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Easy steps for GST Return Filing

A step-by-step guide for registered businesses to file their GST Returns

The GST Act was passed in 2017 to simplify the tax payment process whereby taxpayers have to file for just one tax under GST. Goods and Services Tax (GST) Return is a document that contains all the income details a taxpayer needs to file. Every individual or business registered under the GST Act has to furnish the details of all sales and purchases involving goods and services, including the tax collected and paid. There are 11 forms of returns applicable under GST. Each form serves a different purpose and has a different due date. Every business has to file for GST returns once annually and every two months.

 

The date for filing of GST annual returns is usually the 31st of December each year. Given the corona pandemic and its difficulties to meet this deadline, the Government extended the date first to February 28, and again eventually to March 31, 2021. It means that the GSTR-9 and GSTRC-9C for the financial year 2019-20 have to be furnished by this date.

 

With effect from January 1, 2021, GST taxpayers having an aggregate annual turnover of up to Rs. 5 crores will be required to fill only four GSTR 3B forms as against the 12 previously. This scheme, referred to as Quarterly filing of Return with Monthly Payment (QRMP), would significantly reduce the taxpayers’ professional expenses for filing returns.

 

Easy steps for GST Return Filing

Types of GST Returns Filing

 

Depending on the type of business, one needs to do a monthly or quarterly GST return filing in addition to annual filing in accordance with the Central Goods and Services Tax (CGST) Act, 2017. Following are the list of returns applicable that need to be filed as per the Act:

 

GSTR-1

GSTR-1 return is filed monthly or quarterly by registered businesses to provide information regarding their sales or outward supplies. Depending on your business’ turnover, if your sales amount up to Rs. 1.5 crore or less, then you can do GST filing on quarterly basis. If your sales incurred is above Rs. 1.5 crore, then monthly return filing is required.

 

GSTR-2

This type of GST return filing provides details of your purchases’ transactions or inward supplies for a month, including purchases with applicable reverse charge. The monthly GSTR-2 return filing done by registered dealers helps in validating sellers’ GSTR-1 for invoice matching, or ensuring that taxable sales by the seller tally with the taxable purchases of the buyer for the month.

 

GSTR-3

GSTR-3 provides the summarized details of all purchases and sales for the month along with the GST amount to be paid. This monthly return is auto-generated based on the data provided in GSTR-1 and GSTR-2 filing. 

 

GSTR-4

GSTR-4 return is to be filed annually by the taxpayers, usually referred to as composition dealers, opting for Composition Scheme, by April 30th every financial year.

 

GSTR-5

As per the CGST Act, all registered non-resident foreign taxable people, or suppliers not having a business establishment in India and visiting India for a business contract, are required to do a GSTR-5 return filing. The filing return provides details of sales and purchases of the non-resident business people.

 

GSTR-6

This is to be filed monthly by an Input Service Distributor to provide details of invoices where there has been a credit.

 

GSTR-7

GSTR-7 return is to be filed by all those who are required to deduct tax deducted at source (TDS) under GST. These include Central or State Government institutions, local authorities, governmental agencies; or entity authorised by the Central or a State Government. This type of GST return filing includes the details of TDS deducted, TDS liability payable and paid, TDS refund claimed if any etc.

 

GSTR-8

All e-commerce operators mandated to deduct tax collected at source (TCS) are required to file GSTR-8. It contains the details of supplies carried out through the e-commerce platforms and TCS amount collected on such supplies.

 

GSTR-9

GSTR-9 return filing includes providing details of the inward and outward supplies made or received during the financial year. It thus provides consolidated data of all the monthly or quarterly returns (GSTR-1, GSTR-2A, GSTR-3B) filed during the year.

 

GSTR-10

All the registered taxable persons who have opted for surrendering or cancelling the GST registration need to file GSTR-10 return. It is also referred to as final return.

 

GSTR-11

Those who have received Unique Identity Number(UIN) i.e. special classification number assigned for foreign diplomatic missions and embassies exempt from Indian taxes can file GSTR-11 return in order to avail GST refund for the goods and services purchased by them in India.

 

 

Types GST Return Filing

10 Easy Steps For GST Return Filing Online

 

  • Firstly, ensure that your business is registered under GST and you have a 15-digit GST identification number. In the event you do not have this number, register online to get it.
  • Next, visit www.gst.gov.in
  • Click on the 'Services' button.
  • Click on 'Returns dashboard' and from the drop-down menu, fill in the financial year and the return filing period.
  • Next, you need to click on 'Prepare online' after selecting the return you want to file.
  • Enter all the requisite values, inclusive of the amount and late fee, if any.
  • Once these details are filled in, click 'Save'. A success message will be displayed on your screen.
  • Next, click 'Submit' at the bottom of the page to file your return.
  • You will notice the status of your return has changed to 'Submitted'. Now scroll further down and click on the 'Payment of tax' tile. After that, click on 'Check balance' to view cash and credit balance, so that you are aware of these details before paying tax under the respective heads. Next, to clear your liabilities, mention the amount of credit you want to use from the available credit. After that, click on 'Offset liability' to make the payment. When confirmation is displayed, click on 'OK'
  • Finally, check the box against the declaration and select an authorized signatory from the drop-down list. Then click 'File form with DSC' or 'File form with EVC'. Next, click on 'Proceed'. In the next step make the payment for your respective GST.

