Common FAQs on GST Filing Answered

Posted In | Finance | Accounting Software | India Accounting Tax

The introduction of the Goods and Services Tax (GST) has revolutionized the taxation framework in India. However, the process can seem complicated to many, especially if you are new to it. Here, we aim to simplify the process by answering some of the most frequently asked questions about GST filing.
 

1. What is GST filing?

GST filing is the process of submitting your goods and services tax returns with the Indian tax authorities. It includes details about your purchases, tax paid on purchases, sales, and tax collected on sales. Filing GST returns is mandatory for all entities registered under the GST Act, regardless of whether there is any business activity during the tax period.
 

2. Who should file GST returns?

All businesses registered under GST are required to file returns. This includes small traders, large enterprises, and even non-profit organizations if they are registered. However, there are different types of GST returns, and the type of return you have to file depends on the nature of your business.
 

3. How often should GST returns be filed?

The frequency of GST return filing depends on the type of registration and the nature of the business. Regular businesses need to file monthly and quarterly returns. However, those registered under the composition scheme are required to file quarterly returns.
 

4. What happens if GST returns are not filed?

If a GST registered entity fails to file the return, they need to pay a late fee. The late fee is Rs.100 per day per Act up to a maximum of Rs.5,000. In addition, input tax credit cannot be claimed unless the GST returns are filed.
 

5. Can GST returns be revised?

Revision of GST returns for any error or omission is not allowed under the GST Act. However, you can rectify any mistakes made in a previous GST return in the next month’s return. It's important to ensure accuracy while filing your GST returns to avoid any discrepancies.
 

6. What is the penalty for late GST filing?

The penalty for late GST filing is Rs.100 per day per Act up to a maximum of an amount calculated at 0.25% of the taxpayer's turnover in the state or union territory. However, if you are filing a nil return, then the penalty is reduced to Rs.20 per day.
 

We hope that this article has clarified most of your doubts about GST filing. If you still have any questions, it's best to consult with a tax expert or a GST practitioner.