Benefits of Filing GST Return on time | GST Return Filing in India

Benefits of Filing GST Returns on Time

Goods and Services Tax for short: GST Returns is a document that contains all the details of input (purchases), output (sales), input tax (tax paid on purchases) and output tax (tax paid on sales). It is to be filed by all the individuals, traders, organizations and companies registered under GST. On filing of the returns, the tax liability is ascertained and is to be paid to the relevant authority.  

types of form for GST Returns filing

The registered user has to submit 4 forms to file their returns namely
– Return for purchases,
– Return for sale/supplies,
– Monthly return/Quarterly return, and
Annual return.

Note: For those who have opted for composition scheme/QRMP (Quarterly Return and Monthly Payment) Scheme, quarterly returns are to be submitted.

Also Read: GST Return Filing Process: A Step by Step Guide

benefits of filing Returns

GST Returns are to be filed by all the registered users and the benefits attached to the filing of these returns on time are as follows:
– Claiming Input Tax Credit:
Input Tax Credit is tax reduced from output tax payable on account of sales. This amount can be used to reduce the tax liability of the registered user. In order to utilize the accumulated Input Tax Credit, one has to file GST Return on time.

Also Read: Rules related to setting off of Input Tax Credit

-Avoid levy of interest:
Every GST registered taxpayer has to file GST Returns, irrespective of its tax liability. This means that the returns are to be filed even if there is no transaction. If the returns are not filed, then interest @18% p.a., on the amount of outstanding tax can be charged. The late fees period will be calculated from the date of deadline to the date of actual payment.

– Avoid late fees:
As per the GST Act, late fees of Rs. 100 per day up to a maximum amount of Rs. 5,000 shall be charged for delaying in filing of Returns. This late fees cannot be adjusted against Input Tax Credit and this fees has to be deposited in cash.

– Avoid GST Cancellation:
As per the GST Act, the GST Officer is given power to the registered GST taxpayer if the user delays in filing of GST Returns for a continuous period of 6 months. Therefore, it is always to file all the GST Returns on time.

Also Read: GST Invoices: B2B, B2CL & B2CS

– Avoid notice of defaults from GST Department:
The GST department keeps a track on the registered GST taxpayers through their filed GST Returns. If there is any irregularity in filing of returns, then the user may get a notice from the GST department.

– Accountability of the registered user
Under the GST regime, now all the taxes are paid online and the major hassles of tax filling has been eliminated through filing of GST Returns. By paying these returns on time shows the accountability of the registered user.

Now filing GST Return on time is easy with TaxHelpdesk. Contact us and our top CA’s will get this done for you within a day.

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