GST Returns

Every business registered under the Goods and Services Tax, 2017 has to file GST returns mandatorily. In fact, GST return filing is a significant activity serving as a bridge between the government and the taxpayer. 

Every taxpayer has to furnish some relevant information while filing the returns. That info many include details of the business, sales & purchases, declaration of tax liability, payment of taxes, and other information as required by the government. 

You can file Goods and Services Tax returns both electronically and manually. However, most taxpayers prefer to file their returns electronically through the official GST portal. 

What makes it even more interesting for some and cumbersome for others is the fact that these returns are prepared offline and then uploaded to the GSTIN portal either through a facilitation centre or by the taxpayer him/herself. 

But that’s not all. There are various steps involved in the filing of the authorized Return. Besides, you have to submit the required documents accurately or your application would be rejected. Therefore, before you take a plunge into filing GST returns, first try to find out what it is, how many types of GST returns exist, their due dates, etc. Such info will help you file the right one within the stipulated time. 

Let us start with the GST return meaning-

What is GST Return?

A GST return is typically a document or form consisting of information of every sales/income and purchase/expense which is filed by every taxpayer having GSTIN with the tax authoritative authorities. Such returns are mostly utilized by tax authorities to assess the net tax liability. 

Under GST, a registered dealer is supposed to apply for returns that broadly encompass:

• Purchases
• Sales
• Output GST (On sales)
• Input tax credit (GST paid on purchases)

In case you don’t want to file returns on your own due to any reasons, you can also contact consultants and experts in the market. Make sure that you choose the best and most trusted one

Who Needs to File Goods and Services Tax Returns?

If you fall in any of the following categories, then you are eligible for filing returns in India. 

• All the entities that hold GST registration and is taxable under the Goods and Services Act 2017;
• Every GST registration holder who is taxable under the GST Act, 2017, are required to file such returns based on the nature of their business.
• Every business having an annual turnover of more than Rs. 40 lakh;
• All the businesses in the North-Eastern states and hilly regions having turnover more than Rs 20 lakh;
• An entity that hasn’t make any transactions for a certain period needs to file a NIL return with the authority.
• A company having a turnover of more than Rs. 1.5 crore has to file a monthly return. 
• A registered person who is taxable under the GST regime has to file annual as well as 3-monthly returns. 

Who Doesn’t Need to File GST Returns?

If you have a GST registration but your total business turnover is below the threshold mark of Rs. 40 lakh, then you don’t need to file returns for GST.

Besides, if you love in the North-Eastern States or hilly regions and your business turnover is below Rs. 20 lakhs, you don’t need to worry about filing returns. 

Types of GST Returns?

Earlier, there were a total of 22 types of GST  tax returns under the GST Regime. However, today, only 11 of them are active, 3 have been suspended, while the other Returns are view-only in nature. 

Let us have a look at the Goods and Services Tax Return active in nature:

Documents Required for GST Return Filing

To ensure your application for Goods and Services Tax return doesn’t get rejected, you must submit the following documents with the concerned authority:

• Customer GSTIN
• Type of Invoice
• Place of Supply
• Invoice Number
• GST Rate
• Taxable Value
• List of Invoices (B2B Services, B2C Services)
• Amount of applicable SGST, CGST, IGST and GST Cess.
• HSN wise summary details.
• Consolidated intra-state and inter-state sales.
• Summary of requisite documents i.e. Debit and Credit notes.

How to File GST Return Online?

Every manufacture, dealer, consumer, and supplier is obligated to file their returns of GST with the department of Goods and Services Tax every year. As per the new GST regime, filing tax returns have been made online and automated. 

You can file returns online directly through the app rendered by GSTN (Goods and Service Tax Network) which will automatically fill up all your details on each GSTR form. 

We have listed below steps to file Goods and Services Return online:

Step 1: Visit the GST Portal

To file the Goods and Services Tax return online, you are first required to visit the official website of GST at www.gst.gov.in and log in with your username and password.

Step 2: Issuance of GSTIN

Secondly, you will receive a 15-digit identification number based on your PAN number and state code.

Step 3: Upload Invoices 

Next, you need to upload invoices on the GST portal or whatever app or software you are using. You will be then issued an invoice reference number against each invoice.

Step 4: Fill in the Return Filing Period

Tap on the ‘Return Dashboard’ and then, fill in the return filing period as well as the financial year from the drop-down menu. 

Step 5:  Preparation for Filing Goods and Services Tax Return Online

Now, choose from the returns you want to file and tap on ‘Prepare Online.’ Check whether your documents are good to go and to the point. Cross-check all of them and be ready to file returns online. 

Step 6: Enter the Correct Amount

Now fill up the required amount and any late fee, if required. 

Step 7: Save the Details Filled

Now, when you are done with all the above steps, you need to tap on the ‘Save’ button. By doing so, you will get a success message displayed on your screen. 

Step 8: Submit the Details

After you have successfully saved the details filled, click on the ‘Submit’ button available at the bottom of the page to file the GST tax return.

Step 9: Clear Your Liabilities

Once you have submitted the details, click on the ‘Payment of tax’ block > Check Balance to view your credit balance and the cash. It’s important to be informed of such details prior to paying taxes.

Now, to clear your liabilities, you need to mention the credit amount you would like to utilize from the credit balance. Then, tap on ‘Offset liability’ to initiate the payment. Click on ‘OK’ when the confirmation is displayed. 

Step 10: File the Return with an Authorised Signatory

Finally, you have to check-mark the box against the declaration. Then, choose an authorised signatory from the dropdown list. Later, tap on ‘File form with DSC’ or ‘File form with DSC’ and click on the ‘Proceed’ tab. 

You can pay in the next step for your respective GST. 

Penalties for Not Filing GST Returns on Time

If you don’t file Goods and Services Tax returns within the prescribed time, you would be slapped with pay interests as well as the penalty or late fee. It will attract a penalty of ₹ 100 per day for every SGST and CGST. Therefore, in total, you will have to pay an effective late fee of ₹ 100 per day. Although the restriction for the maximum late fee is ₹ 5,000. 

No late fee is applicable for IGST. 

Additionally, an interest rate of 18% per annum will be applicable on the amount of tax for that period. The time period for the calculation of interest begins from the next day of the return filing to that date of payment. 

How to Check GST Return Status 

Once you have filed for Goods and Services Tax return, you can easily check the status of the return filed. Follow the steps mentioned below:

Step 1: Like always, firstly, you have to visit the official website of GST i.e. www.gst.gov.in. 

Step 2: Secondly, furnish all the information required on the log in page such as your username and password.

Step 3: Click on the ‘Services’ tab, then choose ‘Returns’ and tap in ‘Track Returns Status.’

Step 4: You will then see a drop-down menu from where you have to select “Status of Return.”

Step 5: Click the Search button.

Step 6: The status of your return filed will be shown as either to be filed or filed invalid or submitted but not filed or filed valid. 

To Summarize

Filing GST return is not just compliance but also a mandatory task to be performed by all the GST registration holders having a business turnover above a certain threshold limit. Non-compliance with the same will incur a huge penalty and a heavy late fee. So, it would be wise to file all the returns within the prescribed time. 

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