Everyone doing a business know they have to move to the GST system. For all their billing and goods movement, they must produce a bill. Or else, the authorities will seize their goods and the vehicle they use to transport the goods. Though they release the vehicle the next day, this can cause inconvenience.
GST simplifies matters
The introduction of the GST system has simplified the method of tax payment. You can move goods anywhere in India with only one bill. The consignee, consignor, or the person responsible for the transportation of the goods must print the bill. They need this bill only if the value of the goods exceeds INR 50,000. If the goods have a lesser value than this, they need not produce the bill.
Under the new law, different kinds of GST returns are applicable. The first thing is to get registered under the GST Act. All those registered must give complete details of the services and goods. This will include the tax you paid on these goods and services. But, the process is simple since you can file the returns online.
Different kinds of forms and their uses
The first is the GSTR-1 that you file for the outward supplies of goods and services. To do this, you use the GSTR-1. The return filing in GST for this must take place before the 10th of the next month. In this, the registered taxpayer will give the details of the outward bound taxable goods or services. The other details of the business will come under the GSTR-2.
If the registered taxpayer has inbound services and goods, then he uses the GSTR-2. He files returns for the taxable services and goods and in the process claim the credit for the input tax. The GSTR-2 for the inward supplies must reach the government office before the 15th of the next month.
More tax returns forms
The registered businessman must submit the monthly returns of the outward and the inward supplies. For this, he uses the GSTR-3 and this form must reach the government portal before the 20th of the next month. The businessman must also file his quarterly returns. This must occur before the 18th of the month following the quarter. For this, you use the GSTR-4. If you are a non-resident person, then the tax return must reach before the 20th of the month. The tax return form is GSTR-5.
You can use the help from people who provide the tax return service. For a nominal amount, they will calculate the GST, file the returns, and balance your books. The GST for software will depend on the usage of the software. According to this, you must file the returns. In the same way, the distributor of the input service will file his return before the 13th of the next month using the GSTR-6 form.
The tax collector or the e-commerce operator have to file the details before the 10th of the next month. The annual return must reach the government portal before the 31st December of the next financial year. They will use the GSTR-9.