GST Return Filing
GST return filing shows details of income, sales, expenses, and purchases. A GST-registered taxpayer files this document with tax authorities. Moreover, GST applies to most goods and services in India. However, petroleum products, alcohol, and electricity do not fall under GST.
What is GST?
Suppliers collect GST and pay it to the government. India introduced GST in 2017 to simplify the tax system.
Previously, businesses paid multiple indirect taxes. Now, GST combines most of them into one system. Therefore, it simplifies taxation and improves transparency.
GSTIN (GST return Filing)
GSTIN acts as a 15-character identification number for taxpayers.
- The first two characters represent the state code
- The next 10 characters show the PAN number
- The 13th digit represents the entity number
- The 14th digit is “Z” by default
- The 15th digit is a unique code
Key points of GST return filling
1. Interstate Transaction (from one state to another)
When goods move between states, businesses apply IGST. Therefore, invoices include IGST details.
2. Intrastate Transactions (within one state)
When transactions occur within a state, businesses apply CGST and SGST. As a result, they divide the tax equally.
3. Output GST
Businesses collect output GST on sales.
4. Input GST
Businesses pay input GST on purchases.
5. GST Payable
You calculate GST payable as:
👉 Input GST – Output GST
6. Rates of GST
The government applies four GST rates: 5%, 12%, 18%, and 28%.
Eligibility for GST Registration
Businesses must register under GST when they meet certain conditions.
- First, annual turnover exceeds ₹40 lakh (goods) or ₹20 lakh (services)
- In addition, the business operates across states
- Moreover, the business runs an e-commerce platform
- Finally, the owner chooses voluntary registration
Therefore, registration ensures compliance and smooth operations.
GST Return Filing Basics
GST return filing involves recording transactions on the GST portal and paying tax when required.
Key points in GST Return Filing
- First, businesses file returns monthly or quarterly
- Next, monthly returns are due on the 11th
- Similarly, quarterly returns are due on the 13th
Moreover, GSTR1 includes sales data. On the other hand, GSTR2A and GSTR2B show purchase details.
If input GST exceeds output GST, the system carries the balance forward. As a result, businesses adjust it in future returns.
Regular GST and Composition GST return filing
Regular GST Filing
Businesses file returns monthly or quarterly.
Composition Scheme
However, small businesses follow a different structure and file returns yearly or every six months.
- First, turnover above ₹5 crore requires monthly filing
- On the other hand, turnover below ₹5 crore allows monthly or quarterly filing
- Additionally, turnover below ₹1.5 crore qualifies for the composition scheme
However, composition dealers do not collect GST
Process of GST return filing
Login to GST Portal
- Go to GST return filing portal -> services.gst.gov.in
- Login to GST return portal
Open Returns Dashboard
3. Click on ‘returns’ then on ‘returns dashboard’.
Select Filing Period
4. Select the financial year and month/quarter and click on ‘search’.
Choose Filing Method
5. There are two option of return filing in GSTR1
Prepare online: If it is for automated GST return filing process.
Prepare offline: it is for manual GST return filing process.
6. After clicking on prepare offline
In this dashboard, there are categories for the invoices
Invoice Categories: GST Return Filing
B2B GST return filing
Businesses perform B2B transactions between GST-registered users.
B2C(large) GST return filing
Transactions above ₹2.5 lakh fall under this category.
B2C(other) GST return filing
In GST return filing, B2C (Other) includes transactions below ₹2.5 lakh.
(registered) Credit/Debit Note
Debit/credit note bill with registered party will be filed in this category.
Credit/debit Note (unregistered)
Businesses record credit and debit notes for both registered and unregistered users.
B2B Invoice Entry in GST Return Filing
7. First, for B2B GST return filing, click on B2B invoices.
8. Click on add invoice.
9. Next, enter GSTIN, invoice number, invoice date, total invoice value, and taxable value for the applicable GST rate, then click Save.
10. After that, you can either edit or delete the invoice using the available options.
11. To continue, add another invoice by clicking on Add Invoice.
12. Finally, go back to the previous screen.
B2C Invoice Entry in GST Return Filing
13. Now, for B2C GST return filing, click on B2C invoices.
14. Then, click on Add Invoice.
15. Next, enter POS (place of supply), invoice number, invoice date, total value, and taxable value, then click Save.
16. After that, use the edit or delete options if needed.
17. Similarly, you can add more invoices by clicking Add Invoice.
18. Finally, return to the previous screen.
Credit/Debit Note (Registered)
19. For registered users, click on Credit/Debit Note (Registered).
20. Then, click on Add Invoice.
21. Next, enter GSTIN, note number, date, type, value, supply type, reason, and taxable value, then click Save.
22. After that, use edit or delete options if required.
23. To continue, add another invoice.
24. Finally, go back to the previous screen.
Credit/Debit Note (Unregistered)
25. For unregistered users, click on Credit/Debit Note (Unregistered).
26. Then, click on Add Invoice.
27. Next, enter type, note number, date, original invoice details, note type, value, reason, and taxable value, then click Save.
28. After that, you can edit or delete the invoice if needed.
29. Similarly, add another invoice if required.
30. Finally return to the previous screen
Viewing and Downloading GST Data
31. To view purchase invoices, go to the Return Dashboard.
32. Here, you will find two options in GSTR2A: View or Download.
33. Click on View to see invoice details on screen.
34. On the other hand, go back to the dashboard if you want to download the data.
35. Then, click on Download to save the report.
FAQs
What is GST Reconciliation?
GST reconciliation matches GST portal data with accounting records.
How GST is calculated?
You calculate GST using rates like 5%, 12%, 18%, or 28%.
How GST works?
GST number is given only to a person who runs business. GST amount is collected by only those who have GST number. If a person who collects GST will pay that amount to government either monthly or quarterly which is GST return filing.
Explain How GST works in India with example?
GST is an indirect tax which is collected on every sale and purchase. In case of interstate IGST will be collected and in case of intrastate CGST and SGST will be collected.
If a service is taken from Delhi to Mumbai of 23,000 at 18% GST, then your GST amount will be 4,140 i.e. 18% of 23,000.
If an item is bought from Delhi to Delhi of 18,000 at 12% GST, then GST amount will be 2,160 i.e. 12% of 18,000 and it will equally divide between CGST and SGST.
Why GST registration is important?
People can collect GST only if they register in GST then pay it to government
Why is GST & GST Return Filing important for business?
GST has reduced taxes of all the parties.
Explain the process of registering in GST?
To register in GST, go to online GST portal -> click on services -> click on register -> click on new register -> enter details that are necessary.
What is the penalty for late GST return filing?
If you pay GST after due date or pay less amount then 10% of due amount will be the penalty.
How to download GST registration certificate?
Download GST registration certificate, go to online GST portal -> click on login -> enter username and password -> click on login -> click on services -> click on user services -> select download certificate.
What is the last date to register under GST?
A business that has exceeded turnover limit need to register under GST within 30 days.
In how many days GST number will be delivered?
After online registration within 7 to 10 working days GST number will be delivered.
If a company is in many states, how to register in GST?
If a company is in many states, then there will be separate GST number for every state.
Are bank details needed in GST registration?
Bank details are not needed for GST registration.
Conclusion:
In conclusion, return filing plays a key role in business compliance. Moreover, it helps maintain accurate financial records. As a result, businesses avoid penalties and manage taxes efficiently. Therefore, understanding GST return filing is essential for smooth operations.
