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What is GST Return?
GST Return is a process used to declare the Goods and Services Tax (GST) liability of a taxpayer. It is an online form that contains the details of all the supplies made, input tax credit availed, and the GST due for a particular period. It must be filed regularly, as per the GST law, to ensure that the taxpayer complies with the GST regulations. Moreover, it ensures that the GST collected is properly deposited with the government in a timely manner. Consequently, GST Return is an important document for both businesses and taxpayers, as it helps them track their GST liabilities accurately and efficiently. Under GST, a registered dealer has to file GST returns that broadly include: - Purchases - Sales - Output GST (On sales) - Input tax credit (GST paid on purchases)
Who is liable to file GST Returns ?
Individuals and businesses who are registered under GST must file GST returns. All registered GST taxpayers must file their returns on a quarterly/monthly basis. The due date for filing GST returns varies depending on the type of taxpayer. Therefore, it is important for all GST registered taxpayers to file their returns on time in order to avoid any penalties or fines.
Advantages of GST Return Filing
Filing GST returns can be a easy task for businesses, but the advantages it brings are manifold. The primary benefit is that it simplifies the entire process of collecting, remitting, and filing taxes. Additionally, it allows businesses to accurately track their income and expenditure, and consequently, avail tax credits and deductions. Moreover, it also provides a convenient platform for businesses to track transactions, and audit their accounts. Furthermore, it helps to reduce the administrative costs associated with tax filing, while also providing greater transparency to the government regarding the tax system. Ultimately, filing GST returns ensures that businesses remain compliant with the law and are able to benefit from the advantages it offers.
- - Removing cascading tax effect
- - Higher threshold for registration
- - Composition scheme for all small businesses
- - Simpler online procedure under GST Return
- - Lesser number of compliances
- - Regulating the unorganized sector
- - Defined treatment of E-Commerce
- - Increased efficiency of logistics.
Types of GST Returns
There are quite a few types of GST filing which have their specific forms. These forms are listed below in the chart.
| S No. | Form Name | Applicable entrepreneurs | Date of GST Filing |
|---|---|---|---|
| 01 | Form GSTR-1 | Details of outward supplies of taxable goods and/or services affected. | 10th of next month. |
| 02 | Form GSTR-2 | Taxable recipients to file inward supplies to claim tax credit. | 15th of next month. |
| 03 | Form GSTR-3 | Monthly GST return on the basis of finalization of details of outward supplies and inward supplies along with the payment of amount of tax. | 20th of next month. |
| 04 | Form GSTR-4 | Return to be filed by a non-resident taxable person. | 20th of next month. |
| 05 | Form GSTR-5 | Composition suppliers to file quarterly GST returns. | 18th of next month. |
| 06 | Form GSTR-6 | Input service distributor to file for return. | 13th of next month. |
| 07 | Form GSTR-7 | This form contains the details of the tax deduction. Due date to file this form is 10th of the next month. | 10th of next month. |
| 08 | Form GSTR-8 | Tax collectors and e-commerce operators to file supply details and tax collection detail. | 10th of next month. |
| 09 | Form GSTR-9 | Annual return filed by registered taxable person by 31st December of next financial year. | 31st December of next year. |
| 10 | Form GSTR-10 | Final return to be filed by a taxpayer whose GST registration is cancelled. | In 3 months of cancellation of order. |
| 11 | Form GSTR-11 | Details of inward supplies to be furnished by a person having UIN and claiming refund | 28th of the month following the month for a statement was filed. |
- Invoices issued to persons with GSTIN or B2B invoices
- Invoices issued to persons without GSTIN or B2C invoices
- This needs to be submitted only when its total value is above ₹2.5 lakh
- A consolidation of inter-state sales
- HSN-wise summary of all goods sold
- Any other debit or credit notes or advance receipts