On 1st July 2017 one of the biggest reforms were introduced in the Indian economy. The government implemented GST (goods and service tax) and five tax slabs were set under which all the items were put. This removes the cascading effect of the taxes (tax on tax). There spread tension among the businesspersons, traders, exporters and retailers as they were not aware of the various regulations of GST. Various aspects of GST need to be understood in order to cope with the prevailing regulations in the Indian economy under GST.
Filling of GST return
The first question that comes to the mind of taxpayers is what GST return is and how to file it. Well a return file is nothing but a document containing the details of the following:
- GST on sale (output GST)
- GST on Purchase (input tax credit)
It needs to be filed along with the amount of tax, if any, that needs to be paid considering the above details.
Really so complex?
According to the rules and regulations under GST regime any business (regular) needs to file three returns in a month and one annually. In a year a total of 37 returns have to be filed. This seems quite complex but in actual it can be made very simple. In other words, GST return is nothing but appropriately updating the invoices with the authorities.
Everyone whose taxable turnover crosses the threshold limit, whether manufacturer, trader, retailer or service provider has to file returns that is made mandatory under the GST regime. Everyone has different perception regarding the filling of GST return. Some consider it as a burden whereas some consider it to be beneficial for the traders as it tends to upgrade the technology and the trend.