GST is a term that is much heard across the country due to the implementation of the same. There has been a demand for tax reforms since long from various industries and businesses as well as the experts of the tax matters. It can be said that to great extent dust has piled on the GST – goods as well as services tax with all individuals learning more and more about its wide range implications. There are some queries about its timing and procedure as well as system and slabs that are concerns for every business. Very often several questions are asked by owners of business about some necessary implications of the act such as persons liable to come under the umbrella of GST system, a method of submitting returns, and the period of filing returns.
First, the most fundamental question is always about the businesses. All such individuals registered under this GST act or owners of business fall under this regime. They are needed to put forth information regarding the purchases as well as sales over the portal used for the GST. It can be stated the entire process is done by online method. Also, this rule is as good as for the businesses which went through zero operations in the preceding month, and the only distinction lies in that they are required to submit a tax return as nil return in the same way as was done in the former VAT and also service tax laws.
The other important point that is worth mentioning here can be said to be late filing which can earn you a penalty for every day of Rs 100. However, an upper limit of Rs 5,000 has been set. You must clear tax return in time to avoid penalty and trait of noncompliance.
This submitting of returns entails information about the purchase and also sales of that specific month together with information about tax paid and tax collected. The information about the taxes aids the tax authorities to evaluate the liabilities of the taxpayer. If you submit GST return online, it will assist authorities in saving time and effort as well. You are needed to file three kinds of return forms such as GSTR-1, GSTR-2, and also GSTR-3.
Individuals who have to pay tax
Under the regime of GST come all such individuals or taxpayers who have their own business in some state or any union territory and do undertake the supply of goods as well as services. It has been made compulsory to file three forms that are to be submitted by all the common taxpayers like GSTR-1, GSTR-2, and the GSTR-3. The GSTR-1 and GSTR-2 are meant for supplies made outward and supplies made inward respectively. The GSTR-3 is intended for collective data of tax that must be submitted prior or on 20th of the following month. Businesses with turnover lesser than 1.5 crores are needed to submit return quarterly and businesses having turnover more than 1.5 crores are required to submit a return on a monthly basis.