GST return: There are a few basic things that need to be kept in mind before filing return.
GST Return: Businesses should ensure that the correct tax rates are applied to the transactions in GSTR-3B and GSTR-1.
Filing GST return is important due to legal requirements, eligibility for input tax credit, compliance and transparency, avoiding penalties, maintaining business reputation, seamless input-output matching, and access to government initiatives and benefits.
GST aims to streamline the indirect tax system in India by bringing transparency and eliminating the cascading effect of taxes. Timely and accurate filing of GST returns helps maintain compliance with tax regulations, enhancing transparency in business transactions and contributing to the overall integrity of the tax system.
There are a few basic things that need to be kept in mind before filing a GST return.
According to Amit Gupta, MD, SAG Infotech, some important points that businesses should consider before filing GST returns are;
- Businesses should ensure that the data entered in the GSTR-3B and GSTR-1 forms is accurate and matches the invoices issued and received during the relevant period. Any discrepancies can result in incorrect tax calculations and penalties.
- It is essential to file GSTR-3B and GSTR-1 within the prescribed due dates to avoid late fees and interest. Businesses should regularly monitor the due dates and ensure timely filing. Input Tax Credit (ITC) is a crucial aspect of GST compliance.
- Businesses should reconcile ITC regularly and ensure that it matches with the data in GSTR-2A.
- Any discrepancies should be corrected before filing GSTR-3B. Harmonized System of Nomenclature (HSN) and Services Accounting Code (SAC) are used to classify goods and services under GST. Businesses should ensure that the correct HSN/SAC codes are used while filing GSTR-1.
- Businesses should ensure that the correct tax rates are applied to the transactions in GSTR-3B and GSTR-1. Any errors in tax rates can lead to incorrect tax calculations and penalties.
- Ensure that the tax liability is paid on time to avoid interest and penalties. They should also reconcile the tax payments with the tax liability in GSTR-3B.
- The invoice details such as invoice number, date, and value should be accurately entered in GSTR-1. Any errors can lead to incorrect tax calculations and penalties.
- Businesses can make amendments to the GSTR-3B and GSTR-1 forms if there are any errors or omissions. However, they should ensure that the amendments are made within the prescribed due dates.
- Businesses should maintain proper documentation of all invoices, receipts, and other relevant documents. They should also maintain a record of GSTR-3B and GSTR-1 filings for future reference.
- Businesses should ensure compliance with all the provisions of the GST Act, rules, and notifications. Any non-compliance can lead to penalties and interest.
Gupta added that businesses should be cautious while filing GSTR-3B and GSTR-1 forms under GST. They should ensure accurate data entry, timely filing, ITC reconciliation, correct tax rates, payment of tax, and compliance with GST provisions.
Proper documentation and record-keeping can also help businesses during GST audits. By following these important points, businesses can avoid penalties and interest under GST.
Moreover, GST collections in April 2023 jumped 12% YoY to hit its highest-ever level of Rs 1,87,035 crore, according to the latest official data.
The gross GST revenue collected in the month of April, 2023 is Rs 1,87,035 crore of which CGST is Rs 38,440 crore, SGST is Rs 47,412 crore, IGST is Rs 89,158 crore (including Rs 34,972 crore collected on import of goods) and cess is Rs 12,025 crore (including Rs 901 crore collected on import of goods).
