All businesses registered under the Goods and Services Tax ( GST ) regime are required to file requisite returns on a monthly, quarterly and annual basis depending on the type of business they are. It is paramountly important that businesses file their returns on a timely basis to ensure compliance, smooth cash flow and operations, and more importantly avoid penal consequences that may arise from abstaining from filing the same. Read on to know the important GST Returns for the month of October that are to be filed before 15th November:
Adhering to the procedures of filing GST Returns bring with it a number of benefits – at the forefront is the assurance that businesses would not have to face any penalties, interest charges or other legal repercussions arising from the failure to file their returns.
Being compliant with the regulations under the GST regime fosters transparency, encourages accountability and is highly beneficial during audits or assessments. Furthermore, being compliant with regulations and ensuring filing of returns within the stipulated deadlines is essential for businesses claiming Input Tax Credit (ITC) and other tax benefits meted out to them.
GSTR-07 is filed by individuals or businesses that are required to Deduct Tax at Source (TDS), most commonly being government bodies or other notified persons. GSTR-07 reports TDS details of the concerned entity, including deductions made during the month, while enabling the deductee to claim the TDS credit in their GSTR-2A.
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Filing GSTR-07 on time aids in ensuring that the deductee can avail their TDS credits and avoid interest charges among other penal consequences.
GSTR-08 is to be filed by e-commerce operators registered under GST and collects Tax at Source (TCS) on supplies made through their platform. GSTR-08 enables the government to accurately track GST liabilities of e-commerce platforms while facilitating e-commerce transactions.
Filing GSTR-08 on time ensures that suppliers conducting sales through e-commerce platforms are able to claim TCS credits promptly.
GSTR-01 is a sales return form that is to be filed monthly or quarterly by all normal and casual registered taxpayers. GSTR-01 for taxpayers whose annual turnover exceeds Rs.1.5 Crore is due to be filed soon. The GSTR-01 is essential in reporting outwards supplies of goods and services made by the taxpayer and further aids buyers to view their purchase details and claim corresponding ITC while conducting their own filings.
Get a Copy of The Law of Goods and Services Tax : A Comprehensive Commentary, Click here
It is vital for both buyers and sellers to file GSTR-01 for maintaining accurate ITC records, effectuating claim and use. Delay in filing GSTR-01 by a seller could disrupt the ITC reconciliation process, prejudicing the buyer while claiming ITC and even lead to penalties and other adverse consequences affecting the taxpayer’s GST Records and potential audits therein.
The Invoice Furnishing Facility (IFF) Optional is a mechanism providing for the quarterly filing of GSTR–01 for taxpayers who have opted for the QRMP (Quarterly Return, Monthly Payment) scheme. By making use of the IFF, taxpayers can upload their Business-To-Business (B2B) invoices on a monthly basis, even if they opt to file their GSTR-01 Returns on a quarterly basis.
The IFF mechanism is beneficial to small businesses to streamline their business activities, reducing the number of monthly compliances to be tended to.
GSTR-5 is a return filed by non-resident foreign taxable persons operating business and transacting in India. The GSTR-5 form encompassess details of all outward supplies, inward supplies, credit or debit notes, tax liability and taxes paid. Due filing of GSTR-5 permits non-resident foreign taxpayers to claim ITC on their purchases, reducing their overall tax burden.
Get a Copy of The Law of Goods and Services Tax : A Comprehensive Commentary, Click here
Filing of GSTR-5 form is integral for non-resident foreign taxpayers to ensure their compliance with Indian GST laws, averting any penal consequences arising from failure to do so.
The GSTR-06 is a monthly return specifically for Input Service Distributors. The intent behind GSTR-06 is to certify the reporting of inward supplies received by Input Service Distributors and due distribution of ITC. A standard GSTR-06 form shall contain accurate declarations of input tax invoices, credit adjustments and other allied information.
Furthermore, GSTR-06 permits Input Service Distributors to accurately distribute ITC to their sub-branches for due availment based on the services consumed. Filing of GSTR-06 Returns aids the Input Service Distributors to ensure that the ITC is duly allocated to each branch, ensuring that each unit receives their share accurately.
Get a Copy of The Law of Goods and Services Tax : A Comprehensive Commentary, Click here
Non-filing of GSTR-06 also may lead to difficulties in ITC claims, disruption in compliance, and attract penal consequences.
The Bottom Line
Duly meeting the deadlines for the filing of GST Return Forms is essential for every registered business entity, no matter their size, operational scale or turnover. Regular Taxpayers or Non-Residents are all liable to pay the unique form best attributed to their business. Each form serves a unique purpose in ensuring transparency, efficient tax flow, and accuracy in ITC distribution.
Timely filing has multifarious benefits for businesses to duly claim their receivables, maintain positive relationships with suppliers and customers, uphold their commitment to compliance and most importantly, avoid unnecessary fines and penal consequences from failure to do so.
The deadlines for filings in the month of November are fast approaching so mark your calendars, collate your data and ensure that your filings are done on or before the due date to be on the right side of the law.
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