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Step by Step process of Filing GST in India

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How to File GST

What is GST Return?

A return is a document containing details of income which a taxpayer is required to file with the tax administrative authorities. This is used by tax authorities to calculate tax liability.

Under GST, a registered dealer has to file GST returns that includes:

Purchases

Sales

Output GST (On sales)

Input tax credit (GST paid on purchases)

Under the new GST regime, GST registration would be required for all enterprises involved in the buying or selling or delivery of services exceeding Rs.10 lakhs a year in north-eastern and hill states, while the limit is Rs.20 lakhs for rest of India. All entities having GST registration would be required to file GST returns. GST return filing would be mandatory for all GST registered entities irrespective of if there was any activity / sale during the return filing period.

Advantages of GST

Subsuming of Taxes - Under GST ,many of the taxes in existence today would be subsumed and made into one tax. this would make tax collection and compliance esay fof businesses across.

Ease of doing Business - Under GST, the distinction between goods and services will be gone – making doing business easy.

Lower Taxes - Under GST regime, GST liability accrues only if an entity crosses an annual turnover of Rs.10 lakhs in northeast or hill states, whereas for rest of India, the threshold is set at Rs.20 lakhs.

Larger Tax Base - GST will use the latest in technology, including data from Aadhaar database, PAN database, etc., to make GST registration and GST return filing process, as seamless as possible.

How to file GST return online in India?

1. Filing of GST return is not a simple task rather it is a very complicated procedure. Hence, one should purchase a software to file the GST return online. Basically, there are three steps to file the GST return online:

2. Upload Invoices before making Supply -As per GST law, every registered person need to upload the invoices on the GST portal against which they will be issue invoice reference number.

3. Matching of Return - Under GST, each return is matched with another return and if there is any difference, they you must edit, modify and correct it.

4. File GSTR 1, GSTER 2,GSTR3- Once invoices are uploaded on the software, you need to file the 3 GSTRreturn online, i.e. Outward return, Inward return and cumulative monthly return. After filing, if there is any error, then you must correct it and refile the return.

Who Should  file GST Return?

Registered persons who are taxable under GST are required to file GST returns. Therefore, any registered person who has obtained registration but has not crossed the exemption limit (i.e., Rs.20 lakhs across India, except for Northeastern and Hill states wherein its Rs.10 lakhs) will not be required to file GST return until they cross the exemption limit. However, once the exemption limit is crossed and the taxpayer begins filing GST returns, even if there is no taxable supplied made or received during a period, the taxpayer is required to file a NIL return. Hence, not filing GST return is not an option and without filing the return of a period, next return cannot be filed.