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GST- Monthly/Quarterly Return

GST (Goods and Services Tax) Monthly/Quarterly Return is a mandatory compliance requirement for registered taxpayers under the GST regime in India. Depending on their turnover and chosen return scheme, businesses must file GST returns either monthly or quarterly. These returns include details of outward and inward supplies, input tax credit, and tax liability. Filing ensures proper tax reporting, availing of ITC (Input Tax Credit), and avoiding penalties under the GST Act.

WHAT IS GST – MONTHLY/QUARTERLY RETURN FILING?

Under the Goods and Services Tax (GST) regime in India, every registered taxpayer is required to file periodic returns that summarize their business transactions, tax collected on sales (output tax), and tax paid on purchases (input tax). Based on the taxpayer’s turnover and chosen scheme, GST returns are filed either monthly or quarterly. Timely filing of GST returns ensures compliance, smooth claim of Input Tax Credit (ITC), and avoidance of penalties.

FEATURES OF GST RETURN FILING:

  • Periodic Compliance: Returns must be filed monthly (GSTR-1, GSTR-3B) or quarterly under the QRMP scheme.
  • Multiple Return Types: Various returns apply based on the taxpayer type (Regular, Composition, Input Service Distributor, etc.).
  • Online Portal: Returns are filed electronically on the GSTN portal.
  • Auto-populated Data: Some returns are auto-filled based on transactions reported by suppliers and recipients.
  • Linked with ITC: Proper return filing is essential to claim Input Tax Credit.

REQUIREMENTS:

  • GST Registration: Valid GST registration.
  • Invoices: Sale and purchase invoices for the return period.
  • HSN & Tax Details: HSN codes, tax rates, and value details.
  • GST Portal: Access to the GSTN Portal (https://www.gst.gov.in).
  • Filing Credentials: Digital Signature Certificate (DSC) or EVC for filing returns (for companies/LLPs).

ADVANTAGES OF TIMELY GST RETURN FILING:

  • Compliance Assurance: Helps avoid late fees, interest, and penalties.
  • Input Tax Credit Claim: Ensures smooth flow of credit and reduces overall tax burden.
  • Improves Credibility: Enhances business reputation and trust with vendors and customers.
  • Avoids Blockage of E-way Bill Generation: Non-filing may restrict E-way bill generation and business movement.

WHO MUST FILE GST RETURNS:

  • Regular Registered Businesses
  • Composition Scheme Dealers
  • Input Service Distributors
  • E-commerce Operators
  • Casual/Non-Resident Taxpayers (as applicable)

FREQUENTLY ASKED QUESTIONS

Q1: Who needs to file GSTR-1 and GSTR-3B?
A1: All regular taxpayers must file GSTR-1 for outward supplies and GSTR-3B for monthly summary returns.
Q2: What is the QRMP scheme?
A2: The Quarterly Return Monthly Payment (QRMP) scheme allows small taxpayers (turnover up to ₹5 Cr) to file GSTR-1 and GSTR-3B quarterly while paying taxes monthly.
Q3: Is NIL return filing mandatory?
A3: Yes, even if there is no business activity in a period, NIL GST returns must be filed.
Q4: What are the due dates for GST returns?
A4: GSTR-1 is due on the 11th of the following month (monthly) or 13th of the month after the quarter (QRMP). GSTR-3B is due on the 20th, 22nd, or 24th based on state and scheme.
Q5: What happens if GST returns are not filed?
A5: Late filing leads to penalties, interest on tax payable, and may result in suspension of GST registration.
Q6: Can GST returns be revised?
A6: No, GST returns once filed cannot be revised. Corrections can be made in subsequent return periods.
Q7: Can returns be filed manually?
A7: No, all GST returns must be filed online through the GST portal.

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Frequently Asked Questions

Chartered Accountants (CAs), Tax Return Preparers, Tax Consultants and Certified Tax Professionals are the experts in India who can guide and file returns.

Private Limited Company set-up process typically takes around 10-12 working days. However, it can vary depending on several factors, such as the speed of document submission, verification, and approval from the authorities.

Selection of suitable entity structure for a startup involves considering several factors such as:

1. Business Goals: Define your startup's mission, vision, and objectives.
2. Ownership: Determine the number of owners (sole proprietorship, partnership, or multiple owners).
3. Liability: Consider the level of personal liability protection needed.
4. Taxation: Think about tax implications.
5. Funding: Will you need to raise capital from investors or lenders?
6. Growth Plans: Consider future expansion, mergers, or acquisitions.
7. Compliance: Evaluate the regulatory requirements and compliance burden.
8. Flexibility: Assess the need for flexibility in decision-making and management.

Common business structures for startups:
1. Sole Proprietorship: Simple, low-cost, but offers no liability protection.
2. Partnership: Shared ownership, but partners have personal liability.
3. Limited Liability Partnership (LLP): Combines partnership benefits with liability protection.
4. Private Limited Company: Offers liability protection, tax benefits, and credibility.
5. Limited Liability Company (LLC): Flexible with liability protection.

The Presumptive Taxation Scheme (PTS) offers several benefits to small businesses and professionals:

1. Simplified Accounting: No need to maintain detailed accounts and records.
2. Estimated Income: Tax is calculated on an estimated income, rather than actual profits.
3. Reduced Compliance: No requirement to get accounts audited.
4. Lower Tax Liability: Tax is calculated at a prescribed rate.
5. Exemption from Tax Audit: No requirement to get tax audit done.
6. Easy Calculation: Profit is calculated on a fixed percentage of gross receipts.

No, you cannot obtain two Director Identification Numbers (DIN) for two companies. DIN is a unique identifier assigned to an individual who is a director or proposed to be a director of a company. If you want to be a director in two companies then you can use the same DIN for both companies.

Yes, it is mandatory to maintain records of all financial transactions for your business. The Companies Act, 2013 and the Income Tax Act, 1961, require businesses to maintain accurate and complete financial records and it should be accurate; up-to-date; easily accessible for inspection by authorities and must be retained for a minimum of 8 years.

Maintaining financial records helps:
1. Track business performance: Accurate records can help you track your business performance, identify opportunities and problems and compare your business to others.
2. Prepare financial statements: Accurate records are needed to prepare financial statements, such as income statements and balance sheets. These statements can help you manage your business and deal with creditors and banks.
3. File tax returns: Accurate records can help you comply with tax laws and avoid penalties.
4. Detect and prevent fraud: Accurate records can help prevent and detect fraud and theft.

Failure to maintain proper financial records can result in penalties, fines, and legal issues.


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