggest advantage of GST is that it subsumes most of the indirect taxes being levied nationally. Thus, it abolishes the ‘tax on tax’ effect which has been plaguing the entire supply chain and increasing costs for the end user. This will also give a major boost to the Government’s ‘Make in India’ campaign as goods that are manufactured or supplied in the country will be competitive not only in national markets, but in the international ones too. The Integrated Goods and Services Tax (IGST) will be levied on all imported goods. IGST means State GST plus Central GST, bringing uniformity in taxation on both local as well as imported goods.

  1. Ease of Business Setup

The Goods and Services Tax comes with a unique ‘one country, one tax’ concept that can make the business setup process easy and straightforward. This will be beneficial to do interstate business, preventing unhealthy competition among states. GST is anticipated to bring buoyancy to the Government Revenue by expanding the tax base and enhancing the taxpayer compliance. The tax is likely to provide a major lift to India’s ranking in the Ease of Doing Business Index.

  1. Less Bureaucracy

The new tax system offers less bureaucracy. Now, you don’t have to pay bribe to any tax officer. You can check your details and pay your tax online in just few clicks. It brings more transparency to indirect tax laws, making the economics and tax value of supplies easily distinguishable. All in all, it helps the industry to take credit and the government to validate the precision of taxes paid and the consumer to know the exact amount of taxes paid.

  1. Improvement in Economy

One of the major GST benefits is that it provides more taxpayers to government by lowering the cost of goods and services. Called as the biggest reform in Indian indirect tax system, the Goods and Services Tax causes an increase in manufacturing processes and improvement in exports and investments. Now, the government provides more facility with the high-budget product in the well-being of Indian citizens in many different ways. Thus, it’s a win-win situation for both the country and citizens.

  1. Less Price Product

For a common man, GST tax applicability means the removal of double charging in the system. With the introduction of this new tax, the money mind game has been ended. It lowers the price of goods and services, helping common man to save more money. On the business front, it give businesses a national platform to grow with a rapid pace.