GST Return Filing by Accountant

GST Return Filing by Accountant

GST Return Filing

What is GST Return Filing?

GST Return Filing is the process by which registered businesses report their sales, purchases, and tax liabilities to the Goods and Services Tax (GST) authorities. These returns provide detailed information about the taxable transactions conducted by the business during a specific period and ensure compliance with GST regulations. Filing GST returns is a crucial requirement for all GST-registered entities to maintain transparency, avoid penalties, and avail of benefits like Input Tax Credit (ITC).

Introduction

Under the GST regime in India, businesses are required to file GST returns regularly to report their financial activities related to goods and services. The returns cover various aspects of transactions, including sales, purchases, and tax payments. The process involves submitting multiple types of returns based on the nature of the business and its turnover. Proper and timely filing of GST returns is essential for maintaining compliance, claiming ITC, and avoiding legal complications.

Types of GST Returns

• GSTR-1: Monthly/quarterly return for reporting outward supplies (sales) of goods and services.
• GSTR-2A: Auto-populated return showing the inward supplies (purchases) as reported by suppliers.
• GSTR-3B: Summary return for reporting the monthly/quarterly summary of inward and outward supplies and the tax liability.
• GSTR-4: Quarterly return for taxpayers under the Composition Scheme.
• GSTR-5: Return for Non-Resident Taxable Persons.
• GSTR-6: Return for Input Service Distributors (ISDs) to distribute ITC.
• GSTR-7: Return for authorities deducting tax at source (TDS).
• GSTR-8: Return for e-commerce operators collecting tax at source (TCS).
• GSTR-9: Annual return for summarizing all transactions reported during the year.
• GSTR-10: Final return for taxpayers whose registration has been canceled or surrendered.
• GSTR-11: Return for persons claiming a refund under the GST Refund Rules.

Eligibility Criteria for GST Return Filing

• GST Registration: Must be a registered taxpayer under GST with a valid GSTIN.
• Transaction Threshold: Applicable to businesses based on their turnover and the type of returns they need to file.
• Nature of Business: Certain types of businesses, such as those under the Composition Scheme or e-commerce operators, have specific filing requirements.

Documents Required for GST Return Filing

• GSTIN: GST Identification Number of the business.
• Invoice Details: Sales and purchase invoices, including GST rates and amounts.
• Purchase Register: Records of all purchases including the tax paid.
• Sales Register: Records of all sales including GST collected.
• Bank Statements: Statements for reconciling tax payments.
• Previous Returns: Copies of previously filed returns for reference and cross-checking.

Procedure for GST Return Filing

1. Gather Documentation:
   • Collect all relevant documents, including invoices, purchase and sales registers, and bank statements.
2. Login to GST Portal:
   • Access the GST portal (www.gst.gov.in) using your GSTIN and password.
3. Select the Appropriate Return:
   • Choose the return type to be filed (e.g., GSTR-1, GSTR-3B) based on your filing frequency and requirements.
4. Enter Details:
   • Input details of sales, purchases, and tax liability as per the respective return form.
   • For GSTR-1, provide details of outward supplies. For GSTR-3B, provide a summary of outward and inward supplies, and calculate tax payable.
5. Verify and Validate:
   • Review and verify all entered information for accuracy.
   • Use the GST portal’s validation tool to check for errors or inconsistencies.
6. Submit Return:
   • Submit the return electronically on the GST portal.
   • Ensure that the submission is completed within the due date.
7. Pay Tax Liability:
   • If applicable, make the tax payment before filing the return.
   • Generate and download the challan for the payment made.
8. Acknowledgment and Confirmation:
   • After submission, an acknowledgment (ARN) is generated. Download and save the acknowledgment for records.

Merits and Drawbacks of GST Return Filing

Merits:

• Compliance: Ensures adherence to GST regulations and avoids legal penalties.
• ITC Claims: Allows businesses to claim Input Tax Credit on eligible purchases.
• Transparency: Provides a clear record of tax obligations and payments.
• Reputation: Maintains a positive reputation with tax authorities and stakeholders.

Drawbacks:

• Complexity: Can be complex and time-consuming, especially for businesses with large volumes of transactions.
• Penalties: Late filing or incorrect reporting may result in penalties and interest charges.
• Cost: May involve costs for professional services and GST software.

Key Reminders for GST Return Filing

• Timely Filing: File returns before the due date to avoid late fees and penalties.
• Accurate Reporting: Ensure that all details reported are accurate and supported by proper documentation.
• Regular Reconciliation: Regularly reconcile sales and purchase data to ensure accuracy before filing.
• Track Due Dates: Keep track of due dates for different types of returns to ensure timely submission.

Important Filing Dates and Timelines

• Monthly Returns: Typically due by the 20th of the following month (e.g., GSTR-3B).
• Quarterly Returns: For certain categories, due by the 22nd or 24th of the month following the quarter.
• Annual Return: GSTR-9 is due by December 31 of the subsequent financial year.
• Final Return: GSTR-10 must be filed within three months of the cancellation or surrender of registration.

Fees and Penalty for Late Filing

• Late Fee: A late fee of ₹50 per day (₹25 CGST + ₹25 SGST) is applicable for late filing of returns.
• Interest: Interest at 18% per annum is levied on the amount of tax payable if the return is filed after the due date.
• Penalties: Additional penalties may apply for incorrect or fraudulent returns, as per GST laws.

How CropIndex Supports GST Return Filing Services

At CropIndex, we offer comprehensive support for GST return filing to ensure accuracy and compliance. Our services include:

• Return Preparation: Assistance in preparing and filing all types of GST returns, including GSTR-1, GSTR-3B, and annual returns.
• Document Management: Help in organizing and maintaining the necessary documentation for accurate return filing.
• Timely Filing: Ensure timely submission of returns to avoid penalties and interest.
• Reconciliation Support: Regular reconciliation of sales and purchase data to ensure accuracy before filing.
• Compliance Assistance: Provide guidance on compliance requirements and address any queries related to GST filing.

With CropIndex, you can streamline your GST return filing process, ensuring compliance and efficiency while minimizing the risk of errors and penalties. This guide provides a comprehensive overview of GST return filing, including the process, types of returns, and key considerations. Partnering with CropIndex ensures that your GST return filing is handled efficiently and in compliance with all regulatory requirements.