GST return file is a manuscript that comprises income details of the registered taxpayers. A said taxpayer has to file GST return to the tax administrative authority. The authorities go through the composite file to estimate the tax liability of the taxpayer.
Four types of GST Return forms for filing are:
- Sales return (GSTR 1)
- Purchases return (GSTR 2)
- Output GST (on sales – GSTR 3)
- Input tax credit (GST paid on purchases)
Generally, the GST registered dealers have to file three consecutive monthly returns and one annual return. Termed as GSTR-1 or this one annual return of GST the filing takes place manually and others like GSTR 2 (purchases return) and GSTR 3 (output GST) get the population with the help of advanced automated technology. Other dealers registered under composition scheme or as Input Service Distributor, liable to collect the tax (TDS/TCS), having UIN and non-resident taxpayers file distinct returns at different times.
The basic characteristics of the return procedure in GST are returns of electronic filing, invoice uploading, automated information generation regarding tax credit from supplier to the recipient, matching of auto-generated invoice information and auto-rejection as well as auto-reversal of the tax credit because of mismatch. Such return mechanism gets the shape to assist the taxpayer to do the filing of their returns and get ITC.
To simplify filing of the return, GST commissioner M&E sectoral group M Srinivas has explained, “The biggest glitch now in the system is the GST returns. The GST return filing is simple. Nandan Nilekani has come out with a fantastic module and a committee has been set-up to discuss all of it and then submit a report.
In the 26th council meeting on March 10, they will most probably be discussing and finalizing it.”
The procedure for filing the tax return is unpretentious and hassle-free. The filing of the return tax takes place every year. The registered taxpayers consider the first half as on or before 25th Oct and the second half as on or before 25th April of a year to file their return.
Necessary steps of service tax return filing procedure are:
- Tax return filing happens through online in Excel format. One can download the service tax return form from this link – http://acesdownload.nic.in/. And the taxpayer can do the necessary filing for return.
- In the next sheet named as “return”, the taxpayer needs to fill up the basic details like service tax registration number, the main period of filing and others. For the individual taxpayer, quarter-wise detail information is there and for others, detail information is important month-wise. Then select the name of provided service and the codes go through verification with the service tax registration certificate.
- Next sheet is “payable services” and here the mentioning of the value of output services and service tax rates are clear. Later-on the calculation of payable service tax happens automatically.
- Afterward, various other sheets are there like “advance payment”, “payable service”, “challan service”, “CENVAT” and “Distributor” where the miscellaneous assessment memorandum is important for filing.
Finally, this tiresome process is proficient with validation and status checking with the assistance of automated technology.