What is GST?

GST, the Goods and Service Tax in India have come in force with effect from 1st July 2017 replacing many other indirect taxes prevailing in the country. It is a comprehensive indirect tax based on multi-stage and destination-based and will be imposed on every stage of value addition. Under GST regime, the entire GST registered dealers have to submit GST returns before the regulatory body for compliance of the law.

What is GST Registration?

Business entities with an annual business turnover exceeding Rs.20 lakhs with the exemption for North East and hill states Rs.10 lakhs are the eligible taxable person and required to register for GST assessed. Failing to register is considered as an offense and liable for heavy penalty as per law.

What is GST Return?

GST return is a prescribed form pertaining to the business details to be filled by the assesse and submitted before the GST regulatory body for examining the following business parameters:

  • Purchases
  • Sales
  • Output GST on sales
  • Input tax credit that is GST paid on purchases

For compliance with the filling of returns under GST, there is an imperative need for purchase and sales invoices. There are three monthly returns — GSTR-1, GSTR-2, and GSTR-3 out of which any assesse can fill GSTR-1 manually and the rest two returns are auto-generated through system obtaining data from the GSTR-1 in e filling GST return by your vendor.

What are the Types of GST Returns?

Here is a brief list of all GST returns with the periodicity and the due date for submission against each as per GST Law:

  1. GSTR-1 — outward details of all goods and/or services that have fallen under GST. The periodicity for submission of this return is monthly within the 10th of the immediately following month.
  2. GSTR-2 — inward details of all goods and/or services that have fallen under GST and claiming for input tax credit. The periodicity for submission of this return is monthly within the 15th of the immediately following month.
  3. GSTR-3 — it is prepared on the basis of finalizing the outward and inward details of goods and/or services along with the tax paid. The periodicity for submission of this return is monthly within the 20th of the immediately following month.
  4. GSTR-9 — it is an annual return to be submitted within the 31st December of the next financial year by the taxpayer. It is calculated on the basis of details of total outward supplies and total inward supplies under each tax head during the year under reference. It is also applicable to those taxpayers registered under composition levy scheme.
  5. GSTR -3B — it is a mandatory monthly return to be submitted within the 20th of the immediately following month. The return must show the GSTIN (Goods and Service Tax Identification Number) against each item that you have.
  6. GSTR-4 — a composition dealer has to file this return on a quarterly basis to be submitted within 18th of the month succeeding the quarter showing the compounding taxable position.
  7. GSTR-9A — it is a mandatory annual return to be submitted by a composition dealer within the 31st December of the next financial year.

Published by Tranding Stories