Why GST Return filings required?
GST Return Filing is a mandatory compliance for every business that is registered under the GST Act/regime.
Under GST (Goods and Services tax), filing the GST returns is a crucial activity that works as a link between the government and the taxpayer.
GST returns are supposed to be filed electronically, i.e. on the GST portal. However, there’s a facility where one can also file GST returns manually.
Such returns are prepared offline and then uploaded to GSTIN portal either through the taxpayer or a facilitation centre.
Who all are required to file GST Returns?
Every GST registration holder who is taxable under the GST Act, 2017 are required to file GST returns as based on the nature of their business.
Therefore, whether you are engaged in the selling of goods or render services to others, you must obtain GST registration and file the returns periodically.
Under GST, a registered dealer involved in the following activities needs to file GST return:
- Sales
- Purchase
- Output GST (on Sales)
- ITC (Input Tax Credit) with GST paid on purchase.
Benefits of GST Return Filings
Elimination of the cascading effect
The introduction of GST into the Indian tax system has done away with several other taxes like central excise duty, service tax, customs duty and state level value added tax. Thus a single GST has eliminated the cascading effect of tax on tax .
Higher threshold benefits
Before GST was introduced, VAT or value added tax was applicable for any business that had an annual turnover of 20 lakhs. Services that saw a turnover of less than 10 lakhs did not have to pay service taxes.
Startup Benefits
Earlier startups with an annual turnover of 5 lakh had to pay VAT which would be very difficult for a business during the initial stages. But as GST has replaced VAT, businesses can set off the service tax on their sales.
