As per the GST law, every individual/Company/LLP registered under the GST Act has to furnish the details of sales, purchases and the tax paid by filing for GST returns with the administrative authorities. As a business person/ firm, one of your first priorities will be to do is GST return filing. Hence, knowing the ropes can help you make the process smoother and simpler. While filing a GST return, you are supposed to provide all the particulars related to your business activities, like the tax liability declarations, tax payments and also any other related information as per instructions provided by the government. The GST return filing process has to be done electronically in the GST portal. A facility has to be offered for the manual process of GST return filing tasks. This facility helps the business taxpayer in India to prepare the return offline and then upload it on GSTN through the facilitation center. There are also various components of GST returns filing that you need to know about. The GST return mainly includes purchases, output GST on the sales, input tax credits as per GST paid while making the purchases, and also includes the total sales. In order to file the GST return, the purchase invoices and GST compliant sales are needed. Ignoring and ignorance, both will attract fines.
Multiple benefits. Multiple domains.
Elimination of the cascading effect
The introduction of GST into the Indian tax system has done away with several other taxes like central excise duty, service tax, customs duty and state level value added tax. Thus a single GST has eliminated the cascading effect of tax on tax .
Higher threshold benefits
Before GST was introduced, VAT or value added tax was applicable for any business that had an annual turnover of 20 lakhs. Services that saw a turnover of less than 10 lakhs did not have to pay service taxes.
Earlier startups with an annual turnover of 5 lakh had to pay VAT which would be very difficult for a business during the initial stages. But as GST has replaced VAT, businesses can set off the service tax on their sales.
E-commerce for quick supply of goods
Startups are making a strong presence online offering their services and products through their websites. Under VAT, there were many types of VAT laws, and the supply of goods through online, that is, E-commerce was never a well-defined one. For instance, if you need to deliver goods to various states, then you will have to file the VAT declaration first. After that, you will need to provide registration details about the trucks which deliver the goods. In many instances, goods end up being seized by the authorities due to lack of proper documents. GST has now removed all such confusing processes.
Regulations and accountability
The pre-GST period witnessed a disorganized tax filing system. Presently, all taxes are paid online and major hassles that were a part of tax filing have been eliminated in the process of introducing GST. This has resulted in industries becoming more accountable and tax filing laws are better regulated than before.
Collection of documents, return preparation, approval and online filing.
Firstly, the taxpayer is required to upload the final GSTR-1 return form (Details of outward supplies made by a taxpayer) either directly through data entry in the GST Common Portal or by uploading the file containing the GSTR-1 return form by the 10th day of succeeding month.
GST Common Portal (GSTN) will be auto-generated in provisional GSTR-2 of a taxpayer.
Purchasing taxpayer will have to either accept, reject or modify the provisional GSTR-2.
Purchasing taxpayer shall be able to add additional purchase invoice details in his GSTR-2 which have not been uploaded by the supplier, to ensure the valid invoice issued by the supplier and receiving of supplies.
Taxpayers will have the option to do reconciliation of inward supplies with suppliers during the next 7 days by following up with their counter-party taxpayers for any missing supply invoices in the GSTR-1 of the suppliers.
Taxpayers will finalize their GSTR-1 and GSTR-2 return.
Taxpayers will pay the amount shown in draft GSTR-3 (Monthly return) return generated automatically generated at the online Portal Post Finalization of activities mentioned above.
The taxpayer will debit the both ITC, cash ledger, and mention the debit entry number in the GSTR-3 return and would submit the same.
Statements, accounts, that’s it.
Total turnover of last financial year
Period for which return is being filed.
Total taxable outward supplies
All outward sales made to end customers value exceeding Rs. 2.5 Lakh
Details of outward sales made to end customers that are below Rs. 2.5 Lakh
Credit note and debit note details.
Exempted, nil GST and non-GST supply details
Export sales details, if any.
Accurate and timely filing.
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Secure and accurate return filing.