GST was implemented in the year 2017 with the mission of the ‘One Nation One Tax’ policy. Goods and Services Tax return is required to be filed by a taxpayer, with detailed information on their income, to the tax administrative authorities.
This document helps tax authorities to assess and calculate the tax liability of the individual/company. GST returns can be filed by a registered dealer under various heads like purchases, sales, output GST on sales, and Input tax credit (GST paid on purchases), along with GST compliant sales and purchase invoices.
Who Should file GST returns?
Any and every regular business, with turnover exceeding INR 20 or 40 lakhs annually, mandatorily need to file two monthly returns and an annual return. In total, in a year 26 GST returns are filed thereof. There is a mandate by the government of India for a particular class of persons to file information returns under GST compulsorily.
The Simple Online Process to File Your GST Returns
GST Returns have to be filed every year by all taxpayers ranging from manufacturers and suppliers to consumers and retailers. The prevailing GST portal permits e-filing or online filing of GST through unique applications and software introduced Goods and Service Tax Network (GSTN).
These innovation and automation pedals have made the filing process of GST extraordinarily convenient and economical in every manner.
Steps to follow to file GST returns Online
Step 1- Log on to the GST portal.
Step 2- Based on the state code and PAN details, every individual would be issued a 15-digit GSTIN (GST identification number). The next step would be to obtain this gstin.
Step 3- Now, on the GST portal or the software, upload the relevant invoices. For every invoice that you upload, an invoice reference number would be allotted to you.
Step 4- Having uploaded all invoices, inward, cumulative return, and outward return, all you need to do is check for errors if any, and file the returns.
Advantages of GST
The advantages of gst are innumerable, some of which have been posted below:
GST Eliminates the Cascading Effect of Tax
GST has brought all indirect taxes under one umbrella. This comprehensive step has eliminated the cascading effect of tax that was prevalent earlier.
Higher Threshold for Registration
The threshold for registration under GST has been changed and increased to INR 20 lakh, unlike what was prevalent earlier in the VAT structure. Hence, many small traders and service providers, with a lesser turnover benchmark, have been entirely exempted from paying any tax to the government under the GST policy.
Composition Scheme for Small Businesses
For taxpayers who have a turnover of lower than INR 1.5 crores annually, there is a unique GST composition scheme that enables them to lower their taxes, thereby reducing the tax burden on many small businesses.
The Simple and Secure Online Procedure
The introduction of GST has been a boon for all business types. GST registration, as well as filing, involves a straightforward online procedure.
Hence, it saves businesses, especially start-ups, from running from pillar to post to get registrations of various tax brackets and thereafter filing of the same under multiple different heads.
The Number of Compliances is Lesser
The returns and compliances under GST is a unified one. This has reduced the number of returns to be filed, which were much more earlier.
The total returns under GST are just 11, out of which 4 are basic returns. Others, apart from the GSTR-1, are auto-populated.
The Unorganized Sector is Regulated Under GST
Sectors like construction and textile were highly unorganized in the pre-GST era. With the introduction of GST, the accountability and regulation of these industries have increased in leaps and bounds.
GST is one comprehensive indirect tax that has simplified the tax return filing process in India. It is mandatory for every taxpayer who falls under the GST criteria. Diminishing the stress on businesses, the Government of India has eased off the entire process by providing simple online registration and filing process for the same.
Remember, a change is never an easy process. The government is trying its level best to ease and smoothen the road to GST and make it easily accessible and implementable to one and all.