GST, or Goods and Services Tax, introduced a unified taxation system, bringing several of the indirect taxes under one umbrella.
This new taxation guideline, introduced in 2017, has brought significant changes in the existing systems.
It introduced several aspects like a streamlined process, online taxation and filing system, elimination of double taxation, etc.
GST in India – A brief look
- The number of indirect taxpayers has increased by almost 50% after GST’s implementation, resulting in a total of 3.4 million taxpayers.
- In January 2020, a total of Rs.1,10,828 crore was collected as GST.
Such comprehensive income tax systems allow taxpayers to complete services like GST login, return filing, and payment from a single, user-friendly platform.
Taxpayers can file return against a purchase, supply, monthly, and annual expenditures by using 4 different forms for filing taxes. They can complete the entire process online.
Filing GST online
Filing GST returns every year has become significantly easier, as taxpayers benefit from the automated tax payment system introduced along with the Goods and Services Tax regime.
Business owners only need to know how to calculate GST, post which they can file their return online using either phone apps or software provided by the GSTN (Goods and Services Tax Network).
Here is a complete breakdown of the online tax payment process, including GST registration and other essential details:
- Taxpayers have to visit the official GST portal, where they will have to complete their registration by sharing their State code, Pan Number, and 15-digit GST identification number.
- This portal will provide the facility to upload all the necessary invoices. A unique invoice reference number will be issued against each uploaded bill. Taxpayers will also have to share the details of inward and outward returns and cumulative monthly return online.
- A taxpayer is to carefully check and verify all details shared in the return filing page, and share appropriate form in the GST common portal within the scheduled date to complete the online return filing process.
- Once the above-mentioned details are submitted, an individual will have to complete their payment via the ‘payment of tax’ section. Here, they will be able to check how much credit balance is available in their account, as well as clear any liabilities (like late fee) that might be applicable.
- Once this is completed, taxpayers will have to check the declaration box and select a signatory from the available list. After opting to either file from DSC or from EVC, they will be able to make the payment towards the due amount.
Along with learning the steps to file GST return online, it is also necessary to learn and understand the different types of GST forms applicable.
Different types of GST forms
Taxpayers will have to file different types of forms for their GST return. This depends on the transaction and registration type of a particular taxpayer selected during GST login.
Here is a list of return forms applicable for an individual:
- GSTR-1 – GSTR-1 is to be filed by a supplier, containing all the details of outflow of goods and services. Buyer has to validate all these auto-populated details and submit the same within 10th of the following month.
- GSTR-2 – GSTR-2 should be filed by the recipient of goods, containing a detailed record of inward supplies that can be clocked under the input tax credit. It needs to be filed within the 15th date of the subsequent month.
- GSTR-3 – GSTR-3 is to be filed by the registered taxpayer. It carries the auto-populated details of GSTR-1 and GSTR-2. Taxpayers verify and modify (if needed) these details and send GSTR-3 as a confirmation. It needs to be filed within the 20th of the following month.
- GSTR-4 – Taxpayers, benefitting from composition scheme will have to file GSTR-4 quarterly, within the 18th day of the month. It should contain the total value of the consolidated supply as well as invoice level purchase details.
- GSTR-5 – GSTR-5 is for non-resident taxpayers. It needs to be filed within the 20th of the subsequent month.
- GSTR-6 – Taxpayers, acting as Input Service Distributor, needs to file GSTR-6. It should also be filed within the 13th day of the following month.
- GSTR-7 – Registered taxpayers who are liable for Tax Deducted at Source, have to file GSTR-7 within the 10th of the subsequent month.
- GSTR-8 – E-commerce operators are liable to file GSTR-8. This form should also contain details of tax collected under Section 43C of Sub-Section (1).
- GSTR-9 – GSTR-9 is for ordinary taxpayers, containing all the details regarding income and expenditures occurred throughout a year. It has to be filed within 31st December of the subsequent financial year.
- GSTR-10 – Taxpayers opting for cancellation of GST registration need to file GSTR-10 within 3 months from the issue date of cancellation order.
- GSTR-11 – GSTR-11 should be filed by anyone who has been issued a UIN and needs to claim refunds on the tax paid on inward supplies. It should be filed within the 28th day of the month subsequent of the date when the supply was received.
Despite the major changes in the indirect tax regime, GST brought little to no changes in how advances and credits are allocated and disbursed. This has proven significantly beneficial for organisations, as they can easily avail business loans to fund their immediate monetary requirements.
There are several financial institutions that offer this type of credit. NBFCs like Bajaj Finserv even provide pre-approved offers that simplify the application process and helps save time.
Online filing of GST can be completed following the simple steps mentioned above. It can significantly reduce the hassle involved in processing the tax and related paperwork, as well as save a substantial amount of time during the process.