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Introduction:

On July 1, 2017, India instituted the Goods and Services Tax (GST), a comprehensive indirect tax overhaul aimed at streamlining previous levies such as service tax, Value Added Tax (VAT), excise duty, among others. GST applies to the supply of both goods and services, with charges imposed at each transaction point.

All businesses and traders registered under Goods and Services Tax have to file a GST return, irrespective of whether they have carried out any business activity during the tax period. In cases where there is no activity, they are forced to return zero funding. It is therefore important to understand the GSTR filing procedure, study the relevant GSTR form and familiarize yourself with the official Goods and Services Tax website. Keep reading to learn about these products to win a self-filing GST return.

GST : 

All goods and services sold in India are subject to Goods and Services Tax , distinguishing it from previous indirect taxes as it is collected at the point of use rather than the point of origin. In essence, GST is a multi-stage, destination-based tax applied to all value additions.

The GST system works as follows.

• The manufacturer is required to pay Goods and Services Tax on the raw materials procured.
• In this scenario, the service provider is obligated to pay GST on both the price of the goods and the value added. Conversely, the manufacturer can offset their tax liability by deducting the GST already paid on raw materials from the total amount owed.
• The consumer is responsible for paying GST on the purchased product.
• The retailer is required to pay Goods and Services Tax on both the items purchased from the distributor and the margin incorporated. However, the retailer can offset their tax liability by subtracting the Goods and Services Tax already paid from the total amount owed.

Types of GST:

There exist four types of GST:

• Central Goods and Services Tax (CGST) is imposed on the supply of goods and services that occur within the same state or territory.
• State Goods and Services Tax (SGST), similar to CGST, is imposed on goods and services sold within a state.
• Union Territory Goods and Services Tax (UTGST) is applied to goods and services in any of the country’s Union Territories, such as Daman and Diu, Andaman and Nicobar Islands, Lakshadweep, Dadra and Nagar Haveli, and Chandigarh. In conjunction with UTGST, CGST is also levied.
• Integrated Goods and Services Tax (IGST) is imposed on interstate sales of goods and services.

Benefits of GST:

• Among many, the following are the primary advantages of Goods and Services Tax :
• Ensures consistency in tax rates and structures.
• Clears the path for establishing a unified national market.
• Eliminates the cascading or compounding effect of multiple taxations.
• Compliance is simplified.
• Payment of a single, transparent tax is facilitated.
• It reduces the burden on taxpayers.
• Enhanced compliance leads to increased revenue collection.

Eligibility of GST:

• The following entities and individuals are required to register for GST:
• Individuals who sell through e-commerce aggregators.
• Businesses exceeding the threshold revenue limit.
• Individuals registered prior to the implementation of the Goods and Services Tax law.
• Non-residents of the United States who pay taxes.

GST Registration Process:

Any company eligible for Goods and Services Tax must register through the Government of India’s GST portal. Upon registration, each entity is assigned a unique registration number known as GSTIN.

• The following points outline the online process for GST registration:
• Access the online Goods and Services Tax registration portal.
• Complete all mandatory fields and then click ‘Continue’.
• Once submitted, you will receive an OTP on your registered mobile number or email ID. Enter the OTP and generate a temporary reference number (TRN).
• After proceeding to the next step, paste the generated TRN and captcha into the specified field.
• Next, you will need to enter your business information, including business name, owner name, business start location, etc. Click ‘SAVE & CONTINUE’ to proceed
• Next, provide details regarding your business proprietorship.
• Finally, insert your digital signature, then submit.
• In the following windows, you will need to input information about your place of business, the nature of goods and services, bank account details, etc.
• When you submit the aforementioned information, an Application Reference Number (ARN) will be generated and sent to your registered mobile number or email ID. You can use this ARN to check the status of your GST application.
• Goods and Services Tax registration is mandatory for all service providers, buyers, and sellers. Businesses with a total income of Rs. 20 lakhs or more in a fiscal year are required to register for GST. The processing time typically ranges from 2 to 6 working days.
• GSTIN is a unique 15-digit code assigned to each taxpayer, which is generated based on your PAN and state of residence.

GST Certificate:

• A GST Certificate is an official document issued by the relevant authorities to businesses registered under the Goods and Services Tax system. Any business with an annual turnover of Rs. 20 lakh or more, as well as certain special businesses, must register under this system. Form Goods and Services Tax REG-06 is utilized for issuing the Goods and Services Tax registration certificate. If you are a registered taxpayer under this system, you can obtain your GST Certificate from the GST Portal. It is important to note that the certificate is not physically issued but is available only in digital form.
• The Goods and Services Tax certificate includes GSTIN, legal name, business name, business code, address, registration names, date of liability, validity period, approved Goods and Services Tax contractor details, signature, consent authority details, date of issue.

GST Return:

A GST return is a document that compiles details of all income/sales and/or expenses/purchases that a GST-registered taxpayer (each GSTIN) must file with the tax administrative authorities. It serves as the basis for tax authorities to calculate the net tax liability.

Under GST, it is a registered retailer that files a Goods and Services Tax return, including: Purchase Sale: Output GST (on sales) . Input Tax Credit (GST on purchases) .

Who Needs to Submit the GST Returns:

Under the Goods and Services Tax regime, standard businesses with an annual aggregate turnover exceeding Rs. 5 crore (and taxpayers not enrolled in the QRMP scheme) are required to file two monthly returns along with one annual return, totaling 25 returns annually.

