A Comprehensive Guide to GSTR Compliance
A Comprehensive Guide to GSTR Compliance
Stay informed, Stay ahead.
India introduced the Goods and Services Tax (GST) system on July 1,2017 with a view of reforming the indirect tax structure in the country by merging various state-level as well as central taxes into one single unified tax. One of the essential components of this is Goods and Service Tax Return (GSTR). This blog aims to give an all-inclusive comprehension of GSTR including its kinds, filing process, and compliance requirements.
What is GSTR ?
GSTR refers to a group of returns in which the registered businesses have to file their income, sales and purchases under the GST regime. These are used by tax authorities in calculating government/ taxpayer liability and also ensure that there is adherence to these laws.
Types of GSTR
Process for Filing GSTR
Data Collection: Gather all the data regarding sales, purchases, input tax credits, and tax liability.
Preparation: Prepare the GSTR form applicable in your case with the help of collected data. Many businesses use accounting software integrated with the GST portal, which makes this easier.
Uploading: Upload the prepared return on the GST portal at www.gst.gov.in.
Reconciliation: Reconcile the uploaded data with the returns filed by your suppliers (for GSTR-2A/2B).
Verification & Submission of Return: Thereafter, the return is to be verified and then submitted on the portal.
Payment: The tax liability, if any may now be paid through the portal.
Acknowledgement: After the return has been filed and the payment is made an acknowledgement is generated.
Compliance Requirements
Maintain an accurate and up-to-date account of all transactions.
Reconcile the accounts regularly with the returns filed.
Adhere to all the time limits given for filing different GSTRs.
Pay any outstanding tax liability on time to avoid interest and penalties.
GSTR understanding is essential for the smooth functioning of a business under the GST regime in India. It enables compliance with tax laws and has smooth business flows without any penalties. Thus, informed and organized, businesses will strongly be able to manage their obligations under the GST regime and help in the transparent and efficient tax system that the framework of the GST has envisioned.
Please do not hesitate to contact JJ Tax in case of any queries or for any clarification regarding GSTR filing.