INTRODUCTION:

One of the biggest changes to the Indian tax system was the introduction of the Goods and Services Tax (GST) on July 1, 2017. It established a single, unified tax system throughout the nation in place of several indirect taxes, including entry tax, service tax, VAT, and excise duty. The Goods and Services Tax (GST) is a destination-based tax applied to the delivery of goods and services. It guarantees consistency, openness, and effectiveness in the taxation process. Registration and return filing are two of the most crucial components of GST compliance.

GST REGISTRATION:

  1. Who Needs to Register?

Businesses and individuals whose total revenue surpasses the specified threshold limits:

  1. ₹40 lakh for goods suppliers (₹20 lakh in special category states)—must register for GST.
  2. Service providers pay ₹20 lakh (special category states pay ₹10 lakh).

Registration requirements for specific categories, irrespective of turnover, include:

  1. State-to-state vendors
  2. Operators of online stores
  3. Casual taxable individuals
  4. Taxable individuals who are not residents
  5. Distributors of Input Services (ISD)

Businesses below the criteria who wish to boost their credibility or receive the Input Tax Credit (ITC) may also choose to voluntarily register.

  1. Process of Registration;

Through the GST portal (www.gst.gov.in), the registration procedure is completed totally online. The actions consist of:

  1. Completing Part A of the application by entering your email, PAN, and cellphone number.
  2. Temporary Reference Number (TRN) receipt. Submit papers (PAN, Aadhaar, proof of address, evidence of business registration), business details, bank account, and place of business to complete Part B.
  3. Verification by Electronic Verification Code (EVC) or Digital Signature Certificate (DSC).
  4. Issuance of a GST Registration Certificate and a GSTIN (Goods and Services Tax Identification Number).

Following registration, companies are required to cite the GSTIN on all invoices and prominently display it at their place of business.

GST RETURNS:

What are GST Returns?

A GST return is a document that every registered taxpayer must file, containing details of income, sales, purchases, and tax paid. GST return filings are an important compliance requirement for all registered taxpayers. It helps the government track tax liability and ensures transparency. Returns are filed through the online GST portal.

Types of GST returns

There are some major returns under GST are;

  1. GSTR-1; Details of outward supplies monthly/quarterly.
  2. GSTR-2B; Auto-drafted statements of input tax credit.
  3. GSTR-3B; Monthly summary return of inward and outward supplies.
  4. GSTR-4; Quarterly return for composition taxpayer.
  5. GSTR-5; For non-resident taxable persons.
  6. GSTR-6; Filed by Input service distributors (ISD).
  7. GSTR-7; TDS return under GST.
  8. GSTR-8; Filed by E-commerce operators collecting TCS.
  9. GSTR-9; Annual return for a regular taxpayer.
  10.  GSTR-9C; Reconciliation statement or audit report certified by CA/CMA.

DUE DATES FOR GST FILING

There are some due dates for GST filings on which the filings should be done, and the dates vary depending on the type of return and the taxpayer’s turnover. For example;

  1. GSTR-1; 11th of the following month or 13 of the month following the quarter.
  2. GSTR-3B; 20th of the following month.
  3. GSTR-4; 30th April following the financial year.
  4. GSTR-9 & 9C is generally due by December 31st of the next financial year.

Missing the deadlines will result in penalties, which are 50rs per day for normal taxpayers and 20rs per day for nil returns, along with some interest on delayed tax payments.

Importance of GST Registration and Filing:

  • Legal Recognition: the businesses were getting recognized as compliance entities.
  • Input Tax Credit (ITC); Registered businesses can claim their credit of taxes on purchases, thereby reducing the overall tax burden.
  • Credibility; registration helps in increasing the trust with suppliers, buyers, and lenders.
  • Contribution towards the Nation; it ensures the proper tax collection and helps in reducing black money circulation.

CONCLUSION:

In India, timely return filing and GST registration are crucial elements of corporate compliance. Even though the system is meant to be simple and clear, it is imperative that all business owners comprehend the subtleties of GST. In addition to guaranteeing legal compliance, proper registration enhances trust and makes input credit claims easier, all of which eventually help the company.