GST Filing for Importers: A Quick Overview

Posted In | Finance | Accounting Software | India Accounting Tax

Goods and Service Tax (GST) is a comprehensive, multi-stage, destination-based tax that is levied on every value addition. It has revolutionized the way businesses operate in India, including the import and export industry. This article aims to provide a quick overview of the GST filing process for importers.
 

Understanding GST for Importers

For importers, GST has replaced the earlier Countervailing Duty (CVD) and Special Additional Duty (SAD). Import of goods or services are treated as inter-state supplies and therefore Integrated GST (IGST) is applicable. The importer of goods or services is liable to pay GST at the time of import, not at the time of sale.
 

Importance of GSTIN

The first step towards GST filing is obtaining a Goods and Services Tax Identification Number (GSTIN). This is a unique 15-digit number assigned to each taxpayer, which replaces the Tax Identification Number (TIN) that was used in the VAT regime. GSTIN is crucial for importers as it is required for filing GST returns and claiming input tax credit.
 

Procedures for GST Filing

Once GSTIN is obtained, the importer can proceed with the GST filing process. This involves the following steps:
 

• Filing of Form GSTR-1: This form details the outward supplies of goods or services made by the importer. It should be filed by the 10th of the following month.
   
• Filing of Form GSTR-2: This form details the inward supplies of goods or services received by the importer. It should be filed between the 11th and 15th of the following month.
   
• Filing of Form GSTR-3: This form is a monthly return that is filed by the 20th of the following month. It consists of the details of both outward and inward supplies of goods or services.
   

Input Tax Credit Under GST

One of the major benefits of GST for importers is the Input Tax Credit (ITC). This allows businesses to reduce their tax liability by claiming credit for the taxes paid on inputs. Importers can claim ITC for the IGST paid on imports, and utilize it for payment of output GST.
 

While GST has simplified the tax structure in India, it is essential for importers to understand the filing process to ensure compliance and maximize benefits. It is recommended to seek professional advice or use GST software for accurate and timely filing.