All the business which are registered with income tax department have to file GST returns, deadline varies from business to business, returns can be filed monthly to annually depending upon conditions a particular business category has imposed. In layman terms, a GST return is a document which contains all the details of income which a taxpayer has to disclose to the income tax department. Returns are filed under both purchase and sales, in finance terms, these are called Output and Input GST respectively. To file these returns a taxpayer will need all the purchase and sales invoices.
In current GST norms, anyone who is registered with It Department has to file returns twice a month, meaning 26 returns in a financial year. All the businesses have to declare their monthly input and output income themselves, This form of return is called GSTR-1. It is followed by GSTR 3B form which automatically gets populated taking information from GSTR-1. Due date is 11th of the next month of the month return is being filled. The deadline for GSTR-3B is 20th of the next month.
Under the new GST setup, filling returns has become entirely automated, this helps the stakeholders of both sides. There is a software and mobile app has been provided to businesses by goods and services network (GSTN) which can auto-fill the details on every GSTR form, taking data from previous transactions. All the businesses have to is to do to login to GST website. The business will be allocated a 15 digit ID number based on the Permanent account number of the business. Business can upload the invoices directly from the web portal or they can use the GSTN software. A reference number will be issued for each and every invoice. Once the invoices are successfully uploaded, the business has to declare their sales and purchase income in the form of outward and inward return, then after gross annual income has to be entered. If one errs in the process the one can correct it from the portal. All the supply returns have to be declared in the GSTN-1 form using the information section on the portal, this could only be done on or before the 10th of the following month. All the details which have been declared by the business will be made available to it through the form GSTR-2A, and the business has to verify those details if there’s any modification they can modify and re-submit.
As Goods and Services Network stores all the details buyers and sellers registered with it and combines the provided details for any future reference, Now the GSTN has started using this data to hep the businesses file their returns, they have issued a very uncomplicated excel based return sheet to assist businesses in filling their timely returns without going through cumbersome process uploading documents through software, again and again, the work is available free on GST common platform. Businesses can use this template to assemble their invoice data on a day-to-day basis. All the details purchase and sales supplies can be uploaded on the GST portal on or before the deadline in the form of inward and outward supplies. The biggest upside of this form of application is that the all date can be up prepared offline, as many businesses which are located in the remote area don’t have an uninterrupted data connection, they will need data connection only when they are uploading that data GST portal.
To avoid any late fee which 200 a day including CGST and SGST businesses are advised to file the gst on or before the deadline, which also helps them boost their credit health!