GST Filing: Everything You Need to Know

Posted In | Finance | Accounting Software | India Accounting Tax

The Goods and Services Tax (GST) is a comprehensive indirect tax imposed on the manufacture, sale, and consumption of goods and services across India. It has replaced many indirect taxes that previously existed in India. One of the most critical aspects of GST is GST filing, which is a comprehensive process that involves submitting various forms and details to the government. This article provides a detailed overview of everything you need to know about GST filing.
 

What is GST Filing?

GST filing is the process of submitting your GST returns to the government. The returns contain details of your sales, purchases, tax collected on sales (output tax), and tax paid on purchases (input tax). The GST return filing process should be completed on the GST portal. It is mandatory for all businesses and entities registered under GST.
 

Types of GST Returns

There are various types of GST returns that need to be filed depending on the type of taxpayer and transaction. Here are some of the common GST return forms:
 

• GSTR-1: For details of outward supplies of taxable goods and/or services.
• GSTR-2A: For details of inward supplies made available to the recipient on the basis of FORM GSTR-1 filed by the supplier.
• GSTR-3B: A monthly return to be filed by the person registered under GST.
• GSTR-4: Return for a taxpayer registered under the composition levy.
   

Steps to File GST Returns

Filing GST returns is a step-by-step process that can be done online. Follow these steps to file your GST returns:
 

1. Log in to the GST portal.
2. Go to 'Services' then 'Returns' and click on 'Returns Dashboard'.
3. Select the financial year and the return filing period.
4. Select the return you want to file and click on 'Prepare Online'.
5. Enter all the required details and click on 'Save'.
6. Once you've entered all the details, submit the return.
7. After submitting, pay the GST due and file the return with a digital signature or Electronic Verification Code (EVC).
    

Penalties for Late GST Filing

It's crucial to file your GST returns on time to avoid penalties. The penalty for late filing of GST returns is ₹100 per day per act. That means you have to pay ₹100 under the CGST Act and ₹100 under the SGST Act. The total will be ₹200/day. The maximum penalty can go up to ₹5,000. There is no late fee on IGST.

 

Understanding the GST filing process is crucial for businesses operating in India. It helps ensure compliance with the law and avoids unnecessary penalties. By understanding the types of returns and the filing process, businesses can make the process less complicated and more efficient.