GST, an indirect tax, is levied on the provision of goods and services within India. Implemented on July 1, 2017, GST replaced several previous indirect taxes like VAT, service tax, and excise duty. For Private Limited Companies (Pvt Ltd), adhering to GST regulations is critical for legal compliance and smooth business operations. Filing GST returns after getting GST registration in Coimbatore is an essential part of this compliance process.
Importance of GST Return Filing for Pvt Ltd Companies
Filing GST returns is important for Pvt Ltd companies for several reasons:
Legal Compliance: It ensures the company adheres to the laws and avoids penalties.
Input Tax Credit: Proper filing allows companies to claim Input Tax Credit (ITC), which reduces the overall tax liability.
Transparency: Regular filing maintains transparency with the government and stakeholders.
Smooth Business Operations: Compliance with GST norms ensures uninterrupted business activities, avoiding legal complications.
GSTR-1: Monthly return for outward supplies of goods or services.
GSTR-2A/2B: Auto-drafted returns for inward supplies.
GSTR-3B: Monthly summary return for consolidated tax liability.
GSTR-4 – a quarterly return form filed by taxpayers registered under the Composition Scheme, providing summarized details of outward supplies, tax payable, and payment of taxes.
GSTR-5 – a return filed by non-resident foreign taxpayers to report their inward and outward supplies of goods and services in India.
GSTR-5A – a return form filed by Non-Resident Taxable Persons (NRTPs) to report supplies, imports, and tax liability accrued during a specific tax period in India.
GSTR-6 – a return form filed by Input Service Distributors (ISDs) to declare the details of input tax credit (ITC) received and distributed to respective recipients.
GSTR-7 – a return form filed by the Tax Deductor to furnish details of tax deducted at source (TDS) on supplies made by registered taxpayers under GST.
GSTR-8 – a return form filed by e-commerce operators to report details of supplies made by third-party vendors through their platform and to discharge tax liabilities.
GSTR-9: Annual return consolidating all monthly/quarterly returns.
GSTR-10, also known as the final return form, is mandatory for taxpayers who have cancelled or surrendered their GST registration.
GSTR-11 – a return form filed by persons with a Unique Identity Number (UIN) to claim refunds on inward supplies of goods and services in India.
CMP-08: CMP-08 – a quarterly return form filed by taxpayers registered under the Composition Scheme, summarizing their tax liabilities and payments.
ITC-04 – a GST return form used to report the details of goods dispatched to job workers and received back, facilitating input tax credit claims by manufacturers.
Detailed Process of GST Return Filing
Prerequisites for Filing
Before starting the GST return filing process, ensure the following:
Digital Signature Certificate (DSC): For companies, DSC of the authorized signatory is necessary.
Access to GST Portal: Ensure you have login credentials for the GST portal.
Filing GSTR-1
GSTR-1 captures details of all outward supplies (sales) made during the month.
Log in to the GST Portal: Use your credentials to log in.
Go to Services > Returns > Returns Dashboard. Select the financial year. And the, return filing period.
Add Invoice Details: Enter details of B2B (Business-to-Business) and B2C (Business-to-Consumer) invoices, including invoice number, date, customer GSTIN, and taxable value.
Enter Debit/Credit Notes: Enter details of any debit or credit notes issued.
Submit and File: After entering all details, submit the return and file it using DSC.
Log in and Access GSTR-3B: Similar to GSTR-1, log in and navigate to GSTR-3B.
Enter Summary Details: Enter the total values for outward supplies, inward supplies, and the amount of ITC claimed.
Calculate Tax Liability: Based on the details entered, calculate the net tax liability.
Pay Tax Liability: Use the portal to pay the tax liability through available payment modes.
Submit and File: Submit the return and file it using DSC.
Filing of GSTR4
GSTR-4 – a quarterly GST return filed by composition taxpayers, such as small businesses with turnover up to INR 1.5 crores. It provides a summary of outward supplies, tax liability, and payment details for the quarter. To file GSTR-4:
Log in to GST Portal: Log in to the GST portal.
