GST Filing Steps: Step-by-Step GST Return Filing Guide

Written by : Knowledge Centre Team

2023-11-22

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Demystifying GST Filing: Step-by-Step Instructions

0 1

Introduction to GST

0 2

What is a GST Return?

0 3

Steps of GST Filing

0 4

Who Should File GST Returns?

0 5

GST Return Forms- Important Forms for GST Filing

0 6

What are the Myths and Notions in GST and GST Filing?

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Wrapping Up

The Goods and Services Tax (GST) is a pivotal indirect tax that has replaced several others, such as excise duty, VAT, and services tax. It was passed by the Parliament on 29 March 2017 and became effective on 1 July 2017.

GST is applicable when goods and services are provided, encompassing every value addition in India. This comprehensive, multi-stage tax system mandates collection at each point of sale within the GST framework. It is important to note that sales within a single state are subject to both central and state sales taxes, while interstate sales fall under the purview of Integrated GST.

What is a GST Return?

It is a document that a GST-registered taxpayer must provide to the tax administration authorities. It contains information about all of their income, sales, costs, as well as their expenses. Tax authorities use this to determine net tax liability.

A registered dealer is required to submit GST returns that generally contain:

Purchases
Sales
GST (On Sales) Output
Credit for input taxes

Steps of GST Filing

All taxpayers (manufacturers, suppliers, dealers, and customers) are required to file their tax returns with the GST department each year. The process of GST filing has been automated under the new system. GST returns can be submitted online using the software or apps offered by the Goods and Service Tax Network (GSTN). These apps automatically fill out the information on each GSTR form.

The steps for online Goods and services tax filing are as follows:

Step 1: Visit the official GST portal.

Step 2: A 15-digit GST identification number will be issued based on your PAN number and state code.

Step 3: Upload invoices on the GST portal or the software. An invoice reference number will be issued against each invoice.

Step 4: After uploading invoices, outward returns, inward returns, and cumulative monthly returns have to be filed online. In case of any errors, you can correct them and refile the returns.

Step 5: File the outward supply returns in the GSTR-1 form through the information section at the GST Common Portal (GSTN) on or before the 10th of the next month.

Step 6: Details of outward supplies by the supplier will be made available in GSTR-2A to the recipient.

Step 7: The recipient must verify, confirm, and alter the specifics of outgoing supplies along with filing information about credit or debit notes.

Step 8: The recipient has to furnish the details of inward supplies of taxable goods and services in the GSTR-2 form.

Step 9: The recipient's adjustment of the inbound supply information provided in GSTR-1A is open for the supplier to accept or reject.

Who Should File GST Returns?

Regular businesses, individual suppliers, and individuals who have opted for the composition scheme under the GST Act are required to file GST returns based on the amount of turnover.

Category	Amount
Service providers, such as computer programmers: Obtaining a GST registration is only necessary if turnover falls within the established threshold. Those who have gone beyond the limit prescribed must register for GST and submit frequent GST returns.	₹40 lakhs (for goods) and ₹20 lakhs (for services)
Individuals who have chosen the GST Act's composition scheme, in addition to enterprises: Form GSTR-4 must be submitted by April 30th of the applicable financial year.	This policy does not offer any additional cover.
Individuals who have chosen the GST Act's composition scheme, in addition to enterprises: Form GSTR-4 must be submitted by April 30th of the applicable financial year.	Turnover of up to ₹1.5 crore

GST Return Forms- Important Forms for GST Returns Filing

For various GST Return filings, there are 11 different types of GST return forms.

Form Name	Form Name	Frequency
GSTR - 1	Outward supplies Return	Monthly
GSTR - 2	Inward supplies Return	Monthly
GSTR - 2A	Read-only documents for the recipient to check and verify the details uploaded by the seller in GSTR-1	Monthly
GSTR - 3	Auto-populated documents based on the details filled in GSTR-1, GSTR-2 and tax liability of any preceding period	Monthly
GSTR - 3B	Inward and Outward supply summary	Monthly
GSTR - 4	Return for composition dealers	Quarterly
GSTR - 5	Return for Non-resident taxable person	Monthly
GSTR - 6	Return for Input service distributor	Monthly
GSTR - 7	Return for taxpayers who are required to deduct TDS	Monthly
GSTR - 8	Return to be furnished by the E-commerce platform, which is required to collect TCS	Monthly
GSTR - 9	Yearly return for regular taxpayers	Annual
GSTR - 9A	Yearly return for taxpayers registered under the composition scheme	Annual

What are the Myths and Notions in GST and GST Returns Filing?

Many misunderstandings circulate as rumours, making this rule incomprehensible to the common man. The most common myths regarding GST are listed below, along with the facts in opposition:

Myth 1: A firm must register for GST to operate and cannot commence without doing so.

Fact: When a dealer becomes responsible for GST registration, they must submit an application within 30 days. There is no need to wait for the final GSTIN number once the dealer has submitted their registration application; a temporary GSTIN will be given instead. As a result, you should have no trouble starting your firm with a provisional GSTIN.

Myth 2: Unregistered dealers are prohibited from doing business with dealers in other states.

Fact: There is no provision in the GST statute that prohibits unregistered merchants from making interstate purchases. However, a dealer cannot conduct interstate transactions until they have registered for the goods and services tax and got their GSTIN.

Myth 3: Three returns must be filed after registering for GST.

Fact: After registering for GST, you will only need to file one three-part return. The first section contains information on all sales (outward supplies) done in the previous month. The second section is an automatically generated return that includes information on all inward purchases (supply) made in the preceding month. The third one is Assessment.

Myth 4: If a transaction is made using a credit card, tax must be paid twice.

Fact: This has been the biggest GST misconception. No matter if the payment is made with cash or a credit or debit card, you just need to pay tax once under the GST rules.

Myth 5: Each invoice's details must be posted to the GST Portal.

Fact: A dealer is not required to upload invoices to the GST portal if they just do retail business. Only in B2B transactions, or when a business sells products to another business, do invoices need to be uploaded.

Myth 6: It is mandatory that all dealers generate invoices using computers for GST filing.

Fact: E-invoicing was required from 1 October 2020 for taxpayers whose combined turnover for the FY 2019–20 was greater than ₹500 crore. It was accessible to taxpayers, having an annual revenue of over ₹100 crore as of 1 January 2021. This group of taxpayers is now required to generate an electronic invoice for each invoice, debit note, and credit note the issue.

Myth 7: Small enterprises will not be able to continue as they need the internet more frequently due to GST compliances.

Fact: GST returns filing can be done either online or offline. Therefore, companies have the choice not to add the expense of using the internet to file returns and comply with other regulations.

Wrapping Up

GST returns is a formal record that keeps track of all GST invoices, receipts, payments, etc., for a specific time period that can be used as a medium to manage a business's daily operations and taxation. It also assists businesses in consistently adhering to the most relevant GST rules. Hence, every taxpayer should be well-versed in the Goods and Services Tax filing procedure.

Frequently Asked Question

If a business generates zero sales, the taxpayer must still report NIL transactions. By logging into the GST portal, the taxpayer must submit the NIL returns. e-sign, declare there were no transactions, and file the GSTR-1 report.

No, a Chartered Accountant (CA) is not required to submit a monthly Goods and Services Tax (GST) return in India. The GST return filing procedure is made to be simple to use and enables taxpayers to submit their returns on their own.

1. What is the objective of GST return?

A GST Return is an official document that every GST-registered taxpayer (GSTIN) must file with the tax administration authorities. It includes information on all sales, income, costs, or purchases. Tax authorities use this to determine the net tax liability.

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