GST was first implemented in India in 2000, but it took 17 years for the country to develop a full-fledged GST law, which took effect on July 1, 2017. The Goods and Services Tax (GST) has eliminated the cascading effect of taxes on the sale of goods and services in India, which has led to an increase in the tax base.
In spite of the fact that Indian companies understand the benefits of GST more easily, many of them face obstacles when completing their GST returns. Taxpayers must submit different types of GST returns, depending on the type of business they operate.
How Does a GST Return Work?
GST returns are documents or forms that registered taxpayers must submit to the relevant authorities. Tax authorities will use this tax return to determine the taxpayer’s overall tax burden after receiving this return. It contains information about the taxpayer’s income or sales as well as their purchases or costs.
GST Returns: Sample Steps
The following nine steps will help a person effectively file a GST return:
- Register for GST and obtain your GSTIN based on your PAN and state code before you submit your GST return. If you don’t have a GSTIN, register for one.
- Select the “Services” tab on the GST website.
- You may proceed to the next step by clicking on the returns dashboard button after selecting the financial year and filing time from the drop-down box.
- After choosing the return you want to submit, click the “Prepare Online.”
- Click the “Submit” button after entering the required data (including the late fee if applicable).
- At the bottom of the page, click the “Submit” button to submit your GST return after saving the information.
- As soon as your GST return filing status has been updated to “Submitted,” scroll down and select “Payment of Tax.”
- Check your cash and credit balance before paying each head of tax by clicking the “Check Balance” button, followed by choosing the “Offset Liability” option.
- Then, click “File Form with DSC” or “File Form with EVC” and select an authorised signature from the list provided. Finally, finalize the GST payment by clicking on “File Form.”.
Who is responsible for filing GST returns?
The tax regime requires businesses with a sales aggregate of at least Rs. 5 crore to submit 25 returns each year if they do not opt into the QRMP (Quarterly Return Filing and Monthly Payment of Taxes) scheme. There are three types of returns: a monthly return, a monthly return, and a yearly return.
A taxpayer whose annual revenue is less than five crore rupees is eligible to submit GST returns under the QRP programme. In this plan, nine separate GST return files will be required every year. It is important to note that taxpayers joining this programme must pay their tax on a monthly basis, even if they only need to submit their GST returns quarterly.
GST Returns Due Late Subject to Penalty
If taxpayers fail to file their GST return within the allotted time, they will be charged a late charge and interest. In addition to the unpaid amount of tax, you will be subject to interest of 18 percent per year. For each of these taxes, there is a late charge of Rs. 100 each for CGST and SGST, for a total of Rs. 200 per day.
GST Returns: The Advantages of Automation
It is undoubtedly laborious and time-consuming to comply with the Goods and Services Tax (GST) in India, just as it is with any other tax system. By using automation tools, dealers can substantially reduce the amount of time it takes to comply with laws.
With automation, identical activities that used to take a great deal of labor hours contributed by numerous headcounts became much more precise and efficient. These and other advantages of using automation for GST return filing are discussed in more detail below:
By using software to file your GST tax return, you are ensuring that the calculations will not be prone to errors due to human error or defects. Since everything is automated, there is little to no human interaction, which ensures that the findings are accurate and reduces the need for modifications.
Filing tax returns electronically
With the introduction of a GST return filing option online, dealers have had an easier and more convenient way to file their returns. It isn’t common for people to submit documents online, and some may even find the concept unsettling. It would be a welcome relief from that unease to use software to file computerised tax returns.
Using automated tax filing software reduces the time spent searching through client files and data, which results in significantly improved document management. Documents are stored and generated by the program in a protected format that is optimized for simultaneous access by multiple users.
Backups that are reliable
The old method of storing documents in paper format is replaced by the new method of storing documents in electronic format, which protects the essential data from being destroyed by fire, flood, or even theft. The automatic tax preparation program creates backups of all data, making them accessible to many users while protecting them from physical damage.
One of the most overlooked features of automated tax filing software is its ability to index files according to several different characteristics, making it easy to find quick references or comprehensive studies.
It is easy for errors to occur when filing GST returns because the paperwork involved is repetitious and complex. By using automated tax preparation software, a taxpayer can guarantee that the necessary paperwork is completed and delivered on time while maintaining the highest level of accuracy.
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