Mastering GST Returns in India: Your Ultimate Step-by-Step Guide 2023

Managing Goods and Services Tax (GST) returns in India can feel like a complex process, but this blog will offer valuable insights to help you save time.

In this comprehensive guide, we’ll break down the process into simple steps and provide you with a clear understanding of the various types of GST returns, who needs to file them, and the consequences of late filing. So, let’s dive right in!

Understanding GST Returns

GST Returns, in a nutshell, are forms that taxpayers must file based on their Goods and Services Taxpayer Identification Number (GSTIN). With around 22 types of GST forms floating around, including 11 active ones, 8 view-only forms, and 3 suspended forms, your filing requirements depend on your registered taxpayer type.

Meet the Taxpayer Types

Before diving into the intricate details of filing, let’s acquaint ourselves with the types of taxpayers under the GST regime:

Regular taxpayer
Composition taxable persons
TDS deductors
Non-resident taxpayers
Input Service Distributors
Casual taxable persons
E-commerce operators

Timing is Key: Frequency of Filing

Filing GST returns isn’t a one-size-fits-all affair. The frequency varies:

Quarterly
Monthly
Annually

How to File Your GST Returns Online & Offline?

Online Filing Process

The process of filing GST returns online is simpler than you might think. Follow these steps:

Visit the GST portal: www.gst.gov.in.

Get a 15-digit number based on your state code and PAN number.

Upload each invoice and receive reference numbers.

File outward, inward, and cumulative monthly returns while rectifying errors

File GSTR-1 by the 10th of the month based on outward supply returns.

Supplier details come from GSTR-2A.

Verify outward supply details and credit/debit notes.

Supply details of inward supplies in GSTR-2 form.

Supplier’s acceptance or rejection of inward supplies in GSTR-1A.

The Offline Path

For those preferring offline methods:

Download the offline tool from the provided link.
Fill out GSTR-1 and GSTR-2 forms using the tool.
Follow the link’s instructions for guidance.

Know How to Download GST Returns Form

Here’s a step-by-step guide to downloading GST returns from the government portal:

Log in to the GST portal.
Go to Service → Returns → Returns Dashboard.
Select the month and year from the drop-down menu.
Click on “PREPARE OFFLINE”.
Go to “Download” and click on “GENERATE FILE”.
Click on the “Click Here” link and download the file. You will receive a ZIP file.
Open the ZIP file using the GST offline tool by clicking on “Open” under the Open Downloaded Return file from the GST portal.

You can follow these steps to download any GSTR file from the government portal.

Smart Accounts Payable: How ViTWO ai ERP E-Invoicing Transforms AP Automation

In the dynamic business landscape, innovation often comes in the form of technology-driven solutions that reshape the way we handle essential processes.

What if I tell you that there is a solution that can automate the whole process of filing GST Returns! One such game-changer is ViTWO ai e-invoicing, a transformative tool altering the way businesses manage their finances and compliance.

ViTWO ai ERP E-Invoicing under GST – the futuristic approach is about to revolutionise Accounts Payable (AP) Automation, promising efficiency, accuracy, and no headaches.

The E-Invoicing Evolution under GST

E-invoicing is a digital superhero that businesses in India have welcomed with open arms. It’s more than just going paperless! It’s about digitising the entire invoicing process from end to end.

The mechanism entails businesses registering their invoices with the government before sending them out. This not only ensures compliance but also triggers a cascade of benefits.

Unlocking AP Automation’s Power

Imagine an Accounts Payable process smooth, fast, and error-free. That’s the magic of AP Automation. Traditionally, managing invoices from collection to payment has been a labyrinth of manual tasks – time-consuming and prone to errors.

This is where AP Automation steps in, utilising technology to handle supplier invoices like a breeze. The suite of tools includes automatic data capture, streamlined approval workflows, and seamless payment processing.

E-Invoicing and ViTWO ai AP Automation: A Perfect Match

E-invoicing and AP Automation are like a match made in a tax haven.

Here’s why:

Automated Data Capture: E-invoicing does away with manual data entry, saving time and reducing errors. When combined with AP Automation, captured data flows through a meticulous validation process, ensuring alignment with purchase orders and receipts.

Smooth Data Transfer and Error Reduction: E-invoicing means precise data directly transferred from suppliers to buyers, eliminating the risk of inaccuracies that can delay payments.

Speedier Invoice Processing: E-invoicing electronic delivery slashes processing time by eliminating the need for physical documents to travel. That means faster invoice handling all around.

Smart GST Reconciliation: With e-invoicing, supplier data is shared with the government and vendors. This automated exchange simplifies GST reconciliation through ERP systems, ensuring a smoother ride for all parties involved.

GST Regulation Compliance: E-invoicing is mandatory for specific taxpayers under GST. As this practice becomes the norm, dealing with compliant suppliers ensures seamless GST regulation adherence.

Stronger Supplier Relationships: Integrating e-invoicing with AP Automation brings unmatched efficiency and accuracy. Supplier relationships benefit from transparency, timely payments, and smooth reconciliation.

Understanding the Forms: Different Types of GST Returns

1. GSTR-1

File all your rendered goods and services, including invoices and credit/debit notes.

2. GSTR-2A

View-only return for purchased goods and services, detailing inward supplies from GST-registered suppliers.

3. GSTR-2B

Another view-only return, it contains ITC data for buyers of goods and services.

4. GSTR-3B

Monthly self-declaration for summarised details of outward supplies, input tax credit claimed, tax liability, and taxes paid.

5. GSTR-4

Annual return for composition taxable persons, filed by April 30th each year.

6. GSTR-5

For non-resident foreign taxpayers conducting transactions in India.

7. GSTR-5A

Summarises taxable supplies and taxes payable by Online Information and Database Access or Retrieval Services providers.

8. GSTR-6

Monthly returns filed by Input Service Distributors detailing input tax credit distribution and related documents.

9. GSTR-7

Filed by TDS deductors, it includes TDS details, liability payable, and paid.

10. GSTR-8

For e-commerce operators, recording supplies made through the platform and associated TCS.

11. GSTR-9

Annual return for all GST-registered taxpayers.

12. GSTR-9C

Filed by taxpayers with turnover exceeding Rs. 2 crores, involving certification by a CA or CMA after a GST audit.

13. GSTR-10

For cancelled or surrendered registrations, to be filed within three months of cancellation.

14. GSTR-11

For foreign diplomatic missions and embassies seeking refunds of taxes.

The Sting of Late Filing: Penalties

The late filing comes with a price. Interest at 18% per annum on the outstanding tax amount and a late fee of Rs. 200 per day (Rs. 100 CGST + Rs. 100 SGST) await procrastinators.

Tracking Your Progress: Checking GST Return Status

To track your GST return status:

Visit https://www.gst.gov.in/.
Log in and go to Service > Returns > Track Returns Status.
Select “Status of Return” from the drop-down.
Click “Search” to find your status.

The Final Word

Filing GST returns no longer needs to be a headache-inducing chore. With the simplified online process and a clear understanding of the various forms, you can confidently tackle your GST return filing.

Meanwhile, in the world of business, time is money – and both are valuable commodities. The ViTWO ai ERP E-Invoicing under GST is set to revolutionise AP Automation, saving precious time, reducing errors, and supercharging efficiency.

Now you’re equipped with all the requisite information you need to master GST returns in India. Get started on your filing journey today, and stay on top of your tax responsibilities!