A Detailed Description on How to File GST Return

 

In the Indian context, Tax refers to the financial charges imposed by the government on individuals, businesses and other entities to fund public expenditure and government activities. Basically the taxes are levied to generate revenue which is used to finance public services, infrastructure, social welfare programs, defence and other essential functions of the government. Tax plays a crucial role in the functioning of the government and significantly contributes to the welfare and development of the nation. There are different types of taxes including the Direct Tax which covers the Income tax, and corporate tax. And the Indirect Tax which covers the GST, Customs Duty and the Excise Duty. Taxation has a significant history in India over the centuries, during the rule of various dynasties and empires there were references to tax on agricultural produce, trade and other economic activities. Moving forward, during the mughal empire, there was a well organised revenue system that included taxes on agricultural produce and trade. During the colonial period they imposed the tax on land revenue systems. They also impose the tax on salt, income, and trade to fund the administrative and colonial activities. Post- independence the Income Tax Act was enacted in 1961. Whereas in 2017, a landmark comes with the introduction of GST which makes the complex web of indirect taxes easier and comfortable. GST includes various other aspects that can be understood easily. Types of GST, its features and How to File GST Return, these all details help the people to understand the concept of GST easily. 

 

Today in this blog we will guide you How to File GST Return, and many of its interconnected terms. 

 

GST 

GST stands for Goods and Service Tax and arrived in India in 2017. It is the value added tax that is levied on the supply of goods and services. The main idea of GST is to streamline the taxation system by replacing various indirect taxes with a single tax, making it more straightforward and reducing tax evasion. Each stage of the supply chain is taxed, but only the final consumer bears the burden. It’s like a team effort to make the tax process less complicated. GST is the dual tax structure. GST has many tax slabs for different goods and services like 5%, 12%, 18% and 28%. Some essential goods and services may be taxed at 0% or exempted. Simply, GST has simplified the tax structure and reduced the compliance burden. 

 

Types of GST 

In India, GST can be classified into multiple types that includes each serving specific purpose and that includes – 

1. CGST – CGST stands for Central GST. It is the tax collected by the Central Government on the supply of goods and services within a nation. The revenue that is generated by the CGST goes to the Central Government. 
2. SGST – SGST stands for State GST. The tax collected by the state government for the supply of goods and services within a state. The revenue that is generated goes to the state government. 
3. IGST – IGST stands for Interstate GST. The tax that is applicable on the goods and services between the state and union territory.the revenue that is generated shared by the central government and the designated state. 
4. UTGST – UTGST stands for Union Territory GST. The functioning of the UTGST is similar to the SGST. 
5. Cess – it is the additional tax that is levied on the special goods and services to fund particular projects and initiatives. 
6. Composition Levy – it is not the separate type of GST, but it is applicable on the businesses with turnover less than the specified limit. 

 

GST Return 

GST Return is a document that contains the details of the income that a taxpayer is required to fill with the tax authority. Under the GST regime in India, registered businesses and taxpayers are required to fill in the various types of GST return to provide the information about their sales, purchases and tax payments. The GST returns can be of different types that are filled on various frequencies, that includes- 

 

• Types of GST Return 

• GSTR-1 – Details of the outward supplies by the taxpayer. 

• GSTR-3B – A summary return of self assessed tax liabilities with details of GST paid and input tax credit (ITC) availed. 

• GSTR-4 – Quarterly return filed by the taxpayer registered under the composition scheme. 

• GSTR-9 – Annual return filed by the regular taxpayer. 

• GSTR-9A – Annual return filed by the taxpayer registered under the composition scheme. 

 

• Frequency of Filing 

The frequency of filing the tax return depends on the type of the taxpayer and turnover. Typically returns are filed monthly, quarterly and annually. 

 

• Components of GST Returns 

It includes the details like the outward supplies, inward supplies, tax collected and input tax credit availed. 

 

• Late Filing and Penalties 

Late filing may impose certain penalties and interest may be levied on delayed tax payments.

  

 

How to file GST Return 

Filing GST return in India involves step by step process. The GST filing process may vary based on updates from the GST council, so businesses should stay informed about the changes through the official notifications. Let’s see How to File GST Return – 

 

1. Obtain GST Registration – ensure that the business is registered with the GST, and if not registered online on the GST portal. 

 

1. Choose the appropriate GST Return Form – identify the relevant GST return form based on your business type and turnover.  

 

1. Gather Required Information – Collect all necessary information, including details of outward supplies, inward supplies, and the input tax credit. 

 

1. Access the GST Portal and Select the Filing Option – Log in to the GST portal using the registered credentials. Choose the service tab and navigate to returns. Select the type of return you want to fill.  

 

1. Complete the Return Form – Fill the details in the respective sections of the return form. This may include the sales, purchase, ITC, and other relevant information.  

 

1. Validate and Save – Validate the data entered and ensure accuracy and completeness. 

 

1. Preview and Submit – Preview the form to verify all the details. If accurate then proceed to submit.  

 

1. Payment of Tax – If there is any tax liability then make the payment online through the GST portal 

 

1. Acknowledgement and filing – Once the form is submitted, it generates the acknowledgement receipt. This serves as the confirmation.

 

1. Reconciliation – Regularly reconcile the GST Returns with your financial statements to ensure consistency.