What is a GST Return?

A GST Return is a document that consists of details of the business, like sales, purchases, output tax (GST collected on sales) and input tax (GST paid on purchases). It is essential for all business owners to file these returns timely on the basis of the scheme in which the business lies, such as GSTR 1, GSTR 3B, and GSTR 9.

Importance of Filing the GST Return

• Enables the government to track tax liabilities and collections effectively.
• Timely GST filing ensures compliance and prevents late fees or penalties.
• Supports accurate and up-to-date financial record-keeping.
• Enhances business credibility with clients, vendors, and financial institutions.
• Facilitates smooth processing of refunds and input tax credit claims.

Who Needs to File the GST Returns:

Every business that is registered under the GST system should file the GST Return:

• A registered business involved in purchases and sales must account for output GST (on sales) and can claim an input tax credit (GST paid on purchases).
• Traders with an annual turnover of Rs 1.5 Crores or less can opt for the Composition Scheme, which offers simplified compliance and lower tax rates.
• Businesses with an annual turnover exceeding Rs 20 Lakhs must register for GST and file returns. In certain special category states, this threshold is reduced to Rs. 10 Lakhs.

Steps to File the GST Return Online

Here are the steps to file the GST returns online

• Step 1: Go to the official website of GST, www.gst.gov.in.
• Step 2: Log in by filling in the mandatory details like GSTIN (GST Identification Number), username, password, and the captcha code
• Step 3: After logging in, the dashboard will be opened; then go to the Returns dashboard by clicking on Services > Returns > Returns Dashboard.
• Step 4: Select the financial year and month or quarter you want to file the return for and click on search.
• Step 5: Select the form you need to file and click on ‘Prepare Online.’
• Step 6: Fill out all the required details, save the form, and click on ‘Submit.’
• Step 7: After submitting, you must navigate to ‘Track Return Status,’ and the status must show ‘submitted.
• Step 8: When the Return Status shows ‘Submitted,’ click on ‘Payment of Tax’ and click ‘Check Balance’ to see your available credit and cash balances.
• Step 9: After that, click on ‘Offset liability’ and pay in cash for any amount left after using your input tax credit.
• Step 10: Once the payment is done, file the GST return by checking the declaration box, choosing the authorised signatory, and clicking ‘File Form with DSC’/’File Form with EVC,’ as applicable