Understanding the Basics of GST Filing in India

Posted In | Finance | Accounting Software | India Accounting Tax

The Goods and Services Tax (GST) was implemented in India with the aim of simplifying the indirect tax structure of the country. This new tax regime encompasses various taxes such as sales tax, service tax, excise duty, and more, into a single tax system. Every business that is registered under GST has to file GST returns. This article aims to provide a basic understanding of the GST filing process in India.

What is GST Filing?

GST filing refers to the process of submitting the details of income of a registered taxpayer with the tax administrative authorities. According to the GST law, a registered dealer has to submit three monthly returns and one annual return, making it 37 returns in a year. This process ensures that all the transactions are transparent and the government has a detailed record of all transactions made by a business.

Types of GST Returns

There are several types of GST returns, each of which serves a different purpose. They include:

GSTR-1: This is for the monthly details of outward supplies of goods or services.
GSTR-2: This is for the monthly details of inward supplies of goods or services.
GSTR-3: This combines the details of GSTR-1 and GSTR-2.
GSTR-4: This is for composite suppliers.
GSTR-5: This is for non-resident taxable persons.
GSTR-6: This is for Input Service Distributors.
GSTR-7: This is for the authorities deducting tax at source.
GSTR-8: This is for e-commerce operators.
GSTR-9: This is the annual return.

Steps to File GST Returns

Here are the basic steps to file GST returns:

Visit the GST portal (www.gst.gov.in).
Download the appropriate form related to the type of return you are filing.
Fill in the required details and validate all the information.
Calculate your tax liability and make the payment if necessary.
Submit the form on the portal.

Filing GST returns is a mandatory process for all registered businesses under the GST regime. It ensures transparency and helps maintain a clear record of transactions. It's essential for businesses to understand the different types of returns and how to file them to ensure compliance with the GST law and avoid any penalties.