Goods and Services Tax (GST Returns) is a document that contains all the details of input (purchases), output (sales), input tax (tax paid on purchases), and output tax (tax paid on sales). It is to be filed by all the individuals, traders, organizations, and companies registered under GST. On the filing of the returns, the tax liability is ascertained and is to be paid to the relevant authority.
Also read: GST Return Filing Process-A simple outline.
Types Of Form For GST Returns Filing
The registered user has to submit 4 forms to file their GST returns namely
– Return for purchases,
– Return for sale/supplies,
– Monthly return/Quarterly return, and
– Annual return.
Note: For those who have opted for the composition scheme/QRMP (Quarterly Return and Monthly Payment) Scheme, they must submit quarterly returns.
Benefits Of Filing GST Returns
Claiming Input Tax Credit
Input Tax Credit is tax reduced from output tax payable on account of sales. This amount can be used to reduce the tax liability of the registered user. In order to utilize the accumulated Input Tax Credit, one has to file GST Return on time.
Avoid levy of interest
Every GST registered taxpayer has to file GST Returns, irrespective of its tax liability. This means that the returns are to be filed even if there is no transaction. If the returns are not filed, then interest @18% p.a., on the amount of outstanding tax can be charged. The late fees period will be calculated from the date of the deadline to the date of actual payment.
Avoid late fees
As per the GST Act, late fees of Rs. 100 per day up to a maximum amount of Rs. 5,000 shall be charged for delay in filing of GST Returns. This late fee cannot be adjusted against Input Tax Credit and this fee has to be deposited in cash.
Avoid GST Cancellation
As per the GST Act, the GST Officer is given the power to the registered GST taxpayer if the user delays in filing of GST Returns for a continuous period of 6 months. Therefore, it is always to file all the GST Return on time.
Avoid notice of defaults from GST Department
The GST department keeps track of the registered GST taxpayers through their filed GST Returns. If there is any irregularity in the filing of returns, then the user may get a notice from the GST department.
Accountability of the registered user
Under the GST regime, now all the taxes are paid online and the major hassles of tax filling have been eliminated through the filing of goods and services tax return. By paying these returns on time shows the accountability of the registered user.
Final Thoughts
Filing GST at the correct time will give you many benefits. if you are not doing it you will be in trouble. so if you are registered under GST you should file the GST at the proper time. in this post, we discussed the benefits of filing the GST at the correct time. I hope this post will give you a basic idea regarding the filing of GST at the correct time.