GST Return Filings

Who Should File GST Returns?

This article will go extensively over a few main topics namely, what is Goods and Services Tax (GST), who are the individuals who should file their returns and then go on a bit regarding the processes of doing so. By the end of the article, you will know everything about the eligibility for filing GST.

GST, or Goods and Services Tax is an indirect tax levied on certain goods and services in the Indian Subcontinent. Before the introduction of GST certain services and goods had no unified tax between the States and the Central. As a quasi-federal nation, this was leading to complexities in the economy hence the usage of this tax in and from 2016. Currently, there are three divisions of GST which help in better and more integrated taxation. 

  • SGST:  State Goods And Services Tax or SGST is levied by the state-level governments on intra-state services and goods. All the former tax categories like VAT, Purchase Tax, Tax on tickets of lottery, Luxury and entertainment tax, Octroi etc have since been substituted by GST. But in the Union Territories like Delhi and Daman and Diu, SGST is replaced by taxes that are levied on Union Territory Goods and Services, also called UGST.
  • CGST: The Goods and Services Tax that the Central Government levies on all Intra-State Services as well as Goods to generate revenue. CGST is not exclusive and is actual levied alongside SGST or UGST as per the case, with profits being shared between the central and state. 
  • IGST: This is the name given to the integrated GST that is shared by both Center and state, as previously talked about.  Both State/Union GST and  Central GST are under this with each share going to the rightful place. It is IGST that helps save tax for all those businesses who have eligibility for filing GST.

Who Should Go For GST Filing and Returns in India?

As a rule of thumb, any person with an annual income generation of over 2 crore INR has the eligibility for filing GST Returns. This includes both individuals and businesses, each having to pay a certain amount in accordance with the total income they get.  

The amount of GST is based on the following pointers:

  • The type of taxpayer you are depends on your income. 
  • The total sales acquired by a business. 
  • The purchase amount of the business
  • GST that the customers are paying. 

 GST returns for Business

There are stark differences between each type of Business. For different Businesses both the frequency of filing as well as the slab of GST varies. “Normal” or “regular” businesses hold eligibility for filing GST returns twice monthly along with once early. But there are other types of filing structures too, like quarterly. 

As discussed, different businesses have to pay in accordance with a different slab. These slabs are typically four in number – 28%, 18%, 12% and 5%. The rates denoting eligibility for filing GST are based on both the vastness of the corporation and the goods and services they provide to the public. 

But there are a few products that are “essential”, like Petrol, diesel,  any fruits and vegetables as well as a few types of dairy products like honey, eggs and Pasteurized milk. These are entirely exempted from GST.

GST Return Categories

There are multiple categories for eligibility for filing GST with each having a different date to submit the return. This is, again, dependent on the kind of taxpayer the individual is registered as. 

There are 22 actual categories, although, in real life, we only use 11 of the. The rest are just for viewing purposes. 

The following list goes over the categories of GST filing and returns in great depth. 

  • GSTR 1: This is for sellers and supply chains. Under this, detailed invoices of all sales of products and services for the stipulated time are to be informed. Also, if there are any incongruities in the previous filings, those come under this. 
  • GSTR 2A:  Also directed towards the sellers, GST 2A is more of a read-only statement. In GSTR 2A, the documents uploaded by the seller are verified. 
  • GSTR 2:  The GSTR 2A is auto-generated following GSTR 2A. The GSTR 2 is a type of invoice sent to registered buyers for purchases made during the tax filing period. 
  • GSTR 3B: This one is about all regular salary class taxpayers. Under GSTR 3B, all the inward and outwards supplies that were done during the tax-paying time are reflected. Tax liability and credit claim of the input tax are a part of this.
  • GSTR 4:  If an individual has a revenue generation of over 1.5cr INR and has eligibility for filing GST in fixed periods, they file a return under GSTR 4. 
  • GSTR 5: This one falls in the share for any Non Residential Indian who has trade and business ties with Indian citizens. Under GSTR 5, the details of payable tax, penalty and both outward and inward supplies have to be shared. 

Calculate the GST amount that needs to be paid before registering for GST using our GST calculator.

  • GSTR 5A: This is a summary of the outward and inward supplies, per the OIDAR, the Online Information and Database Access or Retrieval Services.
  • GSTR 6: GSTR 6 contains a summary of the Input Tax Credit that became available and was distributed during the month. This is to be filed by someone who is an ISD, an Input Service Distributor. All documents regarding the manner of distribution and distributor are also encased.
  • GSTR 7:  If an individual requires a deduction of Tax Deductible at Source (TDS), they file under this category. 
  • GSTR 8: GSTR-8 is an exclusive category where E-commerce corporations are eligible to file their GST returns. Other than them anyone who Collect Tax from the source also files it under this category. 
  • GSTR 9: This is an annual return category where the eligibility for filing GST is virtually open to all taxpayers. This category holds all yearly and monthly returns of GST filing. 
  • GSTR 9A: This category is handled by the category of “Composition Taxpayers” only. This is the category for filing their annual return document. Tax details, inward and outward sales details etc are provided under GSTR 9A. 
  • GSTR 9C: This category is a statement of reconciliation applicable to those with an annual income exceeding 2 cr INR. Their accounts are managed and audited by a lawyer or a Chartered Accountant
  •  GSTR 10: It is a kind of final return filed by someone who has given up their registration or by someone whose GST registration got cancelled. 
  • GSTR 11: An individual holding a UIN or a Unique Identification Number is required to file GST returns under GSTR 11 category. The main intention of this category is to help someone get a refund for a good or service and have details of the received supplies and the return.

Conclusion

These are thus the fifteen categories of individuals or businesses that have eligibility for filing GST: https://www.gst.gov.in/, following the GST laws.  As per the understanding, the complexities of filing a GST return are no cakewalk. Thus, it is always prudent to get the help of a legal firm. If you are looking for that kind of assistance, reach out to us at Vakilsearch, one of the largest firms dealing with anything legal. Hop on to our official website and let us help you. 

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