What is GST Return?
GST returns is a document that will contain all the details of your sales, purchases, debit note, credit note, tax collected on sales (output tax), and tax paid on purchases (input tax). GST return required to be file every month. Once you file GST returns, you will need to pay the resulting tax liability to the government.
Why file GST return?
Once you get GST registration then return filling is mandatory every month due to legal requirement in India as per Goods & service Act 2017. Please note even if your turnover is below Rs.20lacs afterward, return need to be filed within due date.
Advantages of Filling GST return
* Unified Platform
* Elimnates cascading effect of tax
* Higher threshold for registration,
* Composite scheme for smaller business
* Number of compliance lesser.
* Larger Tax Base
* Defined treatment for E-commerce operator
* Simple and easy online procedure
Disadvantages of Non Filling/Delay filling GST return
* Penalty. Rs.200 per day with max up to Rs.5000. Further for delayed deposit interest @ 18%pa will be levied.
* Cascading effect. If any return is not filed then subsequent returns cannot be filled.
* If not filed for 6 months or for composite dealer 3 qtrs, then GST registration can be cancelled.
* may lead to increase professional cost to meet compliance requirements.