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Struggling With Taxes? Understand How To Correctly File GST For Your Business

The goods and services tax (GST) has made India one unified market and came into effect on 1st July 2017. The indirect tax reform has undoubtedly simplified the tax return process by integrating the sellers’ and buyers’ information about goods and services. But as this is a completely new regime, many business owners are struggling to file their taxes.

To regulate and smoothen the process, a GST council has been set up by the government to implement the regulations required for a smooth transition from the old taxation system to the new taxation system.

The GSTN Portal

The GST council, along with the finance ministry, came up with a mechanism of gstn portal (goods and services tax network portal) where the taxpayers can duly report all the details about invoices, buying, selling, date, and location.

This serves as a smooth platform to taxpayers registered under GST to get interlinked and easily avail and file the GST return form, claim Input Tax Credit (ITC) and so on, all in accordance to the taxpayers’ category they fall under.

Therefore, you just have to find out which category you fall under and proceed with filing your tax returns. Under the new regime, you are liable to file the GST returns if you are running your business across India, whether interstate or intrastate.

What Is A GST Return?

A GST return is a document with the taxpayer’s income details that need to be filed with the income tax authorities. Your tax liability is also calculated using the GST return. Your GST return must include purchases, sales, output GST on sales and input tax credit.

You will be GST compliant only if you file your tax returns within the prescribed time frame. For this, you must know the different types of GST returns for your business venture.

How To File GST For Your Business?

The process of filing GST online is very simple. Go to the GST portal (www.gst.gov.in) and obtain a GST Identification Number (GSTIN). It is a 15-digit number based on your state code and your PAN number. Upload all the invoices on the portal and start filing your returns.

As per the GST law, there are different types of GST return forms:

GSTR-1

  • It needs to be filed monthly on the 11th of the next month.
  • It needs to contain the details of the outward supplies of the taxable goods and services.

GSTR-2 

  • It has been suspended, and the filing facility is not available at the GSTN portal.

GSTR-3

  • It has been suspended, and the filing facility is not available at the GSTN portal.

GSTR-3B

  • It needs to be filed monthly on the 20th of the next month.
  • This return gets automatically populated by deriving details from the GSTR-1 filed by you.
  • It needs to contain the details of the outward supplies, the input tax credit as well as the amount of tax to be paid by you.

GSTR-4

  • It needs to be filed quarterly on the 18th of the next month after the current quarter.
  • You need to file this return if you are registered as the composition supplier.

GSTR-5

  • It needs to be filed monthly on the 20th of the next month.
  • You need to file this return if you are a non-resident foreign taxable person.

GSTR-6

  • It needs to be filed monthly on the 13th of the next month.
  • You need to file this return if you are an Input Service Distributor.

GSTR-7

  • It needs to be filed monthly on the 10th of the next month.
  • You need to file this return if you are an authority carrying out tax deduction at source.

GSTR-8

  • It needs to be filed monthly on the 10th of the next month.
  • You need to file this return if you are an e-commerce operator. You should submit the details of the supplies and the amount of tax collected by you in your e-commerce business.

GSTR-9

  • It needs to be filed annually on 31st December of the next financial year.
  • This is the annual return that needs to be filed by every taxpayer and is very important for your business.
  • If you are wondering how to file gstr 9, you can turn to Khatabook for advice.

GSTR-9A

  • It needs to be filed annually on 31st December of the next financial year.
  • You need to file this return if you are registered as the composition supplier.

GSTR-10

  • You need to file this return if your GST registration is cancelled or surrendered.
  • It needs to be filed within 3 months of the date of cancellation or date of cancellation order, whichever is earlier.

GSTR-11

  • It needs to be filed monthly on the 28th of the month following the month for which the statement is filed.
  • You need to file this if you have a UIN and are claiming the refund.
  • You need to file the details of inward supplies to claim the refund.
  • UIN – Unique Identification Number is a special class of GST registration under the GST network. This was created for foreign diplomatic missions and foreign embassies as they are not liable to taxes in the Indian Territory. All the taxes – direct or indirect – collected from such entities are refunded back to them.

GST Return Penalty

If you fail to file GST return within the prescribed time frame, you will be liable to pay the interest at the rate of 18% per annum, and you will also be penalised with a late fee.

The interest will be calculated on the amount of tax to be paid by you for the time period from the next day of the due date of filing the return to the date of payment. The late fee amounts to Rs. 200 per day (Rs. 100 for CGST and Rs. 100 for SGST).

However, in an attempt to give the public time to adjust to the new rules, the GST council keeps extending the due dates for filing the GST returns by issuing orders or notifications.

Conclusion

The above is the process of correctly filing of GST for your business. The economy as a whole is equipping itself slowly to get accustomed to the new system of filing taxes. Thus, it is important to keep up-to-date so as to not miss out on any important features of the filing system.

We wish you a smooth and easy process of filing your GST returns!

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