 

Challenges Faced

Though GST was implemented in 2019 in India, there was some ambiguity in some of the provisions of the law. To address such ambiguities, the GST Council implemented the new GST return system with effect from April 2020. However, there are still some challenges in the implementation of this new system.

 

Educating the taxpayers on this new law and its system is one of the challenges as they take time to understand the changes pertaining to the GST system. Taxpayers have to be educated on real-time uploading of invoices and what actions need to be taken to claim input tax credit (ITC), and report missing invoices.

 

Taxpayers have to upload their invoices continuously on a real-time basis in GST ANX-1. This annexure contains details of all outward and inward supplies that are liable to reverse charge and import of goods and services. Individuals and businesses registered under GST will have to match the supplier’s invoices with the book of accounts to claim ITC. The pain point here is that taxpayers have to devote time for these activities or he has to dedicate personnel to carry out these activities. For instance, if a business wants to match invoices at the time of filing their return, they will not have adequate time to follow up with the supplier, leading to an incorrect or inaccurate claim of ITC.

 

There may be cases where the recipient has a physical invoice, but it is not available in the GST portal. In such a case, the recipient has to track these missing invoices and also continuously check whether the supplier has uploaded invoices on the portal. This is again an additional responsibility on the recipient despite having paid the tax amount to the supplier.

 

These challenges can lead to impact the relationship between the recipient and the supplier. It is in such circumstances that a B2B marketplace like Amazon Business has helped small and medium businesses ease their GST compliance issues.

 

FAQs for GST Return Filing

 

Is GST return filing mandatory?

Depending on the nature of business being run, all registered businesses need to do monthly or quarterly along with an annual GST return filing in accordance with the Central Goods and Services Tax (CGST) Act, 2017.

 

Do I need to apply for multiple GST registrations?

If your business operates from more than one state, then you need to obtain a separate GST registration for each state. For instance, if your business operates in Maharashtra and Karnataka, then you need to apply for separate GST registration in Maharashtra and Karnataka respectively and accordingly do GST filing.

 

What turnover is to be considered for calculating the GST registration threshold limit?

In order to calculate turnover, aggregate turnover should be taken into account. It refers to the aggregate value of all taxable supplies excluding inward supplies subject to reverse charge, but including exempt supplies, exports of goods or services or both and inter-state supplies of individuals/entities having the same PAN, calculated on an all-India basis. CGST, IGST, UTGST, SGST, and cess are notably excluded while assessing the aggregate turnover.        

             

Can I revise GST returns once filed?

Currently, GST returns once filed cannot be revised. Any error in the return can be rectified or revised in the next GST filing. Direct revision is not possible in GST returns that are auto-generated without provision for editing. 

 

How do I apply for GSTIN?

Goods and Services Taxpayer Identification Number (GSTIN) is part of the GST Registration process. You can apply for GSTIN either via GST Online Portal or via GST Seva Kendra set up by Government of India by submitting the following details:

  • PAN details
  • Mobile number and email address
  • Bank account details
  • Prescribed documents and other information as required

You will be allotted a unique GSTIN number once the application is approved by the GST officer.

 

What is the penalty for not filing GST?  

Not paying tax, failing to do GST filing or making incorrect payment amount (genuine errors) attracts penalty of 10% of the due tax amount, subject to a minimum of Rs.10,000. In case of deliberate evasion of tax filing or payment, the penalty will be 100% of the tax amount due.

 

Benefits of partnering with Amazon Business

 

The biggest benefit of partnering with Amazon Business is that businesses make all their B2B purchases compliant with the GST bill. At the time of registering with Amazon Business, one needs to fill in their GST number. After having registered using the GST number, one can use the GST Invoice Filter to view items that have GST compliant invoice. The GST filter allows businesses to connect with only registered GST vendors leading to seamless business transactions. Businesses can also compare GST inclusive and exclusive prices to calculate discounts from input tax credit from the GST invoice. They can look for a GST Invoice badge on the product detail page to make sure the product comes with a GST compliant invoice.

 

By updating their GST number with Amazon, Business customers can explore lakhs of products with GST Invoices offered by Business sellers. They can file the GST Invoices for returns through GST portal, and claim input tax credit on their business purchases. Furthermore, they can save up to 28% on businesses purchases by claiming GST input tax credit.

 

Most items on Amazon Business come with a downloadable invoice. Items that have a downloadable invoice will contain a text that reads: GST invoice on their product detail page. For items that do not have the downloadable invoice, it can be requested from the seller. Invoices become available 24 hours after the order is shipped. To view the invoice for an individual order, go to the “Your Orders” section and select Invoice. The Business Analytics Feature of Amazon Business also helps to track orders and create reports based on the business needs. With this feature, one can also download invoices and other order documents.

 

 Overall, Amazon Business plays an important role in easing the pain points experienced by small and medium businesses with their GST compliance. Amazon Business allows businesses to take advantage of its features and benefits for a seamless experience without dedicating specific personnel to handle GST-related documentation. Create a free Amazon Business account now and enjoy a hassle-free buying experience.

 

 

Read More

1) Advantages and Disadvantages of GST for Business, SMEs and Consumers

2) E invoicing: Applications, Advantages, Procedures & FAQs

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