Navigate: Navigate to the ‘Services’ tab and select ‘Returns’.
Enter Details: Choose the financial year and quarter for filing.
Verify and Submit: Enter details of outward supplies and tax payable.
Submit and File: Review and submit the return.
Composition taxpayers who has GST registration in Coimbatore must file GSTR-4 by the 18th of the month following the quarter’s end.
Filing GSTR-5
GSTR-5 – GST return form filed by non-resident taxable persons providing goods or services in India. To file GSTR-5, non-resident taxpayers must:
Log in to GST Portal: Log in to the GST portal.
Navigate: Access the GSTR-5 form under the Returns Dashboard.
Enter Details: Fill in details such as turnover, tax liability, and tax paid for the respective tax period.
Verify and Submit: Verify the information provided.
Submit and File: Submit the form electronically using a Digital Signature Certificate (DSC) or Electronic Verification Code (EVC).
This return should get monthly filing by the 20th of the following month.
Filing GSTR 5A
GSTR-5A- a return form filed by non-resident foreign taxpayers who come to India for business transactions but do not have a fixed place of business here.
It contains details of inward and outward supplies, tax liability, and tax paid during the tax period.
To file GSTR-5A, non-resident taxpayers must log in to the GST portal, select the appropriate tax period, enter details of their business activities in India, including supplies made and received, and submit the form electronically.
Filing GSTR 6
GSTR-6 -a monthly return filed in India. It includes details of input tax credit (ITC) received and distributed among branches of the ISD. To file GSTR-6:
Log in to GST Portal: Log in to the GST portal.
Navigate: Navigate to the GSTR-6 section.
Enter Details: Enter details of ITC received and distributed.
Verify and Submit: Validate the data and submit the return.
Submit and File: After submission, file the return using a Digital Signature Certificate (DSC) or Electronic Verification Code (EVC).
Filing GSTR 7
GSTR-7 is a monthly return filing after getting GST registration in Coimbatore . It is done by taxpayers who have the requirement to deduct TDS (Tax Deducted at Source) under GST. It contains details of TDS deducted, TDS liability, TDS paid during the month. To file GSTR-7:
Log in to GST Portal: Log in to the GST portal.
Navigate: Navigate to the ‘Returns’ section and select ‘GSTR-7’.
Enter Details: Enter details of TDS deducted and other required information.
Verify and Submit: Preview the return and make corrections if necessary.
Submit and File: File the return and pay any TDS liability due.
Filing GSTR 8
GSTR-8 is a monthly return filed by e-commerce operators who collect tax at source (TCS) with GST registration in Coimbatore. It includes details of supplies made through the platform and the amount of TCS collected. To file GSTR-8, e-commerce operators need to:
Log in to GST Portal: Log in to the GST portal.
Navigate: Access the GSTR-8 form.
Enter Details: Enter details of supplies made and TCS collected.
Verify and Submit: Verify your details. Then submit the return.
Submit and File: File the return using a Digital Signature Certificate (DSC) or Electronic Verification Code (EVC).
Reconciliation and Filing GSTR-9
GSTR-9 – annual return that consolidates all monthly/quarterly returns filed during the year.
Preparation: Gather all monthly GSTR-1 and GSTR-3B filings for the financial year.
Reconciliation: Reconcile sales and purchase data to ensure accuracy. Check for any mismatches and rectify them.
Enter Details: Enter consolidated details of outward and inward supplies, ITC claimed, tax paid, and any adjustments made during the year.
Submit and File: After thorough verification, submit the return and file it using DSC.
GSTR-10
GSTR-10 – a final return that must have filing by a registered taxpayer whose GST registration has been cancelled or surrendered. It ensures that all liabilities have clearance before the GST registration gets termination.
How to File GSTR-10?
Log in to GST Portal: Use your credentials.
Navigate to GSTR-10: Go to Services > Returns > Final Return.
Enter Details: Provide business information, cancellation details, and stock held.
