Gst return and gst manegement
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What exactly is GST Return and GST Management?
All income, sales, expense, or purchase details are written in the document that is known as GST Return. A taxpayer is needed to file the GST return to the tax administrative authorities. Tax authorities use it to calculate the net tax liability. A registered user in GST is required to file GST returns, including Input Tax Credit, Output GST, Sales, and Purchases. Being a taxpayer and an owner, you have to proclaim the received income from your business transactions in GST return.
Who can file GST Returns?
In the regime of GST, a regular business that has more than 5 Core annual aggregate turnover should file 2 monthly returns & 1 annual return, which can amount to twenty-six returns in 1 year. For the quarterly filers of GSTR-1 under the QRMP scheme, the number of filing GSTR varies. There is a total of 9 GSTR filings in a year that includes annual returns and GSTR-3B. In particular cases, separate returns should be filed like composition dealers who file a total of 5 GSTR in a year.
All the dealers and owners of businesses registered for GST as stated by the transactions or business nature have to file GST returns.
- Tax Notice
- Auto-drafted Returns
- Regular Business
- Composition scheme registered businesses
- Other types of dealers and business owners.
Types of GST returns.
GSTR1 (tax return for outward supplies made)
It holds the interstate and intrastate details of B2C and B2B sales that include under reverse charge & inter-state stock transfers done during the tax period. If GSTR-1 FORM is filed after the due date, the overdue fees will be automatically charged from the following open return in GSTR-3B FORM. The taxpayers will not be allowed from January 1, 2022, to file GSTR-1 FORM if they forget to file the GSTR-3B FORM in the earlier month.
GSTR2 (return for inward supplies received)
It holds taxpayer information of final invoice-level purchase allied to the tax period and the return period listed individually for goods & services.
It is an auto-drafted document that will react as a statement of (ITC) Input Tax Credit for taxpayers. The GST Council states that GSTR 2B will aid in cut the time taken to ease reconciliation, file returns, simplify compliance and minimize errors.
GSTR3 (Consolidated monthly tax return)
It holds the basic information of the taxpayer including Name, GSTIN, etc., return pertain period, details of turnover, details of outward supplies, final aggregate-level inward, tax liability under IGST, SGST, CGST, and an additional tax of 1%, your ITC details, liability ledger, cash, other payment details like penalties, fees, and interest.
Provisional consolidated summary return of outward and inward supplies, which the Indian government has launched as a composure for business that recently has transformed to GST. Therefore, in July & August 2017 months, the tax payment will hinge on simple returns known as GSTR-3B instead.
GSTR9 (Annual consolidated tax return)
It holds the expenditure and income of the taxpayer in detail. These details are accumulated according to the returns in a month that the taxpayer files.
Every taxpayer has to file the audit form. The taxpayer is liable for getting audited annual reports at the time when the aggregate turnover is more than Rs. 2 Crores in a year.
Businesses registered under the Composition Scheme
GSTR4 (Quarterly return for compounding vendors)
It holds the supply’s total value that is made at the time of return period covered with the tax paid details at the compounding rate, which should not be more than 1% of aggregate turnover for a particular period with details of invoice for inward supplies as if they are purchased or imports from the regular taxpayers.
Every taxpayer has to file an annual composition return—a registered taxpayer in the composition scheme.
Other types of business owners and dealers
GSTR5 (variable return for Non-resident foreign taxpayers)
It holds the taxpayer’s details, invoice details, and period of return of all products and services that are purchased and sold on Indian soil by the taxpayer for the following month.
GSTR6 (Monthly return for ISDs)
It holds basic information of taxpayer including name, GSTIN, etc., return pertains period, details of invoice-level supplies from the counter party’s GSTR-1, details of the invoice, including taxpayer’s GSTIN that receives credit, different ISD ledger that contains the ITC balance opening for the particular period, debit for ITC distributed or reversed, credit for ITC services received, and closing balance.
GSTR7 (Monthly return for TDS transactions)
It holds basic information of the taxpayer, including name, GSTIN, etc., return pertains period, GSTIN of the supplier, tax deducted invoices categorized under IGST, CGST, and SGST, and other payment details like penalties and interests.
GSTR8 (Monthly return for e-commerce operators)
It holds basic information of taxpayer including name, GSTIN, etc., return pertains period, customers’ supplies details from e-commerce portal by unregistered persons and registered persons both, basic information of customers, tax collected at source amount, tax paid, and tax payable.
Ecommerce operators should file annual returns who assemble tax at the source.
GSTR10 (Final GST return before canceling GST registration)
When concluding business activities forever or cancellation of GST registration, the final return is filed. It holds all the details of liabilities, supplies, tax payable, tax collected, etc.
GSTR11(variable tax returns for taxpayers with UIN)
It holds the details of foreign embassies’ purchases and self-consumption diplomatic missions at a subsequent month.
You can rectify the GSTR-1 document with this amendment form that includes any discrepancy between taxpayers’ GSTR-1 and GSTR-2 of customers. You can file this between the 15th & 17th of the subsequent month.
For inward supplies and purchases, an auto-drafted tax return that a taxpayer has made is compiled automatically by the GSTN on the basis of the given information in the GSTR-1 of suppliers.
GSTR4A (Quarterly purchase-related tax return for composition dealers)
It is created automatically by the GSTN portal on the basis of the given information in the GSTR-7, GSTR-5, and GSTR-1 of suppliers.