GST Returns: How to file them and what you need to know
Given how people seem to have an amorphous idea of what the Goods and Services Tax (GST) is, it is understandable that most people are totally unfamiliar with filing GST returns.
Before delving deeper into the subject, you ought to know what the GST is. GST, at its core, is a comprehensive, indirect tax levied on providers of goods and services. The Goods and Services Tax was implemented in place of the previous tax regime that had a variety of taxes under it, such as excise duty, service tax, and more. If you are a supplier of goods or services in the GST era, you will have to carry out a GST online registration and obtain a Goods and Services Tax Identification Number (GSTIN).
What are the types of GST returns that you should file?
If you are confused as to how GST returns work and what they entail, this should clear things up for you:
This GST return needs to be paid by every normal taxpayer every month unless you are a small taxpayer or your business’s turnover is 1.5CR. If this is the case, you will have to file your GST return quarterly.
GSTR-2A is merely a read-only return.
The GSTR-2 return is suspended.
This GST return is generated based on your GSTR-1 and GSTR 2 returns.
If you are a normal taxpayer under the GST tax structure, you will have to file the GSTR-3B every month.
GSTR-4 / CMP-08
If you are a part of the composition scheme under GST, you will have to file this GST return. As per the Composition Scheme, if you are the owner of a business that yields a turnover of 1.5CR or more every year, you may fix a specific GST tax rate on your turnover.
If you are a non-resident foreign taxpayer, you ought to be aware of this GST return. If you reside outside India but run a business in the country under the GST regime, you will need to file the GSTR-5 return every month.
You will need to file this GST return as an Input Service Distributor. Be sure to include all the information regarding Input Credit Distribution and System of Distribution.
You must file this return every month to deduct TDS.
The GSTR-8 must be filed every month if you are an E-commerce operator with a Goods and Services Tax Identification Number (GSTIN) under the GST regime and have to make tax collections at the source.
You need to file the GSTR-9 tax return every year with details like CGST, SGST, and IGST.
If you are a taxpayer under the GST composition scheme during 2017-2018 and 2018-2019, this GST return is waived off for you.
If you have an annual turnover of over two crores, you will have to file this GST return.
This return must be filed if your GST registration is canceled. Make sure you file this return within three months from the date of cancellation.
This return concerns those who have a GSTIN. Keep in mind that this is mainly for foreign diplomats and embassies who are not liable to make tax payments in the country.
How do you file GST returns online?
If GST return filing confuses you, follow these steps:
- Head over to the GST portal online.
- You should have a 15-digit GSTIN based on your state code and Personal Account Number (PAN).
- Be sure to upload your invoices on the GST portal. Each invoice will have a corresponding reference number.
- Once you upload the invoices, you need to file the outward returns, inward returns, and cumulative returns. Be sure to correct any errors you find.
- Make sure you file the outward supply returns in the GSTR-1 form via the information section you find on the GSTN portal on or before the 10th of the upcoming month.
- The recipient will find the details of the outward supplies furnished by the supplier on the GSTR-2A form. The recipient then needs to verify, validate, and modify the outward supply details. Additionally, the recipient needs to furnish the inward supply details of the goods and services in the GSTR-2 form.
- The supplier can choose to accept or reject the modifications made on the inward supply details by the recipient in the GSTR-1A form.
This should give you a decent idea of how to go about filing your GST returns as a beginner.