GST filing refers to the process of submitting tax returns and other related documents to the tax authorities as per the requirements of the Goods and Services Tax (GST) system. It is a crucial responsibility for businesses registered under GST. GST filing involves providing details of sales, purchases, output and input taxes, and various other transactions within a specified period. By complying with GST filing requirements, businesses ensure transparency, maintain accurate records, and fulfill their tax obligations. Proper and timely GST filing helps avoid penalties, stay compliant with the tax laws, and contribute to the smooth functioning of the GST system, benefiting both businesses and the government.
GST return filing ensures businesses' compliance with tax laws and regulations. It is a legal requirement for businesses to accurately report their sales, purchases, and tax liabilities to the tax authorities. By fulfilling this obligation, businesses avoid penalties, fines, or legal consequences.
GST return filing allows businesses to claim input tax credit on their eligible purchases. Input tax credit refers to the tax paid on inputs (purchases) that can be offset against the tax liability on outputs (sales). By accurately reporting their purchases and claiming input tax credit, businesses can reduce their overall tax liability and improve their cash flow.
GST return filing promotes transparency and accountability in the tax system. By providing detailed information on sales, purchases, and tax payments, businesses contribute to the creation of a transparent and traceable tax ecosystem. This helps prevent tax evasion, promotes fair competition, and strengthens the overall tax administration.
Regular GST return filing allows businesses to track their tax liabilities and manage their cash flow effectively. By accurately reporting and remitting the GST amount due, businesses can plan their finances better, ensuring they have sufficient funds to meet their tax obligations. This helps prevent any unnecessary financial strain or liquidity issues.
Consistent GST return filing builds the credibility and compliance rating of a business. It demonstrates the business's commitment to following tax regulations and fulfilling its tax obligations. A good compliance rating can enhance the business's reputation, foster trust among stakeholders, and potentially open doors to new business opportunities.
Timely and accurate GST return filing reduces the risk of penalties, interest charges, and audits by the tax authorities. By meeting the filing deadlines and providing accurate information, businesses minimize the chances of being flagged for non-compliance. This ensures peace of mind and avoids potential disruptions to business operations.
GST return filing simplifies the process of interstate trade and expands business opportunities. Under the GST system, businesses can claim input tax credit on inter-state purchases, making it financially viable to engage in trade across state borders. GST return filing ensures compliance with the necessary regulations, facilitating seamless business expansion.
GST return filing generates a wealth of data that businesses can utilize for analysis and decision-making. The detailed information on sales, purchases, and taxes paid provides valuable insights into the business's financial performance, market trends, and customer behavior. Businesses can use this data to identify opportunities for growth, optimize operations, and make informed business strategies.
Every registered person is required to file the GST returns as follows:
There are separate returns required to be filed by special cases such as composition dealers whose number of GSTR filings is 5 in a year.
GSTR return | Type | Due Date |
GSTR-1 | Details of outward supply of goods or services to be filed monthly or quarterly. | Due date is 11th /13th of the following month (In general deadlines) |
GSTR-3B | Monthly return containing details of taxes collected on outward supplies and details of taxes paid on input supplies. (No invoice level details) Note: The return is to be filed even if there is no business activity for any period under tax (Nil return in such cases). | Due date is 20th of the following month. |
GSTR-4 | Return for the composite dealer (Quarterly)
| - |
GST CMP-08 | Quarterly self-assessed statement-cum-payment by composition dealers. | - |
GSTR-5 | Goods and Services Tax Return of non-resident taxable person | - |
GSTR-5A:
| Particulars of supplies of online information and database access or retrieval services by a person located outside India to a non-taxable person in India.
| GSTR 5A return is to be filed within 20th day of the succeeding month. |
GSTR-6
| Return for input service distributor | GSTR 6 is to be filed before13th of next month. |
GSTR-6A | Detail of supplies auto drafted from GSTR 1 and GSTR 5 to Input service distributor: | - |
GSTR-7 | Return for tax deducted at source | The return has to be filed on 10th of the following month |
GSTR-8 | Particulars of tax collection at source | GSTR 8 filing for a month is due on 10th of the following month |
GSTR-9 | Annual Return | GSTR-9 has to be filled on or before 31st December of the following Financial year. |
GSTR-9C:
| Return of registered person whose annual turnover exceeds ₹ 2 Crore | GSTR-9 has to be filled on or before 31st December of the following Financial year |
GSTR-11 | Inward supply of person having Unique Identity Number
| - |
The business gathers all the necessary information and documents related to its sales, purchases, input and output taxes, and other relevant transactions for the specified reporting period.
The business organizes and prepares the collected data in a structured format compatible with the GST filing requirements. This may involve categorizing transactions, applying appropriate tax rates,and completeness of the data.
Based on the prepared data, the business calculates the GST liabilities and input tax credits, taking into account applicable exemptions, deductions, and thresholds as per the GST laws.
The business logs into the GST filing software or portal provided by the tax authorities. It enters the calculated GST liabilities and input tax credits in the relevant sections of the form or online platform.
The business reviews the entered data for accuracy and completeness. It ensures that all required fields are filled correctly and cross-checks the figures to avoid any discrepancies or errors.
Once the data is verified, the business submits the GST return through the filing software or portal. It confirms the submission and obtains a reference number or acknowledgement for future reference.
If there is any tax liability after adjusting input tax credits, the business makes the necessary payment to the tax authorities through the designated payment modes specified by the GST system.
The business reconciles its filed GST returns with its accounting records and financial statements to ensure consistency and accuracy between the two.
The business maintains copies of the filed GST returns, payment receipts, and supporting documents for future reference and audit purposes. It ensures compliance with record-keeping requirements as mandated by the GST laws.
The above steps are repeated for each reporting period, typically monthly, quarterly, or annually, depending on the filing frequency applicable to the business.
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