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.
Online WHY SHOULD YOU FILE GST RETURNS ON TIME?
- Avoid Penalty – Failing to file GST Returns on time will attract a penalty of INR 200 per day and maximum up to INR 5000 of each return
- Avoid Registration Cancellation – To be worst if you don’t file GST Returns on time your certificate might get cancelled.
- Better Relationship with your prospects – Filing GST Returns on time will let your customers claim input credit smoothly hence maintain a healthy relationship with good prospects
- Better Compliance Rating – Government of India has proposed to start the compliance rating system under which scorecard of every GST registrant shall be maintained. As a matter of fact, timely GST return filing is one of the key factors to compute such rating.
- Ease of availing loan – Evidently, timely and accurate GST Return filing helps a taxpayer a lot while applying for loans from a bank or financial institutions. The Banks ascertain a taxpayer’s credibility on the basis of his GST Returns.
- E-Waybill generation – In order to compel the businesses for regular compliance and GST return filing, the finance ministry has now restricted E-Way bill generation for transportation of goods, in case the trader has not filed GST returns for 2 successive months.
Benefits Of GST Return Filing
- 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
- 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.
- GST certificate can be used as one of the documents while opening current account or Business Account.
- You can easily apply for various states and Central Government tenders if you have GSTN.
- Expand your business through various channels like Online, Import-Exports
- To start payment gateways and use mobile wallets GST number is used.
A GST return is a statement of financial activity by a taxable person for a prescribed period. This allows a taxable person to self-assess the tax they owe for specific period.
Finalization of the tax liabilities of the taxpayer within stipulated period of limitation; to declare tax liability for a given period. Providing necessary inputs for taking policy decision. Compliance verification program of tax administration.
Yes. Taxpayers can apply online for GST registration. You just need to get your business registered in the official GST Portal and upload the scanned copies of all the documents needed.
No. In the North East states of India, the GST threshold limit comes to Rs.20 lakh for all types of businesses. Whereas, in states like Assam, Meghalaya, Nagaland, Mizoram, Tripura and Arunachal Pradesh; the threshold limit is Rs.10 lakhs.
ARN Number is the application reference number that is generated on the official GST Portal automatically after the submission of the GST Registration Application. GST ARN number can then be used for tracking the status of GST registration application until GST Certificate and GSTIN is issued by the Government
GST rate varies from nature of goods/services you are selling; it ranges from 0% to 28%. To find out GST rate on your business download our GST guide from above
Yes, you can sell both Goods and Services with one GST number, Provided you have listed such Goods/Services while registering under GST.
No, you need single GST registration if you are supplying goods from single state to all over India. If you are supplying goods from 2 or more states then you require registering under GST of all such states.
If any business entity mandatorily required to register under GST, however, failed to apply or intentionally ignoring the same then business is liable to pay the penalty of 100% of the tax due or INR. 10,000 whichever is higher
The documents required depends upon the type of business you are running as. Following below documents required for GST Registration: –
Passport Size Photograph
Aadhar card or Passport or Driving License
Pan card of business entity
Address proof of business premises
Bank Statement or Cancel cheque or Passbook
Yes, the account number is mandatory for GST registration.
Yes, one mobile number is required for one GST registration.
GST is differentiated in three different types CGST (Central Goods and Service Tax), SGST (State Goods and Service Tax), IGST (Integrated Goods and Service Tax).
The CGST and SGST rates will be levied by States and Central Government.
The taxes you pay on input goods/services can be used as an Input Tax Credit (ITC) against output tax liabilities.
Yes, PAN card is required to apply for GST.
No a person with no GST registration cannot collect GST.
The annual turnover should be above 20 lakh rupees.
No, you can raise GST invoice before GST registration.
Visit Legalstartup website and know the entire procedure to do GST registration.