GST Return Filing Services

The Goods and Services Tax (GST) is a major tax reform in India that started on July 1, 2017. It replaced a complicated system of many central and state taxes with one unified tax, making it easier to do business across the country. The main goals of GST were to simplify the tax process, improve compliance, and support economic growth. One important change with GST was the introduction of different forms for filing tax returns to promote transparency and accountability.

How GST Began

Before GST, India’s tax system was very complicated. Businesses had to deal with many different taxes like VAT, excise duty, and service tax. This often led to tax-on-tax, which made goods and services more expensive for consumers. GST was introduced to fix this problem with the idea of “one nation, one tax.” After years of discussions and planning, the GST law was passed, and July 2017 became a key moment in India’s tax history.Implementation and Structure.

How GST Works

GST has a multi-level structure, including:

• Central GST (CGST)
• State GST (SGST)
• Integrated GST (IGST) for transactions between states

There are different tax slabs: 0%, 5%, 12%, 18%, and 28%. Basic goods are taxed at lower rates, while luxury goods are taxed higher. This system tries to keep things affordable while also collecting enough revenue.

GST Returns:

One of the most important parts of GST is filing GST returns. This helps the government keep track of taxes collected. To suit different types of businesses, multiple return forms were created. Each form has a specific use. Some of the main ones include:

1) GSTR-1 Return

The GSTR-1 return captures details of outward supplies made by a taxpayer during a specific tax period. Specifically, it includes B2B supplies, B2C supplies, zero-rated, nil-rated, and exempted supplies. Additionally, it covers debit and credit notes issued by the supplier. For businesses seeking accuracy, GST return filing services can simplify this process.

Who Needs to File GSTR-1 and Its Due Date?

• Regular Taxpayers: Those required to pay GST monthly or quarterly.
• Casual Taxpayers: Individuals paying GST temporarily.
• Non-Resident Taxpayers: Those obligated to file GSTR-1 under GST rules.

The due date for GSTR-1 is the 11th of the next month for monthly filers. Meanwhile, for quarterly filers, it’s the 13th of the month following the quarter’s end. Engaging GST return filing services ensures these deadlines are met without hassle.

2) GSTR-2A and GSTR-2B

GSTR-2A provides details of input tax credit (ITC) available from purchases made through registered GST suppliers, based on data from suppliers’ GST returns. Similarly, GSTR-2B also reflects ITC details from purchases, generated from suppliers’ filings.

However, the key difference lies in ITC eligibility. Registered persons can only claim ITC via GSTR-2B. Sometimes, ITC may appear in GSTR-2A but not in GSTR-2B due to the supplier’s GSTR-1 filing timeline. For instance, if GSTR-1 is filed within the due month, ITC reflects in GSTR-2B for that period. Conversely, if filed late, ITC availability depends on the filing date. Professional GST return filing services can help reconcile these discrepancies effectively.

3) GSTR-3B

GSTR-3B focuses on the outward tax liability a GSTN holder must pay after claiming available ITC from purchases. Specifically, registered taxpayers who make outward supplies during a tax period must remit the GST collected from recipients to the government. Moreover, they can offset this with ITC from inward supplies (purchases) or carry forward opening ITC not available in GSTR-2B for that month but accessible in the current month.

After this adjustment, if outward tax liability exceeds ITC, the difference must be paid. Alternatively, if inward supplies exceed outward supplies, the excess ITC is credited to the ledger. For expert handling, GST return filing services are invaluable.

Time Limit for Filing GSTR-3B

For monthly taxpayers, the due date is the 20th of the next month. Meanwhile, for quarterly filers, it’s the 22nd or 24th (depending on the state) of the month following the quarter’s end.

Late Fees and Interest for Delayed GSTR-3B Filing

If GSTR-3B is filed after the due date, a late fee applies:

• Rs. 50 per day of delay if there’s tax liability.
• Rs. 20 per day for taxpayers with nil tax liability.

Additionally, if GST dues remain unpaid past the due date, an interest of 18% per annum is charged on the outstanding tax amount. To avoid penalties, consider GST return filing servicesfor timely submissions.

4) GSTR-4

GSTR-4 is an annual return filed by taxpayers under the composition scheme in the GST Act. Composition taxpayers opt for a flat tax rate on their turnover, with a limit of Rs. 1.5 crores (Rs. 75 lakhs in special category states).

