The date of July 1st marked a tremendous change for every business venture out there. However, this was also followed by an apprehension regarding filing taxes through the new system of GST Return Filing. Although some may have slowly absorbed the new changes, there are still some businesses which are struggling. Below mentioned information would break down the basics of the new phenomena and help businesses understand the whole system in a better way.
People who needn’t bother
A vast majority of businessmen need not even file returns at all. Even if certain portions of them need to file returns, they can do so once in every 3 months. Business turnovers less than 20 lakhs need not file any returns at all. However, if the business turnover ranges between 20 lakhs and 75 lakhs then it must be filed 4 times a year. For doing this no details related to the invoices are required. Also, under the composition scheme, one can deposit a collective tax amount without disclosing much information the government.
One return-one month
Most of the business ventures out there need to file a return only once a month. Moreover, the ventures can do so without being required to submit invoices. For the business to customer enterprises encompassing a turnover of 75 lakhs and more must file returns between 1st and 10th of next month. Firms like IndiaFilings help in guiding the companies on the regulatory and legal requirements and be a partner and constant support throughout the entire business lifecycle, at every stage to make sure they are compliant and continually growing.
One return-two updates
Remaining business ventures also need to file one return. However, these returns must be updated twice in two phases. Such ventures that make up 10-20% of the entire taxpaying businesses are required to produce invoices. Business entities which are having trouble absorbing the new set rules of needn’t worry at all. Keeping in mind a few things, the entire procedure can be followed quite easily. Between 1st and 10th of next month, businesses must file one return namely GSTR-1 by producing invoices. GSTR-2 is an account reflecting each invoice details as provided by the business suppliers. The second step involves confirming reflects present in GSTR-2. In a nutshell, GSTR-2 involves details related to purchases. Another thing to be kept in mind is that GSTR-2 is automatically when the suppliers file for GSTR-1. In a nut shell, businesses need to confirm the invoice details and thereby approve them. Now, GSTR-3 is an amalgamation of GSTR-1 and GSTR-2. The former produces a summary of details related to input tax credit and output tax liability. Also, details related to final tax liability which is just a difference between the two is also produced in GSTR-3.
Thus, businesses are required to file the return only once after which the government sends automatically generated returns. Ultimately, the returns are to be checked and approved thoroughly. Lastly, the entire process of GST Return Filing is not difficult to follow if the aforementioned points are kept in mind