Contents
Introduction
With the introduction and implementation of GST in India, the Nature of Tax filing has changed. ITC has come into existence and plays a crucial role in the whole process. As we know, earlier there was no need for the buyers to get the invoices reconciled with the invoices of the respective vendors. But in the current, changed scenario they have to do the same and at times it becomes very difficult to reconcile the inward supply invoices with the outward supply of their vendor’s invoices especially when the buyer has to purchase goods from different suppliers. When one fails to do so, he must face a loss of the Input Tax Credit (ITC). Thus we see that how important is ITC, for paying off the business Tax liabilities
Thus, we see that apart from being important, the GST taxation is crucial. Below are some measures which could be followed to get the procedure simplified and hassle-free.
GST Return Types & Due Dates
|
GSTR |
Details |
Frequency |
Due |
|
Details of outward supplies of taxable goods or services or both affected |
Monthly |
10th of succeeding month |
|
|
Registered taxable recipient should file details of inward supplies of taxable goods and services claiming input tax credit. |
Monthly |
15th of succeeding month |
|
|
Registered taxable person should file monthly return on the basis of finalization of details of outward supplies and inward supplies plus the payment of amount of tax. |
Monthly |
20th of succeeding month |
|
|
Composition supplier should file quarterly return. |
Quarterly |
18th of the month succeeding quarter. |
|
|
Return for the non-resident taxable person. |
Monthly |
20th of the subsequent month. |
|
|
Return for input service distributor. |
Monthly |
13th of Next Month |
|
|
Return for authorities carrying out tax deduction at source. |
Monthly |
10th of Next Month |
|
|
E-commerce operator or tax collector should file details of supplies effected and the amount of tax collected. |
Monthly |
10th of Next Month |
|
|
Registered taxable person should file annual return. |
Yearly |
31st December of Next Financial Year |
|
|
Simplified Annual return by Compounding taxable persons registered under section 10 |
Yearly |
31st December of Next Financial Year |
|
|
Annual Audit Form for taxpayers |
Yearly |
31st December of Next Financial Year |
|
|
Taxable person whose registration has been cancelled or surrendered should file final return. |
Quarterly |
Within 3 months of date of cancellation or date of cancellation order, whichever is later. |
|
|
Person having UIN claiming refund should file details of inward supplies. |
Monthly |
28th of the month |
The below Five steps need to be followed to make the whole process easier:
Step 1: To Get the Business Computerised
The very first step needs to be followed is to get the Business computerised which will ultimately result in keeping an accurate record of all the transactions and the errors would get detected easily. Getting the accounts and the billing computerised ensures the accuracy of the records.
Step 2: Adopting an accounting software right for a compliant business
As we know that GST focusses on Compliance and for a better compliant business we need software which is right for our business. Though GST returns could be filed directly on the GST portal with the help of the utilities provided by GSTN. But things would be easier if the GST ready software or ERP’s are used if there are a large number of transactions or customers.
There are some important points required to be taken care of while purchasing a software.
You should be able to maintain your accounts under the GST compliance rules.
It should be efficient enough to detect and rectify the error if any at the earliest.
The connectivity should be good and all the transaction level information should be speedily made available to the GST Portal.
Facility for matching the invoices with the suppliers online for the right ITC should be available.
Thus we see how the selection of the correct software for the business is important for a hassle-free and compliant business and at the same time, GST filing would not be a havoc anymore for any business Big or Small.
Step 3: Recording Accurate Transactions in Real Time
Buying a computer and getting the accounting software updated is not sufficient if the transactions are not recorded accurately and in real time. The Accounting books could be maintained and kept GST compliant if we, once a day reconcile them. This ensures that the accounting records are already GST compliant and results in seamlessly filing the requisite returns of one’s business.
Step 4: Getting Guidance in GST Return Filing from GST Practitioners and Experts
Businesses these days take help from the internal or external auditors or tax return preparers for filing the GST returns who would be known as GST Practitioners or GSTPs. If one wants to manage compliance in-house, one must be assured that the team helping is well trained in GST. Also, training and sessions are being held across the country which could help one understand the GST and tax filing more accurately.
Step 5: Appointing a Resource to resolve the discrepancies
As we know the process of GST return filing which requires that the data provided by the Supplier must match the one provided by the customer. Also, the correct implementation of this process helps in the extraction of the correct ITC. But as we know that the system is new and the data requirements are high thus discrepancies could occur. The software is efficient enough to detect out the discrepancy but for negotiations, there should be some resource. It is always beneficial to have a resource in one’s office who could talk to the suppliers and resolve the issue.
Conclusion
All the above-mentioned measures are there to ensure the basic discipline of Compliance and availing the right ITC. Along with this it also guarantees a maintained cash flow and profitability in the GST era. It also raises the Goodwill and credibility of the Business in the business world.