Notably, GSTR-4 is linked to CMP-08, a quarterly form that composition taxpayers must file by the 18th of the month following the quarter (or as extended by government notifications). After filing CMP-08 for all quarters, GSTR-4 must be submitted, with the due date for FY 2024-25 being 30th June 2025. Reliable GST return filing services can streamline this process.

Late Fees for GSTR-4

Under GST law, a late fee of Rs. 50 per day applies, capped at Rs. 2,000. For nil tax liability, the maximum fee is Rs. 500. Previously, the late fee was Rs. 200 per day, with a cap of Rs. 5,000.

5) GSTR-5

GSTR-5 is a return filed by Non-Resident Taxpayers (NRTPs). These taxpayers must submit GSTR-5 within seven days of their registration’s expiry for the applicable period. However, if the registration exceeds one month, monthly returns are due by the 13th of the following month (effective from October 2022) or within seven days of business closure, whichever is earlier.

Due Date Example Post-September 2022

Penalties for Delayed GSTR-5 Filing

If filing is delayed, an interest of 18% per annum applies on the outstanding tax, calculated from the day after the due date until payment. Additionally, a late fee of Rs. 50 per day (Rs. 20 for nil returns) is charged, with a maximum of Rs. 5,000. To ensure compliance, GST return filing services can be a game-changer for NRTPs.

6) GSTR-6

Form GSTR-6 is a monthly return that Input Service Distributors (ISDs) in India must file to distribute Input Tax Credit (ITC) among their units. Specifically, only those registered as ISDs are required to submit this mandatory return each month. Even if no ITC is available for distribution or no ITC is distributed during the month, a ‘Nil’ return is still necessary. For businesses managing multiple units, GST return filing services can ensure accurate and timely submissions.

The due date for filing GSTR-6, as per the GST Act, is the 13th of the month following the relevant tax period, unless extended by the government. Moreover, late fees have been reduced to Rs. 50 per day. However, there’s no provision for a reduced fee for ‘Nil’ returns.

7) GSTR-9

Form GSTR-9 is an annual return filed once per financial year by regular taxpayers in India, including SEZ units and developers. This return requires taxpayers to provide details of purchases, sales, ITC, refunds claimed, or demands created. Essentially, it’s mandatory for normal taxpayers, including those who switched from the composition scheme to regular status during the year. For such complex filings, GST return filing services can be a lifesaver.

Notes:

• Composition taxpayers file GSTR-9A instead.
• Casual taxpayers, non-resident taxpayers, ISDs, and those deducting TDS (Section 51) or collecting TCS (Section 52) are exempt from filing GSTR-9.

Interestingly, GSTR-9 is optional for businesses with a turnover up to Rs. 2 crores from FY 2017-18 to FY 2023-24. Each year, the GST department notifies the turnover threshold above which GSTR-9 becomes mandatory. Typically, the due date for GSTR-9 is 31st December of the following year for a given financial year.

Late Fees for GSTR-9

Late fees vary by turnover:

• Up to Rs. 5 crores: Rs. 50 per day (Rs. 25 each under CGST and SGST), capped at 0.04% of turnover.
• Rs. 5-20 crores: Rs. 100 per day (Rs. 50 each under CGST and SGST), with the same cap.
• Above Rs. 20 crores: Rs. 200 per day (Rs. 100 each under CGST and SGST), capped at 0.50% of turnover.

8) GSTR-9C

The GSTR-9C limit refers to the threshold of annual aggregate turnover above which a registered taxpayer under GST in India is required to file Form GSTR-9C, a reconciliation statement that aligns the annual GST returns (GSTR-9) with audited financial statements. The requirement for mandatory GST audit by a Chartered Accountant or Cost Accountant was removed, and self-certification was introduced for GSTR-9C. Professional GST return filing services can simplify this process.

Steps to Prepare GSTR-9C:

1. Verify GSTR-9: Ensure your annual GST returns are accurate and complete.
2. Reconcile Financials: Compare GSTR-9 with audited financial statements to spot discrepancies.
3. Report Gaps: Highlight any differences in the GSTR-9C statement.
4. File Online: Submit GSTR-9C with audited financials and GSTR-9 via the GST portal or a facilitation center.

Since GSTR-9C is self-certified, thorough review is essential before submission.Always check the latest GST Council notifications or CBIC circulars for any changes, as these thresholds and rules can be amended periodically.

