GST Return Filing

GST RETURN FILING 2022

DEFINITION
Any individual/entity who has a GST registration are required to file GST returns in india each month. The GST return is a document that contains details of the income that a taxpayer needs to file. This return is used to computate the tax liability that is the amount of tax payable by the business/individual. The returns have to be filed irrespective of business activity/lack of it, sales/zero sales, profits/losses and  any other criteria etc. Even a business. individual which has not issued any invoice but has a GST registration is required to file its GST returns 2022.

FILING GST RETURNS
A GST registered individual/entity has to file 2 monthly returns and 1 annual return, amounting to a total of 26 GST returns in a year. Registered businesses have to file the GSTR-3B return each month which provides details of the sales and purchases made in a month. In addition to the GSTR-3B return, registered entities registered under GST must file GSTR-1 returns. The GSTR-1 return must be filed every month by businesses having an annual revenue of over Rs.1.5 crores. In the case of a business which has an annual revenue of less than Rs.1.5 crores, GST returns must be filed every three months. The yearly GST returns have to be filed by all entities in addition to the above mentioned returns.

PENALTIES FOR LATE FILING OF GST RETURNS
A penalty and cancellation of the GST registration will happen if a business or individual fails to file the GST returns on time. In the case of non-compliance for more than six months continuously, the business/individual won’t be able to get another registration until all the back dated penalties are paid back in full. The penalty for businesses/individuals that have no turnover, is different compared to businesses/individuals who have a certain turnover. NIL returns have to be filed in the case of no turnover and failure to do so will result in a penalty of Rs.20 per day, An established business will be levied a penalty of Rs. 50 per day for the duration of late-filing. A penalty of Rs. 50 per day will be applicable for late GSTR-3B return and Rs.50 per for GSTR-1 return. In sum total, a penalty of more than Rs.3000 per month would be incurred.

Over and above in addition to the above mentioned late filing fees, the business/individual would have to pay interest at the rate of 18% on the late  GST payment returns. (As per the 40th GST council meeting, the penalty for late filing has been waived off).

WHAT IS GST COMPOSITION SCHEME FILING
Any business or individual who is registered under the composition scheme are required to file form GSTR-4A every quarter through the GST portal or at a GST facilitation center. The GST returns for businesses enrolled under the composition scheme falls on the 18th of the month every quarter. That means under this composition scheme the  dates for GST return filing are due on April 18th, July 18th, October 18th and January 18th.The GST returns that are  filed must include details  such as inter-State/ intra-State inward supplies received from registered and unregistered vendors/persons, a consolidated statement which contains details of outward supplies. Even when an entity opts for the composition scheme which starts on April of that year, the entity must file monthly GST returns till September of the same year.

GST COMPOSTION SCHEMES TAX RATES
When filing the GST composition returns, the registered taxpayer is required to pay all the liabilities towards tax, interest, penalty, fees or any other amount which is due under GST. The GST composition tax is charged at the below mentioned rates:

• Manufacturers, other than manufacturers of such goods as may be notified by the Government are charged at 1% GST.
• Suppliers making supplies are charged at 2.5% GST
• Any other supplier eligible for composition levy  are charged at 0.5% GST

What is important to remember, is that that any registered taxpayer who has opted for the GST composition scheme is not eligible to avail input tax credit on receipt of invoices or debit notes from the supplier for the period prior to opting for the composition scheme.

GST RETURN FILING PROCESS AND DUE DATES TO FILE RETURNS
The average time that is usually taken to file a GST return is about 1 – 3 working days, subject to the government processing time and client document submission.

GSTR-1 QUARTERLY RETURNS
This is filed on the 13th of the month following the quarter. The quarterly returns has to be filed by taxpayers who have a turnover of less than Rs.1.5 crores. For example a GSTR-1 quarterly returns for the months of October to December is due on 31st January.

FORM CMP-08- QUARTERLY-COMPOSITION SCHEME
This is filed on the 18th of the following the quarter.  Form CMP-08 must be filed by taxpayers registered under the GST composition scheme who have a turnover of up to Rs.1 Crore. For example, the statement cum challan for the September to December quarter is due on 18th January.

GSTR-4 FORM ANNUAL COMPOSITION SCHEME
The due date for filing GSTR-4 returns filing for the financial year is due on 30th April.  The quarterly returns has to be filed by taxpayers  who are registered under the GST composition scheme with a turnover of up to Rs.1 Crore.

GSTR-9 FORM ANNUAL RETURNS
The due date to file the GSTR-9 returns is 31st January every year.

GSTR-1 FORM QUARTERLY RETURNS
The quarterly returns should be filed by registered taxpayers who have a turnover of under Rs.1.5 crores annually. For example, GSTR-1 quarterly returns for the quarter from October to December are due to be filed on 31st January.

The three different packages that ACE ALLIANCE offers for GST services are as follows

BASIC: Accounting software with GST invoicing, GST return filing and GST E-Way bill integration.

STANDARD: Accounting software with integrated payment gateway or EQL business card, GST invoicing, GST return filing, GST E-Way bill integration.

PREMIUM: Accounting software with 1 year accounting support from dedicated accountant, integrated payment gateway or EQL business card, GST invoicing, GST return filing, GST E-Way bill integration.