Goods and services tax have become applicable in India past 1st July 2017. The new GST rule has registered around 1.4 crore business in India. Entities that have GST registration are supposed to file GST returns every month. Also, each registered business needs to file GST irrespective of the business sales and activity. In fact, even a dormant business that is registered has to file their GST every month.
People or entities in India who are involved in the supply of goods and services must obtain a GST registration when the threshold limit for registration is surpassed.
GST registration is mandatory if a business supplies services or goods above Rs.20 lakhs per year. Apart from the turnover limit, GST registration is mandatory for people undertaking e-commerce sales.
All the taxpayers who have a GST license need to file the returns every month either on 10th, 15th or 20th. If the taxpayer had no activity or sales in a particular month, they should till login to the portal and file ‘NIL GST’ to avoid penalty.
All the GST Registration holders need to file GSTR-3B every month. This includes the information on sales and purchases that happened in a month. You have to fill the GSTR-3B on 20th of every month. The form consists of a simplified summary return. The main purpose behind the return is for tax payers to declare their summary GST liabilities for a particular tax period. This process further helps them to discharge these liabilities. A regular tax payer will have to file form returns for GSTR-3B regularly in every tax period.
Please note- A taxpayer will have to file GSTR-3B even if there is no activity in their business.
Apart from GSTR-3B return, all businesses should file GSTR-1 return. This form needs to be filed by businesses that are having annual revenue of more than Rs.1.5 crore. Also, it needs to be filed monthly.
If a business has yearly revenue of less than Rs.15 crore, then the GST return should be filed quarterly. Taxpayers who are filing GSTR-1 return monthly, will have a system generated GSTR-3B on their dashboards.
However, this facility is available to taxpayers who are filing their GSTR-1 monthly. This form contains information of monthly outward supplies of goods and services. Every registered taxpayer is supposed to file the GSTR-1 electronically on the portal, except for an input service distributor.
All GST entities are expected to file the annual GST return. You should keep a wathc on the due dates accordingly.
If you do not file your returns on time, you will have to face penalties. Also, if the GST return is not filed continuously for 6 months, then your registration will be cancelled. Also, you will not be able to obtain another GST license until you clear all the late penalty charges.
Even if a person has no business, NIL GST Returns must be filed. You can face penalty of Rs.20 per day for GSTR-3B and GSTR-1, if you forget to file them. Also, penalty of Rs.50 is applicable if there are any sales liabilities.
Apart from the late filing fees, a business will also have to pay an interest of 18% on late GST payment to the government. You should subscribe to an expert accounting service to avoid late GST payments.
Businesses that are registered under the composition scheme need to pay taxes using CMP-08 quarterly. They also need to file the GSTR-4 annually through the GST common portal or a GST Facilitation center. For the composition scheme, GST returns are due on the 18th of the month, succeeding a quarter. As a composition scheme supplier, your GST must include:
Details of invoices with inter-state and intra-state inward supplies received from registered and unregistered people.
Consolidated details of the outward supplies
If the registered business opts to pay tax under the composition scheme from the beginning of a financial year, then the tax payer needs to file monthly GST returns for 10th, 15th and 20th of each month with the monthly returns of the due date of furnishing.
For registration of the company, the entire process is here to avail for a private limited company in India.
We are a leading business services platform that offers 360 degree GST services that includes everything from registration to return filing. We help a lot of businesses to file their returns and thus, we can help you as well.
The average time taken to file a GST return ranges from 1-3 working days. However, it is subject to government portal availability and client document submission.
