A GST return is a document containing details of income that a taxpayer is required to file with the tax administrative authorities. This is used by tax authorities to calculate tax liability. India, being the world’s 3^rd largest economy, has headed towards a destination-based tax-reporting structure. To simplify the process of filing a GST return, the GST Council has come up with a solution to record all invoices in one place and collate data for the taxpayer.

The processes have been simplified, and many taxes have been removed. The whole nation shall report using the same structure, irrespective of where and how you carry out your business. Here is an article explaining everything about GST return filing, including the due dates for GSTR and the process for checking the status of the same.

GST returns filing is mandatory irrespective of any transaction made or not, as any non-compliance with the same may lead to the disallowance of input tax credit, apart from attracting penalties and interest, etc. Proper filing of information and passing the same on in the returns is a mandatory process for a smooth flow of credit to the last recipient.

GST returns are designed so that all transactions are in sync with each other, and hence no transaction is left unattended between the buyer and the seller. All the data is stored in GSTN, which can be accessed by users or taxpayers at any point in time online. While filing GST returns, the registered dealer should include the details of purchases, sales, output GST (on sales), and input tax credit (GST paid on purchases). In this article, all you need to know about how to file GST return online.

What is GST (Goods and Service Tax)? 

The goods and services tax (GST) is a value-added tax levied on most goods and services sold for domestic consumption. The GST is an indirect tax paid by consumers, but it is remitted to the government by the businesses selling the goods and services. In effect, GST provides revenue for the government via various GST return filings.

Who should file the GSTR?

In the GST regime, any regular business that has obtained GST registration has to file two monthly returns and one annual return. There is a clear system where one has to manually enter the details of one monthly return, GSTR-1. The other returns, GSTR 3B, will get auto-populated by deriving information from GSTR-1 filed by you and your vendors.

Here is a step-by-step guide on how to file a GST return online :

1. Visit the GST portal : The GST portal is the official website for GST registration and return filing. You can visit the website and log in with your credentials to file your GST return.
2. A 15-digit GST identification number will be issued based on your state code and PAN number. The GST identification number is a unique identification number that is issued to every taxpayer who registers under GST. It is a 15-digit alphanumeric code that is based on your state code and PAN number.
3. Upload invoices on the GST portal or the software. An invoice reference number will be issued against each invoice: You can upload invoices on the GST portal or the software provided by GSTN. After uploading invoices, an invoice reference number will be issued for each invoice.
4. After uploading invoices, file the return using either of the following methods:

• File GSTR-1 using details of outward supplies of goods or services: GSTR-1 is a monthly or quarterly return that contains details of all outward supplies made by you during the month or quarter.
• File GSTR-2 using details of inward supplies of goods or services: GSTR-2 is a monthly or quarterly return that contains details of all inward supplies received by you during the month or quarter.
• File GSTR-3 using the details of the monthly return: GSTR-3 is a monthly return that contains details of all outward and inward supplies made by you during the month.

What documents are needed at the time of filing the GST return online?

The following documents are essential for the GST return filing process:

• Customer GSTIN
• Type of Invoice
• Place of Supply
• List of invoices, including B2B and B2C services
• Invoice Number
• GST Rate
• Total amount of SGST, IGST, CGST, and GST cess that is applicable
• Summary of Debit and Credit Notes

It is crucial to remember that documents are not required to be included in the GST return. But the taxpayer would have to provide data on B2B invoices sent, B2C invoices sent, credit notes sent, debit notes sent, and an HSN summary of goods sold.

Penalties for late filing of GST returns: 

The GST late filing penalty has been specified as follows:

• A person fails to furnish details of outward or inward supplies, monthly return or final return by the due date – The GST penalty for late filing is INR 100 for every day during which the failure continues, so subject to a maximum of INR 5,000
• A person fails to furnish the annual return by the due date – The GST late filing penalty is INR 100 for every day during which the failure continues, subject to a maximum of quarter percent of the person’s turnover in the state where he is registered

Interest on late filing of GST Return:

While, the GST penalty interest rates on the applicable offences is yet to be notified, the GST late payment penalty has been specified as follows:

• A person liable to pay tax fails to pay the tax – Interest on the tax due will be calculated from the first day on which the tax was due to be paid, as per the rules of GST payment
• A person makes an undue or excess claim of input tax credit or undue or excess reduction in output tax liability – Interest on the undue excess claim or undue or excess reduction
• A recipient of a service fails to pay to the supplier of the service the amount towards the value of the service, along with tax payable thereon, within 3 months from the date of issue of invoice by the supplier – Interest on the amount due will be added to the recipient’s liability.

 Conclusion

Filing GST returns online has made the process easy and convenient for taxpayers and businesses must ensure that they avoid common mistakes to avoid penalties and fines.