9) GSTR-10

GSTR-10 is a final return filed by taxpayers whose GST registration is canceled or surrendered. This statement details stocks held the day before cancellation takes effect and must be submitted within three months of the cancellation date or order, whichever is later. It includes ITC on closing stock (inputs and capital goods) to be reversed or paid. For a smooth closure, GST return filing services can assist.

Who Needs to File GSTR-10?

All taxpayers except:

• Input Service Distributors (ISDs).
• Non-resident taxable persons.
• Persons deducting TDS (Section 51).
• Composition taxpayers (Section 10).
• Persons collecting TCS (Section 52).

If GSTR-10 isn’t filed on time, a notice is issued, allowing 15 additional days to comply. Otherwise, the tax officer issues a final cancellation order, specifying tax, interest, and penalties payable.

10) GSTR-11

GSTR-11 is a quarterly statement for Unique Identification Number (UIN) holders, such as foreign diplomatic missions and embassies in India, detailing goods and services purchased. Filing this form ensures their tax-exempt status and compliance with Indian tax laws. Specifically, UIN holders use GSTR-11 to claim GST refunds on inward supplies.

Preconditions for Filing GSTR-11:

1. A valid/active UIN, username, and password for the GST portal.
2. Updated mobile number for EVC filing or a non-expired digital signature (DSC) where mandatory.

The deadline for GSTR-11 is the 28th of the month following the quarter. UIN holders must include details of inward supplies, invoices, and credit/debit notes from suppliers. GST return filing services can ensure precision for such unique filings.

Benefits of GST Return Filing Services

1. Accuracy and Compliance: Ensure error-free, compliant GST returns.
2. Time-Saving: Outsource filing to save valuable time and effort.
3. Expertise: Benefit from GST professionals’ knowledge for seamless compliance.
4. Reduced Risk: Minimize penalties and fines with timely submissions.
5. Improved Cash Flow: Secure timely GST refunds to boost liquidity.

For businesses across India, managing accounting and GST compliance can be a daunting task, regardless of size. This is where Nitin Bhatia and Associates steps in as a trusted partner. As a leading Chartered Accountant firm based in Gurgaon and Faridabad, Nitin Bhatia and Associates offers specialized accounting and GST return filing services tailored to the unique needs of small, medium, and large businesses.

Support for Small Businesses

Small businesses often lack the resources to handle complex financial tasks in-house. Fortunately, Nitin Bhatia and Associates provides cost-effective solutions, including accurate bookkeeping, tax planning, and seamless GST return filing services. For instance, they ensure timely submission of returns like GSTR-1, GSTR-3B, and GSTR-4, helping small enterprises avoid penalties and claim Input Tax Credit (ITC) efficiently. By outsourcing these tasks, small business owners can focus on growth without worrying about compliance.

Assistance for Medium Businesses

Medium-sized businesses face increasing complexity as they scale. Here, Nitin Bhatia and Associates excels by offering comprehensive accounting services, such as financial statement preparation and reconciliation, alongside expert GST return filing services. They assist with quarterly and annual filings, including GSTR-9 and GSTR-9C, ensuring accuracy and adherence to GST regulations. Additionally, their team provides strategic advice to optimize tax liabilities, making them an invaluable ally for growing companies.

Solutions for Large Businesses

For large enterprises with high transaction volumes and multiple units, Nitin Bhatia and Associates delivers robust support. They handle intricate accounting needs, such as consolidated balance sheets and payroll management, while ensuring compliance through meticulous GST return filing services. Whether it’s managing GSTR-6 for Input Service Distributors or GSTR-10 for registration cancellations, their experienced professionals streamline processes. Moreover, they offer audit-ready records and GST advisory to minimize risks and enhance financial efficiency.

Why Choose Nitin Bhatia and Associates?

With a dedicated team of Chartered Accountants, Nitin Bhatia and Associates combines expertise, advanced tools, and a client-centric approach to serve businesses nationwide. They ensure timely filings, reduce errors, and provide personalized guidance, making compliance hassle-free. Whether you’re a small startup in Faridabad, a medium enterprise in Gurgaon, or a large corporation, their GST return filing services and accounting solutions empower you to stay compliant and thrive.

Contact Nitin Bhatia and Associates today at their Gurgaon or Faridabad offices to simplify your accounting and GST obligations, no matter your business size!