Approximately Rs.1.06 lakh crore was generated as GST revenue in March 2019. Such funds are collected by the Income Tax department on a monthly or quarterly basis, depending on the annual turnover of a business.
All companies have to file for such returns either online or offline, provided annual turnover is higher than Rs.20 lakh.
Nonetheless, understanding GST meaning and its importance are vital before learning about the application process. Goods and Services Tax is a unified indirect taxation regime, launched by the union government of India in 2017.
It is expected to reduce the hassles of tax payment and subsequent collection, as well as to decrease the tax liability in some instances.
Companies with an annual turnover of higher than Rs.1.5 crore is required to invoice all purchases and sales and thereby make liable tax payments every month, while businesses generating revenue lower than Rs.1.5 crore can do so every quarter.
Entrepreneurs should know about the dates of such GST return filing, as a missed deadline can lead to penalty charges of up to Rs.10,000.
Essential dates for GST filing
After understanding GST meaning and how to register for GST online, individuals should know about the requisite forms to be filed and the last date for filing the same on the GST portal.
- GSTR-1 – Has to be filed on the 11th of every month, with details regarding outward supplies of goods and services. Companies with a turnover lower than Rs.1.5 lakh have to file it on the 11th of every quarter.
- GSTR-3B – It is a self–declaration form of outward supplies and inward purchases, input tax credit, and other tax liability, which has to be submitted on the 20th of every month.
- GSTR-4 – Businesses undertaking GST return filing under the composition scheme have to file their total revenue on the 18th of every quarter.
- GSTR-5 – Non-resident taxpayers such NRI and POI have to file GST returns online every month by the 20th.
- GSTR-6 – This is applicable for returns of any input-service distributor. Such forms have to be submitted by the 13th of every month.
- GSTR-7 – Businesses deducting tax at source from employees have to file for GST returns under the stipulated form, containing details of TDS deducted and refunds made. It has to be filed by the 10th of every month.
- GSTR-8 – E-commerce companies collecting tax at source have to deposit the same through the GST portal on the 10th of every month.
- GSTR-9 – Composite information regarding outward taxes paid and tax input credit have to be detailed in this form. Such details containing comprehensive returns of all transactions undertaken annually have to be filled and duly submitted by the 31st December.
- GSTR-9A – Businesses registered under the composition scheme have to file this form for annual returns on 31st December.
- GSTR-10 – In case of cancellation of GST registration, a final return within 3 months of the cancellation order has to be filed.
- GSTR-11 – Any tax deducted from individuals not falling under the taxable category is eligible for a refund by filing for GSTR-11, using their designated UIN. It has to be submitted by the 11th of every month.
Knowing the GST meaning and filing for the same on time can help companies meet their tax obligations on time.
A substantial impact of GST on the working capital of businesses is generated; as a result, effectively leading to more efficient inventory management and better accessibility of raw materials.
The intrinsic concept of GST is not to just facilitate a single business but to increase operational fluidity of the whole business environment.
GST returns are also considered as a vital document to opt for business loans to increase accessible working capital, expand the operational structure, etc.
Financers such as Bajaj Finserv offer such loans at attractive rates of interest and with flexible loan repayment tenors. They also provide pre-approved offers to reduce the time and complications of credit approval.
Thus, having a general idea of GST meaning and benefits of filing the same on time can effectively increase the profitability of a business venture, through efficient management of tax burden.
Know the Important Dates to File your GST Return Timely was originally published on the-next-tech.com.