What is GST Return and GST Return Filing?

GST or Goods and Services Tax is a consumption-based single taxation system on the supply of goods and services. It is a pan-India tax with two components, the Central GST and the State GST, thus allowing the central government and the states to levy tax across the supply chain. The filing of GST Return is an online process, and manual filing is not allowed.

The GST Return is a document submitted by the GST-registered taxpayer which provides details about income, sales, expenses and purchases. The eligible taxpayer has to file GST returns every month and once annually.

There are eight types of GST return forms, but most of the average taxpayers have to use only four forms, which include GST Return for supplies, GST Return for purchases, monthly GST Returns, and annual GST Returns.

Know More About What is GST?

What is the GST Return?

The GST Return is a document required to be submitted by the GST-registered taxpayers. It provides details about the income, sales, expenses and purchases. The taxpayer has to file a single return document for all GST taxes, including Central GST (CGST), State GST (SGST), Integrated GST (IGST), and GST Compensation Cess.

The basic features of the GST return include:

• GST envisaged electronic filing of returns,
• Uploading of invoice-level information,
• Auto-population of information relating to ITC from returns of the supplier to that of the recipient,
• Invoice level information matching,
• Autoreversal of input tax credit in case of a mismatch.

The GST returns are to be filed through an online process through any of the following methods: GSTN portal at www.gst.gov.in, through offline utilities provided by GSTN, and through GST Suvidha Providers (GSPs).

Any error or omission in the GST return can be rectified by filing a credit note or a debit note before filing the relevant annual return or before filing the return for September of the next financial year, whichever is earlier.

Penalty for Late Filing of GST Returns

The penalty for late filing of GST return, other than annual returns, includes a late fee of ₹100 per day till the returns are filed up to a maximum amount of ₹5000 per tax period. The penalty for late filing of an annual return is ₹100 per day till the return is filed, up to a maximum of 0.25% of aggregate turnover.

Penalty for Non-Filing of GST Returns

The penalties for non-filing of the GST returns depend on the type of situation and the defaulters. Here is how the non-filing of GST returns is penalised:

• If the supplier has not filed the GST return, then the input tax credit claimed by the recipient will be reversed in the next return filed by the recipient.
• If the recipient has not filed the GST return, then the output tax liability will be added to the corresponding output tax liability of the supplier in the next return.
• If a regular dealer has not filed the GST return for 6 consecutive tax periods, the dealer’s registration will be cancelled.
• If a composition dealer has not filed the GST return for 3 consecutive tax periods, the dealer’s registration will be cancelled.

Types of GST Returns

There are ten types of GST returns, which are described in the table below.

How to File GST Returns?

If you want to file GST returns, you will have to follow the steps detailed below.

1. Visit the GST website and log in with your username and password.
2. Click on the “Return Dashboard” and select the financial year and return filing period.
3. Select the GST return type and fill in the required details. Save and submit the details.
4. Once you submit the details, check if the return status has changed to “Submitted”.
5. Click on “Payment of Tax” and pay the tax.

Document Required for GST Return Filing

The documents needed to file GST returns are:

• GSTIN
• Invoices
• HSN Summary
• Additional Summary

Conclusion

GST is a pan-India taxation system on the supply of goods and services. The eligible businesses are required to register under the GST and get their 15-digit unique GST Identification Number (GSTIN). The taxpayers need to know how to file GST returns and which type of GST return filing is needed to be submitted by them. The businesses that file late GST returns or fail to file their GST returns are penalised under the GST law. So, it is always wise to file the GST return on time with all the proper documents to avoid being on the wrong side of the law.

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