Business registered have to file monthly, quarterly or annual GST Returns based on the type of business. A return is a document that contains the details of income which a taxpayer is required to file with the tax administrative authorities of India.
Goods and Service Tax or commonly referred to as GST is a consolidated indirect tax under which different GST returns must be filed by eligible taxpayers for each financial year. The requirements for GST return filing online are different for different kinds of tax returns
If you are wondering what is GST return filing process in India, then keep reading this article.
What is GST Return?
GSTR is a document which contains details of the income of taxpayer which is used by tax authorities for calculating tax.
Registered dealers require the following details to file the return-
Sales and purchase;
Output GST;
Input tax credit.
Who are liable to file GST Return In India?
The taxpayers have a requirement to get GST registration done and file their GST return online:-
Individuals who hold GST registrations, or held registrations for VAT, excise or service tax previously.
A business which has an annual turnover of more than INR 40 lakhs.
A business which has an annual turnover of more than INR 10 lakhs and operates in North-Eastern States, Himachal Pradesh, Uttarakhand or Jammu and Kashmir.
Any casual taxable person.
Any Non-Resident taxable person.
Agents of a supplier.
Any person is running a business interstate.
Input service distributor.
Any person who is liable under the reverse charge mechanism.
Any person who is running a business through an e-commerce aggregator.
An e-commerce aggregator.
What are the various categories of GST return filing?
There are various types of GST returns filing, and each return has different due dates and eligibility.
What are the types of GST Return Filing Invoices?
Bill about Supplies
A bill of a stock is related to a GST Return Filing invoice except for the statement of supply does not include any tax expense as the seller cannot impose GST to the customer. It gets issued in cases where tax cannot charge: The Registered person is trading exempted goods/services and who has opted for "composition scheme."
According to Notification No. 45/2017 – Central Tax on 13th October 2017 If a recorded person is supplying taxable and excused goods/ services to an unregistered person, then he can originate a single "invoice-cum-bill of supply" for all before-mentioned stocks.
Aggregate Invoice
If the utility of multiple bills is less than Rs. 200 and the Buyer are unregistered; the dealer can issue a total or bulk invoice for the various invoices on a daily base.
Debit and credit note:
A debit note is issued by the seller when the amount payable by the Buyer to seller increases and when Tax invoice has a lower taxable value.
A credit note is issued by the seller when the cost of invoice decreases and Tax invoice has a higher taxable value; Buyer refunds the goods to the supplier, Services are found to be deficient.
What is the GST Return Filing Process?
Go to the GST web portal. Register under GST and have a 15-digit GST identification number based on your state code and PAN number.
Upload all the required invoices on the GST portal. A reference number will be issued against every invoice.
Now upload outward return, inward return, and cumulative monthly return online. In case of errors, you will find an option to correct it and again file the return.
The recipient is required to validate and verify the details and file the return.
What is the revision of invoices issued before GST Returns Filing?
You can analyze invoices appeared before GST Return Filing. Under the GST administration, all the dealers must beg for provisional delegation before getting the changeless registration certificate. As a dealer, you need to issue an updated invoice against the invoices previously issued. The revised invoice has to be issued within one month period from the date of issuance of the registration certificate.
What are the details required for GST Return Filing?
1. Expenditure details
Total purchase
Sales return
Imports
2. Income details
Total sales
Total export
Supplies on which no GST is paid
Purchase return
3. Other income
Audit arrears
Refunds
4.Profit and Loss Statement
What are the Penalties for Late GST Return Filing?
Filing of GSTR is mandatory. Even if no transaction took place, then also the taxpayer has to file nil GSTR. If GSTR is not filed on time by the taxpayers, late fine with interest is imposed on them.
1. Late fine for annual return filing
INR 200 per day ( INR100 per day under CGST, SGST)
The maximum amount of late fee that can be imposed should not be more than 0.25% of taxpayers turnover.
2. Late fine for monthly/ quarterly GST return filing
INR 50 per day
The penalty cannot be over 5000
No fine on IGST
Conclusion
GST return filing process in India can be a complicated affair. Understanding the purpose of each return is necessary to comprehend return filing liability of taxpayers which is relevant. Every business registered under GST needs to file GST Returns containing the details of the profits they earned in the preceding year and other necessary information prescribed by law.