What is meant by GST returns?

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Filing for GST return is a crucial stage for securing your business under the GST regime. And if you failed to do so or if it is delayed, you will need to pay the penalty and your compliance return along with timely refunds will also be affected. All the business needs to file their GST returns either monthly, quarterly or annually, which depends on the kind of business. But, the most important question that remains is what GST return is and whetheryou need to file your business for it. So, to help you understand and better, we have explained what GST is and what is meant by GST return.

What is GST?

GST is a form of indirect tax which was implemented in Indian in 2017 and has replaced all the various indirect taxes. The bill for GST was passed on 29th March 2017 in the parliament and was put into effect by 1st July 2017. It is a multi-stage, comprehensive, and destination-based tax which is being applied on all kind of value addition. So basically, GST is an indirect tax which is being applied on all kinds of goods and services. The application of GST has helped to replace all the previous forms of indirect tax, which existed in India. The GST consists of three applicable taxes, which are the CGST, SGST, and the IGST. These three forms of taxes have managed to replace Central Excise Duty, duties of Excise, Additional duties of Custom, Additional Duties of Excise, Special Additional Duty of Customs, Cess, State VAT, Central Sales Tax, Luxury Tax, Entertainment Tax, Entry Tax, Taxes on betting, lotteries and Gambling, Taxes on Advertisement.

What is GST Return?

The gst return filingis a document which contains the entire income details of a business holder or taxpayer which is needed to be filed with the TAA, also known as the tax administrative authorities. The tax authorities use these details for calculating the tax liability. The registered dealer needs to file the GST return which will include the sales, purchases, GST paid on every purchase, which is also known as an input tax credit, along with the Output GST which is being applied on every sale made.

All the invoices of the sales, which are GST compliant, are required for filing a GST return.

When should someone file for GST return?

Any general business who have a regular income needs to file for the GST return. They need to file an annual return and two monthly returns. For filing the GST return, a person needs to fill up the entire details of the GSTR- 1 manually, and the other GST return, which is the GSTR 3B will be created automatically. The GSTR B will be created by accumulating the entire information from the GSTR 1. In case of special cases such as composition dealers, one needs to file separate returns.

What will happen if I don’t file my GST return on time?

In case a vendor fails to file their GST return or file them lately, then they will be penalized with a late fee and will also need to pay interest for the same. The interest will be calculated in 18% per annum and will be calculated on the outstanding amount of tax which hasn’t been paid. The interest will be calculated per day after the time to file the GST return has been crossed. And the fine is 100 each for CGST and SGST which sums up to be 200 INR per day. You will be charged no late fee for IGST. To file your GST return, click here.

So, now that you know what GST return is, make sure you file for it today.