Who needs to file a GST return?
An extremely small business with sole proprietor, you need not register under GST but if the business is a partnership firm, non-public or public company, liability partnership then you are bound to register under GST. But if your annual turnover increases Rs. 20 lacs
( 10 lacs in Northeastern states) then no matter what your business size is, GST registration might be a mandatory thing for you and your company.
When and how to file monthly GST returns?
Once your business is completely registered under GST you will have to file 3 monthly returns but three of them will have different dates. Following are the details for the first return:
Business name GSTN( identification number)
Dates related to GST return
GST taxes paid by you
Future sale advances
A list of any changes made to your outward sales invoices. Any changes you made to an outward sales ( if any).
The first return gets due within the 10th of the ongoing month. In other words, after 10 days of the end of the tax period, the return gets due.
Second monthly GST return
This one does not become due till fifteen days after the tax period, and you don’t have to report any details in this form. This form is already auto-filled before coming to you which includes details related to your purchases made to an unregistered dealer
as well as a registered dealer. You just have to check the accuracy of your details which has been auto-filled by the system.
Third monthly GST return
The third monthly GST return form is derived with the help of the details in the first month’s form and second month’s form. It takes a look at your primary and secondary returns, assets and your liabilities. You can also avail of input
credit in this form just by exercising the GST portal. Let's understand input credit with an example:
Note: GST returns are not mailed to you
For example, if a shopkeeper owes you 1000 rupees according to the first file and the second file shows that you should get 250 rupees credit
so ultimately the third file will show that the shopkeeper owes you a total amount of 750 rupees
How to file quarterly returns?
If your business is just too small to deal with monthly returns, you can select the composition scheme. To qualify, you can only sell goods.
You can’t be a service supplier like an attorney, an adviser, or an artisan. Your annual sales should also be less than ₹50 hundred thousand.
According to the rules, if you file a quarterly GST return,
then you will not be able to claim input credits. So you might want to file your returns monthly even though it is not required.
But if you’re following this route, you have to file a CMP - 08 that contains details of your sales and the GST must be paid within the last quarter.
This return is due on the eighteenth day after the end of the quarter.