Submit: Verify the data, submit the return, and file using DSC or EVC.
GSTR-11
GSTR-11: Return for UIN Holders
The GSTR-11 – a return to be filed by persons with a Unique Identification Number (UIN) to claim refunds on inward supplies of goods and services. UIN is typically assigned to foreign diplomatic missions and embassies not liable for GST registration in Coimbatore.
How to File GSTR-11?
Log in to GST Portal: Use UIN holder credentials.
Navigate : Go to Services > Returns > Returns Dashboard.
Enter Details: Provide UIN, name, and inward supply details.
Submit: Verify the information and submit the return.
Claim Refund: Use the return to claim a refund on eligible inward supplies.
CMP-08: Statement-cum-Challan for Composition Scheme
CMP-08 is a quarterly statement-cum-Challan that must have the filing by taxpayers under the GST Composition Scheme. It consolidates details of outward supplies and taxes paid.
How to File CMP-08?
Log in to GST Portal: Use your credentials.
Navigate to CMP-08: Go to Services > Returns > Returns Dashboard. Select financial year and, return filing period.
Enter Details: Provide details of outward supplies and tax payable.
Pay Tax: Calculate and pay the tax liability.
Submit: Verify the information and file using DSC or EVC.
ITC-04: Job Work Return
ITC-04 – a GST return form required to be filed after getting GST registration in Coimbatore. It is registered by manufacturers who send goods for job work. It details the inputs or capital goods dispatched and received back from job workers.
How to File ITC-04?
Log in to GST Portal: Use your credentials.
Navigate to ITC-04: Go to Services > Returns > ITC Forms.
Enter Details: Provide details of goods sent to job workers and received back.
Verify and Submit: Verify the entered information and submit the form using DSC or EVC.
Benefits of Timely GST Return Filing
Avoid Penalties: Timely filing helps avoid late fees and penalties.
Claim ITC: Accurate and timely filings ensure the company can claim the maximum Input Tax Credit.
Smooth Business Operations: Compliance with GST regulations facilitates uninterrupted business activities.
Enhanced Reputation: Adhering to tax laws boosts the company’s reputation among stakeholders.
Common Mistakes to Avoid
Incorrect Invoice Details: Ensure all invoice details like GSTIN, invoice number, and taxable value are accurate.
Delay in Filing: File returns within the due dates to avoid penalties.
Mismatched Data: Reconcile sales and purchase data to avoid discrepancies.
Incorrect ITC Claims: Ensure ITC claims have support by proper invoices and comply with GST norms.
Ignoring Amendments: Keep updated with GST amendments and incorporate them into return filings.
Penalties for Non-Compliance
Non-compliance with GST return filing can result in severe penalties:
Late Fee: INR 50 per day for regular taxpayers (INR 25 each for CGST and SGST), capped at INR 10,000.
Interest on Late Payment: Interest at 18% per annum on the unpaid tax amount.
Penalty for Incorrect Filing: Varies based on the nature and extent of the error.
Digital Tools and Software for GST Filing
Several digital tools and software can streamline the GST return filing process:
Government Portal: The GST portal itself provides a user-friendly interface for filing returns.
GST Amendments and Their Impact on Pvt Ltd Companies
Keeping up with GST amendments is crucial for compliance:
E-Invoicing: Mandatory for companies with a turnover above INR 10 crores from October 1, 2022.
QRMP Scheme: Quarterly Return Filing and Monthly Payment of Taxes scheme for small taxpayers.
New ITC Rules: Updated rules on claiming Input Tax Credit based on invoice matching.
Conclusion
Filing GST returns is a vital responsibility for Pvt Ltd companies which has Private limited company registration in Coimbatore. It ensures legal compliance, facilitates the claiming of Input Tax Credit, and maintains transparency in business operations. Understanding the types of GST returns, the detailed process of filing them, common mistakes to avoid, and the benefits of timely filing can help companies navigate the GST regime efficiently. Utilizing digital tools and staying updated with GST amendments further aids in streamlined and compliant return filing processes.