Return Filing

Goods and Services Tax (GST) is a comprehensive indirect tax that was introduced in India on 1st July 2017. It is levied on the supply of goods or services or both and is charged at every stage of the supply chain. GST has replaced a number of indirect taxes such as VAT, service tax, and excise duty. As per the GST law, businesses registered under GST are required to file their returns periodically. In this article, we will discuss the importance of GST return filing and the procedure for filing GST returns.

Why is GST Return Filing Important?

GST return filing is a crucial and necessary compliance requirement for every business that is registered under GST. It serves the following purposes:

  1. Calculation of Tax Liability: GST return filing helps businesses in calculating their tax liability. It is through the GST returns that the amount of tax paid on inputs can be set off against the tax collected on outputs.
  2. Input Tax Credit (ITC) Reconciliation: GST return filing also helps in reconciling the Input Tax Credit (ITC) claimed by the business. This helps in identifying any discrepancies and rectifying them before the due date.
  3. Compliance Requirement: GST return filing is a mandatory compliance requirement for businesses registered under GST. Non-compliance can attract penalties and interest.

Procedure for Filing GST Returns

The process of filing GST returns involves the following steps:

  1. Collecting the required information: Businesses need to collect the required information such as details of purchases, sales, and tax paid for the relevant period.
  2. Preparing the GST return: Based on the information collected, businesses need to prepare the GST return. There are different types of GST returns that businesses need to file based on their turnover and nature of business.
  3. Validating the GST return: Once the GST return is prepared, businesses need to validate it to ensure that all the details are correct.
  4. Submitting the GST return: After validating the GST return, businesses need to submit it on the GST portal. They can do this either directly or through a GST practitioner.
  5. Payment of Tax: If there is any tax liability, businesses need to pay the tax before filing the GST return. They can make the payment online through the GST portal.

Penalties for Non-Compliance

Non-compliance with GST return filing can attract penalties and interest. The penalty for late filing of GST returns is Rs. 50 per day for every day of delay subject to a maximum of 0.25% of the taxpayer's turnover in the state or union territory. In addition, interest is charged at 18% per annum on the tax liability that is not paid on time.


GST return filing is an essential compliance requirement for businesses registered under GST. It helps in calculating the tax liability, reconciling the Input Tax Credit (ITC), and ensures compliance with the GST law. Businesses should ensure that they file their GST returns on time to avoid penalties and interest. If any assistance required with GST return filing, you can contact TaxOver, a leading tax service company in India, for professional and reliable services.

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