Taxpayers with turnovers of up to Rs. 5 crore have the choice to file returns under the QRMP scheme. QRMP filers are required to submit a total of 9 GSTR filings each year, consisting of 4 GSTR-1 and GSTR-3B returns per quarter, alongside an annual return. It’s important to note that despite filing returns quarterly, QRMP filers are obligated to pay taxes on a monthly basis.

Different types of GST returns :

• There are 13 returns under GST: GSTR-1, GSTR-3B, GSTR-4, GSTR-5, GSTR-5A, GSTR-6, GSTR-7, GSTR-8, GSTR-9, GSTR-10, GSTR-11, CMP-08, and ITC-04. However, not all returns are applicable to the every taxpayer. Taxpayers file returns based on their type of taxpayer or the type of registration obtained.
• GSTR-1 entails the particulars of outward supplies of taxable goods and/or services made. It’s filed monthly by the 11th of the following month. For those opted under the QRMP scheme, it’s filed quarterly by the 13th of the month succeeding the quarter.
• IFF (Optional for taxpayers under the QRMP scheme) captures the specifics of B2B supplies of taxable goods and/or services made. It’s filed monthly for the initial two months of the quarter, due by the 13th of the subsequent month.
• GSTR-3B is a concise summary return reflecting outward supplies and claimed input tax credit, accompanied by tax payment by the taxpayer. It’s due monthly by the 20th of the following month. For taxpayers under the QRMP scheme, it’s due either on the 22nd or 24th of the month succeeding the quarter.
• GSTR-4 is the return applicable to a taxpayer registered under the composition scheme as per Section 10 of the CGST Act. It’s filed annually by the 30th of the month following the financial year.
• GSTR-5 is the return designated for non-resident taxable persons. It’s filed monthly, originally due by the 20th of the following month, with an amendment proposed to advance the deadline to the 13th, pending notification by CBIC as per Budget 2022.
• GSTR-5A is the return required to be filed by non-resident OIDAR service providers. It’s filed monthly by the 20th of the following month.
• GSTR-6 is the return filed by an input service distributor to distribute eligible input tax credit to its branches. It’s a monthly filing due by the 13th of the following month.
• GSTR-7 is a return to be filed by registered persons who deduct tax at source (TDS). Thereafter, mail is sent every month by the 10th of the month.
• GSTR-8 is the return filed by e-commerce operators, providing details of supplies made and the amount of tax collected at source. It’s a monthly filing due by the 10th of the following month.
• GSTR-9 is the annual return filed by a regular taxpayer. It’s due annually by the 31st of December of the next financial year.
• GSTR-10 is the final return to be filed by a taxpayer upon cancellation or surrender of their Goods and Services Tax registration. It’s filed once, within three months from the date of cancellation or the date of the cancellation order, whichever is later.
• GSTR-11 entails the details of inward supplies to be furnished by a person having a UIN and claiming a refund. It’s a monthly statement due by the 28th of the month following the month for which the statement is filed.

GST Login:

• To file Goods and Services Tax Returns, Goods and Services Tax Registration must be completed first. Once registered, go to the Goods and Services Tax portal and file your return. Read on to know the step-by-step process of introducing Goods and Services Tax .
• After logging into the Goods and Services Tax portal, you will be redirected to the Goods and Services Tax dashboard web page, where you can access the following resources.
• Once logged into the GST portal, navigate to the “Services” tab located on the Dashboard.
• Select “Returns Dashboard” in the “Services” menu.
• Choose the “Financial Year” and the “Return Filing Period,” then click “Search.”
• Tiles representing all the available Goods and Services Tax returns for filing are displayed separately. Choose the Goods and Services Tax return you wish to file by clicking either the “Prepare Online” or “Prepare Offline” button within the respective tile.
• You have two options for submitting your Goods and Services Tax return: online by clicking on the “Prepare Online” button or using the Goods and Services Tax offline tools utility by clicking on the “Prepare Offline” button.
• Enter the necessary information in the online GSTR form or the GSTR offline tool. Remember, for the offline utility form, you must upload the completely filled form by clicking on the “Prepare Offline” button.
• After entering all the details into the Goods and Services Tax Return form, save and submit it.
• Once you have submitted all the relevant information, proceed to pay your GST online using the appropriate invoice.
• If you are successful, you will receive a “Filing Successful” message with an Approval Reference Number (ARN). Be sure to note the ARN for future reference.
• To check the return filing status, navigate to Services > Returns > Returns Dashboard. Then, choose the Financial Year and return filing period before clicking “Search.” This action will display all relevant GSTR forms alongside their filing status.
• Penalty for not filing Gst return:
• If Goods and Services Tax returns are not filed within the specified period, you may have to pay interest and late fees.
• Interest calculated at 18% per annum must be counted against the tax rate of the taxpayer. This calculation starts from the day after the claim is filed until the date of payment.
• Late fees amount to Rs.100 per day per Act, resulting in Rs.100 under CGST and Rs.100 under SGST, totaling Rs.200 per day, with a maximum cap of Rs.5,000. Please note that this regulation applies from the month of/quarter ended June 2021.

Final Word:

The cascading effect of Goods and Services Tax on the sale of goods and services has been significantly reduced. This elimination of cascading has influenced the cost of goods, as the Goods and Services Tax regime eliminates tax-on-tax scenarios, leading to reduced prices. Additionally, Goods and Services Tax is predominantly facilitated by technology. All tasks, including registration, refund application, return filing, and responses to notices, must be conducted online via the GST portal, expediting the entire process.