An Overview of the GST Filing Process in India

Posted In | Finance | Accounting Software | India Accounting Tax

Goods and Services Tax (GST) is a comprehensive, multi-stage, destination-based tax that has revolutionized the indirect tax structure in India. It has subsumed several indirect taxes levied by the Central and State Governments. Understanding the GST filing process is crucial for all business entities to avoid penalties and ensure compliance.
 

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What is GST Filing?

GST filing is the process of submitting the Goods and Services Tax returns with the Indian tax authorities. The tax return forms that are to be used for filing the returns depend on the kind of transaction and registration of the taxpayer. It is mandatory for all entities involved in the buying or selling of goods and services to register and file GST returns.
 

Types of GST Returns

There are several types of GST returns, each catering to a different class of taxpayer. These include GSTR-1, GSTR-3B, GSTR-4, GSTR-5, GSTR-6, GSTR-7, GSTR-8, GSTR-9, GSTR-10, and GSTR-11.
 

GST Filing Process

The GST filing process involves the following steps:
 

  1. Visit the GST Portal: The first step is to visit the official GST Portal - www.gst.gov.in.
     
  2. Login: After visiting the GST Portal, the user needs to log in using their username and password.
     
  3. Select the Return Dashboard: After logging in, select 'Services', then 'Returns', and finally 'Returns Dashboard'.
     
  4. Select the Financial Year and Return Filing Period: The user needs to select the financial year and the return filing period for which they want to file the return.
     
  5. Prepare the Return: The user then needs to prepare the return by entering all the necessary details.
     
  6. Submit the Return: After preparing the return, the user needs to submit the return. After submission, an Application Reference Number (ARN) will be generated.
     

Once the return has been successfully submitted, it cannot be revised. Thus, it is crucial to verify all the information before submitting the return.
 

Penalties for Late Filing

If a taxpayer fails to file the GST returns within the specified due date, they will be liable to pay a late fee and interest. The late fee is ₹100 per day per Act, up to a maximum of ₹5,000. The interest is 18% per annum, calculated on the amount of outstanding tax.
 

The GST filing process in India is fairly straightforward. However, due to the complexity of the tax laws and the penalties for non-compliance, it is advisable to seek professional help. Hiring a tax consultant or using a GST software can simplify the process and help ensure compliance.