GST filing was one of India’s most large tax reforms. “One Nation, One Tax” is its motto. Instead of having multiple taxes that confuse the tax structure, GST Returns Filing was created to replace these various direct and indirect taxes. The GST Council and the finance ministry built the GSTN (goods and service tax network) system, which provides all information on invoices, sales, purchases, location, and date. As a result, GST Returns are the forms that every taxpayer must complete in order to receive a smooth flow of input tax credit.

To make online GST return filing easy, various categories as a taxpayer are introduced:

  1. Regular Taxpayer: People who own a business in a state/UT and are involved in the delivery of products and services The regular taxpayer must file three mandatory forms: GSTR-1, GSTR-2, and GSTR-3, with GSTR-1 and GSTR-2 accounting for outward (sales) and inward (purchases) supplies, respectively, and GSTR-3 accounting for cumulative tax data (return filing) to be filed on or before the 20th of the following month. Taxpayers having a turnover of fewer than 1.5 crores must file quarterly returns, but those with a turnover of more than 1.5 crores must file monthly returns.
  2. Composition Taxpayer: To help small and medium businesses, the government has created the structure system, which requires registered businesses to file one return (GSTR-4) every quarter rather than three filings per month as required by typical firms. On the GST Registration Online Portal, there is an option to register under the Composition plan, which requires registering companies to have a revenue of less than INR 75 lakh.
  3. Non-resident taxpayer: Under the GST regime, a non-resident taxpayer is someone or a company that does not own a business in India but supplies products and services to the country for a limited time. Every one of these non-resident taxpayers must use the GSTR-5 form to submit their tax returns.
  4. TDS Taxpayer: TDS taxpayers are individuals or businesses who are allowed to deduct TDS from payments made to registered vendors or businesses for purchases made from them. Every TDS taxpayer must use the GSTR-7 form to file their taxes
  5. TCS Taxpayer: E-commerce operators are online businesses that are registered under the Model GST law and provide a marketplace for vendors and customers to trade products and services. They should use the Indian government’s GST portal to file the GSTR-8 form for TCS taxes.

A brief glance at the earlier existing GST Process:

GST returns may be filed online with Goods and Service Tax Network’s software or applications.

Steps for filing GST Return:

  • Go to GST Online Portal
  • Your state code and PAN number will be used to generate a 15-digit GST identification number.
  • Invoices can be uploaded to the GST Online portal or the software. Each invoice will be given an invoice reference number.
  • After submitting invoices, you must complete an outward return, an inward return, and a cumulative monthly return online. You have the option to fix any problems and resubmit the returns if necessary.
  • On or before the 10th of the next month, file outward supply returns in GSTR-1 form using the information part of the GST Common Portal (GSTN).
  • The recipient will be able to see the details of the supplier’s outward supply in GSTR-2A.
  • The recipient must check, confirm, and update outward supply facts, as well as enter credit or debit note info.
  • In the GSTR-2 form, the recipient must include information about inward supplies of taxable goods and services.

GST filing will be simplified, and GSTN will finally become a fully public institution. The GST council has issued the green light to transform the GST Network (GSTN) into a government organization which would result in a simpler structure and a significant reduction in complications.

Under the leadership of Bihar deputy chief minister Sushil Modi, a group of ministers was formed to propose new models based on the ideas of Infosys chairman Nandan Nilekani and the officer’s committee. The council has created a system that allows bills to go in only one direction. It has created a simplified system in which just the seller of products in a business-to-business transaction is allowed to upload invoices.

New GST filing Model Approved by GST Council

First stage 

A six-month buffer time will be provided to ensure that the transition is gradual. The current GSTR-1 and GSTR-3B versions will be maintained for six months, but the GSTR1 time would be reduced.

Second stage 

Invoices will be uploaded by the seller. Even if the seller does not upload relevant invoices, the buyer will be provided temporary credit based on his/her calculations. The GST Network will continue to alert buyers of the mismatch between the credit available to them and the input tax credit they received. The buyer might then request that the seller also upload the remaining bills. Assesses will be required to file one return every month, with the exception of those who have no transactions or who are subject to the composition scheme, who will be required to file quarterly returns.

Third stage 

Provisional credit will not be available. The seller’s invoices will be used to calculate credit. The invoices will be submitted by the seller, and a credit will be given to them. The government will collect the tax from the sale, and in the most serious cases, when the seller cannot be found or does not have assets, the buyer will be responsible for paying the tax. The rest of the processes will be the same as they were in stage two.

Do you need to file GST returns in India?

Meralegal will assist you in receiving the required documents and registrations for GST registration in India. To contact our experts, please click on the following link.

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