The GST return filing process is a major part of compliance under the GST Act, high level knowledge is required for GST filing for proper utilization of input tax credit, proper processing of sales returns, purchase returns, monthly input tax reconciliation, etc. GST return filing is not just a procedural aspect, it is the submission of financial data regarding sales and purchases considering various GST rules and regulations.
What is GST return filing?
GST return filing is process of submitting details regarding sales and purchase in the month or quarter, there are monthly, quarterly, and annual GST return which are filed for different purpose. Data submitted in GST returns is used by department for analysis of correct amount of tax payable, compliance to GST act, amount of input tax credit availed and utilized during the month etc. GST return filing data is critical information which have high impact on calculation of tax payable, penalties and interest.
How to file GST monthly returns?
GST monthly return is filed in form GSTR1 for declaring sales data invoice wise, and GSTR 3B is used for declaring summary of sales autopopulated for GSTR-1 data and input tax data autopopulated from GSTR-2B derived from supplier’s GSTR-1. There will be separate sections to add data of credit notes, debit notes, amendment of invoices etc. GSTR 3B can be filed only after filing GSTR-1, and GSTR 1 can be filed only after filing GSTR3B of previous month. Once all data are prepared, taxpayer need to log on to gst.gov.in for return filing.
What are the details required for GST monthly return filing?
- Details of sales invoices with the breakup of taxable value, tax amount, tax rate, HSN code, GSTN of the receiver of goods, and date of invoice.
- Details of the credit note with credit note no, GSTN of the receiver, etc.
- Invoice details for amendment of invoices.
- Details of purchases made from registered and unregistered dealers.
Steps to Register
Preliminary data processing
Preperation of GST filing data
Re upload of corrected GST data
Important points for GST return filing
- Filing of periodical GST returns is compulsory even if there is no business for the period, hence in cases where there is no business dealer is required to file nil GST returns.
- The mismatch between GSTR 1 and GSTR3B may result in action by GST officers by sending notices to the taxpayers, at first they issue a notice stating the mismatch between GSTR-3B and GSTR-1 for the period, we are permitted to supply reconciliation or reason for the difference which may or may not be accepted by the officer depending on the information provided. Once mismatches are confirmed by the officer, a demand notice is issued by the officer for recovery of GST due.
- GST returns already filed cannot be revised, correction of errors is only possible in succeeding months through debit, credit note, and amendment of invoices.
- Penalty and interest auto-populated during GST return filing can be paid only through cash, making payment using credit available is not possible.
- Tax on reverse-charge mechanism shall be paid only by means of cash
- ITC auto-populated should be checked with GSTR-2B, because there was a time when there is a mismatch between GSTR-2B and auto-populated data, for some months GSTR-2B was not generated therefore in case we never amount displayed in GSTR-3B it is wise to cross verify GSTR-2B generation.
- GSTR-3B return can be filed only after payment of taxes for the month.
- On the successful filing of any GST return, an ARN number will be generated and sent to the e-mail
- Information regarding every cash payment is sent to the taxpayer-registered e-mail ID
- ITC credit available will be auto-populated on the GST set-off page, we need to use the credit available only against outward liability based on ITC utilization rules.
- GST registration may be cancelled by the GST department for continuous failure to file GST returns for a continuous period of 6 months, show cause notice will be sent before cancellation of GST registration, once the taxpayer file a GST return for the mentioned period show cause notice will be cancelled automatically by the system. In case it is pending, the taxpayer is requested to reply to the showcase notice.
From Auditor DESKRules relating to the submission of GST-related data are enormous and more technical, so it is always advisable to file with a knowledgeable GST consultant who is well aware of GST rules and regulations. Mere knowledge of the filing procedure in the gst.gov.in portal is not sufficient for the efficient filing of GST returns, multiple components in GSTR-1 data, and ITC eligibility had to be taken care of.
Frequently Asked Questions
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Option 2: NEFT/RTGS – No restriction on maximum limit, once payment is made through the bank, once processed by the bank the same will be credited in the electronic cash ledger and communication e-mail will be sent by GST portal once credited
Option 3: Over the counter – Payment of GST in the counter method is restricted to the maximum amount of Rs.10,000, this method is used as the last option if we cannot pay in online mode.
Other precautionary points a GST registered dealer should know.
1. Quarterly return monthly payment scheme (QRMPS)
It is the process of filing the return on a quarterly basis and payment to be made every month, this scheme looks pretty good in general, but we need to calculate the tax amount for monthly payments.
Calculation of tax amount each month requires a major part of the work required for monthly return filing.
When a major part of work is completed each month and rework is required after the quarter, we don’t see any merit or advantage of this scheme. So clients are requested to follow a monthly return filing scheme.
2. Two-stage GST return filing
Monthly return for regular GST dealer is required to be filed in two stages GSTR-1 needs to be filed on or before 11 the of the succeeding month, and GSTR-3B should be filed on or after 14 of each month and on or before 20 the of each month.
In two-stage GST return filing, once GSTR-1 is submitted within the due date the data of the invoices submitted will be auto-populated in GSTR-2B of the customer in case of B2B sales.
Input tax credit for those invoices which are filed before the due date can be availed by your customer in the same month once it reflects in GSTR2B.
Similarly, on or after 14 th of each month, the input tax credit for supplies received by us will be reflected in 2B from those who had filed GSTR-1 on time.
So we are forced to follow our supplier regarding their GSTR-1 filing within the due date for availing input tax credit and the same thing applies to us.