Overview

Goods and Services Tax (GST) return filing is a process through which businesses registered under GST in India report their sales, purchases, and taxes paid to the government. GST is a destination-based tax system that was introduced in India on July 1, 2017, to replace multiple indirect taxes like VAT, excise duty, and service tax. Under GST, businesses are required to file returns periodically based on their turnover. The different types of GST returns that businesses can file include:

• GSTR-1: This return is filed monthly or quarterly and contains details of outward supplies or sales made by the business during the period
• GSTR-2A: This return is generated automatically by the GST portal and contains details of inward supplies or purchases made by the business from registered suppliers
• GSTR-3B: This is a monthly return that summarises the tax liability of the business and the tax paid during the period
• GSTR-4: This return is filed by businesses registered under the Composition Scheme and contains a summary of sales made and tax paid during the period
• GSTR-5: This return is filed by non-resident foreign taxpayers who come to India for business purposes
• GSTR-6: This return is filed by Input Service Distributors (ISD) who receive invoices containing details of input tax credit
• GSTR-7: This return is filed by businesses who are required to deduct tax at source (TDS)
• GSTR-9: This return is an annual return that contains details of sales, purchases, and taxes paid during the financial year
• GSTR-10: This return is filed when a business cancels its GST registration
• GSTR-11: This return is filed by businesses who have been issued a Unique Identification Number (UIN) for claiming a refund of the taxes paid.

Purpose

The purpose of GST return filing is to provide the government with details of a business's sales, purchases, and taxes paid. The GST return filing process ensures that businesses are compliant with the GST law and pay the correct amount of taxes. Here are some of the key purposes of GST return filing:

• Tax compliance: GST return filing ensures that businesses are compliant with the GST law and pay the correct amount of taxes. It helps the government keep track of businesses that are registered under GST and their tax liabilities.
• Transparency: GST return filing ensures transparency in the tax system as it provides the government with details of a business's sales and purchases. This helps to reduce tax evasion and promotes a fair and transparent tax system.
• Refunds: Businesses can claim refunds of the taxes paid on their purchases by filing GST returns. The GST return filing process helps to ensure that businesses receive their refunds in a timely manner.
• Data analytics: The data collected through GST return filing can be used for data analytics by the government. This helps to identify trends in the economy and make informed policy decisions.

Benefits

There are several benefits of GST return filing for businesses, which include:

• Ease of compliance: GST return filing simplifies the tax compliance process for businesses by providing a single platform for filing all indirect tax returns. This reduces the compliance burden for businesses and saves time and effort.
• Input Tax Credit (ITC): GST return filing enables businesses to claim Input Tax Credit (ITC) on the taxes paid on their purchases. This reduces their tax liability and helps them save money.
• Improved cash flow: GST return filing helps businesses to manage their cash flow better by allowing them to claim ITC and get refunds of excess taxes paid. This helps businesses to reduce their working capital requirements and improve their cash flow.
• Avoidance of penalties and interest: GST return filing helps businesses to avoid penalties and interest charges that may be imposed for non-compliance or late filing of returns.
• Increased competitiveness: GST return filing helps businesses to become more competitive by reducing their tax burden and improving their cash flow. This enables them to offer better prices to customers and remain competitive in the market.

Required Documents

The documents required for GST return filing may vary depending on the type of return being filed and the nature of the business. However, some of the common documents that may be required for GST return filing include:

• Invoices: Invoices issued for sales made during the period being reported in the return.
• Purchase invoices: Invoices received for purchases made during the period being reported in the return.
• Bank statements: Bank statements showing transactions related to sales, purchases, and taxes paid.
• Payment receipts: Receipts of payments made towards taxes and other statutory payments.
• Input tax credit (ITC) register: A record of ITC claimed on purchases made during the period.
• Export invoices: Invoices issued for exports made during the period, along with relevant documents like shipping bills and bill of lading.
• E-way bills: E-way bills generated for the movement of goods.
• Challans: Challans generated for the payment of taxes, penalties, and interest.
• Credit/debit notes: Credit or debit notes issued for changes made to invoices.
• Stock registers: A record of stock held at the end of the period.

Registration Procedure

To register for GST return filing, businesses need to follow these steps:

• Visit the GST portal: The first step is to visit the GST portal at www.gst.gov.in.
• Click on "Register Now": On the homepage, click on the "Register Now" button under the "Taxpayers (Normal)" tab.
• Select the type of taxpayer: Next, select the type of taxpayer you are registering as, such as regular taxpayer, composition taxpayer, or non-resident taxpayer.
• Fill in the details: Fill in the required details in the registration form, including business name, PAN, email ID, and mobile number.
• Verification of mobile and email: Once the details are submitted, a One Time Password (OTP) will be sent to the registered mobile number and email ID. Verify these details to proceed.
• Provide additional information: Next, provide additional information, such as business address, nature of business, bank account details, and details of the authorized signatory.
• Submit the application: Once all the details are provided, submit the application for GST registration.
• Verification: After submission, the GST officer will verify the application and may ask for additional documents or information. Once the verification is complete, the GST registration certificate will be issued.

Non-filing or late filing of GST returns

Non-filing of GST returns or late filing of returns can attract penalties and interest charges. The penalties for non-filing or late filing of GST returns are as follows:

• Late fee for GSTR-3B: A late fee of Rs. 50 per day (Rs. 20 for NIL returns) is levied for late filing of GSTR-3B. The maximum late fee is capped at Rs. 5,000.
• Late fee for other returns: A late fee of Rs. 100 per day (Rs. 25 for NIL returns) is levied for late filing of other GST returns, such as GSTR-1, GSTR-5, and GSTR-6. The maximum late fee is capped at Rs. 5,000.
• Interest charges: Interest is levied at the rate of 18% per annum on the outstanding tax liability for delayed payment of taxes.
• Penalty for non-filing of returns: A penalty of Rs. 10,000 or 10% of the tax due, whichever is higher, can be levied for non-filing of GST returns.

Why approach LAWYASA?

• Expertise: Lawyasa has a team of experienced professionals who are well-versed in GST laws and regulations. We can help you with accurate and timely filing of GST returns, ensuring compliance with the relevant laws.
• Time-saving: By outsourcing your GST return filing to Lawyasa, you can save time and focus on other important aspects of your business.
• Cost-effective: Lawyasa offers affordable and transparent pricing for its services, which can be more cost-effective than hiring a full-time accountant or tax professional.
• Ease of use: The platform is user-friendly and easy to navigate, allowing you to upload your documents and complete the filing process quickly and efficiently.
• Support: Lawyasa provides round-the-clock support and assistance to its clients, helping them resolve any issues or queries related to GST return filing.

How can LAWYASA assist?

Lawyasa can assist you in GST return filing in the following ways:

• Registration: Lawyasa can help you with the registration process for GST, which is a prerequisite for filing GST returns.
• Classification: Lawyasa can assist you in determining the correct GST rate for your goods or services, ensuring compliance with the GST laws.
• Record-keeping: Lawyasa can help you maintain proper records and documents, which are essential for filing accurate GST returns.
• Preparation and filing of returns: Lawyasa can help you prepare and file your GST returns accurately and on time, saving you time and ensuring compliance with the GST laws.
• Compliance: Lawyasa can help you comply with the various rules and regulations related to GST returns filing, such as late fees and penalties, to avoid any legal issues.
• Expert advice: Lawyasa has a team of experts who can provide you with advice and guidance on GST laws and regulations, helping you make informed decisions about your business.

Frequently Asked Questions